Create Competitive Advantages Through Human Resource Strategies

 

One of the key success factors of high-performing organizations is giving priority to their people. Traditionally, competitive advantage was gained through factors such as production capacities, research laboratories, financial resources, distribution channels, and economies of scale. Though these factors are still relevant but they are not sufficient for success in today’s business world. It is commonly acknowledged that people are the key assets in the new world market and that all other assets are nothing more than commodities that can be purchased at market prices, but only the human asset has the potential to learn, grow, and contribute (Dr. Jac Fitzenz, 1995).

HR strategies can help companies attract and retain top talent, develop a strong culture, and boost employee productivity and engagement.

By investing in employee development, creating a positive work environment, recognizing and rewarding employees, and measuring and tracking HR metrics, companies can use HR strategies to create competitive advantages.

 

V Skills Certified: Human Resource based Competitive Advantage

Here are a few tips on how to create competitive advantages through HR strategies:

• Align HR strategy with business strategy.

The first step is to ensure that your HR strategy is aligned with your overall business strategy. What are your company's goals and objectives? What kind of talent do you need to achieve these goals? Once you understand your business needs, you can develop HR strategies that will help you meet those needs.

• Invest in employee development.

Investing in employee development is one of the best methods to get a competitive edge. When employees feel like they are constantly learning and growing, they are more likely to be engaged and productive. Employee development can be funded by tuition reimbursement, mentorship programs, training initiatives, etc.

• Create a positive work environment.

A positive work environment is essential to attract and retain top talent. Employees want to work for companies where they feel valued and respected. You can create a positive work environment by offering competitive salaries and benefits, creating opportunities for advancement, and fostering a culture of collaboration and respect.

• Recognize and reward employees.

Employees want to feel appreciated for their hard work. You can recognize and reward employees for their achievements through performance reviews, bonuses, and employee recognition programs.

• Measure and track HR metrics.

Measuring and monitoring HR metrics is crucial for determining what is and is not effective. Employee engagement, employee satisfaction, and employee turnover are a few important HR KPIs to monitor.

A company can attract and retain top talent, boost employee morale and productivity, and drive innovation by creating a culture of diversity and inclusion. By providing opportunities for advancement, the employees will be motivated and engaged, which makes them more likely to stay with the company. It will make employees believe that they have opportunities for advancement and career development. These will help the company to gain competitive advantages and drive to success.

References

Deloitte, 2009, Creating value through HRb [Online], Available from https://www2.deloitte.com/content/dam/Deloitte/de/Documents/human-capital/creating-value-through-hr.pdf,  Accessed 28^th Oct 2023.

Patrick M. Wright. Gary C McMahan and Abagail McWilttams, 1994, Human resources and sustained competitive advantage: a resource-based perspective [Online], Available from: https://www.researchgate.net/publication/239667389_Human_resources_and_sustained_competitive_advantage_A_resource-based_perspective, Accessed 28^th Oct 2023.

Scholley Bubenik, 2019, Can HR Strategies Create A Competitive Advantage For Your Company? [Online], Available from: https://www.forbes.com/sites/scholleybubenik/2019/02/18/can-hr-strategies-create-a-competitive-advantage-for-your-company/?sh=fdf2b8158563, Accessed 28^th Oct 2023.

V Skills Certified [Online], Available from: https://www.vskills.in/certification/blog/human-resource-based-competitive-advantage/, Accessed 28^th Oct 2023.

William S. Brown, 2021, Strategic Human Resource Management for Competitive Advantage [Online], Available from: (PDF) Strategic Human Resource Management for Competitive Advantage (researchgate.net), Accessed 28^th Oct 2023.

Importance of Genuine commitment to Human Resource Development (HRD) in the Public and Private Sectors

 

Human Resource Development (HRD) plays a significant role in ensuring the success of an organization and the success of employees' career and personal lives. The growth and expansion at the organizational level would eventually translate to economic growth at the macro-economic level. Therefore, the significant role of Human Resources Development (HRD) is needed for the desired social and economic growth and development.

 

Sustainable Development of Human Resource, Paris, 2007.

