The paper "Human Resources and Competitive Advantage" is an outstanding example of management coursework. Competition within the market is increasingly affecting the profitability and market scope of many businesses; thus, employers are focusing on developing and implementing effective management strategies. The main factor that stands across these organizations is the power of the employees. Employees are the greatest organizational assets and when effectively managed, the business has the ability to compete efficiently and acquiring the required competitive advantage (Analoui, 2007). Relying on the human resource departments in recruiting the best employees, designing proper training programs, and institutionalizing successful programs to retain the best employees are also gaining popularity in giving businesses a competitive advantage.
Even though the competitors often struggle to maintain experienced and motivated employees, for reliable and sustainable competitive advantage, the business could focus on productivity and increasing the sales. These plans can be successful if human resource plays a significant role in workforce development. Traditionally, businesses acquired competitive advantage through factors through production capacities, financial resources, economies of scale, and research laboratories. Even though these factors have remained relevant but they are insufficient in the modern business environment (Noe, 2013).
Generally, it is accepted that employees are the major assets within the new world market and other assets continue to remain nothing rather than which can be purchased depending on the market prices. Human resources have the potential to learn, grow, and contribute to organizational success. Human Resource Management and Competitive Advantage The level of competition is becoming very stiff in almost all sectors. Hence, businesses are keen on strengthening their market base by employing a competitive advantage strategy. In the current error of competition, all businesses are keen to achieve their desired competitive advantage through improving the level of technologies and adoption of various methods.
Some of the methods are cost leadership, quality improvement, and cost reduction. However, these activities can only improve organizational performance to a certain level. To move beyond such point, businesses need to focus on important resources such as human resources (Mazini & Ulian, 2011). Businesses often enjoy competitive advantage through the implementation of value-creating strategies, which have not been implemented by the competitors. Committed and competent employees act as the source of organizational competitive advantage contributing to the development of the business’ competitiveness and sustenance.
To such end, there are two clear things: both the business is instinctive enough to develop something that is beyond the competitors to imitate, and the business is fast enough compared to the competitors to keep the pace. Among the resources at the disposal of the business, the human resources meet two conditions: being the source of sustainable competitive advantage that adds value to the business and cannot be imitated. Hence, it is important that businesses continually invests in the knowledge, skills, retention, selection, motivation, recruitment, and constantly strive to improve and implement the most appropriate HR practices.
With the right people within the organization, the business does not need anything else while having the wrong people in the job, the consequences are likely to be bad (Kramar, 2013). Therefore, the more the business focuses on the employees, the more competent and committed and satisfied its employees will be. This will improve organizational performance and development of organizational competitive advantage. However, few firms have the ability to evolve successfully the human resource practices for a sustainable competitive edge.
Some of the best practices include a selection of highly skilled employees, effective training and development, inculcation of the right skills, attitude, and knowledge establishing a congenial working environment.