Determining and identifying the distinctive capabilities of existing employees also very important while implementing competitive strategies. Strategic Human resource management to be determined above distinctive capabilities with “resource-based view” in order to ensure the existence of required skills, knowledge and motivated employees, to sustain the competitive advantage. (Armstrong.M, 2010)
Resource Based View
Source : Armstrong’s essential human resource management practice: a guide to people management / Michael Armstrong.
As shown, the aim of the resource-based view is to identify and develop the capabilities of human resource. the resource-based view will help to develop the strategic thinking of managers, understand the key strategic issues and solve difficulties strategically to make sure the organizational strategic goals are in the correct path. Developing the strategic thinking of employees will facilitate the implementation of the organization strategies. Furthermore, the resource-based view will identify and also will develop the unique and distinctive characteristics with creating a Human resource pool with unique capabilities, which cannot be imitated and it will sustain the competitive advantage of the organization. (Armstrong.M, 2010)
Reference :
Reference :
- Armstrong, M. (2010) Armstrong’s essential human resource management practice: a guide to people management. London, Kogan Page.
- Schramm,J (2016) The Big Issues Facing HR. SHRM [on line]. Available at<https://www.shrm.org/hr-today/news/hr-magazine/0316/pages/the-big-issues-facing-hr.aspx>.[Accessed on 23rd April 2019].
If there is a sustain competitive advantage only the company can generate more functional and goal oriented strategic plans (Alvesson 2009). As mention each organization should have the people who is skilled, engaged, committed and self-motivated it’s a HRM role on each aspect to make sure the employees are on the same level of understanding or the contribution. By doing this the organizational capability will increase and staff will be motivated to stay longer in the organization.
ReplyDeleteAlvesson, M (2009) Critical perspectives on strategic HRM, in (eds) J Storey, P M Wright and D Ulrich, The Routledge Companion to Strategic Human Resource Management, Abingdon, Routledge, pp 52–67
RBV is a very effective theory to achieve competitive advantage over competitors. Identifying the critical resources in the organization and it will help to develop the organization’s key resources and to maximize returns. Furthermore, RBV will improve the leaders / managers strategic thinking as well. Strategies cannot be implement if the organization is not aware about their capabilities therefore RBV is very important to identify organization’s unique capabilities. Armstrong, M. (2010)
ReplyDeleteArmstrong, M. (2010) Armstrong’s essential human resource management practice: a guide to people management. London, Kogan Page.
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ReplyDeleteIt is important to protect / secure the skilled and knowledgeable
Deleteworker’s in any organization. due to the high demand, employees have
alternative choices. Therefore, protecting the existing skills, is
very important to gain the competitive advantage and also the
sustainability of the competitive advantage over competitors.
In terms of finding solutions for the Recruiting right people who stay with high performance in the company is to hire individuals referred by existing employees. Current employees can contribute much more in recruitment process so organization can offer some bonus to employees for successful referrals (Myrna, 2008).
ReplyDeleteStrategic human resource management is, ways of describing how the HR
ReplyDeletedepartment can be supported to achieve future organizational goals. It
will provide direction and also practice of SHRM such as training and
development, labour relation etc. Will increase the productivity and
confidence of the employees and also it will help to sharpen their
skills as well Employee’s skills, capabilities and experience are
regarded as an inestimable asset and source. Having skilled and
motivated workforce can be perceived as fundamental to competitive
advantage. (Riordana,O.J 2017)
Reference
Riordana,O.J (2017) The practice of human resource management.
Institute of public administration.
Resource based view explains, human resources are the main sources for competitive advantage. By Retaining and recruiting talented workforce and gaining their contribution, HRM can lay the base for sustained competitive advantage. Taking the most out of human resources is the best way to achieve competitive advantage (Narang and Sharma, 2014)
ReplyDeleteReference:
Narang, M and Sharma, A (2014) achieving competitive advantage through HR practices. International Research Journal of Humanities, Engineering and Pharmaceutical Sciences, 1(7), pp. 19-24
Porter proposed the esteem chain as the major tool for identifying potential sources of value enhancement. Human resource management is a support activity that happens all through all essential activities, for example, operations, logistics, marketing and sales and administrations (Porter, 1985).
ReplyDeletePorter, M., 1979, ‘How Competitive Forces Shape Strategy’,Harvard Business Review, March–April.
it's about recognizing the strategic importance of human capital because of the enormous value that better talent creates (Michaels, Handfield-Jones and Axelrod, 2001).
ReplyDeleteMichaels, E., Handfield-Jones, H. and Axelrod, B. (2001). The War for Talent. Harvard Business Review Press.
The resource based theory or resource based view helps in determining the resources available within the firm and relates them with the capabilities of the firm in a silent manner. This brings into consideration, the profitability and the value factor associated with the firm (Colbert 2004). It is a well known fact that resources and competitive environment will help the organization to improve productivity and acceleration of performance and at the same time manage resources effectively
ReplyDelete