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ANNEXURE-A

QUESTIONNAIRE

Note* This is for academic research purpose. This study is completely anonymous
and there are no risks involved in participating in the study. So feel free to give pure
opinions.

Respondent’s Information
Name…………………………………………………………………………………
Age……………………………………………………………………………………

Working since
Position………………………………………………………………………………
Organization…………………………………………………………………………

1. Does your organization have :

Yes No Don’t know


Mission Statement
Business Strategy
HRD/HRM Strategy

2. As an employee do you know the current objectives, priorities, long-term


vision and the values of the organization?

Yes No Don’t know


Please rate the following questions on a scale of 1 to 5, where 1 is strongly disagree,
2 is disagree, 3 is Neither agree or disagree, 4 is agree and, 5 is strongly agree.

3. Strategic HRM links corporate strategy and HRM, and emphasizes the
integration of HR with the business and its environment.
Strongly Disagree 1 2 3 4 5 Strongly Agree

4. Please rate the following SHRM practices as per your organization:

1 2 3 4 5

1 Does your organization believe in


developing and implementing high
performance work systems?

2 Does your organization have teams for


discussion s regardless of their
hierarchy?

3 Does organization focus on attraction,


retention and professional growth of
diverse and talented employees?

4 Does the organization concerned with


the job designing and their relation with
strategic goals?

5 Does the organization use recognition


and reward programmes to encourage
outstanding team and individual
performance contributions?

6 Does your organization have adequate


training program to compliance with
technology?

7 Does your organization provide an


environment in which employees are
encouraged to learn and develop?
5. Does the SHRM practices of your company are based on :
a) People as a strategic resource:
Strongly 1 2 3 4 5 Strongly
Disagree Agree

b) Resource based view of the firm towards employee:

Strongly 1 2 3 4 5 Strongly
Disagree Agree

c) HR strategies should be integrated with business plans (vertical Integration)


Strongly 1 2 3 4 5 Strongly
Disagree Agree

d) Individual HR Strategies should be linked with each other to provide mutual


support (horizontal integration).
Strongly 1 2 3 4 5 Strongly
Disagree Agree

6. Does the organization take efforts to create awareness among the employees
about the organization’s competitive advantage factors?
Strongly 1 2 3 4 5 Strongly
Disagree Agree

7. Do you know the competitive advantage of your organization? Please rate the
following as per your organization:
1 2 3 4 5
1 Cost Leadership
2 Differentiation
3 Focus
8. Organization Structure
Please rate the following factors of organization structure based on your
organization:

1 2 3 4 5

1 Does your organization believe in


empowerment of decision making?

2 Does the management share vision of


your company with every department?

3 Does your organization constantly drive


for change? ( Flexible structure)

4 Do you think that Reengineering of


process is essential to improve
organizational productivity to sustain
competitiveness?

9. Innovation
Please rate the following factors of innovation based on your organization:

1 2 3 4 5

1 Organization have a formal system for


generating ideas and using
creativity/innovation to address new
product development

2 Organisation recruits and retains high-


quality people with innovative skills and
a good track record in innovation.

3 Organisation develops strategic


capability and provide encouragement
and facilities for enhancing innovative
skills

4 Organisation provides financial


incentives and rewards and recognition
for successful innovations.
10. Technology
Please rate the following factors of Technology based on your organization:

1 2 3 4 5

1 Organization has adequate training


program to compliance with
technology

2 Organization has a practice to improve


technology on a timely basis to reduce
cost

3 Employees are able to balance between


the new technology and provided
training

11. Customer satisfaction


Please rate the following factors of customer satisfaction based on your
organization:

1 2 3 4 5

1 Organization believes in high levels of


customer service

2 Organization has enhanced customer


satisfaction programs as compare to the
competitors

3 Organisation Link rewards to quality


performance and the achievement of
high standards of customer service

4 Organization encourage and support


total quality and customer care initiative
with focused training
12. Goodwill
Please rate the following factors of goodwill based on your organization:

1 2 3 4 5

1 Do you think that to create a brand


employee plays an important role?

2 Do you think that brand equity is the


result of employee brand commitment?

3 As an employee do you practice brand


values during service encounter?

13. Do you think that the suitable SHRM practices leads to higher level of HR
Outcome to sustain competitive advantage?
Strongly Disagree 1 2 3 4 5 Strongly Agree

14. Which SHRM practice, do you think is most appropriate to attain sustainable
competitive advantage? Please rate the following:

1 2 3 4 5

1 Employment Security

2 Selective Hiring

3 Team Working

4 High pay contingent on company


performance

5 Extensive Training

6 Reduction of status differences

7 Information Sharing
15. Do you think SHRM practices help organisations to achieve Sustainable
competitive advantage by creating unique HRM systems that cannot be
imitated by others?
Strongly Disagree 1 2 3 4 5 Strongly Agree

16. Sustainable competitive advantage has four attributes: it must be 1) valuable,


2) rare, 3) imperfectly imitable and 4) non-substitutable, that can be attaining
through SHRM practices.
Strongly Disagree 1 2 3 4 5 Strongly Agree

17. Do you think that there is a inter relation- ship between Business Strategy
and SHRM, SHRM and HR Outcome, HR Outcome and Organizational
Performance & Organizational Performance and competitive advantage?
Strongly Disagree 1 2 3 4 5 Strongly Agree

18. According to you which organizational practice is the basis of sustainable


competitive advantage? Rate the following:

1 2 3 4 5

1 Financial strategies

2 Advertising & Marketing strategies

3 Strategic HRM practices

4 Technology

_________Thank You_________
ANNEXURE-B
LIST OF RESEARCH PAPER PUBLISHED

S. Publication
Title Authors Journal
No Details

1 Achieving Poornima Vol.01, International


Competitive Mathur No.9,Pg.66-71, Journal of Arts
Advantage Through September 2015 and Humanities
Employees and Management
Studies
2 Organization Poornima Vol. 3, Issue 2, International
Structure A Key To Mathur pp: (348-356), Journal of
Strategic Prof. Manju October 2015 - Management &
Implementation Nair March 2016 Commerce
Innovations
3 Driving Poornima Vol. 18, Issue 7, Business Manager
Competitive Mathur pp: (37-38), – HR Magazine
Advantage In Prof. Manju January 2016
Hospitality Industry Nair
4 SHRM Practices Poornima On process Zenith
Leads To Mathur International
Competitive Prof. Manju Journal of
Advantage In Nair Economics &
Hospitality Industry Management
Research
Achieving Competitive Advantage through Employees
Poornima Mathur
Ph. D Scholar, Department of Management Studies, The IIS University, Jaipur

ABSTRACT:
Success of the organization depends upon the employee commitment towards the organization.
Employee behavior, employee perception, employee dedication is a source to sustain competitive
advantage. Organizations are paying much more importance to the employee needs, employee
welfare and a positive atmosphere to work. Attracting & retaining right people, in the right
jobs, with right skills and attitude is the success mantra of today’s competitive era. Employees
are the human assets they create better service and best product if utilized appropriately.
Employees are a valuable source of sustainable competitive advantage
This paper identifies the employee as a scarce, inimitable, non-substitutable resource. Also
understands the employee behavior towards the organization. Successful alignment of HR
strategy and business strategy result in organization success. It is not just financial and
technological capital that provide companies with the competitive edge, but people, or human
capital.
Keyword: competitive advantage, employee behavior, Employee commitment, HR practices.

1. INTRODUCTION:
Competitive advantage is a position a firm occupies against its competitors. A competitive
advantage is an advantage over competitors gained by offering consumers greater value,
either by means of lower prices or by providing greater benefits and service that justifies
higher prices. A competitive advantage is the thing that differentiates a business from its
competitors. It is what separates the business from everyone else. And, it's usually the reason one
is in business. It answers the question "Why should I buy from you?" or "How are you better
than my current supplier?"
The basics of Competitive Advantage dictate that for a Firm to create and subsequently enjoy
Competitive Advantage it needs to have an “Ability to outperform its rivals”, an ability which
comes from Core Competencies built around resources and capabilities which in turn are
Valuable, Rare, Costly to Imitate and Non Substitutable. For a firm to enjoy Sustainable
Competitive Advantage it needs to have an “Ability to continuously outperform its rivals” i.e. it
needs to continuously create/ acquire/ upgrade its kitty of resources and capabilities. Firms have
to continuously change and adapt to their environments and, Firms need to continuously create
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and acquire new sources of Competitive advantage to remain competitive.


