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Strategic Human Resource Management: Assignment
Strategic Human Resource Management: Assignment
Assignment
Submitted To:
Mr V. P. Kakkar
Submitted By:
Varun Gupta SEC D A1802010055
Question No.1: Why is a competitive advantage based on heavy investment in Human Resources more sustainable than investment in other type of assets?
Answer: In todays fast-paced economy competition is an issue of services and products. Much attention has been directed to a better service and the best product and how this can be achieved through utilizing the human resources. Human resource management (HRM) refers to the policies, practices, and systems that influence employees behavior, attitudes, and performance. Many companies refer to HRM as involving people practices. When a firm is implementing a value creating strategy not simultaneously being implemented by any current or potential competitors, then we can say the firm has a Competitive advantage. And when a firm is implementing a value creating strategy not simultaneously being implemented by any current or potential competitors and when these other firms are unable to duplicate the benefits of this strategy, then we can say the firm has a sustained competitive advantage. Traditional sources of competitive advantage, such as production capacities, research laboratories, access to financial resources, distribution channels or economies of scale, are necessary but not sufficient for success in today's business world. It is commonly acknowledged "people are the key assets in the new world market and that all other assets are nothing more than commodities that can be purchased at market prices, because only the human asset has potential to learn, grow, and contribute". As "we do live in a world in which knowledge, rather than physical capital, is increasingly important, we need smart people who can do great things--increase productivity, build new products and services--and do so even more quickly". Researchers emphasizes the role of employees for achieving enterprise goals, employees are the most important enterprise asset and human capital represents the only sustainable source of competitive advantage. In other words, "the biggest, most valuable asset any company has is its people, because all management plans for success enhancement are carried out, or fail to be carried out, by people". Consequently, human resource management (HRM) deals with recruiting, developing, and keeping the best people. It now has the opportunity to move out of the background and into the mainstream organizational strategy and management. In a world where "all work is knowledge work and intellectual capital is crucial for economic success, it is logical that the ability to attract, retain, and use the talents of people provides a competitive edge". So, a company should invest more towards Human Resource Management to increase their productivity.
So, in this way competitive advantage based on heavy investment in Human Resources more sustainable than investment in other type of assets.
Pushing employees during hard times may be a method of survival. The message is to treat employees with respect, acknowledge their sacrifice and to reward them.
In order to be successful the employees should be developed in such a manner that they can be the competitive advantage, & for this the human resource management must be an equal partner in both the formulation & the implementation of the corporate & competitive strategies.