How HRM and Organizational Behavior Can Lead to Competitive Advantage

This report explores the critical roles of Human Resource Management (HRM) and Organizational Behavior (OB) in achieving a competitive advantage. It defines both concepts and highlights their significance, emphasizing how they influence employee motivation, performance, and the overall workplace environment. The analysis includes real-world examples from companies like LIDL Malta and EPIC, demonstrating the practical application of HRM and OB principles. The report delves into specific tools of HRM, such as performance solutions and recruiting software, and tools of OB, including perception and attitude, to sustain competitive advantages. It concludes with recommendations for improved business processes, employee training, and workplace communication to further enhance competitive capabilities. The report underscores the importance of strategic HRM and OB practices in driving organizational success and achieving a sustainable edge in the market.

HIGHLIGHT HOW HRM AND
ORGANISATION BEHAVIOUR
MAY LEAD IN GAINING A
COMPETITIVE ADVANTAGE

Table of Contents
INTRODUCTION...........................................................................................................................3
Knowledge and understanding of Subject.......................................................................................3
Organizational behaviour ............................................................................................................3
Human Resource Management...................................................................................................4
Analysis............................................................................................................................................4
The Importance of Organization behaviour and HRM to gain competitive advantage...............4
Tools of Human Resource Management and Organizational Behaviour sustaining competitive
advantages....................................................................................................................................7
CONCLUSION ...............................................................................................................................9
RECOMMENDATION.................................................................................................................10
REFERENCES..............................................................................................................................11
Online.........................................................................................................................................12

INTRODUCTION
Organizational behaviour (OB) refers to the process of managing the behaviour of people
in the organization and their impact on the business. It is very important for the organizations to
make sure that they are having the best organization behaviour into their firms. Human resource
management (HRM) refers to the management of the human resources into the business, it is one
of the major factor of the various organization. Both human resource management and the
organizational behaviour play important role in the organization and can make a huge impact in
the overall business as they are ensuring the entire behaviour and the human resource of the
organization (Mendy, 2018). The report discusses about the major factors and the importance of
human resource management and the organization behaviour to gain the competitive advantage.
Various examples of organizations such as LIDL Malta and Epic have been presented in the
report. LIDL is first Maltese company which is awarded as a top employer certificate, LIDL is a
German international super market chain which work all across the Europe with more than
12000 stores (Corporate Responsibility, 2020). EPIC on the other hand are working into the
telecommunication industry and are providing the networking facilities in the Malta division(join
– myLidl, 2021) . Further, analysis of tools of HRM and OB has been done. Lastly, in the report
conclusion and recommendations have been provided.
Knowledge and understanding of Subject
Organizational behaviour
Organizational behaviour is the study of both the group performance and the individual
performance activity within the organization. It deals with examining the behaviour at working
environment and also need to find its impact in the performance, communication, job structure,

motivation and leadership among the group as well as individual. The Organizational behaviour
at LIDL Malta is so perfect that it help in the motivation and the increment of the employee
(Bos-Nehles, Renkema and Janssen, 2017). The people working in the LIDL Malta are positive
and motivated towards the business and have views that they are performing better and helping
the organization in achieving the overall business objectives and goals.
Human Resource Management
Human resource management refers to the factor of the business function which focuses into the
development of the organization and fulfil the business requirements. HRM is a practise of
managing the people to increase and achieve business performance. HRM hire people for work
into the business and they make sure that, they hire the best person suitable for the job structure
and position who can stay fro a longer period and provide organization with quality work (Thite,
2018).
Analysis
The Importance of Organization behaviour and HRM to gain competitive advantage
Importance of Organization Behaviour
Motivation
Organizational behaviour plays a very important role and it also involve in the better
management into the organization. Motivation is one of the factors which can make huge impact
in the overall business of the LIDL Malta to increase the performance (Novikovas and et.al.,
2017). Motivated employee are one of the best employee because they are always driven to do
the work and ready to accept the changes and make it worthy. Motivation is the factor which
help the organization in achieving the competitive advantage into the market and make impactful
business. It is important for the organization to motivate the employee and people who are