 

“Nigeria is blessed with different natural resources and in the midst of the wealthy resources, it is still rated as a third-world economy. The leaders and the political class have failed in their primary assignment of developing the right persons that will harness the various natural resources in Nigeria. Human capital development hasn’t been given due attention yet. Nigeria is acknowledged as one of the most heavily populated countries in Africa with its labor free with large and ample natural resources. Ironically, the nation has witnessed slow economic growth despite the presence of these resources Observing this occurrence; Udabah (1999-69) stated that the fact that a country is blessed with natural resources does not mean it will do well in terms of growth and also it does not mean a country without natural resources will not excel. It is  clear  from the statement that  human capital development is  highly  important for the government to adopt  policies that are  applicable  to  the  development  of  human  capital investments.” (African Journal of Economics and Sustainable Development, September 2021).

AID THE STUDENT: Natural resources in Nigeria, uses and their locations (Discover Treasures)

The question is, how were Japan's extraordinary achievements after World War II achieved? Japan has small land holdings, no minerals in large commercial quantities, and no crude oil, unlike Nigeria.

How has Japan managed to maintain a very high employment (about 2.64% unemployment in 2022), a low level of inflation (about 2% in 2022), a strong currency, fast growth, leading in electronics and robotics or explain Japan produces an average of 7 million cars per year?

What is the secret? The secret is if any Country needs to attain growth and development, it must invest in human capacity development which there is no alternative to investing in education and training of Human Resources, (Ejiogu, 2001).

Furthermore, the next phase of capitalism may be human resources. Because Human Resources is intellectual capital and human capital of company, and human capital may create firm performance for firm, (Peter Drucker, 2015).

The study revealed that the quality of labor (skills, knowledge, and attitudes) determines an organization's ability to survive and the economic growth of a country. Formal and informal education also plays a major role in labor quality and education is a crucial prerequisite for achieving real economic growth through enhanced human resources.

There is a strong positive link between investment in education and economic growth, where a 1% increase in human capital growth accounted for 11% increase in GDP growth rate, though this strong significant and positive link was pronounced in countries with better allocation to education (Wilson & Briscoe, 2004).

HR Avant-Garde, Apr 2015, HR Articles

According to these findings, employees are no longer seen as simple tools used to achieve financial goals but as resources that need to be valued and preserved so they can continue to contribute to the company, family, and community in general.

For HRD to be effective, it is important that organizations have a genuine commitment to it. This means more than simply providing employees with training and development opportunities. It also means creating a culture where employees feel valued and respected, and where they are encouraged to grow and develop.

By demonstrating a genuine commitment to HRD, organizations can create a more skilled, motivated, and innovative workforce that creates unique value for the organization and is difficult to imitate by competitors. This can lead to improved performance, increased productivity, and better outcomes for the organization, employees, and society.

 

References

Deinibiteim M. Harry (Ph.D) and Emeh E. Onyinyechika, 2021. Human Resource Development and Economic Growth in Nigeria

Gürhan Uysal, Ondokuz Mayıs University, Samsun, Turkey, 2017. Impact of Human Resource Management on Economy: Firm Management Perspective

Kudus M. Bakare, 2020. Impact Of Human Resources Development on Economic Growth

Katarzyna Piwowar-Sulej, Wroclaw University of Economics and Business, Poland 2021. Human resources development as an element of sustainable HRM – with the focus on production engineers

Katarzyna Piwowar-Sulej, 2016. Sustainable Economic Development Through Human Resource Management: Social Intelligence Of Managers And Performances

Martinus Nijhoff, The Hague, Netherlands 1968. Human Resource Development for Economic Growth

Prof. Ass. Nada Krypa (Tapija), 2017. Social Economic Development and the Human Resources Management

Human Resource Management (HRM) and Human Resource Development (HRD): A Perfect Partnership and Immensely Successful Together

Human Resource Management (HRM) and Human Resource Development (HRD)

Human resource management (HRM) and human resource development (HRD) are two essential components of any organization. HRM is responsible for the acquisition, development, and retention of human talent, while HRD is focused on the ongoing training and development of employees.

