Competitive advantage InPorter defined the two types of competitive advantage an organization can achieve relative to its rivals: For example, the HR professional must understand the dynamic nature of the HRM environment, such as changes in labor markets, company culture and values, customers, shareholders, and the economy.
For instance, employees want to make sure that the strategic planning process considers the needs and concerns of employees. HR gives the management team the personnel costs associated with an initiative based on the necessary additional hiring or overtime pay.
Only the firm that is capable to exploit the valuable, rare and imitable resources can achieve sustained competitive advantage.
A more recent and less developed model than the linear and adaptive models, interpretive strategy is concerned with "orienting metaphors constructed for the purpose of conceptualizing and guiding individual attitudes or organizational participants. In other words, the strategic plan may include long-term goals, while the HR plan may include short-term objectives that are tied to the overall strategic plan.
Physical resources can easily be bought in the market so they confer little advantage to the companies in the long run because rivals can soon acquire the identical assets. These reflect an increased focus on cost, competition and customers.
Apple competes with Samsung in tablets and smartphones markets, where Apple sells its products at much higher prices and, as a result, reaps higher profit margins.
Important managerial skills and organizational capability are essentially spread to multiple businesses. Understanding of the challenges facing the department. Good strategic plans address this aspect. Setting Goals The nuts and bolts of the strategic planning process are expressed in measurable goals.
Strategic human resource management and resource-based approach. When more than few companies have the same resource or capability, it results in competitive parity.
It is necessary for the managers to align the strategic planning process with the concerns, interests and the abilities of the workers throughout the organization in order to maximize the attractiveness of the business organization to potential applicants.
In effect, the strategic planning process influences the alignment between the characteristics of the strategic plan and the characteristics of the workers in the organization, such that the strategic planning process also influences the performance of individual workers.
The ability of the managers to engage in the strategic planning process to arrive at the best possible strategic plans determines the ability of the organization to perform for the satisfaction of its goals and objectives, and to achieve further improvement or growth in its development.
Modern portfolio theory and Growth—share matrix Portfolio growth—share matrix The concept of the corporation as a portfolio of business units, with each plotted graphically based on its market share a measure of its competitive position relative to its peers and industry growth rate a measure of industry attractivenesswas summarized in the growth—share matrix developed by the Boston Consulting Group around The attractiveness of the business to potential investors means the ability of the organization to access financial resources that it could use for its continued growth and development.
Once this occurs, HR can determine how best to meet the needs of the organization within these five main areas. It is argued that strategic planning serves as a major foundation on which an organization builds its growth and expansion, such that strategic planning is a critical success factor in the development of organizations.
This indicates that the best approach is to look into both external and internal factors and combine both views to achieve and sustain competitive advantage. Be a strategic partner.
For example, if the mission of the organization is to promote social responsibility, then the HRM strategic plan should address this in the hiring criteria. Competitive Advantage Competitive advantage results from the combination of a company's resources with its capabilities.
If a resource exhibits VRIO attributes, the resource enables the firm to gain and sustain competitive advantage. There should be a distinction made here:. Competitive capabilities - product innovation capabilities, short development times in bringing new products to markets, a strong dealer network, cutting-edge supply chain management capabilities, quickness in responding to changing market conditions and emerging opportunities, or state-of-the-art systems for doing business via the internet/5(6).
While personnel management mostly involved activities surrounding the hiring process and legal compliance, human resources involves much more, including strategic planning, which is.
Strategic planning in human resources allows you to assess the needs of your overall organization for what services they most want and need from you. The assessment of your external environment and other HR functions in different organizations opens up the realm of possibilities for what your HR department can hope to achieve.
The administrative functions of the HR department continue to need management and implementation. These tasks are not going away anytime soon. and talent management and development. Here's How You Can Do Human Resources Strategic Planning. Strategic planning in human resources allows you to assess the needs of your overall organization for what services they most want and need from you.
The assessment of your external environment and other HR functions in different organizations opens up the realm of possibilities for what your HR department can hope to achieve. Strategic management is the comprehensive collection of ongoing activities and processes that organizations use to systematically coordinate and align resources and actions with mission, vision and strategy throughout an organization.The companys need for the strategic development and management of the resources