Page

2. COMPETITIVE ADVANTAGE
The term competitive advantage is the ability gained through attributes and resources to perform
at a higher level than others in the same industry or market. The study of such advantage has
attracted profound research interest due to contemporary issues regarding superior performance

Volume 01, No.9, September 2015


levels of firms in the present competitive market conditions. An organization is said to have a
competitive advantage when it is implementing a value creating strategy not simultaneously
being implemented by any current or potential player. Successfully implemented strategies will
lift a firm to superior performance by facilitating the firm with competitive advantage to
outperform current or potential players. To gain competitive advantage a business strategy of a
firm manipulates the various resources over which it has direct control and these resources have
the ability to generate competitive advantage. Superior performance outcomes and superiority in
production resources reflects competitive advantage. Competitive advantage as the ability to stay
ahead of present or potential competition, thus superior performance reached through
competitive advantage will ensure market leadership. Also it provides the understanding that
resources held by a firm and the business strategy will have a profound impact on generating
competitive advantage. Business strategy is the tool that manipulates the resources and creates
competitive advantage. Hence, viable business strategy may not be adequate unless it possess
control over unique resources that has the ability to create such a unique advantage. Competitive
advantage is a key determinant of superior performance and it will ensure survival and prominent
placing in the market.
Competitive advantage is at the heart of firm's performance. It is concerned with the interplay
between the types of competitive advantage, i.e., cost, and differentiation, and the scope of the
firm's activities. The value chain plays an important role in order to diagnose and enhance the
competitive advantage. When a firm is implementing a value creating strategy not
simultaneously being implemented by any current or potential competitors, then we can say the
firm has a competitive advantage. (Barney 1991).

2.1 Employee Behaviour


Employee plays a very important role in service delivery; employees can provide an edge of
superior quality deliverance. Everyone understands that customers want superior service and
that better service leads to competitive advantage. Firm perceptive towards the employee
influence the behavior of employee, employees’ expectations and demands are changing and the
organisations have to respond to meet their expectations and provide good developmental
environment in order to have sustainable development through committed workforce. it’s an
organization’s employees who influence the behaviour and attitudes of customers and its
customers who drive an organization’s profitability, HR leaders must determine ways to boost
employee satisfaction. Empowerment leads to employee engagement towards the firm,
bureaucracy or fear of blames prevent employee to work freely. Employee behaviors that can
either positively or negatively affect organizational success. Employee engagement, employee
empowerment generate employee behavior that leads to enhance work performance.

 Employees are human assets that increase in value to the organization and the
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marketplace when investments of appropriate policies and programs are applied.


 Effective organizations recognize that their employees do have value, much as same as
Page

the organization’s physical and capital assets have value.


 Employees are a valuable source of sustainable competitive advantage.

Volume 01, No.9, September 2015


2.2 Employee Commitment
Employee commitment is the passion and the willingness to invest oneself and help the employer
to succeed. Employee commitment is an equation obtained by aligning maximum job satisfaction
and maximum job contribution. Gallup organization defines employee engagement as the
involvement with and enthusiasm for work. Gallup as cited by Dernovsek (2008) likens
employee engagement to a positive employees’ emotional attachment and employees’
commitment. Employee commitment is a positive attachment and willingness to exert energy for
the success of the organisation and feeling proud for being a member of that organisation.

2.3 HRM Practices


A firm HRM practices refers to the policies, practices, and systems that influence employees’
behavior, attitudes, and performance. It is sometimes referred to as involving “people practices”.
HRM practices include analyzing and designing work, determining human resource needs
,attracting potential employees , choosing employees, teaching them how to perform their jobs
and preparing them for the future, rewarding employees, evaluating their performance and
creating a positive work environment. It can also be explained as a practice that is devised to
increase the competence, commitment and improve the culture.
Wright, et al. 1994 has shown that the human resources can be a source of competitive advantage
because they meet the criteria for being a source of sustainable competitive advantage. Human
resources add value to the firm, are rare, cannot be imitated and are not sustainable. Also they
have characterized human resources by unique historical conditions, causal ambiguity and social
complexity, which means that not all firms can successfully develop human resources as a
sustain competitive advantage through imitating the HR practices of firms that have successfully
developed human resources.
Pfeffer 1994 has issued sixteen practices of competitive advantage through people
1. Employment security
2. Incentive pay
3. Participation and empowerment
4. Symbolic egalitarianism
5. Long-term perspective
6. Selectivity in recruiting
7. Employee ownership
8. Teams and job redesign
9. Wage compression
10. Measurement of practices
11. Cross-utilization & cross-training
12. High wage
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13. Information sharing


14. Training and skill development
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15. Promotion from within


16. Overarching philosophy

Volume 01, No.9, September 2015


3. SUCCESSFUL ALIGNMENT OF HR STRATEGY AND BUSINESS STRATEGY
Successful alignment of HR strategy and Business strategy result in organisation success. It
helps firm to become more competitive at it is “meeting business needs.” Supportive HR strategy
helps the employee to implement business strategy, which in turn create the motivated,
committed, and satisfied workforce. Both the strategies complement each other and show strong
correlation and therefore high level of strategic fit. Strategic fit proposes that if an organization
seeks to maximize its competitive advantage, it must match its internal resource and skills
(organizational competencies) with the opportunities available in the external environment.
There are a number of models within which the framework of the concept of strategic HRM
describes various approaches to its development and implementation. These approaches include
the Best Practice Approach, Best-Fit Approach and Configurationally Approach (Armstrong and
Baron, 2006). The Best-fit approach holds the aim of SHRM to provide a fit between policy
goals of HRM and business strategy.

Porter’s classification of the three generic business strategies linking with HR strategy.

Business Strategy HR Strategy


Cost Leadership Utilization HR Strategy
 Suitable for repetitive & predictable  Focused on short-term performance
behavior measures
 Concerned with short-term focus  Narrow career paths, limited training
and quantities
 Limited employment security
 Result oriented
 Limited participation

Differentiation Facilitation HR Strategy


 Long term focus  Broad career paths & Extensive Training
 Creative job behavior  Equal and fair pay
 Moderate concern for quality and  Long term performance measures
quantity
 High employee participation

Focus Accumulation HR Strategy


 High concern for quality  Hiring employee belonging to the target
market
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 Moderate Concern for quantity


 Some employee security
Page

 Long/medium term focus


 Many incentives

Volume 01, No.9, September 2015


CONCLUSION
HRM practices should align with business strategy. Organizations can seek consolation in the
fact that most competitors are also struggling to survive in this turbulent business environment.
The potential of an organization's sustainable competitive advantage depends on the rareness and
limitability of its resources and capabilities.
Considering these factors, reached to this theoretical model.

It clearly shows that if business strategy and HR strategy is linked successfully leads to
organizational success. This also requires a clear understanding and linkage between employee
behavior, commitment, employee engagement and competitive advantage. The challenge is not
only to retain talented workforce but also to fully engage them and capturing their minds and
hearts at each stage of their work lives. Employee behavior, employee engagement and employee
commitment are the three important factors which can create highly motivated employee who
will be able to satisfy customer.

REFERENCES
i. Barney, J. 1991,”Firm resources and sustained competitive advantage” Journal of
Management, Vol. 17, No 1, pp99-120.
ii. Dr. Archana Sharma1, Gurdeep Singh Narang (2012) “Achieving Competitive
Advantage through HR Practices” National Conference on Emerging Challenges for
Sustainable Business
iii. Manorama Yadav Dr. V.K.Yadav “A study of human recourses as a source of
competitive advantage: a research review”.
iv. Solomon Markos, M. Sandhya Sridevi, Employee Engagement: The Key to Improving
Performance, International Journal of Business and Management Vol. 5, No. 12;
70

December 2010
Page

v. Dernovsek D. (2008). Creating highly engaged and committed employee starts at the top
and ends at the bottom line Credit Union Magazine, May 2008. Credit Union National
Association, Inc.

