Human Resources Source Of Competitive Advantage Commerce Essay


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Human resources are the sources of competitive advantage for the business therefore attention need to be paid to the nature of this resource and its management as this will impact on human resource behaviour and performance and consequently the performance of the organisation (Torrington 2005).Human resource strategy is the intention of the corporation both the explicit and covert, toward the management of its employee, expressed through philosophies, policies and practices (Tyson 1995). SHRM is rooted in man power planning that is a organisational system designed to achieve sustainable competitive advantage through the people(Snell 1996).Some one review SHRM is a process that linking HR practices to business strategy (Ulrich 1997).

Strategic planning is about collecting the relevant information to stimulate the visioning process and also programming the vision into what need to be done to get. Planning cannot generate strategies, but it can make them operational by clarifying them, working out the consequences of them, and identifying what must be done to achieve each strategy (Torrington 2005). Planning ensure the coordination and encourage everyone to pull in the same direction. Strategic human resource planning is important to identifying gap in capabilities such as lack of sufficient skills, people or knowledge in the business which will prevent the strategy being implemented success fully.

Strategic human resource management can cover the various HR strategies to fair and equitable reward, to improve performance or to stream line structure. SHRM is the overall frame work that decides the shape and delivery of individual strategy. SHR is not same as strategic planning ( strategic planning is the formal process that takes place, usually in large organisations defining how things will be done. SHRP consider the number of employees and the levels and types of skill in the organisation.the demand for manpower os influenced by the corporate strategy and objective. The supply of manpower is projected from current employee (via calculation about expected leavers, retirement, promotion) and from the availability of the required skills in the labour market.The strategic HR plan is very important to an organisation because it involves not only for the number of people but also for the soft issues of employee behaviour, organisational culture and system which is having major impact on business success in current environmentr.

The link between business and HR strategy

People is a biggest assets in majority of the organisations. If the organisation need to create the value in the competitive world that can only be achieved by deployed the potential knowledge, skills and ability of human resources ( is very important to an organisation for long term sustainable performance. SHRM is based for the business strategy both must be mutually informative. In what way people are managed, motivated, and employed and the availability of skills and knowledge will alls shape the business strategy. Individual HR strategy may be shaped by the business strategy for example while the business strategy consider to improving customer service, this will be implemented by training plans or performance improvements plans

The fit model represent a growing recognition of the importance of people in the achievement of organisational strategy(Torrington 2005).Employee are seen as key in the implementation of the declared organisational strategy and human resource strategy is designed to fit with this. HR function is required to respond to organisational strategy which meets organisational demand. The holistic model suggest that the people of the organisation being recognised as the key to competitive advantage rather than just way of implementing organisational strategy. (Torrington 2005). Therefore Human resource strategy become critical and there can be no strategy without human resource strategy (Baird 1983).If the people are the key to competitive advantage then every business need to build on their people strengths. The human resources are implementers and driving force in the formulation of business strategy.

HR manager contribute to the development of an organisation wide- business plan and objective by ensure the HR process are going in the right way. The HR business objectives are established to support the attainment of overall strategic business plan and objective. The SHRP involves design of work position, hiring, reward, recognition and strategic pay, performance development and appraisal system, career and succession planning and employee development.

Contribution of HR manager to SHRP

HR manager plays in important role in the SHRP. The evaluation of strategic planning is very important to successful implementation of the strategy the environment have great impact on both organisation and human resource strategy by influencing through un known factor for example the HR role in analysing environment that how difficult or easy to find the employee with required skills and what these employee will expect from employer so that organisation can attract them. Therefore HR manager make sure about staffing before implementing. The consideration of legislation it allow or limit the condition of employment that organisation offer. Over staffing

The HR manager should be considering about the competitor when they design the HR strategy because it will effect the hiring of skilled employee. The HR manager should aware of that what competitors are offering to employee, this will help to strategic human resource planning to be success. The staffing plan is very important to an organisation because over staffing or under staffing will affect the organisation performance and the resources. Over staffing is wastefull and expensive , if the firm hire more staff it is very costly to organisation eliminate from the business because of the morden legialation. In the areas of redundancy payment consultation, minimum period of notice as well overstaffing reduce the competitive efficiency of the business.

Baird,L., Meshoulam,I. and DeGive, G. (1983)’Meshing human resource planning with strategic business planning: a modl approach’,Personnel,vol.60,part 5,pp14-25.

Tyson,S.(1995) Human resources Strategy:Pitman.

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