Analyzing HRM Practices and Competitive Advantage in UK Organizations

This essay provides a comprehensive overview of Human Resource Management (HRM) strategies employed by UK organizations to gain a competitive advantage. It begins by defining HRM and its strategic importance in maximizing employee performance. The essay then delves into the Resource-Based View (RBV), explaining how organizations can leverage tangible and intangible resources to achieve sustainable competitive advantages, using examples like Toyota and Honda. It highlights the importance of employee engagement, transparency, and reward systems as best practices, citing examples from companies such as Google, Virgin, and South West Airlines. The essay further explores the challenges and threats faced by UK companies, including labor turnover and the impact of advanced technologies, such as artificial intelligence and data security issues. It concludes by emphasizing the need for businesses to address these challenges to maintain their market position and achieve long-term success.

Managing Human Resource

INTRODUCTION
Human resource management can be defined as a strategic approach for effective
management of their resources and people. The main aim of HRM is to maximise and increase
employees performance for achieving determined goals. This present essay will describe and
show the meaning and importance of resource based review which helps organisations of UK to
take competitive advantages. Human resource practices also make them able to take competitive
advantages and their organisational growth. Best practice which organisations of UK use are
employee engagement and reward employees for their better performance. These practices are
being used by organisations for motivating them and increasing productivity (Leroy and et.al.,
2018). This present essay will also show about the challenges and threats which UK companies
are now facing. Challenges are labour turnover and advanced technologies which creates barrier
in their growth.
Adaption of “Resource based view” by organisations to gain competitive advantages
Resource based view can be defined as a framework and a model that focus and
determine its strategic resources in order to competitive and superior advantages to an
organisation. This RBV model includes various types of tangible & intangible resources that
helps organisations like Toyota, Google, Tesco to achieve competitive advantages. Resources
included in resource based view includes processes, strategies, knowledge, informations etc.
When a HR uses all these resources together then it creates business capabilities. It also gives a
sustainable competitive advantages to companies. There are some advantages and strategies that
are not being imitated by competitors such as sustainability which can be achieved by
organisations with the help of valuable resources (Bromiley and Rau, 2016).
Employees and team members are the best resources for any type of organisation. With
selecting and hiring the right and potential people on deck, manager feel confident signing off on
incoming projects. Utilization of other resources like finance, skills in an effective manner, can
not be possible without the right human resource. Due to advanced technologies, companies have
to suffer with changes and to keep up with these changes, companies require to be on high alert
for their resources & capabilities that can give them a competitive advantages. The resource
based strategy is an effective theory by which companies can make themselves able to analyse
diversified contributions which come from different quarters.

Most important and appropriate example of Toyota auto mobile that focus on utilizing its
resources & capabilities in order to raise its quality of services and products. It is known and
pioneered a lean production system that proved difficult to replicate. Further, it introduced with
other management approach and practice which is known as just in time manufacturing that
helps them in reducing its set up time (Kull, Mena and Korschun, 2016). Its best strategy of
lower pricing and long lasting efficiency rapidly achieved popularity or its became popular
among people or customers. This model and strategy helped Toyota to retain its consumers'
loyalty.
Example of Honda auto mobile company who is a core competences in power trains and
engines which has given it a long term competitive advantages in cars, generator businesses etc.
Resource based view has various characteristics and benefits which make organisations to take a
competitive advantages. Valuable resources and the resources which have the ability to bring
value to an organisation then they can become a source of competitive advantages. Resources
that big companies like Google, Tesco, Sainsbury's uses they should not be able to be replaced
by any other valuable resources. If 2 resources have the same ability and can be implement the
same strategy then it can not be the source of competitive advantages for organisations. So it
should not be substituted and replaceable (Cohen, 2017).
Good practices by organisations
There are various good practices which are being adopted by big and reputed companies
in order to make them able to being in a competition and a market leaders. Good practices
includes engage workers, stay committed, team efforts, healthy workplace, effective
communication etc. Examples of companies who use good practices are Google and Virgin.
Employee engagement is the fuel and important key element of organisations. These companies
are prime examples of employees engagement reaping real benefits. The main focus on creating
a culture as they want. The main aspect of their creating culture is transparency. By that
transparency, workers of Google feel empowered as it focuses on collaboration and encouraging
creativity. By creating a culture of freedom and transparency, google make them able to take
competitive advantages as employees feel engaged and respected when the company do not hide
any agenda and informations from them. So it can be said that, companies who focus on the
transparency engaging employees, they are more likely to take competitive advantages and
sustainability.

