In today tumultuous times, the challenges that companies face to remain competitive have changed rapidly. With constant new breakthrough in technology, companies fought hard with its competitors to establish and maintain their competitive advantage. However, access to capital & technology has become less critical in today’s economy as compared to acquiring and keeping skilled workers. In a knowledge-based economy, it is important for companies to be more strategic in the way it operates. Human Resource Management today has to be strategic to meet the business needs of the company. At the same time, it cannot lose sight of the critical value and importance of people in making these strategies a reality. With that in mind, there is a need now to look at HRM from a different perspective so that it can contribute to the achievement of the company aim and objectives.
Human Resource Management (HRM) has always played a part in contributing to the success of the company either directly or indirectly. Like other areas of management, HRM is involves in setting policies, formulating plans and trying to make decisions for the benefit of both the company and the staffs. Above all this, the driving force that drives the success of the company is its people. They provide the company with the competitive edge and are the most valuable asset to the company. It is therefore important for HRM to assist the company to effectively and efficiently manage its human resources and having activities that would complement and promote business growth.
“More positively, human resource strategies can be aimed at improving an organization's competitiveness by increasing its 'knowledge base' or competence.” (HRM Guide '' Strategic HRM Reality and Action URL: http://www.hrmguide.co.uk/hrm/chap6/ch6-links3.htm)
The company vision and goals can be achieved through sound and logical business strategies. Here, HRM will have to focus strategically and to integrate their planning into company planning. There is a need for HR to do their planning as to prepare the company for the constant change in the business environment. For example, advances in technology are determining how certain work processes need to be done and companies are now operating on a more technological expertise that they would require IT savvy personnel to handle the demand of the technology. One example is in Government bodies in Singapore operating on an e-procurement system called Gebiz. Gone were the days where staffs have to fill up at least 4 different types of forms when purchasing items with few vendors. They now simply submit the purchase requisition through the system and the vendor will validate their purchase by inputting the amount and the dollar value into the system and submitting the e-invoices back to the buyer.
When the company is aware and is adjusting to the constant change in the demand of the industry, it helps to increase the competitive advantages of the company. For example, for deliveries and freight companies, customers are no longer only sending their items locally; deliveries are being made across the region and worldwide. It is therefore convenience for the customers to be able to call the delivery company at any time of the day to check on the status of their items. The bigger players such FedEx, DHL and UPS have a 24hr tracking system to help customers locate the whereabouts of the items regardless of the time of the day. This could be one of the many reasons why customers still choose to use the services of these mentioned companies due to their reliability and efficiency even though they could be charged with a higher price as compared to what a smaller company charges. As such, they would have to hire staffs to man their 24hr operations...