Recommended Approaches for Sustainable Competitive Advantage in Shrm

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A business nowadays becomes more global and demanding, which push organisations to seek for new means to success in their operation and to compete another organisation. To response the reality, businesses have been developing the techniques or seeking possible source of competitive advantage. It should be noted that human resources and their management play an important role to asset the organisation to achieve the goal. It be identified the linking between strategic goals and human resource as strategic human resources management (SHRM), which is one of key element of achieving sustained competitive advantage. This essay presented the selected two approaches that the extremely useful in achieving sustained competitive advantage. These approaches were selected based on SWOT analysis point of view. Frist, the resource-based view focuses the strategic importance of internal strengths and weaknesses. Second, the external opportunities and threats can be focused by using best-fit approach. In addition, (Batt 2002) introduces three dimensions of HRM systems to acquire and maintain the human capital, including recruitment of people with respective skills and investment in their initial training, work design that embedded continuous learning , and performance-based incentives. Therefore, the best-fit approach aims to focus on recruitment, rewards, and career path (Schuler and Jackson 1987). On the other hand, resource-based view of SHRM focuses on training, work design embedded continuous learning, and performance-based incentives(Wright, Dunford et al. 2001). Resource-based view of SHRM

(Wright, Dunford et al. 2001) claimed the conceptual development of SHRM under resource-based view can achieve the sustainable competitive advantage. The HR architecture contains human capital pool employee relationships and behaviours and people management practise. First, human capital pool refers to the stock of employee skills in the firm, which is focused to develop to be higher level of skills or achieving a better alignment between the skills and strategic intent requirement. The actual stock of human capital can be changed, and should be tracked with the strategic needs under the organisation’s requirements. Second, employee behaviour is critical independent element of SHRM that involves in psychological contract and organizational citizenship. The behaviour is also recognised as element of employee projection within positive and negative consequences to the organisation. Finally, people management practise , involving staff, training, rewards, appraisal, work design, participation, recognition, and communication that impact employee and shape their competencies, cognitions, and attitudes, should be focused.

(Grant 1996) argued that the skill and knowledge is the most important factor which can achieve the sustainable competitive advantage, and (Teece 2007) supported this statement that the excellent knowledge should be combined from traditional resources with new unique method providing the best value to customer. (Sharkie 2003) proposed the development of new valuable resources come from re-used knowledge integrated with current knowledge, at the point of time. In addition, ability of generating, capturing, disseminating, and then using knowledge to develop capabilities become a competitive advantage because innovative knowledge developed today will become the core knowledge of tomorrow (Zack 2002) Even the resource-based view of SHRM emphasises to the strategic value of the workforce and its learning development, however, this approach was argued that the resource-based is not sustainable because other competitors may able to imitate or purchase the sources of the advantage (Barney 1991). (Becker and Huselid 1998) argued that the effective systems for managing people evolving the organisation’s historical paths and its maintain interdependence that competitors cannot easily imitate. The advantage of...