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Today, the business world becomes more global, uncertainty, and competition. In the past, the importance of human resources management may ignore during the competition. But in the present competitive environment, more fact show the human resource can be the innovator to strategies to improve job performance and give organization a competitive edge. As the market become more global that managing people also becomes more challenging and the managing people effectively become more importance. There are many organization devoting more time, attention, and resources to have a competitive edge. The companies who stand in the high level human resources management performance have more effective in the competitive environment. Human resources will be helping the organization make a significant impact on the primary sources of competitive advantage in today's marketplace.
In the real business world, no matter where we go, no matter what kind of companies and organisations, they all can not survive without strategy, structure, and HR practise. These three elements must be maintained on a high degree of consistency to achieve the company vision in the real business world.
Firstly about the strategy about the organisation, there are four critical points to establish the strategy before the business operating. The first key is vision, mission and competitive advantage, which describe the business a company is in, it's current and long term market objectives and the manner in which it differentiates itself from the competition. The second and third key strategy element is external and internal assessment. External Assessment is reflects an approach of organization to gathering and analysing essential market data. Internal Assessment is the key strategy element that reflects the ability of company to objectively evaluate its own strengths and weaknesses. The final element of organizational strategy is objectives and goals. The illustrate an ability of company to articulate what it wants to accomplish, how it will do it, and when it will be achieved. Hence, the strategy of organisation should be according to the vision and mission of organisation. The vision gives the objective to organisation that is the strategy of organization must be depending on. And the objective give the mission to strategy that can be made the vision become truly.
Secondly, Organization structure means that an organization arranges people and jobs so that its work can be performed and its goals can be met. The organisation can be established through many different ways or styles that must be depend on their objectives. The structure of an organization will determine the modes in which it operates and performs.
Thirdly, Human Resource Management practices, refer to organizational activities directed at managing the pool of human resources and ensuring that the resources is employed towards the fulfillment of organizational goals (Schuler & Jackson, 1987; Schuler & MacMillan, 1984; Wright & Snell, 1991).
From above discuss, easy to see the final purpose of these elements is reached their mission as far as possible that is way to face the objective of organization. All elements are working for the vision of organization. Therefore, these elements will be more powerful to make organization truly face their objective when they are keeping achieve congruence. If they are only work for their own purpose but they do not work gathering to reach same purpose. The damage for organization cannot be image.
As the market become more global that managing people also becomes more challenging and the managing people effectively become more importance. There are many organization devoting more time, attention, and resources to have a competitive edge. The companies who stand in the high level human resources management performance have more effective in the competitive environment.
ââ‚¬ËœOne of the aims of HRM is to give an organisation a competitive edge.ââ‚¬â„¢
For this statement, the answer is definitely yes. In the present day, the organizations are facing increasing competition from globalization and free market. There is an issue on how to ensure competitive advantage. Competitive advantage refers to the ability of an organization to formulate strategies to meet profitable opportunities. A human resources management practice is primary organization systems that motive employees. This is way to manage the organizational system and people in order to match customer and strategic needs. Basically there are three specific ways that HRM activities can build and sustain a business's competitive advantage
2.1 Strategy Implementation
Every business need to meet the needs of its customers in more effective ways through continually assess and establish new strategies. The business strategy is concerned with achieving competitive advantage. The organizations not only require setting up their strategy, but also have to develop and implement strategy. Human resource management practices are the way used to focus people's attention on the major strategic issues in the organization. When the change of strategy happened by organizations, Human resource management practices should be managing people to improve the performance effective during the new strategy process.
Strategies are abstract and easy to be translated in the wrong way when they deliver into action. Human resources strategies often result failure, because they often misunderstand the strategies need of the business when attempting to implement strategic initiatives, with the result human resource strategies initiatives may see as irrelevant. Through full assessment on strategic may affect by environmental and cultural factors that can be solve this complex problem. HR practices ensure that a coherent, holistic approach is adopted (Storey1992 p219). To overcome this problem, must be through analysis very seriously. Included business needs, corporate culture, and internal and external environment factors. The framework could be a SWOT of the organization. Last, the establishment should set out the reason for the strategy and spell out its aims, cost and benefits. (Stoyanova 2005 p219-220)
2.2 Respond to Change
Organizations may meet some change likely to satisfy, retain, and attract customers in the increasingly competitive environment. To solve these problem human resource management cab be a tool, like hiring some peoples who are flexible and training people to fitting the change. Encourage employees innovative also can improve the performance standards.
