How companies maintain their workforce to gain a sustainable competitive advantage

This article aims to find out how human resources should be maintained by the organizations so that, they can play a potential role in the sustainable competitive advantage of the firms in the global scenario.
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How companies maintain their workforce to gain a sustainable competitive advantage International Journal of Management (IJM) Volume 9, Issue 1, Jan–Feb 2018, pp. 37–41, Article ID: IJM_09_01_007 Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=9&IType=1 Journal Impact Factor (2016): 8.1920 (Calculated by GISI) www.jifactor.com ISSN Print: 0976-6502 and ISSN Online: 0976-6510 © IAEME Publication HOW COMPANIES MAINTAIN THEIR WORKFORCE TO GAIN A SUSTAINABLE COMPETITIVE ADVANTAGE Debanjana Deb Biswas PGDM – HRM (Persuing), (AICTE Approved, NBA and AIU Accredited), Globsyn Business School, Kolkata, West Bengal ABSTRACT The world is moving at a fast pace. We have shifted drastically from an economy based on manufacturing to one which is predominantly being ruled by services. Organizations are now being run by knowledge and meritocracy rather than depending upon only capital or unskilled labour. Competition is increasing at a gigantic form at the global market and in order to sustain in that, organizations must go for an effective and efficient deployment of human resource capital in order to achieve a competitive edge over the other companies (Schuler, Dowling & De Cieri, 1993). A lot of the researches made on the role of human resources in an organization have basically focused on management (Adler & Bartholomew, 1992a; Adler & Bartholomew, 1992b; Bass & Burger, 1979; Doz & Prahalad, 1988; Ratiu, 1983). It all depends how effectively the management of a particular company employs the managerial techniques across various cultures in order to shoot out the difficulties faced by the employees in adjusting both in the work environment as well as social set up. This article aims to find out how human resources should be maintained by the organizations so that, they can play a potential role in the sustainable competitive advantage of the firms in the global scenario. Key words: Global Competition, Effective Workforce Management, Meritocracy, Sustainable Competitive Advantage]. Cite this Article: Debanjana Deb Biswas, How Companies Maintain their Workforce to Gain a Sustainable Competitive Advantage. International Journal of Management, 9 (1), 2018, pp. 37–41. http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=9&IType=1 1. INTRODUCTION Success of any organization depends a lot upon the employee commitment towards that particular firm. The behaviour of the employees, their perceptions, and dedication are sources to sustain the competitive advantage of a firm in the global scenario. Skilled employees are an asset to the organization. Hence, they are a scarce, non-substitutable and inimitable resource. http://www.iaeme.com/IJM/index.asp 37 editor@iaeme.com Debanjana Deb Biswas In this fast moving world, when consumers always have so many options available to themselves, it becomes extremely important for them to create a competitive advantage for themselves which will make them different from their competitors. The customers must find a valid answer to their question why should they purchase from you and why not from somebody else having the same type of products and services. Competitive advantage, thus, lies at the core of an organization’s performance. However, creating a superior competitive advantage, depends a lot upon the efficiency with which the resources of a firm is being used, along with the business strategies being implemented. Thus, today a viable business strategy is defined as one which has the capacity to identify unique resources available in the organization and utilize them in a unique way. Keeping aside the 4Ps of marketing (Product, Price, Place and Promotion), companies must identify one more major aspect to differentiate themselves from their competitors. This major aspect of any business is its HR Strategies and Human Capital. The effective and efficient management of the scarce human resource available can create a different image for the company altogether in the marketplace. Conversely, if a company fails to do so, the organization will earn a bad name for itself. Often organizations make the mistake of thinking that human resource management is needed when the firm grows. But, it is to be remembered that proper HR Strategies should start right from the day when the firm starts existing. . IMPLICATION OF PROPER HR STRATEGIES TO GAIN A COMPETITIVE ADVANTAGE According to Michael Porter, Competitive Advantage for any firm links between the internal resources of the firm, its strategies and its performances. But today, we depend a lot on the Resource- based view which suggests that human resource systems can contribute to sustained competitive advantage through facilitating the development of competencies that are firm-specific. Today, most organizations follow Strategic Human Resource Management (SHRM) which is far different from the traditional HR methods used earlier. SHRM is basically concerned about the roles played by the systems being followed in the HR practices in tune with the company’s performance. It mentions specifically that human resources can provide a better competitive edge to the firm’s performance. Organizations have finally started realising that having successful HR policies is a must for their success in various fields, like productivity, quality and so on. Very logically, all the assets, apart from human resources, in an organization, are inert. If proper manpower is there, all the other things can be easily operated to increase the productivity of a firm. In the 21st century, the key to sustaining a profitable company or a healthy economy is the productivity of the workforce. 3. LINEAGE AND UTILITY OF STRATEGIC ...