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Competitive Advantage Through the Employees

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In today’s fast-paced economy competition is an issue of services and products. Much attention has been directed to a better service and the best product and how this can be achieved through utilising the human resources. This research paper identifies the competitive advantage concepts and models, competitive strategies and the main human resource practices that have a significant impact on the employee’s performance. Understanding sources of competitive advantage has become a major area of research in the field of strategic management. Therefore this research paper also develops an analytical framework for strategic management in order to initiate/formulate and implements the strategic plans successfully. Three questions regarding identifying, defending and achieving competitive advantage through the employees have been raised and answered. Finally a summary of practical criteria of best practice for competitive advantage is presented and a general discussion and recommendations have been drawn.
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by mmmm on November 23rd, 2010 at 08:36 pm
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Competitive Advantage Through the Employees

Rahim K. Jassim (*)
Abstract
In today’s fast-paced economy competition is an issue of services and products.
Much attention has been directed to a better service and the best product and how this
can be achieved through utilising the human resources. This research paper identifies
the competitive advantage concepts and models, competitive strategies and the main
human resource practices that have a significant impact on the employee’s performance.
Understanding sources of competitive advantage has become a major area of research in
the field of strategic management. Therefore this research paper also develops an
analytical framework for strategic management in order to initiate/formulate and
implements the strategic plans successfully. Three questions regarding identifying,
defending and achieving competitive advantage through the employees have been raised
and answered. Finally a summary of practical criteria of best practice for competitive
advantage is presented and a general discussion and recommendations have been drawn.
Keywords: Competitive advantage, HRM, Strategic Management, Selection,
Performance, Reward.
Introduction
The firm is regarded as a cohesive organism, which learns to adopt or find better
ways of doing things essentially in response to its environment (Child 1997: 67). The
question then is what really the firm should do to maintain or to optimise its situation in
its environment? Should it focus on its financial situation, it’s technology, or it’s human
resources?. To answer this question we should at first see what other researchers have
concluded. Barney 1991 suggests that, in order for a resource to qualify as a source of
sustained competitive advantage, the resource must add value to the firm, it must be
rare, it must be inimitable and it must be non-substitutable. Wright, et al 1994 have
shown that human resources meet Barney’s criteria for being a source of sustainable
competitive advantage. Coff 1994 argues that human assets are a key source of
sustainable advantage because of causal ambiguity and systematic information making
them inimitable. Guest 1990 says that if management trust their workers and give them
challenging assignments, workers in return will respond with high motivation, high
commitment and high performance. Gratton 1997 identified six factors for success: the
commitment of top management; the motivation and aspirations of recruits; the core
capabilities of the management team; the team’s aspiration; its ability to build and
maintain alliances; and the integration of the business into a global network. What does
that mean to us?. Its means that sources of competitive advantage have shifted from
financial resources to technology resources and now to human capital. In other words,
success does not depend primarily on the size of the budget or the products supporting
technologies. It really depends on employee’s attitudes, competencies and skills; their
ability to generate commitment and trust, communicate aspirations and work in complex
relationships. Now we know one of the sources of competitive advantage which is the
employees, then what do we have to do to achieve competitive advantage through
them?. The answer lies in competitive strategy and human resource practices. Then
what is the competitive strategy? and what are the human resource practices?. These
two questions inspired the following objectives of this research paper:

(*)BSC(HONS), MEMGT, PHD(LOND.).MASME, MIPENZ , P.E., REG. ENG. COLLEGE OF TECHNOLOGY AT JEDDAH


387


a- Investigate a range of concepts and models of competitive advantage, competitive
strategy, and the strategic human resource management and competitive advantage.
b- Provide a theoretical framework for the study of the major human resource practices
in competitive advantage through the employees.
c- Develop the reader’s ability to identify and develop the competitive advantage of a
particular organisation and to formulate effective competitive strategies. An
analytical framework for strategic management is developed.
d- Investigate how the firm can gain and retain competitive advantage through its
employees. Three questions have been raised and answered.
e- Define the criteria of best practice for competitive advantage.
Competitive Strategy
What is strategy?

