Individual Report (Hrm) Essay

According to the chairman of Woolworths, James Strong, â€Å"One of the most significant factors contributing to the country’s outstanding performance is the quality of its people†. According to him involvement and development of people possessing high quality is very important for an organization to succeed (Stone, 2011). Now a day’s workforce is the main factor of organization’s competitive advantage. The workforce is intangible assets of organizations. To gain a competitive advantage, the part of human resource is the best ever, because it is taken as a wealth success as well as the main component of sustainable competitive advantage (Memon, Mangi, & Rohra, 2009). Human Capital includes the skill, attitudes and knowledge of the employees. Today, all the organization maintains sustainable value in the market, so that they mostly use intangible assets as human capital (Javadein, Estiri, & Ghorbani, 2011). When a human capital is valuable, rare and hardly capable it creates a sustainable competitive advantage. For example given below: Table 1: Human capital and Competitive advantage Performance Type of competitive advantage Hardly capable of imitation Rare Valuable Below average Competitive loss —- — No Average Competitive balance —- No yes Above average Temporary competitive advantage No yes yes Above average Sustainable competitive advantage yes yes yes Source: (Colella & Miller, 2006) All researchers are own vision but of this concept as Wright, et al, 1994 indicates that they meet the criteria for human resource Barney is a source of sustainable competitive advantage. Guest said in 1990 if management trusts employees and give difficult tasks, workers will reply high motivation, commitment and high performance (Jassim, 1987) to respond. This means that in recent years the sources of sustainable competitive advantage technological, financial but now to human. In other words, we can say that achievement now depends on employees’ skills, confidence and capacity obligations. 2Competitive Advantage Competitive advantage is achieved when a business produces extra profits which are greater than its competitors due to making exclusive product pricing or supply advantage (The VisionLink Advisory Group, 2012). And if the company is to create value over time, the policy the same as another potential competitor also done, but other companies are not able to reap the fruits of this policy to duplicate, then you can say that the organization continues to sustainable competitive advantage. For better compete in the market the capable employees of the successful companies make a product unique, use some different activities and they focus on all of energy areas which affect the organization to maintain sustainable competitive advantage. The Competitive Advantage Process   Image2: Competitive Advantage Process Source: (http://www.vladvisors.com/) According to this Michael Porter’s say that: â€Å"At the time a firm gets profits more than industrial average profit, then the firm possesses competitor advantage over its competitors† (The VisionLink Advisory Group, 2012). Employees play vital roles to achieve the targets which set by organization so instead of this organization also know that to achieve the sustainability in the market so the factor is capable employees. 3Significance of the Study â€Å"The human element has become important information that comes has an essential element to obtain a competitive advantage, especially in the new economic environment.† The objective of this work is to define the importance of workforce in organizational performance and some models of the strategic direction of the organization to describe. These models make it for this individual report to explain the capable workforce is the main resource of competitive advantage. In these models shows that how the workforce can help to organization in stay sustained competitive in the market. To use these models finds that which are the capable employees in organizations will achieve competitive advantage in the market. (Bernardin & Russell, 1998). This effort shows that organization understand the importance of human resources in formulating planning and execution to achieve a competitive advantage. 4Capable Workforce can deliver sustainable competitive advantage Fig3: Adapting these things to develop a Sustain Competitive Advantage Source: (http://www.growourregion.ca) In today’s world if an organization needs to have a growth in present economic environment then it should have more and proper focus on its workforce. The ability to reduce costs, productivity and competitive advantage in the management depends upon the employee’s capability. Sustainable competitive advantage means that the employees of the company always focus on the maintenance and improvement in the enterprises, so the organization easily competes in the market. This competitive advantage helps every business to stand against its rivals in a long run. (Kotelnikov, N.D). Some example according to sustain competitive advantage: 4.1Example: IBM With the talent and experience of professional manpower the IBM deployed worldwide, the organization and practice of people is part of IBM Global Business Services. IBM consultants have a proven track record in creating value for customers with our proven assets, methodology, partnerships and research capabilities; we act as business advisors trust for our customers worldwide (Brousseau, N.D.). 4.2Literature Review of Workforce Workforce is supposed to be major part of the organization. In recent years organization ignored workforce strategies, but after see the importance and control organization began to understand that human resources is essential to create and maintain a competitive advantage. Most of theories show that workforce should be included at the time of formulation of any strategy in the organization. According to Stone 1998 shows that whenever organizational need to formulate new strategy that time they requires identifications of resources, analysis the whole structure and balance the externalities coming from outside or inside the organization at that time workforce plays a very important role (Memon et al., 2009). Workforce is major resource of sustainable competitive advantage. Workforce give helps to organization’s to achieve sustainable competitive advantage through cost management and differentiation. 4.2.1Example: Uk Airlines In this example tell about employees of UK airlines give efforts to utilize the image of airlines in the minds of its customers. The most excellent airline are those which always do our promises to their customers and always make significant value for them, but this thing possible when the employees of the company give better results. In this Airlines Company employee’s plays very vital role for spread image of airline in the market and responsible for deliver promises to our customers, so that airlines company easily achieve a sustainable competitive advantage in the market (Study-Aids, 2010). 