Other example of John Lewis Partnership who also focus on its people and employees
engagement as a good practice. By calling them partners, the company express that there is a
shared responsibilities for their customers. They more focus on involving their partners in their
decision making process and solutions which empower then to create the best customer
experience (Mone and London, 2018). It can be said that employee who are invited to be
involved in activities and processes, they feel empowered & they are more likely to take
personal responsibility. Manager and partners know the importance of employee engagement
which can make a difference, so they try to fulfil their all the needs which make them able to stay
in the company for the long run.
Virgin group Ltd multi industry organisation more concentrate on their employees and
people. They listen to their employees in order to make them feel that they are being valued.
They listen to their views and opinions and also take care of their ideas which make them able to
create an innovative workforce and employee strong relationship. Listening is at the heart of
engagement. It is very important to listen and take care of views because it less require of
leadership. It is beneficial not only for employer but also for employees as they feel valued and
Hence they want to give their best which increases their sales and productivity.
South West Airlines' main purpose is to connect with people so they not only see
themselves as transporter if people but also as enablers who try to help people in different ways
they care about. Their clear & strong purpose connects them emotionally with workers and it
strongly help them in engaging (Albrecht and et.al., 2015). They believe that it is not only
enough to do a job but it is also important to make a difference in order to create and contribute
something bigger than themselves. So it can be said that for South West Airlines their purpose is
becoming more and more important to workers.
Reward efforts is other main important practice by organisations. There are various
organisations who strongly believe that reward efforts to employees is the best and important
practice which supported and helped them in achieving competitive advantages and their
success. They feel that when they reward employees for their better performance then employees
feel valued and respected, It tend to stay and retain them in an organisation for the long run. With
the help of this practice, organisations make them able to increase their sales and reputation.
Motivated and valued employees focus on the work and also try to achieve organisational goals

which is important for them. There are some examples of organisations who provide reward to
their employees for their better performance (De Gieter and Hofmans, 2015).
Exelon corporation is known as the best energy producer who has introduced its new and
innovative long term performance share scheme. It has made some financial and no-financial
performance goals. In this scheme it provides rewards executives in order to meet non-financial
performance goals. Its non-financial performance goals include safety targets and goals engaging
stakeholders which help them in shaping the company's public policy position.
Other example of FedEx multinational courier delivery and research and investing
information company. It believes that its success relies upon way of performing its employees.
This company discovered that employees, who are being well treated they are more efficient and
top producers that lead in positive growth to the company. It developed its people service profit
philosophy in 1973 that denote and shows the excellent services & care of its employees. For
better satisfying them it focus on providing benefits and rewards to their employees for their
better performance. It is the best way of motivating them as it increases their morale. For
knowing their needs and demands it tries to track its employees satisfaction with its annual
survey feedback actions. The main aim of doing the survey and of this programme is to address
the problems of employees and their suggestions to resolve them and then take corrective
actions.
Eileen fisher is a clothing retailer who believes that best customers services is the core
reason of its increasing selling and competitive advantages. Customers services are being
provide by its employees. Employees can provide the best services to their customers only when
the company fulfil their needs and make them feel respected. For solving employees problems
and for satisfying their demands, Eileen Fisher provides generous employees discount &
monetary clothing allowances. Employees feel and enjoy their annual bonuses as equal to their 4
weeks of pay in a month. Happy and motivated employees are more likely to support the
company in order to provide better customer services.
AMX is an American automation and control company who focuses on promoting
communication and trust throughout its members of staff. It also believes in the best customers
services, It can be possible when the company focus on solving all the problems and issues of its
customers. Most of the employees have the problem regarding pay and benefits. So it tries to
provide the pay and rewards for their excellent performance. It does not only provide financial

benefits and rewards but also provide non financial rewards including praise, appreciation etc.
When employer rewards them and praise in front of other employees then they feel motivated
and valued. It motivates them towards achieving their determined goals.
Two major threats which UK organisations are facing
There are various problems and threats which organisations of UK are facing
environmental damage or advanced technologies and labour turnover. Both problems are
increasing rapidly. There are various reasons that are the reasons of these problems. Businesses
of UK should consider and address all these problems in order to become market leader and for
taking competitive advantages.
Artificial intelligence is the great example of advanced technology. Increasing uses of
artificial intelligence and other machineries are big threat for businesses and employees. It is the
main reason of mankind's demise. Those companies who uses these machines rather than man
kind and employees that time employees feel demotivated and it also becomes the reason of
unemployment. Increasing uses of digital technology is also creating a threat for companies of
UK like Tesco, Toyota, Google, Eileen fisher etc. One example of Tesco bank who is suffering
from data security threat and problem. Digital technology is increasing risk of data security
because in this technology a vast amount of data are being collected. This data is related to their
employees and can be private informations which becomes difficult to keep it safe (Jadhav,
2016). Vast amount of private data and informations is going on the hands of terrorists and
foreign enemies of Tesco bank. Modern technologies and excessive use of mobiles distracts
employees and employers from their work. Due to this, they have to face difficulties like errors
and mistakes in their work. It also dissatisfied customers as they do not provide them the best
quality services and products.
Sometimes employees do not have the proper knowledge of using technologies. They
find difficulties to understand machines and new devices by which they need to require interact
on daily basis. Workers of companies spend their lot of time in trying to keep up with the
numbers of e mails that they get and need to require read and some of that e mails require to take
actions immediately. Sometimes customers al;so can not understand the difference between real
and edited image when they go and prefer online shopping. Some companies can easily edit their
pictures and videos which can easily influence customers. Due to those companies, other reputed

