Human Resources Management - A Strategic Approach to Employees' Performance

Running Head: Human Resource Management 1
HUMAN RESOURCE MANAGEMENT
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Human Resource Management 2
Human Resources Management
Human Resource Management is the tactical approach aimed towards successful
management of the employees of any given firm. Human Resource Management usually deals
with the hiring, motivation and sustaining the lab-or force within the businesses. The HR
department is designed to optimize worker's performance in the delivery of employer's planned
objectives. Effective Human Resource Management makes sure that highly qualified and skilled
workers possessing abilities to undertake certain tasks are employed, placed, tutored, developed,
and motivate in order to tap maximum potential(Noe et.al, 2006). This, in turn, ensures that a
given business attains a competitive advantage in respective markets. Effective Human Resource
Management can be helpful in the enhancement of a company's competitive advantage or
creation of an entirely new competitive advantage and this is through the implementation of
Human Resource Policies. The paper offers a discussion of some of the major ways in which
effective Human Resource Management can enhance the competitive advantage of
organizations.
Human Resource Policies and Competitive Advantage
Competitive advantage is a superiority that a firm has over its rivals that creates greater benefits.
Human Resource Management (HRM) policies are continuing strategies on the approach a firm
plans to adopt in the management of its workers (Arlett, Myers, and Roukes 2011). They outline
the values and philosophies of the company in the manner in which people should be handled
(Briscoe, Tarique and Schuler, 2012). Discussed below are some HR policies that can be
implemented to enhance the competitive advantage of a company.

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First off a company may decide to alter competition by posing the lowest market prices.
To attain this, firms have to make sure that their operations are using the minimum costs possible
so as to maximize the profits of the business. This could be done by getting human capital from -
available independent contractors and/or offshore vendors and combining this with other
approaches to reducing costs. (Rezabakhsh et.al, 2006) asserts that organizations can leverage
this method to attain tremendous profits against competitors.
Employment security: If a firm assures guaranteed employment by stating and ensuring that none
of the existing workers will be dismissed for lack of or reduced work in the organization, it
provides a signal of long-term commitment to its workers (Bailey et.al, 2018). This exercise
generates worker commitment and loyalty as well as a motivation to put in an extra effort aimed
towards benefiting the organization. Selectivity in recruitment: This involves careful selection of
fit workers and in the right manner since a highly qualified workforce yields twice as much as
unqualified one. Moreover, if a firm is selective in its hiring practices, in away informs
applicants that they are getting into an elite institution which pertains high expectations in
relation to workers 'performance (Goetsch & Davis, 2014). Hiring competitive workers ensures
that optimal productivity is reached by hiring the minimum possible workers. This could save the
firm some production costs raising its competitive advantage.
Incentive pay: this involves ensuring that the workers who have contributed to enhanced levels
profitability and achievements are allowed to have a share of the benefits gained. This can
motivate such employees as they perceive incentives pay as just and fair. On the other hand, if all
benefits generated from the workers' efforts and ingenuity go to top administrators, the workers
may see this as unfair, making them feel discouraged, and abandon their determinations.

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Offering incentives to workers, therefore, lead to higher productivity among workers increasing
the firm's competitive advantage (Cleeve, 2008).
Training and skill development: This entails offering employees with skills that are necessary for
partaking their jobs. Training of workers ensures that workers and their managers undertake their
tasks competently and at the same time demonstrates the organization's commitment to its labor
force. Training workers ensure that the workers are up-to-date with current technology and
improvements. It also enhances their skills and ensures the production of quality products and
raised output leading to giving it an advantage over its rivals (Rousseau, 2004).
Participation and empowerment entails fostering the decentralization of choice making and
wider employee participation and empowerment in the regulation of their work process. Firms
should shift from a hierarchical coordination and control of procedures to a system in which
lower-level workers are allowed to undertake activities to enhance performance. Certain studies
have proved that participation raises both productivity and employee satisfaction (Pfeffer, 2005).