The paper "Importance of the Human Resources in Microsoft Corporation" is a wonderful example of a case study on human resources. Different aspects of business strategy always influence strategies of human resource management. One of the most important aspects that effects the smallest organization to the largest multinational is its human capital retention. Increased integration between human resource management and business strategy is one of the most imperative demands that are placed in front of modern strategic human resource management. In both the management and the academic literature, it is in general acknowledged that the strategic operation and management of personnel can put into the success and continuity of the firm.
Furthermore, it is stated by some that a firm’ s human resources form the foundations of the firm’ s competitive and spirited advantage. Keeping this in view, human resources are the most important assets of any organization. At the same time, in addition to the importance of the human resources as such, it is assumed to be important that the management of the human resources should be in an ideal fit with the management of the organization as a whole and its strategic plans.
In general, employee retention aspect business strategy has a great influence on SHRM. This aspect of business strategy based on the general assumption that competitive advantage can only be realized when a firm possesses particular resources and exclusively resource heterogeneity that is relatively motionless at the same time resource immobility, which means that it is not easy for competitors to buy or imitate these resources. In contrast with more conventional views on strategic management, the resource-based view of the firm emphasizes the relations between internal factors and the business strategy. In order for these human resources to provide a sustainable competitive advantage, the resources need to 1) add positive worth to the firm, 2) is unique or atypical among existing and prospective competitors, 3) are imperfectly imitable, and 4) cannot be replaced with other resources by competing firms.
A knowledge-intensive firm, which includes especially consultancy firms or software houses, often meets these criteria, that is when they accomplish something in retaining and developing their human capital. In contrast, other firms which are firm-specific skills and knowledge dependent can also realize a competitive advantage on the basis of the development of human resources.
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