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Salman HRM

Three key points: 1. The article links competitive strategies with human resource management practices, arguing that organizations with different competitive strategies require different HR strategies. 2. It discusses two approaches to determining HR practices - the "best practice" approach of using universally best practices, and the "contingency" approach of tailoring practices to competitive strategy. 3. Examples are given of how competitive strategies like cost reduction, quality enhancement, and innovation relate to employee roles and HR practices like staffing, training, and compensation.

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Salman Qureshi
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41 views2 pages

Salman HRM

Three key points: 1. The article links competitive strategies with human resource management practices, arguing that organizations with different competitive strategies require different HR strategies. 2. It discusses two approaches to determining HR practices - the "best practice" approach of using universally best practices, and the "contingency" approach of tailoring practices to competitive strategy. 3. Examples are given of how competitive strategies like cost reduction, quality enhancement, and innovation relate to employee roles and HR practices like staffing, training, and compensation.

Uploaded by

Salman Qureshi
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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LINKING COMPETITIVE STRATEGIES WITH HUMAN RESOURCES MANAGEMENT

PRACTICES

Keywords

Human Recourse Strategy, Competitive Advantage, Human Recourse Practices,


Best Practice Approach and Contingency Approach

The presented article “Linking Competitive Strategies with Human Recourse


Management Practices” was written in the late 80’s by Schuler and Jackson, both
professors at the New York University. The reason for choosing this article was
the fact that the authors did not add another theory to the millions of others but
tried to combine the previously very recognized work of Porter (1984) on
competitive industries with researches on employee’s behavior. When the term
competitive advantage came up in the late 80’s Schuler and Jackson (1988)
discovered that organizations which follow different strategies also follow
different HR strategies. The field of Human Recourse (HR) Strategy is a relatively
new area of research and therefore a lot of different approaches and opinions
exist. Academics in the area of HR strategy state that it is not enough to pick
certain HR Practices and put them together, but that it matters which one we pick
and to what extent. Everything depends on how you as a manager want your
volunteers and employees to behave.

Three strategy they mention after a menu that an organization can choose
according to their organization structure that menu is called human resources
management practices it mention five major steps including (1) Planning choices
(2) Staffing choices (3) appraising choices (4) compensating choices (5) Training
and development.

The attacks on U.S. firms for failing to keep costs down, not maintaining quality,
and ignoring innovation are misdirected, given what many firms are doing.
Increasingly, these firms are pursuing competitive strategies aimed at cost
reduction, quality improvement, and innovation. The goal here is to gain
competitive advantage, both domestically and internationally. While the need to
match the qualities of top management with the nature of the business has been
widely recognized, there has been much less recognition given to the need to
manage all employees in the organization with the nature of the business. The
authors describe the impact of competitive strategies on all employees by means
of a framework that links human resource management (HRM) practices with
competitive strategies. They provide examples of the hypothesized relationships
among competitive strategies, needed employee role behaviors, and HRM
practices, and examine implementation issues. The issue of competitive strategy
and positioning is an extremely important issue within the service/retail sector.
The choice of competitive strategy has significant implications for the range of
human resource practices available to retail organizations. While companies

Operating at the higher-cost end of the market clearly engage in more


sophisticated human resource management practices, the range of practices
engaged in tend to incur low organizational costs. There was no instance of any
firm offering profit-sharing schemes, stock options and share ownership schemes
to employees. They also mention in this article the example of Honda’s quality
enhancement strategy and mention that they prefer quality strategy rather
another example of A cost reduction strategy at united parcel they adopt cost
reduction strategy. Now the question arises we should go for one competitive
strategy or several? According to Mitchel kapor to be a successful enterprise we
have to do tow apparently contradictory things quite well. We have to stay
innovative as creative, but at the same time we have to be tightly controlled
about certain aspects of our corporate behavior.

Change of competitive strategies

They mention that as we change in strategy should be accompanied by changes in


human resources practices mean we need they HRM practices according to the
change and customer need as well, And as the product demand

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