How a Firm's HR Strategy Could Be Its Source of Competitive Advantage Essay

How a Firm's HR Strategy Could Be Its Source of Competitive Advantage - Essay Example This paper illustrates that HRM has come about as a feature within the modern day organization which has changed its face upside down. It has turned the tide in the favor of recruitment and selection policies, made aspects like performance management rewarding, focused more on incentives and bonuses, relied on the importance of having a proper hiring and firing regime and many other initiatives are also in line when one thinks of HRM in the truest sense. The single most basic aspect that HRM brings to the fore is its ability to make the employees and workers feel counted for their actions and they realize that their voice is also getting heard within the midst of any company, firm or entity so to speak. Competitive advantage is important to understand because it dictates the manner in which HRM brings in the much touted for the value of the organization. The differing stance of the organization in terms of its human resources is manifested through the competitive advantage which is d ocumented in a number of varied ways. It must be remembered here that competitive advantage works to the benefit of the HRM regimes and thus building up of the same would mean incentives for the organization in the long run. It must be understood that competitive advantage and HRM work hand in hand, in order to bolster the organization in different ways – all of which build value at the end of the day. The origin of HRM thus emanates from the auspices of a single department taking care of all the management concerns. This would include finance people handling recruitment and selection duties as well as top management taking care of each other’s dealings and duties. What HRM has changed is to provide the employees a department for their own selves and now they know they could make themselves feel heard when it comes to drafting policies, amending proposals and strategies and changing the course of action as per the employee undertakings and similar avenues of employee s cope are concerned. Thus the most basic definition of HRM is to devise means for getting to the employees in a direct manner – taking care of their concerns, rewarding them for their works, listening to their demands and getting work done out of them.