Strategic HRM: Functions, Competitive Advantage, and Effectiveness

This report provides a comprehensive overview of strategic human resource management (HRM) functions and their contribution to organizational success. It explores key HRM functions such as talent acquisition (recruitment), performance management and appraisal, training and development, and employee relations. The report delves into how these functions support and enhance a company's competitive advantage. The analysis includes the effectiveness of training and development, recruitment, performance appraisal, and employee relations in supporting competitive advantages. By examining these aspects, the report highlights how strategic HRM practices build a strong workforce capable of contributing to business goals and organizational objectives, ultimately increasing profitability, strengthening brand image, and satisfying consumer needs. The report references various sources to support its findings, providing a detailed and insightful analysis of strategic HRM's role in achieving and sustaining a competitive edge.

MANAGING PEOPLE IN
ORGANIZATION

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
Function of strategic human resource management.....................................................................2
Effectiveness of HRM function in supporting competitive advantage of organizations.............4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Strategic HRM encompasses traditional human resource functions of screening, hiring,
interviewing and recruiting workers also works with overall organizational strategy to achieve
business aims. The current study explains function of strategic human resource management
from theoretical perspective and evaluates their effectiveness in contributing competitive benefits
of companies.
MAIN BODY
Function of strategic human resource management
Talent acquisition or recruitment-
It is by far the most essential function human resource teams perform in retail sector
organizations. Talent acquisition refers to the procedure of acquiring and determining skilled
employees to meet organizational needs (Rahaman and Roy, 2018). HR department is
accountable for assessing and recruiting talented applicants to fill open vacancy within
companies. Team recruits candidates for all the area of operation in timely and cost effective
manner. People are seeking to get job opportunity in retail sector. To recruit skilled and
knowledgeable candidates in organization, HR department used different types of methods which
are quite beneficial for them as well as business growth. By recruiting and hiring right
applicants, human resource management and their team members build an effective & strong
workforce. Internal and external recruitment methods are used by recruiter within companies to
hire people in workplace. For example, HRM determine requirement for filling vacancies and
open job position in work area that need to fill by creating effective recruitment plan. With the
help of recruitment agencies management hire talented people with right skills and appropriate
knowledge.
Performance management and appraisal-
Skilled performance administration promotes worker engagement and as outcome
improves financial performance and productivity. It considered as procedure of reviewing a
workers abilities and activities during preceding period and deciding where applicant stands as

far as its co-worker in same band are concerned (Merikhi and Zwikael, 2019). It defined as
communication procedure by which human resource manager and workers work together to plan,
review and monitor a staff work objectives & overall contribution to companies. Performance
management is continuous process of coaching, monitoring and planning people activities. It
helps to build effective workforce and enhance productivity level rather than before. HR
management and their co-workers within organizations design and implement workers appraisal
programs and then use it at outside to assure best practices. Performance appraisal and
management work towards creating positive atmosphere around work area that enhance
motivational level of staff rather than past few years. Usually this procedure starts a month
before appraisal cycle finish, which is quite beneficial for business growth. Appraisal process
can be half yearly or end of the year depend upon policies of firms.
Training and development-
Along with above function of strategic HR management, T&D is another practice
conducted by human resource manager to build strong workforce in workplace who are capable
to work effectively. Engage people care about their jobs and organizations they work for,
wanting them to succeed (Jabbal and Baxter-Jones, 2017). This type of behavior has a directly
influence on profitability and therefore productivity. It is one of the best function, attempt by
HRM and its team to improve existing and future staff performance by increasing as well as
improving their current knowledge rather than before.
It is any effort to make better team by enhancing abilities of staff to perform through
learning, mostly by changing people attitude or maximizing their knowledge & skills. HR
manager with the help of this function build strong team or group of people with effective
capabilities. Human resource manager create plan and administer programs to assure that
workers have skills to compete efficiently and meet business aims & objectives. It can be defined
as process where experienced employee with help of their staff undergoes different training
programs to enhance abilities and obtain new understanding.
Employee relations-
Human resource manager in employee relations is crucial in retail sector, in every
organization it commonly affect business bottom line and financial performance (Gosavi, Garud

