CAN HR STRATEGY BE A SOURCE OF COMPETITIVE ADVANTAGE? HOW SHOULD FIRMS FIT THEIR HR STRATEGY WITH THEIR INTERNAL AND EXTERNAL CIRCUMSTANCES? ILLUSTRATE WITH SUITABLE EXAMPLES.

Can HR strategy be a source of competitive advantage? How should firms fit their HR strategy with their internal and external circumstances? Illustrate with suitable examples.

Can HR strategy be a source of competitive advantage? How should firms fit their HR strategy with their internal and external circumstances? Illustrate with suitable examples (Armstrong, 2004).

Human Resource Management



Human Resource Management

Introduction

Any company or the organization is that entity where two or more than two people combine their business activities in order to attain one specific goal. The core reason for existence of any firm is achieving goals and earning high profits. There always lie talks on the ways through which companies can continuously earn profits. Another word 'strategy' is also commonly heard in this context. It has been said that strategy alignment n a proper manner is yet extremely important. In this essay I will also explain how firms can achieve competitive advantage through Human resource practices. The study also evaluates the linking strategic effect on HRM which improves employee's performances. The organizations have this dilemma about the usage of technological, financial and human resources. In accordance to the Porter view, organization must need to use those resources that are imitable, unique, valuable and rare. With this respect, there found a shift to human resource from financial aspects. Organization can have sustained competitive advantage only when the strategies which are applied by the company rather applied through other competitors which usually are really hard in implementing them. The core of the study is to understand that what strategy is that? And which aspect to that strategy would give importance to HR? The 'strategy' is defined as those plans and techniques which are deployed by the firm itself for attaining the competitive advantage through operating profitability. It also relates to companies long term planning. These resources based view to the strategies look at it as ways in creating the opportunities through using internal resources along with competencies of the organization . Through this the employees of the organization are considered to be the resource of knowledge, experiences and skills which are present in them and are the core for any organization's performance. Also the HRM is that branch which deals in managing the employees and use or polish their knowledge for attaining effectiveness. The study will discuss the competitive advantage of HRM along with how the HR strategies must fit with the strategic management of the organization (Armstrong, 2004).

Discussion

the view of resources discussed above overlook the employees as resources which are valuable is rare and it is hard to imitate their knowledge and it provides competitive advantage to the organization . The strategic human resource management is defined as a predestined step of the HR activities for development which are undertaken in order to achieve the goals of the organization ...