Volume 01, No.9, September 2015


vi. Wright, P., McMaham, G. and McWilliams, A., 1994 “Human resources and sustained
competitive advantage: a resource-based perspective” Int. J. of HRM, Vol. 5, No 2, pp
301-326.
vii. Jassim R. K & Jaber G. (1998) “Competitive advantage through the employees” Research
paper, University of Auckland New Zealand
viii. Armstrong, M. (2009).Armstrong’s Handbook of Human Resource Management
Practice, (11th Edition), London: Kogan Page Limited.
ix. Armstrong, M. and Baron, A. (2006).Managing performance: Performance management
in action, Chartered Institute of Personnel and Development, CIPD House.
x. Pfeffer, J. (1994). Competitive advantages through people, Boston M.A: Harvard
Business School Press.
xi. Dr. Wilson Odiyo, Dr.Ronald Chepkilot, Dr. Isaac Ochieng, Achieving Strategic- Fit
between Business and Human Resource Strategies in the Agricultural sector. An
Assessment of Transnational Tea Firms in Kenya, International Journal of Research in
Management, Issue 3, Vol. 1 (January 2013)

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Volume 01, No.9, September 2015


International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online)
Vol. 3, Issue 2, pp: (348-356), Month: October 2015 - March 2016, Available at: www.researchpublish.com

Organization Structure a Key to Driver to


Competitive Advantage
1
Poornima Mathur, 2Prof. Manju Nair
PhD Scholar, Department of Management Studies, The IIS University, Jaipur, India

Abstract: An Organization structure is a framework of organization objectives and strategy. Every organization
has its own structure based on the strategic goal in turn to operate efficiently. Globalization has created the
dynamic market and increased the cut throat competition. Incase organization require more flexible, open,
transparent structure. Structure is depending upon the size, aims and industry. Organization structure includes,
value and beliefs of the organization, organization plan and practices, relationship between the department and
people. To achieve strategic goal it is important that every employee is assigned with clear objectives and roles to
perform. Poorly designed organizational structures will result in improper, sluggish and inefficient communication
among the departments and unwanted outputs. Well designed organizational structures will produce fast and
clean decisions through an efficient communication channels. For this purpose qualitative and quantitative data
were collected from Five-Stars Hotels of National capital region (NCR) & selected cities of Rajasthan. The result
illustrates importance of organisation structure in achieving competitive advantage. It also agrees that SHRM
variables are very important to design organisation structure according to the demand. Further, the paper also
focuses on the different types of organization structure, organizational practices, strategic implementation and
current structure of the organization.
Keywords: organization structure, organizational practices, strategic implementation, competitive advantage,
SHRM Practices.

1. INTRODUCTION

Organizations are formed by groups of people for the purpose of achieving results that a person cannot achieve
individually. Now days, organizations can not survive without an mission, vision and an beneficial structure which
supports an organization to gain its goals.
Perez Lopez et. al. (2004) states that it is important for an organization to maintain an hormonal atmosphere in the
organization which encourages employee to ahieve the goals and objectives.
OBJECTIVES:
I. To understand the meaning of organization Structure.
II. Analysis various important factors of efficient Organization structure
III. To identify the relationship between the organization structure and competitive advantage of the firm.
(Ho): There is a relationship between Organization structure and competitive advantage.
(H1): There is no relationship between Organization structure and competitive advantage.
I. OBJECTIVES: To understand the meaning of organization Structure.
1. Organization Structure:
Organizational structure is a system used to define a hierarchy within an organization. It seeks to establish relationship
among all the persons working in the organization. Organization structure helps in identifying the jobs and its roles,
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Research Publish Journals
International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online)
Vol. 3, Issue 2, pp: (348-356), Month: October 2015 - March 2016, Available at: www.researchpublish.com

functions, and their hierarchical distribution. A proper framework of organization structure helps an organization to
operate in an changeable environment and attain its goal.
Different Types of organization structure:
 Basic forms:

Organizational
Structure

Line Organization Line and Staff Functional Committee


Organization Organization Organization

Line Organization: The concept of line organization holds that in any organization derived from a scalar process, there
must be a single head who commands it. Although an executive can delegate authority, he has ultimate responsibility for
results. This is the oldest form of organization. This is known by different names, i.e. military, vertical, scalar,
departmental, organization.
Line and Staff Organization: This structure refers to the structure in which managers take decisions and decides the role
for the employees. It is based on the flow chart of delegation of authorities and responsibilities from line managers to the
employees. Hence the duties and responsibilities of employees and line managers gets very clear. Under the line and staff
organization, the function of line is similar to its function under the line organization, but some staff or experts are also
appointed as advisor to the line officers.
Functional Organization: In the functional organization all activities in the enterprise are grouped together according to
certain functions like production, marketing, finance and personnel and are put under the charge of different persons. The
person in charge of a function follows it wherever it goes throughout the organization and also controls the individuals
working in that functional area. Under the functional organization work is divided into small units and allotted to different
experts. Thus, benefits of specialization are obtained.
Committee Organization: Committee organization is not a form of business organization which can be implemented
independently. A committee consists of a group of people specially designed to perform some administrative acts.
Committee is a group of some persons who solves the problem arising in administrative sphere with the help of mutual
deliberations.
2. Current structure of the organization:
Matrix Structure: It provides best of both the structure i.e. functional and divisional structures. This structure generally
based on 'teams' under the specialist boundaries, and upward reporting is also reduced. Individuals try to be more
independent and improve their work culture and also help each other to improve quality of work life. The senior managers
guide and integrate the system rather just directing them.
3. Organizational Practices: It is basically an implementation of strategic plans. Organization practices are the most
important part of Strategic Implementation process. It
Organizational Practices are located immediately outside of the Core Culture. They are not the elements of Core Culture;
they are the behaviors that convert ideals to actions which keep the culture alive. It facilitates the Job Designing process
and Role Identification. It helps in maintaining organizational consistency and alignment of core strategy with work
stations.
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Research Publish Journals
International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online)
Vol. 3, Issue 2, pp: (348-356), Month: October 2015 - March 2016, Available at: www.researchpublish.com

4. Strategy Implementation:
Strategy implementation is a process to strategies and plan into action to reach to strategic goals. A significant strategy
will not be a trump card which gives tremendous results rather it is a matter of fact that many organization failed in
implementing strategy because there focus is on the implementation part and not on formulation. Whereas both have
significant correlation. Considering Johnson’s research (2004) o urg et a (2000) e ieves “Strategy implementation
is very critical. As managers need to be very careful while developing an suitable and effective strategy more attention to
the practices and tasks related with strategy implementation. Noble (1999) establishes steps which leads to
implementation of the strategy. This sequence is consist of interpretation, adoption, communication, and enact ent
respective y some other definitions for implementation can be, p e entation is “It is a procedure of installing planned
changes in the organization in the direction of manager. ( utt ) “joining the choices and activities to execute
strategic planning. ( hee en and unger 2004) “ all the practices and results which includes the strategic decision need
to put together for a proper execution of strategy. ( i er et a 2004) Thus Strategy implementation is a very important
factor, firms implement strategy through strategic plans. A well defined organization structure helps an organization to
implement their objectives and plan smoothly.

Employee Organization
Performance Output

Organization Competitive
Structure Advantage

Strategic
Implementation Strategic goals

II. OBJECTIVES: Analysis various important factors of efficient Organization structure


5. Factors of efficient organization structure
 Decentralization: it decentralizes the responsibility of work. Authority of taking decisions related with their projects is
given. Individual fell free to work and increase their decision making skills. If every time employee is being guided by the
senior managers in regard to their work by a particular hierarchy pattern than it would be difficult for an employee to
work. Organizations have focused towards the new ways of improving hierarchical culture in which employees can take
their own to make decisions and think for themselves, often in matrix type structures.

