Human resource management (HRM) consists of the activities commenced by an enterprise to ensure the effective utilisation of employees toward the accomplishment of individual, group, and organisational goals. In the modern era of business, human resources management is seen as a function that provides firms with a competitive advantage as business are dependent on human capital (ideas, concepts, innovation) more than ever as it is viewed as a principal driver of competitive advantage (Sarina, 2016). There are various HRM practices and components that deliver a business with a competitive advantage.
Human resource development (HRD) is a subsection of HRM which aids an organisation in gaining a competitive advantage. Human resource development …show more content…
All of these factors within HRD allow business to gain a competitive advantage within their market and against their competitors. HRD in modern business is considered to be one of the key factors that benefits the organisation and helps provide a competitive advantage as it is generally results in higher productivity, stronger relations between the employee and employer and ultimately greater profitability for the firm. HRD allows the employees to be able to be more competent, as they are able to develop new skills, knowledge and attitudes that will be beneficial to the organisation they are in (Vasantham, 2015), therefore providing the business with a competitive advantage as it makes the employees feel more valued as the business is putting effort in for them, as well as assisting the employees to be able to …show more content…
There are many factors of recruiting externally that provide firms with a competitive advantage. One major advantage of employing talent externally is that generally, people from outside the business will bring new ideas into the business, this is beneficial as new ideas often lead to innovative opportunities for organisations, thus creating a competitive advantage for the business as their competitors may have not thought of these new ideas and the organisation can act swiftly in order to take full advantage of these ideas that can be brought into their market. Also, whilst recruiting externally, it allows organisations to target important players that may have worked with their competitors (Gigli, 2003). By hiring an applicant with a proven track record for the competition, enables the firm to have a greater perspective of their competitions visions in order to be successful, as a result organisation can take advantage of this and be innovative and stay ahead of their competition, thus creating a competitive advantage. Evidently, the HRM function should have a mix of both internal and external recruitment of talent, in order to maximise their opportunity of creating a sustainable competitive
Human resource development (HRD) is a subsection of HRM which aids an organisation in gaining a competitive advantage. Human resource development …show more content…
All of these factors within HRD allow business to gain a competitive advantage within their market and against their competitors. HRD in modern business is considered to be one of the key factors that benefits the organisation and helps provide a competitive advantage as it is generally results in higher productivity, stronger relations between the employee and employer and ultimately greater profitability for the firm. HRD allows the employees to be able to be more competent, as they are able to develop new skills, knowledge and attitudes that will be beneficial to the organisation they are in (Vasantham, 2015), therefore providing the business with a competitive advantage as it makes the employees feel more valued as the business is putting effort in for them, as well as assisting the employees to be able to …show more content…
There are many factors of recruiting externally that provide firms with a competitive advantage. One major advantage of employing talent externally is that generally, people from outside the business will bring new ideas into the business, this is beneficial as new ideas often lead to innovative opportunities for organisations, thus creating a competitive advantage for the business as their competitors may have not thought of these new ideas and the organisation can act swiftly in order to take full advantage of these ideas that can be brought into their market. Also, whilst recruiting externally, it allows organisations to target important players that may have worked with their competitors (Gigli, 2003). By hiring an applicant with a proven track record for the competition, enables the firm to have a greater perspective of their competitions visions in order to be successful, as a result organisation can take advantage of this and be innovative and stay ahead of their competition, thus creating a competitive advantage. Evidently, the HRM function should have a mix of both internal and external recruitment of talent, in order to maximise their opportunity of creating a sustainable competitive