MANAGEMENT OF RESOURCES

MANAGEMENT OF RESOURCES

MANAGEMENT OF RESOURCES

1.“It is imperative for organisations to align their HR strategies to their corporate strategies”.

In today's intensely competitive and global marketplace, maintaining a competitive advantage by becoming a low cost leader or a differentiator puts a heavy premium on having a highly committed or competitive advantage lies not just in differentiating a product or service or in becoming the low cost leader but in also being able to tap the company's special skills or core competencies and rapidly respond to customer's needs and competitor's moves.

Strategic human resource management has been defined as “the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals” (Wright & McMahan, 1992). Strategic Human Resources means accepting the HR function as a strategic partner in the formulation of the company's strategies as well as in the implementation of those strategies through HR activities such as recruiting, selecting, training and rewarding personnel. Similarly HR management is in a HR management is in a unique position to supply competitive intelligence that may be useful in the strategic planning process. HR also participates in the strategy formulation process by supplying information regarding the company's internal strengths and weaknesses. The strengths and weaknesses of a company's human resources can have a determining effect on the viability of the firm's strategic options.

In brief, a strategic perspective of HRM that requires simultaneous consideration of both external (business strategy) and internal (consistency) requirement leads to superior performance of the firm. This performance advantage is achieved by: 1) marshalling resources that support the business strategy and implementing the chosen strategy, efficiently and effectively; 2) Utilizing the full potential of the human resources to the firm's advantage; 3) leveraging other resources such as physical assets and capital to complement and augment the human resources based advantage. Other key advantages and benefits of Strategic Human Resource Management include: taking proactive strategic approach to positioning the people in organization to maximize competitive advantage, partner HR with line management to resolve people related issues, a cross-functional approach for dealing with people management issues; to identify the high leverage people strategies that will provide maximum advantage to the organization.

In conclusion, there are a great many theories and practices can be applied to HR Management. What is apparent out of all these different models is that strategic human resource management is vital to the ongoing success of an organization in today's highly competitive market place. It is apparent that all of the HRM models such as universalistic, resource-based and configurational are relevant and useful to organizations. The methods used just depend on the size and structure of each company.

Corporate Strategy

The goal of any corporate strategy is to position the company so it is best able to defend against competitive forces or influence those forces to work in the organization's favor (Eastern Illinois University, 2009).

Dynamics, Sustainability, and Change

Changes in the competitive, technological, or regulatory environment often dictate that corporate strategies be adjusted or altered over ...