and Bisen, 2018). It simply defined as strong relationship between junior and senior. Workers
always want to feel good about what they do & where they perform. It can be influence by many
components, all of which affect strategic balance between staff and employers. Building a
effective and strong employee connection strategy includes making environment that deliver
what individual want. Good employee relations technique will affect employee engagement, thus
resulting in better business performance. There are several methods accessible for HRM that they
can use in context of operating and managing this function in systematic manner. Employee
relations bring many benefits that will discussed below which is quite beneficial for
organizations in term of increasing operational efficiency. It is a division of firms HR section
that caters oversight and direction for staff related matters like medical leave, informal employee
complaints, discrimination claims and unemployment.
Effectiveness of HRM function in supporting competitive advantage of organizations
Competitive benefits distinguishes a organization from their business rivals, it contributes
to increase profit, higher prices, brand loyalty and more consumers. Establishing such a benefit is
one of the most essential aims of any firm, because without gaining competitive advantages
organizations will find it very difficult to survive and sustain for longer within specific sector for
longer period. At that situation, HRM function play vital role as they make a powerful team of
skilled applicants. The effectiveness of human resource management function following are-
Efficiency of training & development-
As discussed above, this function is quite beneficial but it also helps in supporting
competitive advantages of companies by performing with better and most appropriate skills. The
main objective of T&D is to better quality of existing as well as new staff members because it
makes them stronger rather than before and allow contributing in achieving competitive
advantages (Davis and Simpson, 2017). There are varied benefits comprised with this function of
HRM that increase productivity of companies to gain competitive benefits. It helps to increased
job satisfaction, employee’s motivational level, efficiencies in procedures, ability to adopt and
work with advanced technologies. All these things create positive work environment at
workplace that drive people towards gaining business aims, objectives and also allow them to
support achieving advantages being competitive. For example, after getting training and

development sessions workers feel stronger and able to contribute in competitive environment as
result increase profit margin.
Effectiveness of recruitment-
Just like the other function of strategic human resource management, this action is also
beneficial and effective as it helps to build powerful workforce who are always ready to take part
in gaining competitive advantages and beat competitors available in specific sector with quality
services and products produce for target market. In context of supporting in competitive benefit
of firms this function work really very well (Tato-Jiménez, Buenadicha-Mateos and González-
López, 2019). As it helps to increase performance level which make existing employees capable
to support in achieving business aims and gain competitive advantages. When manager of HR
department recruit the right applicant and place them at right vacancy with all the facilities that
candidate can use to perform much better than before. With recruitment plan human resource
section and its team hire the most knowledgeable and talented person who contribute in overall
business performance as result increase profitability, strengthen brand image within market place
and satisfy the needs of consumers.
Usefulness of performance appraisal function-
It is another effective action conducing by Human resource manager for enhancing
performance level of workers rather than past few months. It is beneficial for assessing abilities
of employees and improving their activities in workplace (Bayo-Moriones, Galdon-Sanchez,
and Martinez-de-Morentin, 2019). Performance appraisal makes manager able to find out tasks
or areas in which applicant is competent. Staff get appraise according to their manager of senior
for performing effectively as outcomes increase profit margin, generate more revenue and
support to gain competitive advantages. It helps human resource department to assign right roles
accordant to traits and skills of employees as it enhance motivational level and inspire people to
work much better than few month ago. When senior without making any difference appraise
their staff, it contribute in creating positive work culture or atmosphere in workplace that allow
all member to perform for achieving organizational goals.
Effectiveness of employee relation-

The key to growth and success for any firm is strengthening employee engagement, it
improves business performance and aids to retain skilled applicants because engaged people are
usually satisfied with their accountabilities, jobs and take pride in firms & trust their employer
values their workers contribution. Highly engaged candidates are much less likely to quick
companies and seek to gain competitive advantages for organizations as well as more seek to be
productive that is very beneficial for organizational growth. For example, human resource
manager design user friendly job that will increase autonomy & effectiveness of employee
engagement. Employers take the opinion of their employees while taking decision in context of
creating plan for achieving business objectives.
CONCLUSION
From above analysis it has been concluded that human resource manager play vital role
in companies as they are able to build strong workforce or team who are capable to contribute in
achieving businesses aims as well as competitive advantages.

REFERENCES
Book and Journals
Bayo-Moriones, A., Galdon-Sanchez, J.E. and Martinez-de-Morentin, S., 2019. Performance
appraisal: dimensions and determinants. The International Journal of Human Resource
Management, pp.1-32.
Davis, P.J. and Simpson, E., 2017. Resource-based theory, competition and staff differentiation
in Africa: Leveraging employees as a source of sustained competitive
advantage. American journal of management. 17(1).
Gosavi, A.A., Garud, A.S. and Bisen, K.B., 2018. “How is Employee relations in Industry and
Emerging Technology to sort out.
Jabbal, A.S. and Baxter-Jones, A., 2017. Does High Intensity Interval Training Improve Aerobic
Power Development More Than Endurance Training?. USURJ: University of
Saskatchewan Undergraduate Research Journal. 3(1).
Merikhi, E. and Zwikael, O., 2019. An Integrated Project Evaluation Framework: Appraisal,
Monitoring and Performance Judgement. In Academy of Management Proceedings (Vol.
2019, No. 1, p. 16416). Briarcliff Manor, NY 10510: Academy of Management.
Rahaman, A. and Roy, N.C., 2018. The Changing Dynamics of Talent Acquisition: An Indian
Perspective.
Tato-Jiménez, J.L., Buenadicha-Mateos, M. and González-López, Ó.R., 2019. Evolution and
Sustainability of Benefits Offered to Employees in On-Line Recruitment. Sustainability.
11(16). p.4313.
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