5Workforce and Sustained Competitive Advantage: For achieving goals, firstly represent the review of the resource-based view of the firm. And after this concept tell about function of workforce in sustainable competitive advantage. 5.1The Resource-Based View of the Firm According to resource-based firm organization literature shows that the theories of profit and competition are related with the writing of Ricardo (1817), Schumpeter (1934). And in this they both mainly focus on the workforce of the business success as the main determinants in the competition (WRIGHT & McMcMAHAN, 1993). 5.2Workforce affects the sustainability of the organization It is clear that most of the organizations suggest that workforce is the key point of competitive advantage in the world. Workforce is the key point of sustained competitive advantage in the market because less visible role compared to others. Employees working in the organization can play a very important role in production of product and services because the employees are directly involved in it. All these things displayed by the workforce are capable of a sustainable competitive advantage. 5.3Workforce Role in the Sustained Competitive Advantage First, in a static environment, a high level of workforce must have a number of bodies ‘to have productive advantages over its competitors by developing more efficient methods to meet the requirements of the task (Hunter & Hunter, 1984). On the other hand, the dynamics environments some workers affected by the increased efficiency adapted to the individual capacity of the environment. 5.4Function of Manager to rising workforce While managers were greatest impact on business results. It plays vital function in the development of workforce as a competitive advantage continuously (WRIGHT & McMcMAHAN, 1993). According to resource-based view shows all managers are ability to control the characteristics of their business. 5.4.1Example: Honda Last 40 years the Honda had a manufacturing work plants in the United States. In U.S. economy Honda has large growth and spreading out in terms of dollars and number of employees. But the success of the Honda’s depends upon the company employees (Child, 1972). 6Employees Personal Characteristics under Workforce These are some personal Characteristics for employees by which they achieve goals in the company and other side easily achieves sustain competitive advantage in the organization. Such that including aggressiveness, Confidence, poise, decisiveness, toughness, integrity and quick thinking (Child, 1972). Skills: The most important skills for employees to sustainable competitive advantage in the organization are: 1)Communication Skills: Employees have good communication skills by this they easily do business globally which effect organization preview. 2)Organization skills: This is the vital factor for good management. These skills included in the employees having good planning, analytical and goal-setting abilities by through this they achieve good reputation of organization in the market which makes the sustainable competitive advantage. 3)Coping Skills: Employees have flexible and creative were involved in effectively coping with change, as were patience and persistence. These all good skills in employees affect the organization image in the market. 4)Technical skills: If managers have good background in their field so it achieves the objectives of the organization and done the things more efficiently which affects the sustainability of the organization. 7Conclusions Today, intangible assets play an important role in the competitiveness of enterprises, more durable and less active that can be replicated. Workforce can be considered as one of the most important intangible assets, including the knowledge and skills. As a result, management has the capital necessary to achieve competitiveness. The reason of this analysis is verify the capable labor market is the important factor for the organization. By preparing this individual report using some theoretical concepts, which shows that capable workforce is the source of sustainable competitive advantage. 8Reference Bernardin, H., & Russell. (1998). Human Resource Management. A Experimental Approach. 2 Edition. Singapore: McGraw-Hill. Brousseau, D. (n.d.). Organization & Workforce Transformation. Retrieved from http://www-935.ibm.com/services/us/gbs/strategy/talent-and-workforce-management.html Colella, A., & Miller, C. C. (2006). Organizational Behavior: A Strategic Approach. John Wiley, New York. Memon, D. M. A., Mangi, R. A., & Rohra, D. C. L. (2009). Human Capital a Source of Competitive Advantage â€Å"Ideas for Strategic Leadership.† Australian Journal of Basic and Applied Sciences. Retrieved from http://www.ajbasweb.com/ajbas/2009/4182-4189.pdf Javadein, S., Estiri, M., & Ghorbani, H. (2011). The Role of Internal Marketing in Creation of Sustainable Competitive Advantages. Retrieved from http://scialert.net/fulltext/?doi=tasr.2011.364.374&org=10 Jassim, R. K. (1987). Competitive Advantage Through the Employees. Retrieved from http://www.my-world-guide.com/upload/File/Reports/e/egipt/Competitive%20Advantage%20Through%20the%20Employees.pdf The VisionLink Advisory Group. (2012). Creating and Sustaining a Competitive Advantage – The Role and Impact of Effective Compensation and Rewards Strategies. Retrieved from http://www.vladvisors.com/compensation-information/Role-of-Effective-Compensation-Competitve-Advantage-article.aspx The VisionLink Advisory Group. (2012). How Do I Create a Competitive Advantage with My Compensation Programs? Retrieved from http://www.vladvisors.com/compensation-information/Competitive-Advantage-with-Compensation-article.aspx Kotelnikov, V. (N.E). Sustainable Competitive Advantage (SCA). Retrieved from http://www.1000ventures.com/business_guide/crosscuttings/sca_main.html WRIGHT, P. M., & McMcMAHAN, G. C. (1993). Human Resources And Sustained Competitive Advantage: A Resource-Based Perspective. Retrieved from http://ceo.usc.edu/pdf/T9319239.pdf Child, J. (1972). Human Resource Management (Competitive advantage). Retrieved from http://www.slideshare.net/fathima_sy/human-resource-management-competitive-advantage-1928241 Study-Aids. (2010). Employee Branding as a Source of Sustainable Competitive Advantage A Study of Two UK Airlines. Retrieved from http://www.study-aids.co.uk/marketing/market0057.html Hunter, J., & Hunter, R. (1984). Validity and utility of alternative