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Imitation: It is related to how much a resource can be provided or imitated by the competition. In
cases when a resource can be copied, the profit generated by that resource is short-termed.
2.
Endurance: It is about the speed with which a resource will lose from its value. The
longer the life of a resource, the more valuable it becomes for the organization and it contributes
to providing and maintaining competitive advantages. Competition and constant innovations can
prevent the resource from its endurance erosion.
Suitability: It is related to the one that gets the profit generated by the resource. The more
the competitively valuable resources are static and stable, the greater possibility for the
organization to make profit through them.
4.
Sustainability: This is access to alternative resources that can undermine the value of the
organization present competitive resources. The present value of the resource in the organization
drops when a competitor develops and makes a resource-substitute that creates values based on
smaller expenses or perhaps a theory for a different value.
5.
Competitive superiority: This is a time test for a resource to prove its value. It is not a
question of "which activities we perform well" but "which activities we perform better than our
competition" (Ivanovic, Galicic & Krstevska, 2010).
Role of HR in Gaining Competitive Advantage
Albeit most CEOs refer to HR as an association's most essential resource, numerous
hierarchical choices don't mirror this conviction. Notwithstanding of these positive possibilities.
The patterns propose that business give generally low significance to both the HR of the firm and
the Human Asset Office. Pundits contend that HR is still a cost community for the associations
and a risk. Quite a bit of this can be ascribed to absence of comprehension of "business" by HR
officials. And their powerlessness to coordinate the HR exercises towards building up the
qualities of the association's HR that can influence the methodology of associations (Ahluwalia,
2012).Some important points and strategy to achieve competitive advantage for companies are as
listed below:
1.
Value
HR officials must address an essential inquiry "By what means can HR help in either
diminishing expenses or expanding incomes?" In today's opportunity when everybody is talking
numbers; the HR office needs to demonstrate its value and demonstrate that it makes esteem for
the associations. HR can offer a firm some assistance with creating so as to achieve practical
upper hand esteem.
2.
Rareness
Only value alone cannot help the HR department to achieve sustainable competitive
advantage for organizations. HR executives must examine how to develop and exploit rare
characteristics of the firms human resources to gain competitive advantage. If the same
characteristic of human resources is found in many competing firms, then that characteristic
cannot be a source of competitive advantage for any one of them. In order to drive the strategic
decisions, HR executives should being the rare factor in the talent they recruit.
3.
Imitability
If the competitors in the business can easily imitate what you offer, then you are at loss!
The HR executives must attempt to develop and nurture characteristics of the firms human
resources that cannot easily be imitated by competitors. This essentially means leveraging on
organizations unique history or culture that helps in gaining competitive advantage. In any
organization, the culture is nurtured and developed via the HR Department. Hence, by restricting
and developing unique culture, executives can help firms in gaining competitive advantage.
4.
Organization
Nowadays, the business world has shifted its focus from physical assets to knowledge
and information i.e. human capital. This is the most valuable asset as it guides the organization
into a correct path, to be on time and to meet the right person, at a right place (Saha, Jircikova, &
Bialic-Davendra, 2011). According to various management experts, there are different HR
strategies such as:
1. Building and guiding coalition,
2. Imaging the future,
3. Understanding current capabilities and identifying the gap between business strategy and
corporate strategy,
4. Creating a map of the whole management system,
5. Modelling the dynamic of the vision,
6. Developing network into action (Saha, Jircikova, & Bialic-Davendra, 2011).
Regarding this new challenge of the HRM seeks to identify whether the HRM can really
enhance the competitive advantage of a firm. Human assets are a key source of sustainable
advantage due to their usual efforts and systematic information, which are making them
inimitable. Fitz-Enz highlighted that people are the lifeblood of any business enterprise, which
cannot be compared with material things like: cash, buildings, or equipment. According to
resource (Saha, Jircikova, & Bialic-Davendra, 2011) a firm strives for superior financial
performance by enabling its resources to capture a position of a competitive advantage in a
certain market or a market segment. This position is captured if two conditions are satisfied
including:
(1) If the firm can create more customer value than competitors do, and
(2) If the firm has lower investment costs than competitors (Saha, Jircikova, & BialicDavendra, 2011).
Challenges for HR
1) The challenge for HR managers is to clarify the competencies required to deliver the
company's strategy, as well as to cope with changing competitive circumstances. Success will
depend on identifying the most effective means of building these competencies, whether through
formal training programs, mentoring, peer-to-peer learning, or involvement in community
programs.
2) Employees are motivated by a complex mix of rewards. These range from financial
security and bonuses to promotion and peer recognition and from taking on new challenges to
making a difference to the things they care about. The challenge for HR managers is to create the
opportunities and incentives that maximize employee contributions to corporate performance - to
help the company make the most of its people's talents.
3) A sustainable development perspective encourages employees to make a productive
contribution to their company. Companies can only succeed in the long-term if they recruit and
motivate people who are able to respond to and shape the challenges of the future. These are the
individuals with the capacity to create competitive advantage from the opportunities presented by
changing markets, with the desire to learn from customers, consumers, suppliers and colleagues,
and who possess the ability to build and influence long-lasting and effective partnerships (Gupta,
2014).
References
Ahluwalia, R. (2012). Academia's role in the total quality management movement. International
Conference on Engineering Management, Gaining the Competitive Advantage.
App, S., Merk, J., & Bttgen, M. (2012). Employer branding: Sustainable HRM as a competitive
advantage in the market for high-quality employees**. (). Mering: Rainer Hampp Verlag.
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Dessler, G. (2014). Human resource management (14th Ed.). [Vital Source Bookshelf Online].
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Gupta, S. (2014). Sustainability as a competitive advantage: An outcome of strategic HRM.
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Ivanovic, S., Galicic, V., & Krstevska, G. (2010). Transformation of human resources into human
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Saha, N., Jirckov, E., & Bialic-Davendra, M. (2011). The power of clustering and HRM as a
source of competitive advantage: Evidence from clusters from poland, slovakia, the czech
republic, india and developed countries. Journal of Competitiveness, 3(4) Retrieved from
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