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Human Resource Management can Improve the Competitive Ability of Business

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Human Resource Management can Improve the Competitive Ability of Business

The starting point for a human resource strategy is the organisations strategic plan. A workforce must be put in place which provides departments with the correct number of appropriately skilled employees to accomplish targets in all departments. In order to achieve this, the likely demand for products or services must be anticipated and the future implications for recruitment and training considered. Effective communication between departments is vital if this approach is to succeed. For example:

· The marketing department can supply estimates of future demand.

· Operations management can detail the level of skill needed to produce the goods.

· Human resources can then recruit or fire people in line with the new requirements identified.

· Training may also need to send people on courses if the skill mix of employees is inappropriate.

Workforce planning is therefore an integrated process. It requires an overview of the whole operation of the business. In order to

use human resources successfully to create a competitive advantage, the future position of the firm must be considered. A workforce must be put in place which will allow the strategic plan of the business to be put into effect. The main benefits of creating a human resource strategy are:

· To put the appropriate employee mix to allow the organisation to achieve its aims and objectives.

· To communicate the culture of the busi...
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