These two functions are closely intertwined, and they work together to ensure that an organization has the skilled and motivated workforce it needs to be successful. A skilled and motivated workforce creates benefits for both parties employees and employers, as well as helps to build sustainable social and economic growth as a country.

Human Resource Management (HRM)

Human Resource Management (HRM) is a collective term for all the formal systems created to help manage employees and other stakeholders within a company. Human resource management is tasked with three main functions: recruitment and compensation of employees and designating work.

Ideally, the role of HRM is to find the best way to increase the productivity of an organization through its employees. Despite the ever-increasing rate of change in the corporate world, the HRM role is not likely to change significantly.

MBA Skool: Meaning & Importance of HRM

 Human Resource Development (HRD)

Human Resource Development (HRD) is an area of human resources focused on the growth and development of an organization's employees. It aims to provide employees with skills and knowledge to help them grow professionally in their careers. Professionals working in human resource development may have responsibilities related to coaching, mentoring, training, and performance management. By developing employees, this area of HR helps companies anticipate and prepare for future changes in the workplace.

Kleiman Consulting: Training & Human Resource Development

HRM: The Foundation

HRM is the foundation of any HRD program. HRM is responsible for ensuring that an organization has the right people in the right roles. This includes recruiting and hiring new employees, onboarding and training new hires, and performance management.

HRM also plays a vital role in employee retention. By creating a positive work environment and offering competitive compensation and benefits, HRM can help to keep employees engaged and motivated.

HRD: Investing for the Future

HRD is focused on the ongoing training and development of employees. This includes providing employees with the skills and knowledge they need to be successful in their current roles and preparing them for future roles.

HRD programs can take many forms, such as on-the-job training, formal training courses, and mentorship programs. HRD programs can also be designed to help employees develop their soft skills, such as communication, teamwork, and leadership.

How to Build a Strong HRM/HRD Partnership

There are several things that organizations can do to build a strong HRM/HRD partnership, including:

• Align HRM and HRD goals with organizational goals: HRM and HRD goals should be aligned with the overall goals of the organization. This will help to ensure that both functions are working towards the same objectives.
• Create a culture of learning: Organizations should create a culture of learning where employees are encouraged to develop their skills and knowledge. This can be done by providing employees with opportunities for training and development, and by rewarding employees for their learning efforts.
• Foster communication and collaboration between HRM and HRD: HRM and HRD departments should communicate and collaborate regularly. This will help to ensure that both functions are aware of each other's activities and that they are working together effectively.

These pointers might assist businesses in creating a solid HRM/HRD collaboration that will aid them in achieving their objectives.

The Benefits of a Strong HRM/HRD Partnership

A strong HRM/HRD partnership can offer a number of benefits to an organization, including:

• Increased employee productivity: When employees are trained and developed, they are more likely to be productive and efficient in their work.
• Improved employee engagement: When employees feel that their organization is investing in them, they are more likely to be engaged and motivated in their work.
• Reduced turnover: When employees feel that they have opportunities for growth and development, they are less likely to leave the organization.
• Enhanced organizational performance: A well-trained and motivated workforce is essential for organizational success.
• Create a skilled, innovative, and motivated workforce to compete with the global market for sustainable social and economic growth as a country.

Benefits of HRD: Sketchbubble.com

References

Prof. Ass. Nada Krypa (Tapija), 2017. Social Economic Development and the Human Resources Management

Kudus M. Bakare, 2020. Impact Of Human Resources Development on Economic Growth

Nicole Richman, 2015. Human resource management and human resource development: Evolution and contributions

David McGuire, 2010. Foundations of Human Resource Development

Drexel University School of Education, Human Resource Management vs. Development

Human Resource Management vs. Development | Drexel University

Indeed editorial team, 2023. HR Development vs. HR Management: What's the Difference?

HR Development vs. HR Management: What's the Difference? | Indeed.com

MBA Skool: Meaning & Importance of HRM

Human Resource Management (HRM) - Meaning & Importance | HRM Overview | MBA Skool

Kleiman Consulting: Training & Human Resource Development

Training & Human Resource Development - Kleiman ConsultingKleiman Consulting

Benefits of HRD: Sketchbubble.com

Human Resource Development PowerPoint Template (sketchbubble.com)