Hrm Management Strategies

RESULTS/FINDINGS

Competitive advantage arises when a firm creates value for its customers by emphasizing the importance of differentiation, which consists of offering a product considered as being unique, seeing a particular product market as more effective or efficient than its competitions, and cost leadership. By utilizing these generic strategies against industry’s external environmental determinants, management can affect a firm’s performance. On the contrary, a resource-based view suggests that a firm can sustain its competitive advantage through the alignment of internally consistent bundles of HRM strategies/implementation to its overall business strategy and desired performance, to develop critical resources or competencies. This

Investment in learning processes designed to increase capability and align skills to organizational needs. ii. Identification of knowledge required to satisfy customers/meet organizational goals. iii. Taking steps to acquire and develop intellectual capital. iv. Define behaviours required for organizational success and ensure they are encouraged, valued and rewarded.

v. Design tools such as Balanced Scorecard to measure effectiveness of HRM strategy. vi. Encourage people to give their all in the work they do. vii. Gain commitment of people to organization’s mission and values. viii. To achieve all the above, understand the linkage between HRM and business strategy.

Upon achievement of strategic goals, organizations can reap the benefits of HRM through favourable or successful conclusion as

Financial performance of an organization depends to a large extent on effective operational performance which is a function of people, process and technology. For effective interaction with technology and process, people within an organization have to be competent with the required knowledge, skills and abilities. Competence of individuals is an important factor that decides operational effectiveness in terms of providing quality products and services at a shortest time. HRM practices such as selection, training, work environment and performance appraisal may enhance the competence of employees for higher performance. HRM rarely has a direct impact on firm performance as business logic of its effect requires that HR drives firm performance through its contribution to effective strategy execution which is the basis shareholders value and is a system of intermediate outcomes. Thinking like strategy manager means recognizing the importance of the causal relationship between HR decisions and intermediate outcomes, which ultimately drive strategic success in organizations. Different HRM practices, such as recruitment/selection, training/development, performance appraisal and compensation system are significantly related and make positive contributions towards perceived organizational