Key Strategic HR Issues/ Problem Statement Research has shown that in order to achieve organizational success, firm cannot only rely on technology, marketing tools or strategic performance as their source of competitive advantage. Firm has to also know how to manage their workforce. (Pfeffer, Competitive Advantage Through People: Unleashing the Power of the Work Force, 1995). Youndt et al, (1996) even goes as far as commenting that people might be the ultimate source of a firm’s sustained competitive advantages since traditional sources of competitive advantage like economies of scale and etc have been weakened by economic changes and globalization. Resource-based view furthur support this theory claiming that due to the difficulty of duplicating human capital , human is a crucial source for company to gain competitive edge.
According to these theories, although the basic premise is that the management’s role is to assemble the factors of production, people and for the economic benefit of the organization, beyond this point these two theories takes diversion. Figure 1: Theory X & Theory Y (Image Source: Net MBA) When the Theory Y is focused the organization can do wonders to the employee motivational energy by, • Decentralization and delegation • Job enlargement • Participative management • Performance appraisals Therefore, without doubt we can say when properly implemented, this would result in a high level of motivation as employees work to satisfy their higher level of personal needs through their jobs. ADAIR: John Adair leadership is an Action Centred Leadership. Figure 2: The Three Core Management R... ... middle of paper ... ...iew. Available at: http://hbr.org/2000/03/leadership-that-gets-results/ar/1 [Accessed 26 May.
A generic strategy is a ‘core idea about how a firm can best compete in the marketplace (Pearce & Robinson, p.195, 2011)’. In order to competitive, firms must be able to control their costs and create differentiation with their products and services. Cost control within an organization applies to several areas. In the case of Alexander Mann Solutions, it will apply to operational expenses, such as salaries as well as fixed costs. One of the advantages of controlling costs is the ability to provide services at a lower cost and still benefit from the higher profit margins.
For the corporate world PM has become an important issue. The 30% project failure is occurring just because of misalignment between PM and business strategy. There are some factors that can play an important role in the strength of alignment between business strategy and project management. Project management is considered as backbone of the organization because of high competition involved in modern business environment. It is clear from the previous studies that many projects do not completed on time, within a specified budget and do not meet to customer’s requirements but project success depends upon more than time and budget goals such as business outcomes.
In today’s economy, most organizations are expecting employees to deliver more, faster, and with fewer resources. Procuring the necessary goods and services essential in order to enable a successful business’s employees to meet these expectations, is paramount (Hopkins & Howe, 2014). Therefore, the procurement role has become in high demand, and extremely mobile, allowing for the specialization needed, and a long-term career, to keep businesses contending (Hopkins & Howe, 2014). While an employee may become an expert in the field of procurement, the requirements to comply with proposal processes, being as fair and transparent as possible, does require some institutional knowledge, and the desire to remain current with regulations or trends in the industry. Once employees have been trained, acquired the necessary expertise, and begun their careers as procurement personnel, it is
Rareness of human capital is therefore demonstrated within human capital by nature of its presence in one organisation, at the expense of another. For a human capital resource to be imitated, it first needs to be absolutely identified as the specific element in the resource pool that is providing the competitive advantage and in turn, exactly replicated in terms of the resource pool and the element itself. Dierickx & Cool (1989) argue that organisational skills and codes are aggregrated via organisational culture, plus, as learning and development on-the-job; these tacitly accumulated skills are distinctive to the organisation, rendering them less replicable to external sources due to their causal ambiguity, social complexity and historical timing. The inability to exactly determine and understand the source, is as causal ambiguity, whereas, social complexity refers to the network of relationships created between individuals in organisations, providing unique working
Capital budgeting has many angles to it because of which it can be employed and each technique will tell us how a project is affordable in numerical terms only, but because of which it will be easier for manage... ... middle of paper ... ...thods could prove to be the difference between a successful venture, and one that is deemed to be a failure. They are more like a financial window into the future and without question provides useful insight into your competitor’s position regarding their assets, and liabilities. And in today’s world of dynamic business changes where absolutely nothing is predictable and it is a standard prerequisite that adaptability be the core of survival of any business, these investment appraisal techniques come into play center stage for any business organization. Bibliography Unit Four: Investment Appraisal: Slide Show, http://www.kesgrave.suffolk.sch.uk/Curric/bstudies/Work/A2/Unit4/InvestmentAppraisal.ppt Capital Budgeting: the key numerical techniques Worked Examples with Explanations. http://www.duncanwil.co.uk/invapp.html, 12 October 2001 revised 8 May 2003
Human resource management (HRM) involves the effective management of people to achieve organisational goals. In line with Boxall and Purcell (2003), Kostopoulos, Spanos and Prastacos assert that the Resource Based View of the firm (RBV) centres on how firms attain and sustain advantage over competitors by putting together distinctive 'bundles' of resources. This view has given legitimacy to human relations claims that people are strategically essential to firm success (Wright, Dunford & Snell, 2001). RBV asserts that bundle of resources should be rare, valuable, costly to imitate and the organisation capable and organised to exploit the resources, for them to lead to sustainable competitive advantage. According to Stone, (1998, p.4) HRM is the productive use of people in achieving an organisation’s sustainable competitive advantage and other strategic business goals, and satisfaction of individual employee needs.
The promises from the vendors before the ERP implementation and the implementation result does not always correspond. Moreover, those firms believed that implementation of an ERP-solution would directly generate competitive advantages in terms of new orders and increased profit. Instead, those firms have gone through a protracted and very expensive ERP implementation. Aim of this paper is to prove that several components in a firm needs to cooperate for the firm to benefit from its ERP investment. One important component is the organizational resources, such as managerial and tech skills and organizational change management.
He also argues that roots of competitive advantage arise from within the organization and that new strategies and improved competitive positioning are only constrained by the current level of the company's resources. Herein lies the key differences in the analyses carried out by Prahalad and Collis. Collis first argues that core competencies cannot be evaluated in isolation, because their value is determined in the context of the present market forces. In order to accurately assess a company’s competitive strength, one must analyze a company’s specific resources (i.e. physical and intangible assets) and capabilities in the context of the competitive environment.