Literature wealth meaning that organisations exploit it in



Literature Review:

The Role of Strategic HRM in
Sustainable Competitive Advantage 

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Traditional sources of competitive advantages like
financial resources, manufacturing capacity and the Vass amount of resource available to an organisation are not
sufficient enough for the organisation to succeeded, maybe still very
necessary, but without proper management of Human resources an organisation
won’t have a competitive advantage in this modern age. Strategic human
resources management is a strategy in where the organisation uses the employee
in order to gain most efficiency and productiveness by hiring and managing a
skilled workforce (Mello, J.A. 2006, ). Human resources have become the
most important part of a company and key to gain competitive advantage due it
being the new source of wealth meaning that organisations exploit it in order
to meet core competencies. HRMs definition is so me what complicated, as it’s a
term known popular around the work but people yet to agree on one full
definition or even what it consists of (Beardwell, J. & Thompson, A. 2014, ) Edwin
Flippo Defines it as “planning, organizing,
directing, controlling of procurement, development, compensation, integration ,
maintenance and separation of human resources to the end that individual,
organizational and social objectives are achieved.” (Flippo, E.B. 1968,)as authors and writers haven’t come up with a pure
definition and some literature states that the lack of definition of the term
and managers allowing themselves, to make sense of it is what made human
resource management so popular, Mabeys theory states that what saw through
experiencing HRM and concluded that it has more of an impact as managers can
shape HRM how they want without following any strict regulated rules due to the
broad definition.( Mabey, C., Skinner, D. & Clark, T. 1998) This literature review
will aim to provide how organisations can gain substantial competitive
advantage with valuable understanding and the strategic management of human
resources and the roles of recruitment and selction and traning and development.















How well organisation is doing is down to factors internal
and external factors that an organisation can control not play a part to meet
the company’s core competencies. A factor that contributes to promoting a
firm’s core competency is the efficient and innovative management of human
resources. Experts and authors have suggested that in recent times a shift from
the importance of capital and another department to the HR department. The
importance of HRM is well documented in Porters literature, he suggests that
the key importance of gaining competitive advantage is human resource
managementdue to the lasrge amount factors it control through outhe orgasations
((porter M.E, 1990). Porters work leads on from that stating the human facor of
Human resource management, the right workforce and the right management of that
leads to gaining sustainable competitive advatge porter M.E, 1990). The
importance of the human factor ,this is furthermore backed by “Baron, A. 2007   ” with
similar views citing somework that understadin the importance of the human
capital by saying human not financial capital must be the starting point of any
organisation which wants to achieve competitive advantage(ref) theortarcial research
by “” concludes the bridge between Human resource management and competitive
advantage is the human capital which implements those changes






  This would be contracdidted by ” ” research in










Strategic Human Resource
Management as a Means of Ensuring Organizational Competency

In recent history HR has had a lot of attention due to innovation and
massive changes in the workplace, organisation have turned  to HRM, major studies have been conducted in
ways that HRM links in with core competencies and how HRM implement innovation
and competitive strategy I and advantage in a company. (work) suggests that competitive
advantage can be attained through the strong structural management of Human
resources, rewarding systems that allows employees to be valued would lead to
better performance which aligns with the company goals. This
view is supported by Jones (2000) who writes that studies have led to HRM lead
to enhancements of employee empowerment, motivation, as well as skills levels
improving furthermore he includes that further aspects of the organisation
improved with freat extent. Taken together, these studies support the notion
that HRM has a big impact trough adopting HRM can lead to growth of the organisation
and competitive advantage but have to align with the company goals and
strategies as adopting HRM practices which is considered innovative will change
aspect of the comapay an employees, for example it might change the
organsaition time tables, meeting in order to work more efficiently to get more
out of employees ( Kauffman ,2015) the litterture of questioning human resource
management is limited, some authors question the usefulness of the approach
stating that physical and finicial resources out way it, but the research could
be concluded as out dates or the lack of evidence furthermore  the research doesn’t contrast the drawbacks of
not emplemting HRM or the posititves of implemteting it,personal option would
say that most litterture




 (ref) Other authors (Kaufman,
B.E., 2015.) question the usefulness of such an approach, he staes that


allows an organisation to gain success and competitive advantage through people
and becoming a very critical resource in business. HRM to achieve organisations
aims, objectives and strategies, it recruitment and selection and training and development.
As the employees are the main assets and resource in an advancing economical
world, employee which have acquired are more in demand than ever. West states
that strong association between organisation that that have implemented HRM an
organisation achieving higher levels of efficiently productivity, profitability
as well as competitiveness   ( looking at
these points little bit better and all


one of the main jobs of hrm
















Recruitment and selection        (250)

What it is

As stated above in literature
recruitment and selection is an important aspect of strategic Human resource
management, attracting as well as retaining the most qualified employees is a
way that helps an organisation gain competitive advantage, this is backed by
boxal stating the recruiting and selecting the right staff is more important
ever due to organisations competing from the same pool of applicant, As HRM is
proven to improve the productivity in the workplace recruitment and selections
allows the right people to act on it .similar literature highly emphasis the
correlation between HRM and company completive advantage through company
competencies because it allows the company to differentiate its self for the
competitors from acknowledging the value of human capital. With a considerable
amount of literature being published and all concluding the importance of HRM,
these literature/finding would collarate with organisations realizing the
importance and investing more money in strategic human resource management in
recruitment and selection. Becker&huselid) have suggested the effective investment
in recruitment and selection leads to high performance throughout the
organisations, it suggests that by effectively recruiting leads to a domino
effect throughout the organisations from high performance levels, decrease
company turnover, productively. So, using effective HRM in recruiting leads to
an enhancement in competitive advantage. With these litterture stating the link
between SHRM in recruitment and seletion there are several sources for error,
the main error being these pieces of work refrence suggestions not clear
evidence , aswell as research being able to be done between the relationship of
competive sdvstge and recruitment and seledction with out stating stating th
sigfincance of other factors which contruibute to comepttive advatgae ( refrence)


Training and development 

The last role HRM which helps
organisation sustain competitive advantage is the training of development of
staff, noted above stating that importance of human factor, as far as some
authors stating that the human capital is the biggest source of competitive
advantage. Rothwell underlines the importance of training and development by
stating that a major source of failure is not acknowledging the importance of
the training and development function of HRM, this links in with Wilsons view
of training an employee and enhancing their knowledge and skill set will
achieve effective performance that further leads to competitive advantage.
While looking through litterture which underlines the link between traing and
devolpemnt and susating competitive advatge the words “potential” and “often
links in with ” gives the assuomtion of no evideince or research is carried
this would would be futher research need to be carried with these littertures
could be concluded a mere suggestions with those suggestions being due to
unavalibity of revelant data. With most littertuture supporting the links
between the training and devolpment and sustaining competive advatgae and
authors with same view and any sufficient litterture arguing othr wise its fair
to unserstand the link between training and development and sustaining
competitive regarless of many of the limitations and gap of litterture 


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