By: Kelly Barnhard
Overview
The primary responsibility of HR, as describe in the text Human Resource Management, is to align human talent effectively and efficiently to achieve organizational goals (Mathis & Jackson, 2010). Furthermore, HR should be involved in the strategic decisions throughout an organization. Strategic HR uses human resource management practices to add value by improving the performance of the business (Mathis & Jackson, 2010). Which in turn, can allow an organization to gain or keep a competitive advantage. Moreover, organizational strategy is an organizations plan for how to successfully compete and thereby continue to develop (Mathis & Jackson, 2010). In view of that, I felt it would be fitting to start with an article that questions the real world of business and actually discovers how to gain a competitive advantage. By providing examples, backed with supporting evidence, this article will unveil how HR practices can truly add value to an organization.
Article Description / Connection to text
The article I found, writing by Freek Vermeulen, portrays the practices of HR as the tools an organization should use to build a real, sustainable competitive advantage. Vermeulen refers to the parts that are harder for an organization to emulate, such as a skilled and motivated workforce, as the parts necessary to construct an exceptional competitive advantage. Furthermore, the article centers around four HR myths. Vermeulen enlightens the readers about these myths through the following examples:
1. Downsizing rarely works, but good HR practices will be a success factor.
2. An individual employee never outweighs the organizational environment.
3. Losing a star employee can be a good, especially if to a client.
4. Soft initiatives have real shareholder value.
The first example states that downsizing can work when the right HR practices are in place. Potential downsizing risks, such as lower commitment and loyalty among employees, can be reduced with the right strategic decisions (Vermeulen, 2011). This is relevant to organizational performance, because certain strategic decisions can result in either a cost savings or a better turnover during downsizing. According to the article, offering support for employees is a necessary practice. This ties into the need for constant communication during workforce downsizing as stated by the text. More specifically, addressing questions and reassuring surviving employees of their importance can help rebuild work moral and employee satisfaction.
The next two examples, while in fact different, both derive from the importance of human capital. In terms of the second example, when HR practices are used properly they can help employees develop skills tailored specifically to the company’s objectives (Vermeulen, 2011). Therefore, resulting in enhance individual performance and preventing these traits from matching or equally benefitting another company (Vermeulen, 2011). This reflects the importance of human capital and HR as stated in the text. Specifically, what employees bring, such as skills, knowledge or experience, contribute to organizational success. The third example provides some rare instance for when a departing employee is actually beneficial. However, an employee leaving for a client is not always the case, therefore, our text provides several drivers of retention and techniques to retain employees. For instance, offering competitive pay and benefits or developing stronger employee-supervisor relationship.
Lastly, the final example describes how HR can be the leading cost of an organization, but can also be their greatest value. This is relevant to the section of our text which measures effectiveness of HR initiatives. In particular, illustrating the need to regularly measure HR effectiveness and efficiency to pinpoint how HR is contributing to organizational success.
Take Away Points
What should be taken away form this research is that HR can significantly contribute to an organization. HR practices can truly add value and have the power to create a unique competitive advantage. Additionally, what should be gained from this research is the understanding that people can be a core competency. That the collective skills and knowledge of employees can contribute to an organizations success and differentiate it from competitors. This information can provide students with a better understanding of how HR departments work in the business world. This article should provide a clear picture of how HR can regrettably be underestimated. Now, and later in their careers, students should use their HR wisdom to harness a competitive advantage and greatly benefit their organization.
Works Cited
Mathis, R. L., & Jackson, J. H. (2010). Human resource management. (13 ed.). Mason, OH: South-Western Cengage Learning.
Vermeulen, F. (2011, March 03). In Praise of HR: The Soft Stuff Can Actually Lead to Some Hard Competitive Advantage. Forbes. Retrieved from
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