Managing Human Resource: Competitive Advantage and Threats

This report delves into the realm of Human Resource Management (HRM), focusing on how the 'Resource Based View' (RBV) can be adapted to achieve competitive advantage and organizational success. It explores the application of RBV, supported by examples of best practices from various organizations. The report also analyzes two significant threats currently impacting organizations operating within the United Kingdom labor market: the shortage of skilled labor and the issue of poor productivity, providing evidence-based examples to support its critical assessment. The analysis includes the impact of Brexit and technological advancements on the labor market. The report highlights the importance of effective HRM practices in building capabilities and efficiency, leading to competitive advantage in the market. It also explores the VRIO framework and its role in protecting resources. Finally, the report emphasizes the significance of retaining employees, the importance of considering employee needs, and the strategic use of HRM policies to foster a supportive work environment and achieve organizational goals.

Managing Human Resource

Table of Contents
INTRODUCTION ...........................................................................................................................1
Main Body........................................................................................................................................1
Explain how the ‘Resource Based View’ can be adapted to Human Resource Management to
help deliver competitive advantage and organisational success, using examples of ‘good
practice’ by organisations to support your argument..................................................................1
Analyse two major threats currently facing organisations operating within the United
Kingdom labour market, using evidenced examples as part of your critical assessment............4
CONCLUSION................................................................................................................................7
REFERENCES.................................................................................................................................8

INTRODUCTION
Managing human resource is defined as the procedure which is executed by the managers
for managing or regulating the workforce of the firm in effective manner. In addition, it is an act
of managers in which they have to handle the workforce of firm so that their efficiency can be
improved that leads the organisation towards growth and success. It also consists several aspects
like planning or allocating of resources, recruitment and selection of highly skilled and efficient
employees, providing guidance to the employees etc. Managers also develop an effective
environment at workplace for their employees so that they highly dedicated and provide their
maximum contribution for achievement of organisational goals. Managers of organisation have
responsibility to identifying the gap between expected and actual performance level so that
training and development programmes can be arranged for gaining better contributions from
them. Present assignment will describe about the resource based view along with analysing
major threats which are faced by organisations in current time within the UK market.
Main Body
Explain how the ‘Resource Based View’ can be adapted to Human Resource Management to
help deliver competitive advantage and organisational success, using examples of ‘good
practice’ by organisations to support your argument
Human resource can be considered as the most valuable part of an organisation because
without their efforts any firm can't achieve its desired goals or objectives within the given time-
frame. They have also duty to use their specific skills or knowledge so that human resources of
organisation should be managed or provide maximum contributions for achievement of
organisational goals. For this, HR managers have duty to fulfil the requirements of skilled and
efficient employees of organisation and guide them with the help of various HR practices like
recruitment, training, rewards and compensation etc. Present essay will discuss the roles of HR
practices in supporting and developing the organisation so as to gaining competitive advantage.
Apart from that, Human resource department is the division who works for the
organisation and use its skills and efficiency so as to retaining the employees for long time and
taking better contributions from them (Stone, 2013). HR managers have also duty to provide
training to their employees on regular basis so that their maximum contributions or efforts would
be gained for achievement of predetermined goals of firm. In order to enhancing efficiency and
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skills, HR managers have duty to carrying out several practices like recruitment and selection,
training and development, rewards and compensation etc. so that employees of firm get
motivated and provide maximum efforts for completing the given task. They are also responsible
for analysing the working environment so that future needs would be forecasted along with
suitable HR strategies and policies in easy manner. In order to make their workforce more
capable they also organise training and development programmes for their employees on regular
basis so that they can easily face different complexities of business environment.
VRIO framework is a tool which is used by organisations so as to protecting their resources and
capabilities so that long term competitive advantage can be gained by the firm. It consists four
elements like Value, Rarity, Inimitable and organisation. Apart from that, Resource based view
(RBV) is a managerial framework which is used for determining strategic resources so that
competitive advantage can be gained by the firm. This theory is very essential because it helps
the managers in increasing knowledge about taking decisions. Resource based view also assists
the managers in analysing organisational capabilities so that organisational performance can be
adjusted so as to gaining competitive advantage in competitive market. In present scenario,
market is surrounded by full of competition in which demand and preferences of customers are
playing crucial roles because these are changed over a time (Mao, 2016). Therefore, it is very
important for the organisations to manage human and other resources in effective manner so as
to preventing any difficulty from the workplace. But, for gaining competitive advantage it is very
essential for the managers of firm to take suggestions from the employees so that they feel
valuable in the firm.
In order to taking better contributions from the employees managers have duty to
maintain effective relations with the employees so that they feel valuable and important within
the workplace. This approach also help the managers in considering the demands of human
resources because when their needs will be fulfilled then they perform better on the given task.