working for them so that they can make an good impact on work and helps the organization
achieve the advantages.
However, it can be critically analysed that organization behaviour is beneficial for the
organization but there are some employees who are motivated but still not able to make a good
impact on the overall performance. Hence, in this situation, even effective organizational
behaviour does not help in gaining competitive advantage.
Performance
There are a lot of factors which can affect the performance of the employee working into the
organization but it need to be understood that they keep their morale high in the tough situation
and make the performance unaffected due to other factors. These mentality helps the
organization in achieving the competitive advantages into the market and helps the organization
in achieving business objective. On the other hand, it can be critically analysed that the
performance need to be constant and remain in the continous process so that the organization
gets good results (Heine and Hood, 2020).
Office Characteristics
Office Characteristics are major role in making the organization behaviour of the people
working for the organization. It is important for the employee to have a good working
environment into the LIDL Malta. It is important for the business to make sure that they are
having good working environment and also provide the best factor so that the people working
gets motivated and improve performance in the LIDL Malta which further make the competitive

advantage into the business. Office characteristics can make a good impact but if the office
environment does not remain the same then it can cause organization in negative result and
decrease the chances of gaining competitive advantage.
Importance of Human Resource Management
Human resource management plays a very important role into the business world and it is
important for the EPIC Malta to make sure that they are having a good human resource
management team to obtain the competitive advantage into the market. Here are some of the
following importance : -
HR can use the existing data of the organization and make the changes accordingly after
the study of the issue or the factor they are facing into the organization. It help the EPIC Malta in
making those changes which provide the competitive advantage into the business. HR can help
the organization in making changes after studying the market rates of the talent. It can help the
organization in understanding the situation and what strategies they need to make increase the
competitive advantages (Taamneh, Alsaad and Elrehail, 2018). It can be critically appraised that
HRM need to be strong with their management so that they can control the actual issues into the
business which can affect their gaining of competitive advantages.
HR always focus into the legal issues and make sure that the organization is having all
the legal factors and are following the government guideline. It help the organization in making a
advantage into the business as they can not be challenged for their copyrights and the ideas. HR
can also help with knowledge of insight into how other organization within the industry is
structured and how they can make a impact on our business.

EPIC Malta have the HR team which are professionally so well that they make half of the issues
solved by themselves and make strategies so that they does not need to make a lot of changes.
The HR can find a lot of potential employees issues before they become one of the major
problematic for the business (Bratton and et.al., 2020). HR help in making decision into the
business and tell others about their skills sets and who is improving and making a good impact in
the business. This help in making decision into promotion which can further develop into the
good performance.
Tools of Human Resource Management and Organizational Behaviour sustaining competitive
advantages
Tools of Organization Behaviour
Perception: - Perception is a process by which the individual organize and interpret their sensory
impression in context to their environment. It is one of the tools which can help in understanding
the organization behaviour (Leroy and et.al., 2018). They need to utilise the tool in making
different strategies to make a positive organizational behaviour to gain better results in
competitive advantages. EPIC Malta need to make sure that they utilise the perception into the
best ways to develop better organization behaviour and understand the ways to eliminate the
issues they are facing.
Motivation: - Motivation refer to the factor which can help in understanding the organization
behaviour due to the interest of the people working under the organization. If they are happy
with the behaviour they stay motivated which can increase in the development of performance

and also in gaining the competitive advantage. They can use this into the competitive advantage,
so that they can utilise the market for their benefits.
Attitude: - Attitude towards the organization and its behaviour need to be positive so that they
can help the organization in development. If the behaviour of the organization is not positive the
attitude of the people working into them will make excuses and run from the work which can
lead to lack in performance. This will make issues into the competitive advantage and can make
a lot of other damage to the organization.
Personality : - personality towards the organization behaviour is important due to the way they
revert and acknowledge is important for the better result and they need to make changes into the
personality to make it positive and increase the competitive advantage (Aust, Matthews and
Muller-Camen, 2020).
Tools of Human Resource Management: -
Performance solution
Performance evaluation is just not only the annual meeting between the manager and the
employee but it is more about finding the goals and objective by HR. it is a tool provided by the
HRM to the manager to understand the actual report of the employee and make decision
according to the track of the year. It help in making good decision and also help in increasing the
competitive advantage by improved performance.
Recruiting software

