Competitive Strategy Essay
Competitive Strategy, 482 words essay example
Essay Topic: human resource, human resources, skill, practice
The economic landscape translates to mean HR practices will have to be reviewed frequently following a best-fit approach, in order to sustain competitive edge.
There's also impact on
c Staff recruitment and retention
c Job re-design
c Contractual agreements re-design
c Training requirement and reward systems
c Internal restructuring of job functions and roles
Enforcement of flat job structures- This will ensure only employees and external applicants with best skill sets are considered for job roles.
Schuler's Strategy stems from Porter's generic strategies of competitive advantages attainment
1. Cost leadership
-Cost leadership the firm produces its goods and services at the lowest cost, thereby maintaining market leadership via reduced cost price.
-Differentiation The organization produces distinct services and product offerings to the consumers and which they are ready to pay a premium for.
-Focus a niche market that's not targeted by either Cost leadership or differentiation. It can be implemented with either differentiation strategy or cost reduction.
Schuler stipulates that proper implementation of HR strategies will yield desired business objectives. Schuler's employee behaviour model is a based on Porter's model revised version where it clarifies HRM as very crucial in achieving the business strategy if properly coordinated (Schuler, 1984).
To achieve a competitive strategy, three different HRM strategies which are accumulation, utilisation and facilitation which are intertwined with Porter's three generic strategies can be used. Facilitation to be used in case of differentiation strategy, accumulation for focus and utilization for cost leadership.
2.0. RESOURCE BASED-VIEW
This implies that available organizational human resources be strategically developed in creating unique positioning and competitive advantage to fortify the capability of the organization.
It represents a deviation from conventional SHRM ideology through focusing on the organizational internal resources of Human resources which are seen as key strategic assets that can be used to sustain competitive advantage.
Implications of the resource-based view
This approach postulates that it is the available human resources in an organization and other resources, that builds a unique positioning and a competitive advantage, also known as the human resource advantage Boxall (1996).
A viable competitive advantage is achieved by HR through the strategic development of the unique organizational human resources.
The below attributes below are required for a resource to be able to create sustained competitive advantage according to (Jay Barney, 1991, 1995)
It impacts on the firms HR policies and practices as also validate investment in human capital management, knowledge management, talent management and learning and development
2.1 BEST PRACTICE APPROACH
This stipulates that companies, irrespective of the industry or setting can achieve competitive advantage by adopting bundles of HR policies and practices (Redman and Wilkinson 2009). It's a one size fits all approach.
Individual performance or revenue per employee is considered as benchmark for compensation, performance indicator and metrics. Also, the performance of the organization is intertwined with the HR practices and policies while high level of commitment and quality of service delivery