 Customer Interaction:
High quality customer service is a key way in which a business can differentiate itself from another. Highly motivated and
committed employee when work in a positive service climate, with the right tools to do their job, result in more satisfied
customers. A satisfied employee can satisfy the customer. If the organization is not able to safeguard the employee
involvement in the organization, organization cannot achieve customer satisfaction. High performance HR systems is
depicted by the meticulous selection, work devision, investment in training & development and work designed so that
employees get opportunities for participation and decision making, and rewards structures designed to recognize high
performers and promote from within (Delery & Doty, 1996; Huselid, 1995; Macduffie, 1995).
Committed workforce consistently and thoughtfully focus on the quality of their work and service. Supportive
organisation structure, innovation, Technology and effective SHRM practices leads to higher level of customer
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Research Publish Journals
International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online)
Vol. 3, Issue 2, pp: (348-356), Month: October 2015 - March 2016, Available at: www.researchpublish.com

satisfaction. If the customer is satisfied over the competitors, firm can easily achieve sustainable competitive advantage.
The commitment of employees can be shown by the employees performance and consistency of services provided by the
employees. Customer is the king, so the primary goal of any organization is to satisfy its customers. There are two types
of customer- 1) Internal customers-the employees. 2) External Customers-the outsiders. Firstly, it is important to satisfy
the internal customer because the employee is the link between the organisation and the final customer. If he is satisfied
he can provide higher level of service quality to the external customers.

 Innovative culture: “organizations can attain co petitive advantage on y y ad inistrating efficient y for today whi e
creating innovation for to orrow and suggested that “there is perhaps no ore pressing anageria pro e that the
sustained anage ent of innovation nnovation is not done y achines this is the e p oyees who can innovate There
is a concrete link between employee engagement, innovation and competitive advantage. Engaged employees look for
new ways of adding value to the process and continuous improvement provides greater and higher quality inputs. A big
question is in front of the organizations that n a changing wor d where everything is changing very fact “ ow a
company will survive ? The answer is very simple: “By continuously espouse towards the changes – or innovating
There is a resource-based view that maximize the companies abilities and resources towards attaining competitive
advantage in a firm. According to research based view the firm must access to the resource and capabilities that are
superior as compare to their competitors. Innovation is a two-way process; where people in many fields contribute to the
implementation of new ideas and management supports them.
There are three things that organizations can do to foster innovation:
- Hire teams management for innovation
- Create a familiar culture for innovation
- Train and reward employees for innovation
 Flexibility: Success of any organization is mainly depending upon its culture & structure. Some organizations have built
up an formal structure while some organization have a flexible organization structure. As per the study it is identified that
an today’s organizations are ore focused towards the f exi e structure as it provides autono y to e p oyees to work as
per their choice. This helps in building confidence and empowerment among employees which is a key for committed
workforce and lead to competitive advantage of a firm.
 Organization culture: It is a way of defining relationship among people or employees within an organization.
Organization tends to have a harmonies culture where employees get a feeling of attachment and love. It maintains and
develops the culture and boundaries for defining the behavior of the employees. Organization culture can have certain
traits like, innovation, team work, autonomy, cross functional departments etc. organization culture basically depicts
behavior in an organization.
III. OBJECTIVES: Analysis various important factors of efficient Organization structure
6. Organization Structure and competitive advantage:
Organizational structure, capital, learning, and processes can be a source of competitive advantage. Organization structure
refers to the way work flows and tasks are divided. It is a framework within which organization operate. If the
organization has the resource based view towards employees, provide them environment where they are encouraged to
learn and develop themselves, have open teams for discussion, high performance work system, employees will definitely
contribute higher results which can lead to gain competitive advantage.
Formulating an effective strategy, however, is a necessary but not sufficient condition for gaining and sustaining
competitive advantage. Strategy execution is also very important. Organizational structure must follow the strategy in
order to achieve superior work performance. Effective SHRM practices help the organization to develop culture of the
organization, employee job design, commitment and flexibility to achieve the strategic goal of the organization.
Organizational design must be flexible enough to accommodate the formulated strategy and future growth to achieve
competitive advantage.

2. RESEARCH METHODOLOGY

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Research Publish Journals
International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online)
Vol. 3, Issue 2, pp: (348-356), Month: October 2015 - March 2016, Available at: www.researchpublish.com

This is a qualitative and quantitative research study and has an applied orientation. The study in this context assumes three
forms:
1 Target Population or Universe Employees and management of selected hotels
2 Sampling Method Convenience Sampling Method
3 Sample size 500 employees
4 Five-Stars Hotels of National capital region
Area of Survey
(NCR) & selected cities of Rajasthan.
1. Use of available material on various dimensions of Strategic Human resource management.
2. Collection of relevant information through interviews and questionnaire.
3. Survey is conducted in the jaipur city, 25 respondents were selected from each hotel.
4. Sample Unit

S.No CitiesCompanies Respondents


Delhi Hyatt Regency Delhi 25
1 Hotel Taj Ambassador New Delhi 25
Le Meridian Delhi 25
Claridges Hotel New Delhi 25
Double Tree by Hilton Delhi 25
2 Gurgaon Westin Gurgaon 25
The Leela Kempinski Gurgaon 25
3 Noida Fortune Inn Grazia 25
Savoy Suites 25
4 Jaipur ITC Rajputana, Jaipur 25
Marriott Hotel Jaipur 25
Taj Rambagh Palace 25
Country Inn & Suites By Carlson, Jaipur 25
Fairmont Jaipur 25
Chokhi Dhani Resort 25
Hotel Clarks Amer 25
5 Jodhpur Umaid Bhawan Palace 25
The Ajit Bhawan-A Palace Hotel 25
Udaipur The Lalit Laxmi Vilas Palace Udaipur 25
Devi Garh Palace 25
TOTAL RESPONDENTS 500

3. DATA ANALYSIS
ORGANIZATION STRUCTURE:
Table 1.1

Does your organization believe in empowerment of decision making


Frequency Percent
Strongly Disagree 24 4.8
Disagree 56 11.2
Neither Agree Nor Disagree 106 21.2
Agree 206 41.2
Strongly Agree 108 21.6
Total 500 100.0
Chart 1.1

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Inference: The above table 1.1 depicts the opinion of respondents whether their organization believes in empowerment of
decision making. It shows that 16% respondents strongly disagree or disagree, 21.2% respondents neither agree nor
disagree while 62.8% respondents agree or strongly agree that their organization believe in empowerment of decision
making.
Table 1.2

Does the management share vision of your company with every department
Frequency Percent
Strongly Disagree 23 4.6
Disagree 46 9.2
Neither Agree Nor Disagree 120 24.0
Agree 193 38.6
Strongly Agree 118 23.6
Total 500 100.0
Chart 1.2

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International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online)
Vol. 3, Issue 2, pp: (348-356), Month: October 2015 - March 2016, Available at: www.researchpublish.com

Inference: The above table 1.2 reveals the thoughts of respondents that whether their management share vision of their
company with every department. It shows that 13.8% respondents strongly disagree or disagree, 24% respondents neither
agree nor disagree while 62.2% respondents agree or strongly agree that yes their management share their vision with
every department.
Table 1.3

Does your organization constantly drive for change


Frequency Percent
Strongly Disagree 19 3.8
Disagree 49 9.8
Neither Agree Nor Disagree 106 21.2
Agree 187 37.4
Strongly Agree 139 27.8
Total 500 100.0
Chart 1.3

Inference: The above table 1.3 provides information about views of respondents regarding their organization’s constant
drive for change. It shows that 13.6% respondents strongly disagree or disagree, 21.2% respondents neither agree nor
disagree while 65.2% respondents agree or strongly agree that their organization eagerly drives for change.
Table 1.4

Reengineering of process is essential to improve organizational productivity to sustain


competitiveness
Frequency Percent
Strongly Disagree 19 3.8
Disagree 53 10.6
Neither Agree Nor Disagree 106 21.2
Agree 198 39.6
Strongly Agree 124 24.8
Total 500 100.0

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Vol. 3, Issue 2, pp: (348-356), Month: October 2015 - March 2016, Available at: www.researchpublish.com

Chart 1.4

Inference: The above table 1.4 unveils respondents views on the point that is re-engineering of process essential to
improve organizational productivity. It shows that 14.4% respondents strongly disagree or disagree, 21.2% respondents
neither agree nor disagree while 64.4% respondents agree or strongly agree that re-engineering of process is essential to
improve organizational productivity to sustain competitiveness.