This view not only helps the firm in gaining competitive advantage but also create specific
values that can't be imitate by competitors easily. Characteristics and capabilities of employees
are considered Rare because they allows the firm to gain opportunities which are present in
market and face the threats as well. These resources also supports the organisation in identifying
required factors which are essential for taking success within the business environment.
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In a market, competitors possess high resources then it is very difficult for the firm to
perform business functions in easy manner because other firms uses resources which are
complex, intangible or rare in nature. In addition, this approach not only guides the managers in
identifying the resources which are essential for retaining but also helps them in allocating them
so that better sustainability can be achieved by firm. It has been seems that human resources are
very essential because they support the firm in gaining competitive advantage in marketplace. An
organisation utilises available resources in an effective manner so that desired outcomes would
be received in easy manner (Hertzfeld, 2016). For increasing efficiency and trust upon the
management, managers of firm uses different kind of assets and bonding mechanism like
Management information system, rewards and compensation schemes, incentive and so on.
Through increasing capacity and implementing them in the workplace organisation can easily
achieve better outcomes in a short period of time.
Stage of inimitable in framework defines that human resources are valuable and their
characteristics are rare but it is very necessary to retain them for a long time period so that they
can't be imitate by any of their rivals. This stage also defines that management of firm should
also make focuses on development of their employees so that good competitive advantage can be
gained by them in a short time period. There are numerous sources and capabilities which are
hold by the organisation but are not enough in nature so as to gaining success in market.
Competitive advantage is gained by the organisations when they have effective resources or
capabilities as compared to their rivals. Inventors of resource-based view have argued that
competitive advantage is build by an organisation on the basis of its resources and capabilities.
As a result of it, resources not only provides power within the firm but also supports it to
compete with its competitors. But some other scholars have provided their views that resources
are limited so they can't provide competitive advantage to the organisation for a long time period.
Scholars of approach have also described it as a term of identifying how an organisation can gain
and sustain competitive advantage in market for a long time period.
Resource based view is an application which is used by HR managers for gaining
competitive advantage and sustainability in market. In order to taking sustainability in market, it
is very essential for the HR managers to make focus on their HR policies because if they are
effective then it will helpful in building capabilities and efficiency of organisation which leads
the firm towards competitive advantage in market. For understanding its implementation within
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the workplace an example has been taken such as, HR Policies of Google are innovative because
they provide proper relaxation to their employees so that they feels motivated and provide
maximum efforts for building competitive advantage of firm. They also provide attractive salary
packages, bonuses and rewards to their employees on regular basis so as to improving
performance level. They also uses various HR Policies like training and development
programmes, rewards schemes for favouring their employees so that employees would be
retained for a long time period (Dash, 2016). It has been seems that employees are the main
strength of any organisation and always plays a supportive role in growth and success of firm.
Therefore, it is very essential for the managers of firm to consider needs and wants of employees
and fulfils them accordingly so that organisational goals would be achieved in easy manner.
Analyse two major threats currently facing organisations operating within the United Kingdom
labour market, using evidenced examples as part of your critical assessment
There are mainly two major threats which are faced by firm and are performing their
business activities in UK are lack of skilled labour and poor productivity. Technology is
increasing regularly and as a result of it organisations are facing problem of shortage of skilled
labour. Main reason behind this shortage impact of Brexit and technological enhancement in
each division of firm. Due to impact of Brexit, a large number of labour have moved from UK
into other developed nations where there is no shortage of skilled employees. In current scenario,
most of the organisations are facing the problem of shortage of skilled employee, main reason
behind this problem is Brexit in which UK was exited from European Union. As a result of it,
large number of migrants were moved out from Britain to other nations which results in the
lower number of skilled number are available in the organisation which results poor productivity.
When the number of skilled and efficient employees will left their job then it directly impacts on
the productivity and brand image of firm in negative manner. Due to shortage of skilled and
efficient workers, firm will not deliver the desired quality of product in the market and as a result
of it the brand value of firm would be decreased in market. There are several organisations are
operating their business functions in UK and based on labour intensive technique but these are
affected due to shortage of skilled employees because efficient workers are required so as to
completing the tasks and deliver good products in market. Problem of lack of skilled and
efficient labours is faced by Kier group which is the second largest company of construction in
UK. Main problem which resulted in poor productivity and profitability was occurred due to
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shortage of skilled and efficient employees in construction sector. Whereas, company have
applied advanced technical tools for constructing but as their workers are not qualified enough
for working on latest tools then they have faced lower productivity and profitability in market
due to which brand reputation and profitability of firm is rapidly decreasing in the market. Main
reason behind this problem is exiting of UK from European Union (Bailey, 2018). According to
the report of ONS (Office for National Statistics), it has been identified that due to migration of
employees from the European union, companies which are operating in UK are facing
difficulties in finding efficient and able employees which makes impacts on the productivity of
firm in two different ways. First one is that the cost of labour who having specific skills and
strengths are available at higher costs. Cost of skilled labour with the key efficiencies are rapidly
growing than the expected growth of nation and as a report of it, wages of worker who are
working within the firm are raising at the rate of 3.5% then the previous years. Second impact
which is faced by the UK organisation is unavailability of efficient and skilled employees.
