How Hr Contributes Towards Making Their Human Resources Into a Competitive Advantage

2487 WordsMar 13, 201010 Pages
Introduction The scope of this essay is to critically evaluate why it is important for companies to make their human resources into a competitive advantage and how HR contributes towards this process. It was always feared that machines will replace the need for people at work. But in reality, it’s just the opposite. People are more important in today’s organizations than ever before. As Edward L. Gubman author of The Talent Solution, (cited in Bohlander et al, 2007, p.4) points out, “in many fast-growing economies, it maybe easier to access money and technology, than good people.” Successful organizations are particularly good at bringing together different kinds of people to achieve a common purpose. People can make a difference when…show more content…
Linking HRM to Organizational Strategy MacMillan (cited in Gaining competitive advantage, p.1) suggests that, to gain competitive advantage, HR managers should understand the response barriers, intelligence systems, preemption potentials, infrastructure requirements, calculated sacrifices, general management challenges and take many more aspects into consideration. HR managers must be constantly alert to new ways of gaining the upper hand over rivals. In other words, they should become more strategic. Those days, HRM was considered as administration and nothing much. It centered around routine tasks such as record keeping and maintenance. And it was also known as personal administration (Managerial auditing journal, 2003) and the HR those days did not interfere in the strategic plans of the organization. Higher level managers considered HRM as something which was not necessary for the organization because it did not contribute to productivity and the profit levels of the organization. But today HRM has gained more importance in most organization. Most executives viewed human capital as a cost needing to be controlled or minimized. Now, they realize that employees contribute significantly to the financial performance of the organization. This fresh perspective on the value
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