4. FINDINGS & SUGGESTIONS


Finding:
1. The survey depicts that 62.8% of respondents are strongly agree that their organization is focused empowerment of
decision making.
2. It shows that 62.2% respondents are saying that their management share vision of their company with every
department.
3. It reveals that 65.2% respondents are agreed to the fact that their organization’s constant drive for change
4. It is shown by the data that 64.4% of respondents are saying that re-engineering of process essential to improve
organizational productivity.
5. According to the data gathered it is find out that organization structure is focused on the up ift ent of the e p oyee’s
capabilities.
6. Maximum number of percentage falls under the flexible structure of the organization to attain competitive advantage.
Suggestions:
1. It is suggested that organizations should opt for flexible structure.
2. Organization should be more focused towards the empowerment of decision making.
3. Organizations should share its vision with its employees.
4. Organizations should be more reluctant towards the reengineering of process in order to improve organizational
productivity to gain competitive advantage.

5. CONCLUSION
The research paper is focused on the importance of Organization structure in gaining competitive advantage. By effective
implementation of organization practices, high rate of absenteeism can be controlled and minimized. Committed Work
force and proper work alignment both are complimentary to each other. Job description and transfer of authorities should
be done according to the abilities and capabilities of employees. Over and unmanaged allocation of work leads to anxiety
and unfair treatment in an organization. For better productivity and high performance, goals and objectives must be clear
to every employees of the company.
Page | 355
Research Publish Journals
International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online)
Vol. 3, Issue 2, pp: (348-356), Month: October 2015 - March 2016, Available at: www.researchpublish.com

REFERENCES
[1] Quangyen Tran, Yezhuang Tian (2013), Organizational Structure: Influencing Factors and Impact on a Firm,
American Journal of Industrial and Business Management, 3, 229-236
[2] Pimtong Tavitiyaman, Hanqin Qiu Zhang, Hailin Qu, (2012) "The effect of competitive strategies and organizational
structure on hotel performance", International Journal of Contemporary Hospitality Management, Vol. 24 Iss: 1,
pp.140 – 159
[3] Seyed Ali Akbar Ahmadi, Yashar Salamzadeh*, Mohammadreza Daraei, Jamshid Akbari (2012), Relationship
between Organizational Culture and Strategy Implementation: Typologies and Dimensions Global Business and
anage ent Research: An nternationa Journa ……… Vo 4 o 3 & 4
[4] Johnson (2004) “ xecute yourstrategy-without ki ingit Harvard Management Update, December, pp. 3-5

Page | 356
Research Publish Journals
www.businessmanager.in

This research based article identifies the link between HR


practices and competitive advantages of the organizations
and their significant impact on the employee performance.

Driving competitive
advantage in hospitality
industry
Poornima Mathur, Assistant Professor,IIIM Jaipur
Dr. Manju Nair, Principal,International School of Informatics & Management Jaipur

O
ver the past decades, there has been an increasing competitive advantage. "Organizations can attain
emphasis on the importance of Strategic Human competitive advantage only by administrating efficiently
Resource Management (SHRM) practices as one of for today while creating innovation for tomorrow" and
the key factor for gaining sustainable competitive suggested that "there is perhaps no more pressing
advantage. managerial problem that the sustained management of
The idea of competitive advantage was created by innovation". Innovation is not done by machines this is the
Michael Porter (1985). Competitive advantage, Porter employees who can innovate.
emphasizes, occurs out of a firm creating. Competitive
Technology
Advantage means of creating value of to its customers. To
excel in the market a firm need to improve its position by Technology is the driving force which allows business
continually improving its position and provides benefits to to grow and compete in the market. As technology
the customers. Porter argued the importance of Cost, continues to advance, companies are enjoying the benefits
which means providing a good or services at lower rate as of increased productivity and profitability. Every business
compare to its competitors, differentiation, which means required technical support to work effectively. Adequate
provide a product or service which is unique or different technology helps to utilize organizational capabilities and
from its competitors and focus - looking at selected group innovative ideas in a required manner.
of buyers or product market more vibrantly as compare to
its competitors. Customer satisfaction
Factors of competitive advantage High quality customer service is a key way in which a
business can differentiate itself from another. Highly
There are mainly five factors of competitive advantage motivated and committed employee when work in a
in the hospitality industry. Let us understand their positive service climate, with the right tools to do their job,
relative importance in this sector. result in more satisfied customers. A satisfied employee
can satisfy the customer. If the organization is not able to
Organization structure safeguard the employee involvement in the organization,
Organizational structure is a hierarchical distribution organization cannot achieve customer satisfaction.
of jobs within an organization. It seeks to establish
Goodwill
relationship among all the persons working in an
organization. It identifies each job, its function and its Goodwill - its position in the marketplace and its ability
hierarchy within the organization. This is a well- to effectively serve its customers. Firm goodwill matters
developed structure established in an organization which particularly for service business. It is very difficult to
operates and assist the proper functioning of job in an create value without employees. Strong relationship
organization. between the employee commitment towards the
organization help to generate value for their customers
Innovation and that generates value of a firm in their mind.
Innovative ideas help the organization to achieve a Organization should maintain the dignity of the

January 2016 37 Business Manager


Driving competitive advantage in hospitality industry www.businessmanager.in

individuals by providing them better place to work. Employee Correlation analysis shows that there is a statistical of
must relate with the values and beliefs of the organization. relationship between Organization Structure, Innovation,
Technology, Customer Satisfaction and Goodwill with SHRM.
Hypothesis testing
The table shows a significant relationship between all the
Descriptive Statistics variables with SHRM. Innovation is a variable which has a
highest Pearson correlation value 0.431 and sig value .000
Mean Std. Deviation N which indicates that there is a significant correlation between
Strategic Human 3.6468 .60953 500 Innovation and SHRM. Organization Structure has second
Resource Management highest Pearson correlation value 0.391 and sig value .000 that
indicates a significant correlation between Organization
Organization Structure 3.6940 .69612 500
Structure and SHRM. Technology has Pearson correlation
Innovation 3.6390 .73092 500 value 0.330 and sig value 0.000 which indicate that there is a
significant correlation between Technology and SHRM.
Technology 3.7133 .81078 500 Customer Satisfaction has Pearson correlation value 0.244 and
Customer Satisfaction 3.6965 .75922 500 sig value 0.000 which indicate a significant correlation between
Customer Satisfaction and SHRM. Reduction of Status
Goodwill 3.7527 .76580 500 Difference has Pearson correlation value 0.276 and sig value
0.000 which indicate a significant correlation between
Reduction of Status Difference and SHRM. Goodwill has
Correlations Pearson correlation value 0.212 and sig value 0.000 which
SHRM indicate a significant correlation between Goodwill and SHRM.
Pearson Correlation .391** It has studied that null hypothesis has rejected in all the
Organization Structure Sig. (2-tailed) .000 variables which shows that there is a significant association
between SHRM practices and these five (Organization
N 500 structure, Innovation, Technology, Customer satisfaction,
Pearson Correlation .431** Goodwill) factors of Competitive Advantage.
Innovation Sig. (2-tailed) .000 Finally,
N 500
Sustainable competitive advantage can be achieved through
Pearson Correlation .330** its capabilities. Competitive advantage is the capability which
Technology Sig. (2-tailed) .000 cannot be imitated or replicated by competitors or and if
N 500 imitated, it will be with great difficulty. Reproducible
capability can be created by any company through coherent
Pearson Correlation .244** management skills, diligence and financial resources. Most of
Customer Satisfaction Sig. (2-tailed) .000 the technology advantages are reproducible.
N 500 Thus, the five factors, organization structure, innovation,
Pearson Correlation .212** technology, customer satisfaction, goodwill are interrelated.
Each driver helps the other to reach towards the goal of
Goodwill Sig. (2-tailed) .000
gaining sustainable competitive advantage through effective
N 500 SHRM practices. BM
**. Correlation is significant at the 0.01 level (2-tailed).

