Human Resource Management Is The Source Of Sustained Competitive Advantage

731 Words 3 Pages
I. Introduction
Nowadays, in the business world, it is considered that employees are the principal factor that contributes to reaching the success of any organization. Therefore the role played by the human resources management (HRM) is extremely important in order to have a valuable and efficient workforce.
According to Mathis and Jackson (2002), HRM “refers to the design and application of formal systems in an organisation to ensure the effective and efficient use of human talent to accomplish organisational goals ” (in Samson & Daft, 2012, p.436). Such systems comprise “activities undertaken to attract, develop, and maintain and effective workforce” (Samson & Daft, 2012, p.436). However, is HRM the source of sustained competitive advantage?
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II. Concept of Human Resource Management (HRM).
Human resources management (HRM) is a series of integrated decisions that form the employment relationships; their quality contributes to the ability of the organizations and the employees to achieve their objectives. The human capital which are knowledge, experiences and skills embed in employees is gradually improving over time so that their values appreciate rather than depreciate. Therefore, employees are the most important source since their attitude and calibre significantly influence the success of an organization. Consequently, the term Human Resource Management (HRM) is defined as: “The process and practice of influencing employee’s behaviour, attitudes and performance” (Kramar et al., 2014)
In other words, is the planning, organization, development, coordination and control techniques capable of promoting efficient performance of the employees, as well as, keeping them in the organization and motivate them to always give the best of
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First, HR acts as a strategic partner, which consists in designing and implementing HR programs that align with the business vision. Second, it can operate as a change agent by creating cross-functional collaboration and organization readiness to accomplish change initiatives and performance results. Third, it is an administrative expert that continues improvement of the HR processes to optimize operational efficiencies and employee self-service. Fourthly, it develops employees’ competences with continuous skills and knowledge management. (Ulrich, 1997) By accomplishing this four steps, the organisation is will support their current employees and retain them, which is really important due to the fact that employees are assets that “give a company its competitive advantage” (Samson & Daft, 2012,

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