Human Resource Management ( competitive advantage)

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2. Barney 1991 suggests that, in order for a
resource to qualify as a source of
sustained competitive advantage, the
resource must add value to the firm, it
must be rare, it must be inimitable and it
must be non substitutable. Wright, et al
1994 have shown that human resources
meet Barney’s criteria for being a source
of sustainable competitive advantage.
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3. sources of competitive advantage have
shifted from financial resources to technology
resources and now to human capital. In other
words, success does not depend primarily on
the size of the budget or the products
supporting technologies. It really depends on
employee’s attitudes, competencies and skills;
their ability to generate commitment and trust,
communicate aspirations and work in
complex relationships.
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4. When a firm is implementing a value
creating strategy not simultaneously
being implemented by any current or
potential competitors, then we can say
the firm has a Competitive advantage
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5. when a firm is implementing a value
creating strategy not simultaneously
being implemented by any current or
potential competitors and when these
other firms are unable to duplicate the
benefits of this strategy, then we can say
the firm has a sustained competitive
advantage
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6. There are two major models that have to be
considered.
The position or environmental model
The resource-based view model. Innovation
strategy
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7. Porter shows that there are five
competitive forces which play a major
role in the company success or failure
1. The entry of new competitors,
2. The threat of substitutes,
3. The bargaining power of suppliers,
4. The bargaining power of buyers, and
5. The rivalry among the existing
competitors. 7

8. Porter 1985 defines the competitive
strategy as the positioning of a company
in its competitive environment
Cost Leadership Strategy
Differentiation Strategy
Schuler and Jackson
Innovation strategy
Cost reduction strategy
Quality enhancement strategy

9. The competitive advantage can be
sustained in one of the two ways (Porter
1985):-

1.Uniqueness
2. Quick Improvement
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10. Sixteen practices of competitive advantage
through people
3.Employment security
4.Incentive pay
5.Participation and empowerment
6.Symbolic egalitarianism
7.Long-term perspective
8.Selectivity in recruiting 10

11. 1.Employee ownership
2.Teams and job redesign
3.Wage compression
4.Measurement of practices
5.Cross-utilization & cross-training
6.High wage
7.Information sharing
8.Training and skill development
9.Promotion from within
10.Overarching philosophy
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12. Analysis
Job Description
Job Evaluation
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13. Selection
Performance Appraisal and Performance
Management
Rewards – also learn the purpose of
reward system
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14. The core strength of any organisation
comes from its employees. To develop
and strengthen them will lead to a solid
foundation for the organisation’s future
It takes strong executive leadership to
bring about positive patterns of
employment relationships
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15. for organisations to maintain a
competitive advantage they must focus
on enhancing performance through a
process of continual learning.
Top managers Requirement
›Personal Characteristics
›Skill
Communication
Organizational
Group
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16. Employment relationship has been
recognised as a socio-economic
exchange process which involves the
mediation of different interests- the
interest of employer to minimise the
labour cost and the interest of the
employee to maximise the labour price.
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17. Boxall’s Framework (Boxall, 1995)
Guest’s Framework (Guest, 1987)
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18. 1.How can the organisation identify
Human Resources?
2. How can the organisation defend its
Human Resources?
3.How can the organisation gain a
competitive advantage through its
employees?
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19. 1.Goals/objectives
2. Recruitment
3.Commitment
4.Tracking/coaching
5.Measurability
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20. 1.Signing – On
2.Interesting Work
3.Communication
4.Minimize Threats
5.Design a Personal Appraisal and Reward
System
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21. 1.The firm should use an analytical
framework
2.Trust their workers
3.Choosing the right leaders
4.Providing good job descriptions and
realistic targets
5.Designing an effective rewards system
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22. 1.Making communication system
effective
2.Common goals
3.CA focused Objective
4.Management commitment to full
employment
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23. 1.Qualcomm
2.General Electric
3.Honda
4.Southwest Airlines
5.SAP
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24. One factor that can set an organisation
apart from its competitors whether in
services or products, in the private or
public sector is its employees
Human resources are a critical
component in every area of the
organisation, from finance to sales to
customer service to line management
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