Achieving Competitive Advantage Through HR Practices

Abstract

Globalisation has paved the way to increased competition and has re-established the fact - “survival of the fittest”. Survival and sustainability emerge as key issues to ponder in a competitive environment. Firms are now concentrating in designing activities and practices that give them additional competitive advantage. Human Resource Management has emerged as one such area with the belief that management of people gives a cutting edge for establishing a competitive advantage for a firm. Effective HR practices result in committed workforce, which can contribute towards firms’ growth. Adequate addressing of employee needs reduces attrition rate and hence dedicated and talented employees are retained, which become an asset for the firm. Retention of talented workforce and designing of good HR practices have greatly assisted organisation to achieve competitive advantage over other firms. This paper will highlight few core HR practices undertaken by firms that have resulted in achieving competitive advantage. It will also aim to indicate drivers to achieving competitive advantage through effective HR practices.

This study has been conducted in some Organisations that have devised HR practices and have gained positive results.

Keywords: Competitive advantage, HR Practices, Retention