4) Why it is important for companies today to make their human resources into a competitive advantage. Explain how HR can contribute to doing this. Three competitive challenges that companies now face will increase the importance of human resource management practices, the challenges of sustainability, the global challenge and technology challenge. Sustainability refers to the ability of the company to survive and succeed in a dynamic competitive environment. Company success is based on how well the company meets the needs of its stakeholders. Stakeholders refers to shareholders, the community ,customers, employees and all of the other parties that have an interest in seeing that the company succeeds. Sustainability includes the ability to deal with economics and social changes, engage responsible and ethical business practices, provide high quality product and services and put in place methods to determine if the company is meeting stakeholder’s needs. Several changes in the economy have important implication for human resource management. Growth in this occupation means that skills demand for jobs have changed, with knowledge to becoming more valuable. Not only have skill demand changed, but remaining competitive in a global economy requires demanding work hours and changes in traditional employment patterns. The creation of new jobs, aging employees leaving the work force, slow population growth and lack of employees who have the skills needs to perform the jobs in greatest demand means that demand for employees will exceed supply. This has created a “war for talent” that has increased the attention companies pay to attracting and retaining human resources.
COMPETING THROUGH SUSTAINABILITY:
* Provide a return to shareholders
* Provide high quality product, services and work experience for employees * Increased value placed on intangible assets and human capital * Social responsibilities
* Adapt to changing characteristics and...