REFRENCES
Bamberger, P, Meshoulam, I. (2000), Human Resource Strategy: Formulation, Implementation and Impact, Thousand Oak, CA: Sage
Beer M, Sector B, Lawrence, P, Quinn M.D., Walton R, (1984), Managing Human Assets, New York: The free press
Boxall, P. F. (1982), "Strategic HRM : a beginning a new theoretical direction", Human Resource Management Journal, Vol.2(3), pp.61-79
Child, J. (1972), "Organisational structure, environment and performance: the role of strategic choice" Sociology, Vol. 6(3), pp.1-22.
Daft, R. (2001), Organisation Theory and Design (7th ed) Cincinnati: South - Western College Publishing.
Fombrun, C. J., Tichy, N. M., Devanna, M.A. (1984) strategic Human Resource Management, New York : Wiley
Gennard, J., Judge, G. (1997), Employee Relations, Institute of Personnel Management Bohlonde, G.
Gratton, L et al (1999), Strategic HRM, Corproate Rheotric and Human Reality, Oxford : Oxford University Press
Guest D. E. (1993) "Current perspectives on human resource management in the United Kingdom". in ed. C Brewster, current trends in Human Resource Management in
Europe, London : Kogan page.
Guest D.E. (1999) "Human Resource Management: the workers verdict", Human Resource Management Journal, vol.9(2) pp.5-25
Hill, C, Jones, G. (2001), Strategic Management: An integrated approach (5th ed), Boston, M.A.: Houghton Mifflin.
Jarillo, J.C, Strategic Networks, Strategic Management Journal [SMJ], 1988,
Kydd C. T., Oppenheion, L (1990), "Using human Resource Management to enhance competitiveness: Lessons from four excellent companies", Human Resources Management
Vol. 29(2), pp. 145-06.
Mc Greger, D. (1960), The Human side of Enterprise, New York: MC Graw Hill.
Miles, R. Snow, C. (1984), "Designing Strategic Human Resources System", Organisational Dynamics, summer, pp.36-52.
Mintzberg, H (1978), "Patterns in strategy formulation", Management science, May ,pp.934-948.
Ouchi, W.G. (1981), Theory Z: how American business can meet Japanese Challenge, Reading Addison - Wesley.
Pascale, R., Athos, A. (1981), The Art of Japanese Management, London : Penguin Books
Paul J Heney. New division of MGM goes beyond gaming, Hotel and Motel Management. Duluth: Dec 8, 2008. Vol. 223, Iss. 21; pg. 4
Peter, T., Waterman, R. (1982), In Search of Excellence, New York: Harper & Row.
Peteraf, Margaret A. 1993. "The Cornerstones of Competitive Advantage: A Resource-Based View." Strategic Management Journal 14: 179-191.
Porter, M. (1980), Competitive Strategy: Techniques for Analysing Industries and Competitors, New York: The Free Paris.
Porter, Michael E. 1985. Competitive Advantage: Creating and Sustaining Superior Performance. New York: The Free Press
Prahalad, C.K. and Gary Hamel. 1990. "The Core Competence of the Corporation." Harvard Business Review 68 (May-June): 79-91.

January 2016 38 Business Manager


SHRM PRACTICES LEADS TO COMPETITIVE ADVANTAGE IN
HOSPITALITY INDUSTRY
Poornima Mathur
PhD Scholar, Department of Management Studies, The IIS University, Jaipur
E-mail-: mathur.poornima@rediffmail.com
Dr. Manju Nair Principal,
International School of Informatics & Management Jaipur, India
Abstract: It is not just technological and financial capital that provide companies
with the competitive edge, but people, human Resource /human capital. Without
attracting and retaining the right people, in the right jobs, with right skills and
training an organization cannot succeed. Quality and innovation of SHRM practices
impact good business results. Competitors rarely have access to a firm SHRM
Practices. These SHRM practices are not visible to outsiders. Even when these
practices are visible, their result may not be as favorable when used by competitors.
Employees work as a strategic business partners in a firm. Employees are human
assets that increase value for the organization. Effective organizations recognize that
their employees do have value, as same as the organization’s their capital and
physical assets have value. Employees are a very precious and a important source of
sustainable competitive advantage. Successful alignment of HR with organization
planning and process, emphasize HR activities to support mission goals, and
building strong HR/ management relationships.
Thus the paper focuses on two variable SHRM practices and Competitive
Advantage. Paper want to identifies the relationship between SHRM and CA.
Key words: SHRM practices, Competitive Advantage, organizational performance
and HRM Systems, Employee Performance
INTRODUCTION: The main idea of HR role is to focuses on alignment of HR
strategies and business strategy. The HR professionals work as an strategic partner,
which helps in attaining business goals and strategies. By playing their role, HR
professionals raise the abilities and capacity of an organization to implement their
strategies. Merging of HR strategy with business strategy helps a business in three
ways.
• First, the business can easily adapt changes as they are lessened towards the
interpretation and execution of new plans.
• Second, the firms are able to meet their customer demands because its
customer service strategies have been clearly described into detailed policies
and practices.
• Third, the business can also attain financial performance through its more
effective & efficient way of working and achieving the goals.

STRATEGIC HUMAN RESOURCE MANAGEMENT


SHRM is mainly concerned with the strong relationship of HRM and Strategic
Management in an organization. It is concerned with development of human
resource activities to enhance and achieve objectives of the organization. It is
concerned with people issues and practices that affect or are affected by the strategic
plan of the organization.
Strategic human resource management (strategic HRM, or SHRM) is an analytical
approach of managing people which supports long-term business perspectives and
goals. It is a framework of managing long term issues, future requirement with
current HRM practices.
Strategic HRM: It is a Key to improve the performance of business. It is a complex
process of linking business strategy and HRM strategy.
Human Resource Management
Human resource management is managing the people working in a organization.
The basic motive of HRM is to make sure that the organization attains its
organizational goals by managing the people and their working. As per Ulrich and
Lake (1990)5: 'HRM systems allow organizations to realize and capitalize on new
opportunities.
According to Vsp Rao (2012) Human resource management tries to take out best
from the people by getting their corporation wholeheartedly and by bringing people
and organization together so that the goals of each one are met. It is the art of
procuring, developing and maintaining competent workforce to achieve the goals of
an organization in an effective and efficient manner.
The aim of Human resource management is to :
• Treating people working in the organization as assets, this is an requirement
to attain competitive advantage of the organization.
• Acting as a bridge and aligning HRM policies with business policies and
corporate strategy.
• Developing close relations between HR policies, procedures and systems
with one another
• Ensuring and Encouraging team work and cooperation across internal
organizational departments.
• Achieving greater employee commitment towards the organization.
• Attaining increased employee involvement in the organization.
• Introducing different reward & recognition practices are designed to support
a performance-driven culture in the organization.
• Helping employees to empower their skills and manage their own self-
development and learning.
Concept of Strategic HRM
It is based on a number of connected concepts: competitive advantage, strategic
intent, strategic capability, resource-based strategy, distinctive capabilities, strategic,
strategic management and strategic plans.

