Linkages between competitive strategies and HR

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Linkages between competitive strategies and HR


Competitive Strategy

A company's competitive strategy is its long-term action plan, which is intended to provide it a competitive edge over its rivals after assessing their industry-specific strengths, weaknesses, opportunities, and threats in comparison to your own.

Human Resource

The group of individuals who work for a given organization, business sector, industry, or economy is referred to as its human resources. Human capital, or the knowledge and abilities that people possess, is a more specific idea. Manpower, labor, personnel, colleagues, or simply "people" are comparable concepts.

connection

Corporations use employ human resources as a technique to be more competitive through their management approach. The HR department works side by side with the business' ambitions to achieve various objectives.(Porter, M.E,  1985).

In actuality, HRM plays a significant role in organizational strategy. Effective coordination is required to accomplish the goal.

To ensure the effective use of people and deliver better outcomes to the business in terms of ROI (return on investment) for every dollar spent on them, HRM needs to be linked with the overall strategy. The business will lose out if individuals

 

Unless the HRM practice is organized in this manner, they are not utilized to their fullest potential. The success of the organization doesn't align well with this.


  • Achieve the necessary role behavior.
  • Create the necessary staff competencies
  • encouraging employee motivation
  • encouraging employee motivation
  • planning for human resources
In reality, HR is very important to a company's strategy because it helps to keep employees motivated at work. The purpose of HRM is to enhance employee performance by providing them with improved working circumstances, fostering a sense of business loyalty, and providing benefits. Increasing performance is the aim of organizational strategy in order to boost production, and this is the connection.

The first step for HR Strategy: Being aware of company priorities, comparing the HR strategy to the business plan, and addressing gaps between the actual and desired condition are the first steps in developing a human resources strategy. The first important action is to determine the context of human resources.(Stalk, G., Evans, P. & Shulman, L. 1992).

Essential strategic initiatives:

It is not necessary to use more or less advanced procedures to create forecasts about human resources; instead, managerial personnel should be assisted in outlining new paths and supporting the new strategy established by the board of executives.

The welfare of the workforce must remain a priority in these plans. By keeping in mind a few key components, it is possible to match employee expectations with the plan. 


  • Managers have an impact on what employees anticipate from them.
  • Share information about your expectations-setting method and any adjustment requests.
  • Convert strategies into operational goals
  • To improve the effectiveness

Given the aforementioned, it is obvious that a company's competitive strategy and human resources must be linked in order to compete both locally and internationally.


References
Links between strategy and Human Resources[Online] Available at https://www.ukessays.com/essays/business/links-between-strategy-and-human-resources-business-essay.php#:~:text=Through%20their%20management%20strategy%2C%20the,part%20of%20a%20competitive%20environment Accessed on 29th November 2022

Porter, M.E, (1985). Competitive Advantage: Creating and Sustaining Superior Performance, (NewYork: Free Press, 1985) 

Stalk, G., Evans, P. & Shulman, L. (1992). Competing on capabilities: The new rules of corporate strategy. Harvard Business Review.70(2): 57-69


Comments

  1. Dhanushka1 December 2022 at 09:39

    This is the one of best topic and
    The HR is in parallel with the strategy by the priorities of the company to reach different goals is one of best practice

    ReplyDelete
    Replies
    1. Aruna3 December 2022 at 08:23

      yes of course, IN truth, HRM is quite important to corporate strategy. The objective can only be achieved with efficient coordination.

      Delete
  2. Sanjana Karunarathna1 December 2022 at 15:37

    It is better to conduct an Evaluation of the company’s environment That is to say understand the new business strategy and think about the future HR strategy application with it. Evaluate and spot the internal and external changes to the company’s business that may affect its future performance.

    ReplyDelete
    Replies
    1. Aruna3 December 2022 at 08:29

      thanks for the comment sanjana, Organizations have a choice of human resource approaches to apply in coordinating with their competitive strategy.

      Delete
  3. Madusha3 December 2022 at 11:02

    The strategic planning of an organization heavily involves HRM. The objective can only be achieved with efficient coordination. What is your opinion?

    ReplyDelete
    Replies
    1. Aruna4 December 2022 at 09:03

      Through planning, organizing, acting, and controlling, it is done. Coordination's goal is to provide better results, and there are several ways to do this.

      Delete
  4. Udara Dilshan3 December 2022 at 12:09

    Well explained article about the linkage between competitive strategies and HR. Prmary principle of strategic human resource management is to improve business performance and uphold a culture that inspires innovation and works unremittingly to gain a competitive advantage.

    ReplyDelete
    Replies
    1. Aruna4 December 2022 at 09:07

      Thanks for the comment udara
      Businesses use human resources as a tool to improve their management strategy and become more competitive. The HR division collaborates with the company's goals to accomplish a variety of goals.

      Delete

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