companies also have to face with the problems of customers trust. Customers do not believe
easily on their photographs.
Due to digital and advanced technology, employees feel job insecurity. In modern and
digital world, most of the works are being done and performed via the internet. It is also
decreasing face to face interaction which becomes the reason of interpersonal conflicts. Most of
the companies do not value or less value of their employees and human beings due to increasing
uses of computers and technologies (Wang and Hou, 2015). Increased dependency on mobiles,
calculators & spell checker is reducing the creativity of employees. Employees do not have the
proper knowledge of maths and with the help of this tools they make themselves able to do their
job. It decreases and demotivate other employees which also become the problem of labour
turnover.
AMX is an American manufacturer of videos switching and control devices. For
providing the best services to the customers it requires skilled and potential candidates and
employees. Due to unemployment rates and labour turnover it is facing the problem in finding
the appropriate and potential workforce. It is decreasing its sales and productivity. Reasons of
employees turnover are retirement, death, unsuitability and strategies changes. It increases this
company's recruitment and training cost. Loss of productivity is other main problem which this
company face due to labour turnover. For solving this problem it should provide financial and
non financial rewards and should also focus on providing healthy working environment.
Employees leave organisation for the variety of reasons such as unhealthy working
environment and unequal and below average pay. South West Airlines is focusing on its
employees but also facing the problem of staff turnover because of below average pay. When
employees feel that the company is not providing them the enough pay according to their
performance. Existing employees and higher level of staff turnover cost their business. They
have to invest in hiring and training to new employees. When existing employees leave the
organisation then it decrease the positive image of the company. Due to this, they face the
difficulties in finding and hiring new and skilled employees.
Hospitality sectors and hotel of UK are also facing this problem. This problem and
challenge is rapidly increasing for hospitality sector. It impact on their overall business
performance (Henderson, Selwyn and Aston, 2017). When potential and skilled employees leave
the organisation and less experienced employees retained then the quality of business and

services provided by them to customers decreases. Once customers relationship are compromised
then overall business conditions put them at risk. A high retention rate lead and result a negative
reputation as customers and new employees try to find out the reason of existing employees of
choosing to leave the company.
Due to Labour turnover and advanced technology, individual's and staff productivity may
slow down. When the company hire new employees then they take longer and time to complete
the given tasks as compare to existing employees. Due to this, the continuity of services which
companies provide to thei5r customers also get affected. Hospitality sector companies and hotels
depend upon seasonable and part time employees that time they find difficulties for hiring
candidates who want to do part time job and the person who stick around for the long run.
Many companies are facing this threat and challenge due to lack of flexibility and
unhealthy working environment. Hospitality sector's companies main purpose is to provide the
best services and best working environment to their employees and customers. Kit has been
stated that 63% of hospitality workers have experienced sexual harassment on the job.
Discrimination and harassment is the big reason in hospitality sector. It is also the big reason to
make anyone want to leave. For solving this type of problems, Organisations of UK should focus
on developing a strong culture. They should also ask from their employees as how they are
feeling about their working environment.
Tesco is a British multinational groceries and retailer who is also facing staff retention
problem,. The main reason of this problem in this company is ineffective communication. It is
very important to communicate clearly all the needs and expectations between employees and
higher management. HR and executives of Tesco do not focus on communication and they do
not communicate their policies among employees that time workers feel demotivated and
disengaged. Engagement play an important role in decreasing staff turnover. It is also important
for them to ensure that the communication which they are using is a two way street. Staff should
also be given the liberty and opportunity to give suggestions and feedbacks to upper management
(Huang and Zhang, 2017).
So it can be said that labour turnover and increasing use of digital technologies are the
main problem and threat for UK organisations. They should require to focus on solving these
problems and decreasing this threat in order to take competitive advantages.

CONCLUSION
From the above essay it has been concluded that, resource based view played an
important role as it helped organisations to achieve competitive advantages and organisational
performance. For better performance and being in a competition Companies of UK used various
HR practices such as employees engagement or team work and reward to employees. Employees
feel motivated when companies provided them rewards for their better performance in front of
other employees. Due to advanced and innovation, organisations of UK faced various problems
and challenges. The main 2 problems which companies faced are labour turnover and increasing
use of digital technology which created problem of data security, insecurity of job among
employees. Due to these challenges and threats, companies of UK face another workplace
problems like interpersonal conflicts, dissatisfaction among employees. It has direct impact on its
sales and productivity.

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