Competitive advantage
The idea of competitive advantage was created by Michael Porter (1985).
Competitive advantage, Porter emphasizes, occurs out of a firm creating.
Competitive Advantage means of creating value of to its customers. To excel in the
market a firm need to improve its position by continually improving its position and
provides benefits to the customers. Porter argued the importance of Cost, which
means providing a good or services at lower rate as compare to its competitors,
differentiation, which means provide a product or service which is unique or
different from its competitors and focus – looking at selected group of buyers or
product market more vibrantly as compare to its competitors. He then developed his
well-known framework of three generic strategies, innovation, quality and cost
leadership that organizations can use to gain competitive advantage. Dissimilarity
has been observed by Barney (1991) between the competitive advantage that a
organization currently enjoys but other competitors are able to copy it, where as
sustained competitive advantage is something which competitors are not able to
imitate. This escort the distinctive capabilities.
Distinctive capabilities
As Kay (1999) comments, ‘It determines the companies sustainable competitive
advantage can be achieved through its capabilities.’ A distinctive capability or
competence is an important features Quinn’s (1980) phrase ‘confers superiority on
the organization’. Kay extends elaborates this meaning by explaining the difference
between distinctive capabilities and reproducible capabilities. Distinctive
capabilities are the capabilities which cannot be imitate or replicated by competitors
or can be imitated with a great difficulty. Whereas reproducible capabilities are the
capabilities which can be created by any company by coherent management skills,
diligence and financial resources. Most of the technology advantages are reproducib
Strategic intent
Its means, the intention or the expression of the organization. - what it means to do
and how, as Wickens (1987) put it, the business means to ‘get from here to there’.
As defined by Hamel and Prahalad (1989), strategic intent refers to the term of the
leadership position which an organization wants to achieve and establish. It also
states the way of achieving the objectives.
It can be very broad and clear statement of vision and mission and includes goals
and objectives to be attained in long run. Miller and Dess (1996) has defined the
sequence of the same:
1. A broad vision of what the organization should be;
2. The organization’s mission;
3. Specific goals, which are operationalized as:
4. Strategic objectives.
Strategic capability
It refers to the firm’s capability of developing implementing strategies to attain
sustainable competitive advantage. It is a capacity of a organization to develop the
most appropriate vision, realistic intentions, matching strategies, opportunities and
strategic plans. The success of strategic capability is depending upon the capabilities
of its managers.
The resource-based view
It is the view of a firm towards its employees. What organization feels and perceive
about an employee. It clarifies the intention of the managers that they consider their
employees as resources or just the machines. It is stands on the ideas of Penrose
(1959), Strategic concepts who wrote that the firm is ‘an administrative organization
and a collection of productive resources’. It was expanded by Wernerfelt (1984), it
stated the strategy which balance between the exploitation of resources and
development of new resource. Resource-based strategy theorists such as Barney
(1991) argue that sustained competitive advantage stems from the attainment and
efficient employ of bundles of distinctive resources that competitors cannot imitate.
Strategic management
The concept of strategic management has been detailed by Rosabeth Moss Kanter
(1984) as being to ‘extract the current actions for the future’ and become ‘action
vehicles – continuous integration and establishing mechanisms for change’.
Strategic management has been defined by Pearce and Robinson (1988) as follows: ‘
Strategic management is a combination of goals and objective resulting into the
forming and implementing of strategies designed to achieve objective of an
organization.
Strategic goals
It stated the dream of an organization where the organization wants to be. It is
clearly mentioned by the terms and conditions of objectives actions and can be
expressed as quantifying goals and aspirations of the organization.
Strategic plans
It is like a flow chart of objectives and planning. It is a formal declaration of
organization intentions and strategic goals. Boxall and Purcell (2003) make the point
that ‘We should not create faults of equating the strategies of a organization with
formal strategic plans. We should understand the strategies and plans of the
strategies as sets of strategic choices, some of which may stem from planning
exercises and set piece debates in senior management, and some of which emerge in
a stream of action.’
Objective of the Study
1. To determine the relationship between the various SHRM Practices towards
Competitive Advantage in Hospitality Industry.
2. To determine the significant impact of SHRM on Competitive Advantage
HYPOTHESES TESTING
1. H01 There is no relationship between various SHRM practices towards
Competitive Advantage in Hospitality Industry
2. HA1 0There is a relationship between various SHRM practices towards
Competitive Advantage in Hospitality Industry
3. H02 There is no significant impact of SHRM on Competitive Advantage in
Hospitality Industry.
4. HA2 There is a significant impact of SHRM on Competitive Advantage in
Hospitality Industry.
RESEARCH METHODOLOGY
This is a qualitative and quantitative research study and has an applied orientation.
The study in this context assumes three forms:

1 Employees and management of


Target Population or Universe
selected hotels

2 Sampling Method Convenience Sampling Method

3 Sample size 500 employees

4 Five-Stars Hotels of National capital


Area of Survey region (NCR) & selected cities of
Rajasthan.

1. Use of available material on various dimensions of Strategic Human resource


management.
2. Collection of relevant information through interviews and questionnaire.
3. Survey is conducted in the jaipur city, 25 respondents were selected from each
hotel.
Sample Unit
S.No Cities Companies Respondents
Delhi Hyatt Regency Delhi 25
1 Hotel Taj Ambassador New Delhi 25
Le Meridian Delhi 25
Claridges Hotel New Delhi 25
Double Tree by Hilton Delhi 25
2 Gurgaon Westin Gurgaon 25
The Leela Kempinski Gurgaon 25
3 Noida Fortune Inn Grazia 25
Savoy Suites 25
4 Jaipur ITC Rajputana, Jaipur 25
Marriott Hotel Jaipur 25
Taj Rambagh Palace 25
Country Inn & Suites By Carlson, 25
Jaipur 25
Fairmont Jaipur 25
Chokhi Dhani Resort 25
Hotel Clarks Amer
5 Jodhpur Umaid Bhawan Palace 25
The Ajit Bhawan-A Palace Hotel 25
Udaipur The Lalit Laxmi Vilas Palace 25
Udaipur 25
Devi Garh Palace

TOTAL RESPONDENTS 500

OBJECTIVE ANALYSIS
1. To determine the relationship between the various SHRM Practices towards
Competitive Advantage in Hospitality Industry.
The study is rotating around this objective. In this objective the researcher
wants to determine the extent to which the various SHRM practices has a
relationship with Competitive Advantage in hospitality industry. For the
purpose sub objectives have been formulated.

Chart 1. 1

Inference: The above chart 1.2 reveals that 70.2% respondents believe that SHRM
practices help organization to achieve Sustainable Competitive Advantage by
creating unique HRM System that cannot be imitated by others. And 66.6%
respondents strongly believe that sustainable competitive Advantage has four
attributes: it must be 1) valuable, 2) rare, 3) imperfectly imitable and 4) non-
substitutable, that can be attaining through SHRM practices. 69.2% of respondents
believe that there is a strong inter relationship between Business strategy, SHRM
and Competitive Advantage.
From the above inference it can be conclude that there is a strong relationship
between SHRM and Competitive Advantage.
HYPOTHESES TESTING
H01 There is no relationship between various SHRM practices towards
Competitive Advantage in Hospitality Industry
HA1 0There is a relationship between various SHRM practices towards
Competitive Advantage in Hospitality Industry
For testing this hypotheses researcher used multiple correlation analysis. Multiple
correlation analysis is beneficial statistical method for examining the relationship
between two variables.

Descriptive Statistics

Mean Std. Deviation N

Employment Security 3.7320 1.12548 500

Selective Hiring 3.7420 1.14458 500

Team Working 3.7320 1.12013 500

High Pay Contingent on 3.7800 1.08718 500


Company Performance

Extensive Training 3.7200 1.13498 500

Reduction of Status 3.8600 1.07271 500


Difference

Information Sharing 3.8120 1.10775 500

Competitive Advantage 3.6715 .52735 500

Correlations
Competitive
Advantage
Pearson Correlation .207**
Employment Security Sig. (2-tailed) .000
N 500
Pearson Correlation .370**
Selective Hiring Sig. (2-tailed) .000
N 500
Pearson Correlation .283**
Team Working Sig. (2-tailed) .000
N 500
Pearson Correlation .327**
High Pay Contingent on
Sig. (2-tailed) .000
Company Performance
N 500
Pearson Correlation .324**
Extensive Training Sig. (2-tailed) .000
N 500
Pearson Correlation .276**
Reduction of Status Difference Sig. (2-tailed) .000
N 500
Pearson Correlation .271**
Information Sharing Sig. (2-tailed) .000
N 500
**. Correlation is significant at the 0.01 level (2-tailed).
Correlation analysis in hospital industry shows that there is a degree of relationship
between Employment Security, Selective Hiring, Team Working, High Pay
Contingent on Company Performance, Extensive Training, Reduction of Status
Difference and Information Sharing with Competitive Advantage.
Above table shown that there is a significant relationship between all the variables
with competitive advantage. Selective Hiring is a variable which has a highest
Pearson correlation value 0.370 and sig value .000 which indicates that there is a
significant correlation between Selective Hiring and Competitive Advantage. Then
High Pay Contingent on Company Performance has second highest Pearson
correlation value 0.327 and sig value .000 that indicates there is a a significant
correlation between High Pay Contingent on Company Performance and
Competitive Advantage. Extensive Training has Pearson correlation value 0.324
and sig value 0.000 which indicate that there is a significant correlation between
Extensive Training and Competitive Advantage. Team Working has Pearson
correlation value 0.283 and sig value 0.000 which indicate that there is a
significant correlation between Team Working and Competitive Advantage.
Reduction of Status Difference has Pearson correlation value 0.276 and sig value
0.000 which indicate that there is a significant correlation between Reduction of
Status Difference and Competitive Advantage. Information Sharing has Pearson
correlation value 0.271 and sig value 0.000 which indicate that there is a
significant correlation between Information Sharing and Competitive Advantage.
Employment Security has Pearson correlation value 0.207 and sig value 0.000
which indicate that there is a significant correlation between Employment Security
and Competitive Advantage.
It has studied that null hypothesis has rejected in all the variables which shows that
there is a significant relationship between SHRM practices and Competitive
advantage.
2. To determine the significant impact of SHRM on Competitive Advantage.
HYPOTHESES
H02 There is no significant impact of SHRM on Competitive Advantage in
Hospitality Industry.
HA2 There is a significant impact of SHRM on Competitive Advantage in
Hospitality Industry.
Hypothesis testing as part of this research, for testing the hypotheses researcher used
multiple correlation and regression analysis. Multiple correlation and regression
analysis is useful statistical technique for analysing the relationship between
dependent and independent variables.
CORRELATION ANALYSIS

