A Critical Evaluation of how the SHRM of a global workforce could impact an organization’s competitive advantage Introduction:

Topics: Human resource management, Management, Human resources Pages: 5 (1776 words) Published: September 23, 2013
A Critical Evaluation of how the SHRM of a global workforce could impact an organization’s competitive advantage Introduction:
In a strongly connected business world, today’s business culture and competitive forces have changed how an organization handles its operations. As the unknown forms of competitive advantage lie ahead waiting to be discovered, organizations are planning and implementing new strategies to hold onto the rarest and most valuable form of competitive advantage; human resources. The focus of this paper is to evaluate how Strategic Human Resource Management (SHRM) component of an organization and its impacts on an organization s competitive advantage on the global foreshore. Relevant literature on the subject is favoring SHRM as a critical function of multi-national organizations; however the journey of finding perfect SHRM solutions is a long term vision of any company. It is evident that organizations operating on a global scale realize the simplicity of a convergent approach to managing a global workforce (Bae and Rowley, 2001). Impacts on competitive advantage can arise positively and negatively, based on the integration of SHRM, organizations need to clearly map out the strategy and uphold a proactive approach with SHRM. However literature suggests before aligning SHRM across the globe, organizations need to conscious of the overall strategy, and the methodology behind how human resources are integrated into that strategy will be the determinant of sustained competitive advantage.

As market functions become more universal within a globalised environment, organizations are constantly mirroring the competitor’s movements to counter act market position and share. Simply know as ‘benchmarking’ or ‘best practices’, global firms constantly strive to seek out ways to stay on top of any competitive advantage. For example, two areas of business which employ this ideology are finance and accounting, finance and accounting are ruled by ‘best practices’ and ‘standards’ for transparency of performing business(Bae and Rowley, 2001). As with Human Resources (HR), the movement of resources or management practices is a tradeoff. Alignment of resources or management practices is essential to the creation and sustainability of competitive advantage. Many organizations define the practices used and will apply them to the global workforce however practices are simpler to converge. On the contrary organizations resources are harder to align due to clashes in mindsets. For instance, Domestic mindset would take more individual responsibility to completing tasks, whereas a global mindset will focus on teamwork and diversity to getting the same tasks done. It is up to the management practices which are derived from HR management to install the same mindset across the workforce. Further clarification of the terms resources and management practices are discussed to emphasize the extent of which SHRM needs to be defined in a global organization. The discipline of Human Resources is under constant development, earlier developments concentrated on finding forms of competitive advantage within the external environment such as technology or finance; external environments house resources that an organization and its competitors have both have the opportunity to access. The forms of competitive advantage in the external environment once proven, are easily accessible to leading companies or competitors who want to obtain the same advantage, and as organizations try to differentiate themselves in the market, terms like ‘best practice’ or ‘standards’ are developed. As organizations continued to mimic each other’s moves or developments on the world scale, upper management needed a solution to create a form of competitive advantage like no other, which would be dominant in every region of the globe. Switching from developments of external to internal environments, organizations focus, turns to resources within the...
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