Organisations can win the ‘war for talent’ and hence increase their competitive advantage by creating and maintaining loyalty within organisations, albeit sometimes requiring considerable investment, effort and commitment to overcome obstacles. This discussion will also form the basis of illustrating that HRM performs more than administrative duties and plays a vital role in determining an organisation’s success. Examples of organisations’ successes in attracting, motivating, and retaining employees will be illustrated throughout the discussion. This essay concludes with an analysis of the skills HR managers need to become a strategic partner in the organisation.
Competitive advantage refers to an organisation maximising its strengths as a method to compete in the marketplace (Bartlett & Ghoshal 2002). This consists of cost leadership as well as differentiation in products and services (Global Reporting Initiative 2002). In addition, an organisation achieves competitive advantage by winning the ‘war for talent’, which is the ultimat...
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