Descriptive Statistics

Dimensions Mean Std. Deviation N

Competitive Advantage 3.6715 .52735 500

Strategic Human Resource


3.6468 .60953 500
Management

Correlations
Strategic
Competitive Human
Dimensions
Advantage Resource
Management
Competitive Advantage 1.000 .518
Pearson
Strategic Human Resource
Correlation .518 1.000
Management
Competitive Advantage .000
Sig. (1-
Strategic Human Resource
tailed) .000
Management
Competitive Advantage 500 500
N Strategic Human Resource
500 500
Management
Correlation is a statistical measure that indicates the extent to which two or more
variables fluctuate together. A positive correlation indicates the extent to which
those variables increase or decrease in parallel; a negative correlation indicates the
extent to which one variable increases as the other decreases. Values of the
correlation coefficient are always between -1 and +1.
From the above table it has concluded that there is a relationship between
Competitive Advantage and SHRM. According to the analysis competitive
advantage and SHRM has a positive correlation which means the extent to which
SHRM increases as competitive advantage also increases. Pearson Correlation value
which is 0.518 and sig. value is 0.000 which indicate that there is a statistically
significant correlation between Competitive Advantage and SHRM.
Chart-1.2

Scatter Plots (also called scatter diagrams) are used to investigate the possible
relationship between two variables that both relate to the same "event." A straight
line of best fit (using the least squares method). From the above diagram it can see
the cluster in a band running from lower left to upper right, there is a positive
correlation it indicates that if SHRM increase so Competitive Advantage also
increases.
MULTIPLE REGRESSION ANALYSIS

Model Summaryb

Model R R Adjusted Std. Change Statistics


Square R Square Error of
the R F df1 df2 Sig. F
Estimate Square Change Change
Change

1 .518a .268 .266 .45168 .268 182.199 1 498 .000

a. Predictors: (Constant), SHRM

b. Dependent Variable: CA
Model summary explains that how much of the variation in the value of the
dependent variable is explained by regression model. In the Model Summary in
above table, R Square is 0.268, which indicates that 26.8 percentage of the variation
in Competitive Advantage can be explained by variability of SHRM.
ANOVAa
Model Sum of df Mean F Sig.
Squares Square
1 Regression 37.172 1 37.172 182.199 .000b
Residual 101.601 498 .204
Total 138.773 499
a. Dependent Variable: CA
b. Predictors: (Constant), SHRM
The above table gives the value of the F-statistic is 182.199 and its significance
level is 0.000, this shows that the SHRM statistically significantly predict the
Competitive Advantage.
Coefficientsa
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
1 (Constant) 2.038 .123 16.620 .000
SHRM .448 .033 .518 13.498 .000
a. Dependent Variable: CA
Above table shows the standard coefficients value where β coefficient of SHRM is
0.518, t value is 13.498 and sig. value is 0.000 which means null hypothesis is
rejected which indicates that there is a significant impact of SHRM on Competitive
Advantage in Hospitality. It is observed that SHRM have a positive impact on
Competitive Advantage could be statistically proved.

SUMMARY
Table 1
SUB OBJECTIVE: 1 SUB OBJECTIVE: 2
RELATIONSHIP
BETWEEN
SHRM PRACTICES IMPACT OF SHRM ON CA
SHRM &
CA
There is a (+) Significant impact of SHRM on
Unique HRM System
Positive CA.
Attain Four Attributes Correlation
If SHRM increase so Competitive
Organization between SHRM &
Advantage also increases.
Performance CA
FIINDING
FINDINGS RECOMMANDATIONS
As there is a positive relationship
between SHRM and Competitive
It is found that there is a positive
advantage organisations should be
1. correlation between SHRM and
more prominent to enhance SHRM
Competitive Advantage.
practices to gain competitive
advantage.
It is found that most contributing To improve the organisation
factor of SHRM towards competitive advantage the
2.
Competitive Advantage is Selective organisations should be more focused
Hiring on the selective hiring.
Management should develop and
It is found that SHRM practice are
encourage SHRM practices in an
3. helpful in creating Unique HRM
organisation as it is helpful in creating
system
Unique HRM system.
The study reveals that SHRM
practices are helpful in creating four
attributes i.e. 1) Valuable 2) Rare 3) Organisations should regularly
4.
Imitable 4) Non-substitutable to improves and regulate SHRM
attain sustainable competitive Practices.
advantage.
Organisation should includes SHRM
It is found that SHRM practice are
practices as a part of their strategic
5. helpful in enhancing organisations
goals to improve Organisation
performance
Performance
Conclusion:
SHRM emerges as most vibrant practices of the organisation which has a high
potential to deliver a competitive edge over competitors. Organisation take efforts to
create awareness related to mission, vision, objectives, philosophy and culture of the
organisation among the employees as they believe that Human Resource is the only
resource to sustain competitive advantage of the firm. There is a high need of
integrating SHRM practices and Corporate strategy to built up an unique HRM
system which leads to attaining competitive advantage of the firm. Organisations are
also focused towards the attraction; retention and professional growth of the
employees. Organisations are concerned towards the strong relationship of Job
designing and strategic goals. It shows that there is a positive relationship between
both of them. As if SHRM increases Competitive Advantage also increases. SHRM
is a very important aspect on which organisations should emphasize. Effective
SHRM practices resulted into very highly motivated committed workforce, which
can directly contribute towards the sustainable Competitive Advantage.
Therefore organisation should be more focused towards continuously improving
SHRM practices to attain sustainable Competitive Advantage. The researcher has
taken dependent (CA) and independent (SHRM) variable to identify the relationship
and relevance of both the factors. As per the analysis it is concluded that the
selective hiring is a practice of SHRM which has a high degree of relationship with
competitive advantage factors.
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Poornima Mathur
Mob. No: 09950722624
com
E-mail: mathur.poornima@rediffmail.com

PROFESSIONAL EDUCATION

o Pursuing PhD
PhD from IIS University on the topic “Strategic Human resource
Management: Source of Competitive Advantage in hospitality industry””
o Master of Business Administration (MBA) from Faculty of Management
Studies, MITS University (Laxmangarh) in 2005-07 with majors in HR
and Marketing (CGPA of 8.64).
o Core Subjects:
HR- Compensation system, Human Resource Development System
Marketing- Marketing of services, Management of Commercial Banking

RESEARCH PUBLICATION
o Research paper on “Strategic issues in performance management
management in
innovation based organisation” in Second National Conference on
Management and Information Technology organized by International
School of Informatics & Management.

ACADEMICS

o Bachelor of Commerce (B.Com) from Rajasthan University in 2005 with


66.22%.
o Intermediate in Commerce from Rajasthan Board in 2002 with 75.38%.
Subjects include Accounts, Business studies, Economics.
o Secondary education from Rajasthan Board of Secondary education with
53.33% marks (2000).
o Computing Skills: Softwares/Applications include MS–Office, Internet
Explorer, Outlook Express.

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