Human Resource Management : A Competitive Advantage Essay

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IV. HUMAN RESOURCE MANAGEMENT AS A COMPETITIVE ADVANTAGE “It allows a firm to gain an edge over rivals when competing. It comes from a firm’s ability to perform activities more distinctively and more effectively than rivals. ” Competitive advantage refers to the ability of an organization to formulate strategies for the exploitation of opportunities that are to be presented in external environment. Liberalization created a hyper-competitive environment to respond to this turbulence, Indian organizations adopted innovative HR practices. Competitive advantage occurs if the customers have the perception regarding whatever they receive from the organization in respect of their investment is valuable. To take that advantage, the Organization must have a single-minded focus on customer needs and expectations. Further, to achieve this organization needs to tune its policies and strategies in line with changing customer’s taste. The second principle of competitive advantage derives from offering a product or service that your competitor cannot easily imitate or copy. An organization should always try to be unique in its valuable products and services that are widely valued by their customers. [5] In order to get the benefit of competitive advantage, the firm should be a cost leader, means they deliver their products that are valuable for money. It is possible by means of the committed competent workforce. As human resource is the only factor among the factors of production which
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