2.2.1 Recruitment and selection
Staff recruitment and selection process becomes more complex and Weather Human resource strategies successful, is very importance for job performance and organizational success. The organizational competitiveness should be considered during recruitment and selection, if not may lead a failure result for future job performance. Jobs change accordingly as organizations respond to economic and technological pressures (Nankervis, Compton & McCarthy, 1999, p.190). The organization's external environment directly affects the organizational context (Irwin, 2003, pp.6-7).
2.2.2 Key factors for successful recruitment
The key factors for successful recruitment are job analysis and job design. Changes in organizational structures and strategies, employee skills, competencies are the main source of information about the position to be filled and type of person to fill it.
Further, intensified competitive pressures, changing technology and market uncertainty has made the employment decision more complex. Thus, the methods for gathering information are crucial for the accuracy of the job analysis (Compton, Morrissey & Nankervis, 2002, p.30).
2.2.3 Problem faced in during recruitment process
During the recruitment process, management may not effectively sourcing potential candidates; this may affect the competitive advantage, this because of the inability to acquire skilled workers. (Compton, Morrissey & Nankervis, 2002, p.29). In such situation, the job requirement may change by organization's strategy structure. This will result in poor job performance when recruitment or selection incorrect.
2.2.4 Evaluation of recruitment method
Because of incorrect selection during the job requirement change, the human resources management should be evaluating the recruitment the method. They need to avoid the mistakes may occur that can be improve job performance in order to reduce the affect organization competitive advantage. Through the accurate and objective understand about candidates, such as training time, labour turnover, absenteeism and performance. And reduce the frequently change in job requirements to keep the selection correct that can save time and resources of organization. According to organization strategies and structure establish a common job requirement; base on the objective selection that will be more effective during the recruitment process. Once the recruitment method evaluated, that will be more effectively and attracting the right applicants for the available position. It is pertinent to address the selection process and methods used to eliminate unsuitable applicants.
2.3 Motivating Employees
In the present day, the biggest task in front of a human resource manager is to encourage and retain employees. Any failure about this effort is because of the manager having not understood heart of employees. The motivation as an organization important key word often ignores. There are many types to identify motivation, but managers must combine organization goal and employeesââ‚¬â„¢ personal needs. The goal is increase productive effective and maximum profit for organization. The motive purpose is improving the job performance through motive employees. These two party relationships are cannot be separate. Thus, manager must be clear knows the needs of employees before motivating.
2.3.1 Motivating techniques
Motivate employees are big challenge because they are individuals. There is no one strategy can be satisfaction all peoples, meaning what work for one, but not another one.
Get to know every employee
Before the now work start, manager can communicate with every employees one on one and face by face. That will be a big encourage to each one of them. They may feel they an importance individual in the project. And this behaviour can show respect to everyone from manager.
Give employees as much control as possible over their work
During project performance, the employees need more personal control on their position. Manager should be give more space to using their own mind but not limit their control on the job. If manager give employees as much control as possible over their work, they will become more energized, enthusiastic, and productive
Challenge them to improve the operation
Managers can make clear job requirement for employees before new work start. And managers may give some recommendations during the work process when they after take hard look and analysis at the whole operation.
Motivation can be properly or improperly achieved and can either hinder or improve productivity. Motivation involves getting people to do something because they want to do it. The competitive advantage cannot be achieved without knowing what is important to associates. Simply stated, if the proper motivational environment is in place, the business will be rewarded with productive associates.
Organization will face more challenge in increased globalisation, competition and technological advances. These challenges will affect change in organizational strategy, structure, shape and technology; these environmental forces require speed, quality, innovation and globalization for firms wishing to survive in the battlefield of international arena with a competitive edge. These environmental forces have given rise to the need for understanding and utilizing knowledge in strategic human resource management. To response those change, human resources manager must approach the recruitment and selection process from a strategic perspective. Recruitment and selection strategies and policies must integrate within both HR and organizational strategies.
Motivating methods encourage employees to contribute their ideas for improving their organization. Implemented on their own, each of those practices will have less impact and more control by them. It will improve organization's effectiveness if all managers were to systematically seek out and implement these kinds of suggestions from front-line employees. Through improve employee emotions, they will helping the management team optimize employee emotions, they will raise competitive advantage in todayââ‚¬â„¢s marketplace.