Hr Strategy & Competitive Advantage

In response to criticisms of the ‘best fit’ and ‘best practice’ approaches, the ‘resource based view’ model focuses on leveraging competitive advantage through both tangible and intangible organisational resources. However, questions arise regarding whether there is a best way of achieving strategic HRM. Evidence suggests that firms rarely adopt a single style of management and that it is likely that they use a mix of approaches for different groups (Wilton 2011).

Business environment is facing a rapid change that reminds the business management to focus on its core competencies to survive and sustain in the competitive environment. The core competencies can be developed by strategic human resource management. According to Armstrong (2006) employees are the valued assets for a company. The strategic human resource management is mainly developed in accordance to the fact that human resources need to be managed strategically for the company to enjoy sustainable competitive advantage.

Today 's fast-paced, competitive business environment has resulted in "rediscovery" of the human resource management function as a group that may be able to enhance firm competitiveness and performance by being "strategic" (Dyer & Kochan, 1995; Ulrich, 1997). Strategic Human Resource Management is a term describing an integrated approach to the development of Human Resource Strategy that will enable the organization to achieve its goals (Armstrong, 2005). Whiles strategy is an action that managers take to attain one or more of the organization’s goals. Strategy presents a general direction set for the company and its various components to achieve a desired state in the future. This results from the detailed

Wright and McMahan (1994) define strategic HRM as “the pattern of planned Human Resource deployments and activities intended to enable the organisation to achieve its goals.” A HR function should impact the success of an organisation; a policy must remain current and suitable to both the internal and external environment. Ulrich and Lake (1990) affirm, ‘HRM systems can be the source of organisational capabilities that allow organisations to learn and capitalise on new opportunities.’

There is a controversy whether the Strategic Human Resources Management (SHRM) leads to ‘high performance’. A general idea of SHRM is that “the linkage of management and deployment of the individual within the firm to the business overall and its environment whereas HRM is the activities that take place under this area.” Truss and Gratton (1994). It spotlights on long-term strategy.

The practise of Human Resources is moving from the traditional forms of managing people to a more strategic form whereby the Human Resources function is closely linked with organisational performance and success. This strategic form of human resources has increased the need for the Human Resource professional to understand the linkages between Corporate Strategy, Human Resource Strategy and Employee Integration.

RBT argues that the main sole source of sustainable competitive advantage of an organisation is the internal human resource assets that cannot be imitated by other (Barney, 199, 1995). Human resource by adding value and uniqueness through effective and efficient utilisation is considered as the main horizontal factor which aids the firm to reach to its planned goals and strategy.

Strategic Human Resource Management has been developed to give companies a competitive edge over other companies. Since widespread access to and the use of technology have resulted in tighter margins for maintaining a competitive edge,

The term Human Resource Strategy is well defined as - “Human Resource management (HRM) is a strategic approach to managing employment relations which emphasises that leverage people 's capabilities is critical to achieving sustainable competitive advantage, this being achieved through a distinctive set of integrated employment policies, programmes and practices.” [ Bratton and Gold,4e,p3]

In the past it was noted by Snell, Youngy and Wright (1996:62) that organisations would purposely 'take human resource out of the strategic equation'. Today it is widely accepted that linking HR to strategy because of a shift in ideas concerning competition and firm advantage (Snell, Shauder and Wright (2001:3)). This shift was identified by Quin (1992:241) "with rare exceptions, the economic and producing power of the firm lies more in its intellectual and service capabilities than in its hard assets"

Strategic human resource management as described by Nel et al. (2011:562) is “long-term, top-level management decisions and actions regarding employment relationships that are usually made and performed with the overall general strategic management of

Aim: This research will help us understand the role played by Strategic Human Resources Management in Organizational success, what role a HR manager plays in improving organizational efficiency and how it differs from traditional Human Resources Management.

Due to changes in the work environment to include globalization, technological changes, and tougher competition, Human Resource Management has taken on roles that have intermeshed them with the company as a strategic partner rather than just an individualized operating type system focused on simple tasks. Critical to a corporation’s growth and success is their ability to gain a competitive edge. Superior Human Resource Management assists the organizations fulfill its goals and attain success. This paper will outline why it is essential for Human Resource Management to transform beyond its administrative and operational functions to a strategic partner within an organization.

Activity 1.1 Strategic human resource management is an approach of managing human resources which supports to meet the long term business goals and achieving it through the strategic framework. The topics on which it focuses are long-term people issues, quality, structure, cultures, commitment, values etc.

Within this essay an in depth analysis will be conducted on the difference between Human Resource Management and Strategic Human Resource Management using contemporary perspectives. Human Resource Management (HRM) is the process of managing human resources in a systematic way. It is a practice devised to maximise the performance of employees and is concerned with the application of management principles to manage organisational personnel while paying attention to the policies and systems of the entity (Delaney & Huselid, 1996). Strategic Human Resource Management (SHRM) is a function of management which entails development of policies, programmes and practices related to human resources, which are aligned with business strategy so as to achieve the strategic objectives of the organisation (Patrick M. Wright, 1992). Its primary purpose is to improve the performance of the business and maintain a culture that encourages innovation and works continuously to gain competitive advantage. In this essay the Resource-Based View, High Performance Management and High Commitment Management perspectives of Strategic Human Resource Management and Traditional and Collaborative