Because of this reason company is not able to innovate new technologies due to which
productivity and brand image of firm is decreasing. Due to lack of skilled workforce,
management of company have to make decision for the development of unskilled labour so that
inefficiency or strengths of labour would be improved in an effective manner. Investing more in
automation and training programmes would be beneficial for the company as they will take
growth in future period of time.
Same problem of shortage of skilled labour is also faced by Tesco Plc. as company is
facing difficulties in finding skilled workers because young generation are leaving their schools
without proper education of English and Maths. According to the latest report of school
education UK, Most of children have left their school between the age of 11 to 13 years and as a
result of it, they have no efficient skills due to which they can't perform the given job in effective
manner. As most of children in UK leaves their school without gaining basic knowledge which
brings more difficulties towards UK based organisation to attained skilled workforce.
Second problem which is faced by the organisations in UK is that poor productivity is
provided by unskilled workers. Workforce who have not good skills and knowledge about the
production process is resulting poor productivity of company. With the lack of skilled workforce,
most of the organisations are highly depended on advanced technological systems but as the staff
members who are working with in the firm are not able or skilled then cost of production is
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increased. For training of employees, organisations have to invest more money for hiring trainers
due to which heavy charges on goods and services will be taken by the company through
providing it in market.
Organisation should enhances its efforts and techniques in training and development of
their employees so that better quality of products would be delivered in market. There are several
industries which work on labour intensive techniques and needs skilled labour of technological
advancement. For improving productivity company has bring in new technology or completing
their functions through taking support from other nations. After Brexit, companies who are
working at London has to move their business in other locations due to unavailability of efficient
employees. Many companies like Honda is planning to remove their business operations from
UK to other nations so as to maintain their cost of product or providing better quality in products
at cheaper rates (Honda confirms plans to close UK plant, 2019).
For understanding the result of productivity faced by organisation in UK labour market
example of Kier group is chosen, company have faced a loss of poor production which results
the poor revenue figures and profit of firm. The problems which are faced by firm are lower
performance level of employees. Productivity of labours, unavailability of skilled workers etc.
For overcoming this kind of problem, management of firm have decided to implement new
strategies so that productivity of firm would be increased. Due to lack of skilled workers and
technological advancement workers are not able in performing their duties by using new and
modern machines due to which firm is not delivering the possession of houses to the customers
on time (Buettner, 2015). As a result of it, company's revenue figures are rapidly decreasing
which brings their existence into danger. Therefore, it is very essential for them to make
investments on training and development of their employees so that their knowledge and
efficiencies would be improved and they will be able to work on the latest advanced tools.
Management of Tesco have also experienced productivity issues in recent years which
occurred due to two factors. In this, first one is related with growing competition in the business
environment that has resulted in focussing more on profit maximisation instead of building brand
image. Whereas, second one is the factor which is related with labour market. Labour market of
UK has seen quite as a decline in terms of supply and demand (The Impact of Artificial
Intelligence, 2018). Main reason behind this is that, dependability of organisations are increasing
upon artificial intelligence than the skilled labours. Because of which skilled labours are feeling
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demotivated at workplace and as a result of it company is facing high turnover issues of
employees at workplace. Tesco struggles to keep up with growing demand and expansion
activities so as to sustaining in retail sector. Therefore, management of Tesco should provide
their main priorities on human resources so that they feel motivated and perform their duties in
well manner.
CONCLUSION
It has been concluded from the above discussed report that managing human resources is
an important task which should be performed by each organisation in well manner so as to
gaining better growth and success in the market. It basically engage in all internal functions of
the firm that consists of whole selection, rewards and compensation, training and development so
as to improving the efficiencies and skills of employees so that challenges would be faced by
firm in an easy manner. Human resources are considered as the centre of firm which supports the
organisation in gaining growth or success in market. Hence, it is very essential for the HR
managers to encourage their personnels so that they gets highly motivated and perform their
duties in well manner so that goals of firm would be achieved in easy manner. In addition, in UK
market most of the organisations have left UK due to unavailability of skilled workers.
Therefore, in this situation HR managers have responsibilities to train their existing employees
so that expected skills or efficiencies would be implemented into them which leads the
organisation towards growth and success.
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REFERENCES
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Online
Honda confirms plans to close UK plant. 2019. [Online]. Available through:
<https://www.autocarindia.com/car-news/honda-confirms-plans-to-close-uk-plant-in-
2021-411593>.
Impact of Artificial Intelligence. 2018. [Online]. Available through:
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