Human Resource Management

Table of Contents

Human Resource Management3

Introduction3

Discussion Analysis3

Competitive Strategy4

Competitive Advantage5

The Environmental or Position Model5

Cost Leadership Strategy6

Differentiation Strategy6

Quality enhancement strategy8

Innovation strategy8

Cost reduction strategy8

The Resource-Based View Model8

Competitive Advantage and Strategic HRM9

The Matching Model9

Example of UK's SME10

Conclusion11

References12

Human Resource Management

Introduction

It has been observed that the affects of Human resource potential over the performance of firm and its participation in formulating business strategies are being progressively significant in the world of corporation. Undoubtedly, HRM is in debate nowadays that it is concerned with the association between Human Resource capabilities and the entire performance of organization. In the modern times, economic competition is an issue of products and services. Most of the firms are directing their attention to a good service and the excellent quality product, but the question raise how it can be gained by utilizing the human resources. The paper is designed to identify the models and concepts of competitive advantage, its strategies and key practices of human resource, which has crucial impact over the performance of employees. This assignment will also include the example of Electronic Manufacturing industry in the UK. Furthermore, it is presented that the developing participation of Human Resource in the implementation and development of business strategy will direct to the enhanced effectiveness of the organization.

Discussion Analysis

It has been seen that organizations are regarded as an interrelated organism that discovers better ways to do things fundamentally in reaction to their environment (Child 1997: 67). The basic question rises that how the firm optimizes and maintains its situation in these environment? It was suggested by Barney, resource must add value to the firm, in order to be eligible as a resource of competitive advantage. It should be inimitable and rare, and not substitutable (1991). It is shown by Wright, et al 1994 that human resource meets the criteria of Barney for being a resource of sustainable competitive advantage. On other hand, Coff argued that the assets of human are the main source of sustainable benefit, because of systematic information making and causal ambiguity (1994). It is suggested by Guest that if authority trust their employees and offer them challenging assignments, as a result they would respond with elevated motivation, high performance and high commitment (1990). Gratton 1997 recognized 6 factors for success: the core capabilities of the management team; the commitment of top management; its ability to build and maintain alliances; the motivation and aspirations of recruits; the aspiration of team; and the incorporation of business into a global network. In the simple words, success does not rely mainly on the volume of products or budget. It clearly depends over the attitudes of employees, their skills and competencies, ability and commitment, communication aspirations and team work. It is apparent that the resources of competitive advantage are the employees itself. The concept of Human Resource in its classic sense obtains by the view that the management of people is a chief source for insuring competitive advantage.

Competitive Strategy

The notion of strategy is derived from Greek word 'strategos', which means lead or army (Legge 1995: ...