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Hrm328

In: Business and Management

Submitted By stelladu1006
Words 1880
Pages 8
STRATEGIC HUMAN RESOURCE MANAGEMENT

An organisation which builds a relatively consistent pattern of superior returns for its shareholders has developed some form of ‘sustained competitive advantage’ (Porter 1980,1985). Taking a balanced approach, discuss Porter’s statement and include in your discussion reference to the theoretical implications of the resource-based view of SHRM and its limitations

In the past decades, companies have consistently planned their strategy analysis based on the opportunities and threats created by the external environment. In recent years however, technological advancement, political and other economical factors have created many competition and barriers in the marketplace. With the great uncertainties pose a tremendous challenge on businesses attempting to gain steady competitive advantage in the market, as long-term strategy making assumes a relatively stable world, overlooking needs for changes in the business practices. This consequently forced companies to shift their organisational strategic goal to incorporate the importance of human resource management by further analyse its internal resources and skills to achieve sustained competitive advantage in the market. Henceforth for the last decade, strategic human resource researchers have increasingly looked into associating resourced-based approach in attempts to maximize business performance and gaining competitive advantage through internal development (Darroch, 2005).

Assuming a firm is recognised for having sustained competitive advantage in the market means that the company has a relatively enduring form of competitive superiority based on distinctive and enviable competence or capability that competitors may have become frustrated trying to copy (Barney, 1991). This can be viewed as having human resource advantage over the company’s competitors. Though recruitment is

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Hrm328

...HRM328 Essay Plan * RBV definition: internal resources, capabilities and competencies of the firm * Such as knowledge, learning and dynamic capabilities * Definition of a resources: physical capital, human capital and organisational resources- these resources are the ingredient in creating a sustainable competitive advantage * Definition of a competitive advantage and the characteristics of a sustainable competitive advantage- Barney’s Criteria * Human resources as a firms source of competitive advantage * Need for high-cognitive workforce (build core competencies through distinct capabilities)- static and dynamic environments * Need to build strategic management processes * Human resource practices- the source of sustained competitive advantage lies in the human resources themselves, not the practices used to attract, utilise and retain them (practices are not rare, inimitable and non-substitutable) * The role of managers in developing human resources * Developing practise and programs such as training and appraisals to enhance the capabilities of the pool of human resources- therefore contributing to a sustainable competitive advantage * Cultural diversity in human capital serves as a source of sustained competitive advantage because it creates value that is both difficult to imitate and rare * Practical application of the theory * Implications for strategic human resource management * Benefits...

Words: 318 - Pages: 2