The Importance of Managing the Workforce to Competitive Advantage

2040 Words9 Pages
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. (Chan, Shaffer, & Snape, 2004) Infosys is a software firm founded by Narayana Murthy with 6 of his collegues back in 1981 in India. Initially the company provide lower end IT services(i.e IT implementation), but over the years, it has expanded into providing higher end value added services(i.e IT design/strategy) as well as end to end IT solutions at the global market. Infosys has experience growth from a 7 man company and start up cost of $250 in 1981 to 15,000 employees with a revenue of USD 754million in 2002. In 1999, Infosys was doubling in size every 20 months and this rapid growth forces management to implement a series of change in their human resource managemet in effort to improve their productivity, cost competitiveness and efficiency. (Delong, 2006) Infosys was known to recognise its employees for its tremendous growth., its vision from the start in regards to its people aspect was to be the Best... ... middle of paper ... ...ting must be enforced to discuss issues that arise during the week. Essentially, this committee will also need to be subjected to review every half a year. This review must include feedback from top management as well as feedback from the employees thru the form of survey to monitor the performance of this committee. (Mcknight, Ahmad, & Schroeder, 2001) The key potential threat that will obstruct the committee from achieving their goal for this recommendation is that the employees that already dislike taking issues thru formal mechanisms will not be comfortable sharing negative feedback about the changes to the committee. (Delong, 2006) Therefore it is important for the committee to open their doors informally and communicating that they are working independently. This will encourage employees to feel secure to seek for the committee’s support whenever needed.

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