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Hrm Gives A Competitive Edge

HRM gives a competitive edge

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One of the aims of HRM is to give an organization a competitive edge.

1.0 INTRODUCTION

As we enter the new millennium more and more companies are recognizing the importance of managing their human resources as effectively as possible. They are also recognizing that doing so, however, cannot be done without recognition and incorporation of the global context. It is virtually impossible to read a business periodical or newspaper anywhere in the world without seeing stories detailing the success of a company due to how effectively it manages its people. As the environment becomes more global, managing people also becomes more challenging, more unpredictable and uncertain and more subject to rapid change and surprise. The importance of managing people effectively, many companies are devoting a great deal more time, attention, skill and effort to have a competitive edge. Researchers indicate that the competency levels of HR managers in high performing firms are significantly higher than those of HR managers in low performing firms. (Stone 2005 pp 9-10).

Within the context of the business, this report will discuss the three areas of study regarding managing human resource in a competitive environment: Strategic human resource management; Recruitment and selection and motivation.

1.1 STRATEGIC HUMAN RESOURCE MANAGEMENT

Business strategy is concerned with achieving competitive advantage. The effective development and implementation of strategy depend on the strategic capability of the organization, which will include the ability not only to formulate strategic goals, but also to develop and implement strategic plans through the process of strategic management. (Sparrow 1994)

1.1.2 Strategic HRM models

Strategy is about implementation, which includes the management of change, as well as planning. (Sizani 2000). Three models are used in this process. Firstly, high...