Recruiting software helps in making different ads about the job the organization is
asking. This is the tool which HR used in promoting and advertising about the jobs they are
offering with the requirement which the participant need to provide. The LIDL use this to
increase the recruitment software which help the management and the HR to make utilise the
technologies which save time and also increase the efficiency of the organization. This make
good improvement in performance and help the organization in gaining the competitive
advantage.
Payroll service
Payroll service is one of the best way to make different changes and also help the
organization to automatically work on the pay checks and other payroll details which allow the
management and the HR to work on other things (Ayoko and Ashkanasy, 2019). It also helps the
employee to get the entire details about the payroll and it also make them feel motivated towards
work after getting the proper pay. Which will also make it better into the competitive advantages.
CONCLUSION
The report concluded that it is very essential for both the HRM and OB department to
make different strategies into organization so that they can utilise the best of the process into
better result in the organization. Further the report conclude the tools of the human resource and
organizational behaviours in obtaining the competitive advantage for the organization. The
organization gets competitive advantages because the tools helps the HR and the management of
the organization to understand a great knowledge about the overall working of the business and it
make a great impact in the decision making of the business.

RECOMMENDATION Improved understanding of the business processes- It is recommended to the managers
at EPIC to possess a great understanding of the actual working of the business so that
they can make decision accordingly. It will enhance the quality of working and give a
competitive advantage to the business with better results. Providing better training and development- Working in the training and development
program so that the employee gets motivated and it is important because the motivated
employee works hard and smart to increase the performance and it will give benefit to the
organization which will provide the company with competitive advantages.
 Better communication at workplace- Working on the better communication so that the
organization behaviours gets positive and make a different impact on the employee
motivation and performance.

REFERENCES
Books and journals
Aust, I., Matthews, B. and Muller-Camen, M., 2020. Common Good HRM: A paradigm shift in
Sustainable HRM?. Human Resource Management Review. 30(3). p.100705.
Ayoko, O.B. and Ashkanasy, N.M. eds., 2019. Organizational Behaviour and the Physical
Environment. Routledge.
Bos-Nehles, A., Renkema, M. and Janssen, M., 2017. HRM and innovative work behaviour: A
systematic literature review. Personnel review.
Bratton and et.al., 2020. Work and organizational behaviour. Red Globe Press.
Leroy and et.al., 2018. Managing people in organizations: Integrating the study of HRM and
leadership.
Mendy, J., 2018. Rethinking the contribution of organizational change to the teaching and
learning of organizational behaviour and human resource management: the quest
for balance. In Teaching Human Resources and Organizational Behavior at the
College Level (pp. 103-132). IGI Global.
Taamneh, A., Alsaad, A.K. and Elrehail, H., 2018. HRM practices and the multifaceted nature of
organization performance. EuroMed Journal of Business.
Thite, M. ed., 2018. E-HRM: Digital approaches, directions & applications. Routledge.
Novikovas and et.al., 2017. THE PECULIARITIES OF MOTIVATION AND
ORGANIZATION OF CIVIL DEFENCE SERVICE IN LITHUANIA AND
UKRAINE. Journal of Security & Sustainability Issues. 7(2).
Heine, K.B. and Hood, W.R., 2020. Mitochondrial behaviour, morphology, and animal
performance. Biological Reviews. 95(3). pp.730-737.
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Online
Corporate Responsibility.2020 [ Online ] Available through: <https://www.epic.com.mt/mobile-
masts-health/>
join – myLidl. 2021 [ Online ] Available through: <https://www.lidl.com/register/>
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