In the literature on and for capitalist management, the notion of strategy has
become increasingly popular. The strategy concept extracted from the Greek word ‘
strategos’, a general, which in turn comes from roots meaning ‘army’ and ‘lead’ (Legge
1995: 96); but the Greeks provided no clear description. Conventionally, strategy is
assumed to involve the planning and directing of the organisation towards some goals
and objectives. In any business, there are certain, market-related issues, which are
strategic and there are also certain, market-related decisions, which are strategic. These
sets of strategic decisions are interrelated. We need a theory of strategy, which
acknowledges both and does not downplay one or the other.
Schermerhorn , 1993 defines strategy as a comprehensive plan of action that sets critical
direction for an organisation and guides the allocation of its resources.
Child 1972 defines strategy as a set of fundamental or critical choices about the ends
and means of a business.
Strategy choice perspective involves defining strategy. Such choices are critical
because they play a decisive role in determining the ultimate success or failure of the
business. Firms that combine high levels of competence in multiple modes of strategy
making appear to be the highest performers. Clearly, certain market-oriented choices,
such as the desired competitive position of a particular business unit, are strategy. But
such concerns do not define the universe of strategy
Boxall, 1996 defines strategy
as a firm’s framework of critical ends and means or ‘strategic paradigm’.
Such a term implies that competitive strategy and structure strategy are all connected in
a systematic and dynamic fashion. The question is how this strategic plan is formulated
in order to be successful? The answer to this question is, if the Human Resource (HR)
is integrated into strategic plans, if HR polices are coherent, if line managers have
recognised the importance of HR and this is reflected in their behaviour, if the teams
aspirations and motivations are considered, if top management are committed, if the
business is integrated into a global network and if employees identify with their firm,
then the firm’s strategic plan can be implemented successfully. Boxall’s strategy
definition has been used in developing the analytical framework for strategic
management.
Competitive Advantage
When a firm is implementing a value creating strategy not simultaneously being
implemented by any current or potential competitors, then we can say the firm has a
competitive advantage. And when a firm is implementing a value creating strategy not



388


simultaneously being implemented by any current or potential competitors and when
these other firms are unable to duplicate the benefits of this strategy, then we can say
the firm has a sustained competitive advantage (Barney 1991).
There are two major models that have to be considered. The first one is the
position or environmental model and the second one is the resource-based view model.
The Position or Environmental Model.
In order to achieve a competitive advantage, the firm is required to make a
choice about the type of competitive advantage it seeks to attain and the scope within
which it will attain it. Choosing the competitive scope or the range of the firm’s
activities can play a powerful role in determining competitive advantage because it aims
to establish a profitable and sustainable position against the forces that determine your
industry competition.
What is competitive strategy?. Porter 1985 defines the competitive strategy as,
the positioning of a company in its competitive environment. Also Porter has posed two
important questions:
• What is the structure or the attractiveness of the industry which the company is in?
• What is the company’s position in its competitive environment?
To answer the first question a company, as an organisation, should analyse their
industry by focusing on the following points (industrial analysis):
1-
Begin with understanding your industry.
2-
Focus attention on significant force.
3-
Watch out for industry change.
To answer the second question (competitive position), the following question
should be asked:

How does a company achieve superior performance?
To be a superior performer in the engineering industry or any industry, the
company must have a sustainable competitive advantage which its rival cannot copy or
duplicate. The competitive advantage can be sustained in one of the two ways (Porter
1985);
1. Either the company can be lucky enough to come up with something that its rivals
cannot copy which is very rare, or
2.
The company is improving so fast that its rivals can not catch up.
Porter shows that there are five competitive forces which play a major role in the
company success or failure, * the entry of new competitors, * the threat of substitutes, *
the bargaining power of suppliers, * the bargaining power of buyers, and * the rivalry
among the existing competitors. The collective strength of these five competitive forces
determines the ability of firms in an industry to earn on average, a rate of return on
investment in excess of the cost of the capital.
Porter also notes that a business can develop a sustainable competitive
advantage by following two strategies; cost leadership strategy or differentiation
strategy.
Cost Leadership Strategy: the primary focus of a cost leadership strategy is to
achieve low costs relative to competitors. Lowering costs lead to lowering prices,
which can increase demand for products or services, but if the product or services
cannot be produced at a lower cost it also reduces profit margins. To compete based on
cost, managers must address labour, materials, overheads, and other costs, and to design
a system that lowers the cost per unit of the product or service. Often, lowering costs
requires additional investment in automated facilities, equipment and employees skill.


389


Differentiation Strategy: the primary focus of a differentiation strategy is
creating uniqueness such that the organisation’s goods and services are clearly
distinguished from those of its competitors. In other words the focus is on creativity
and innovation which have long been recognized as necessary for bringing the required
change to obtain the competitive advantage (Dean 1998). Carr and Johansson 1995
have define creativity as the generation of ideas and alternatives, and innovation as the
transformation of those ideas and alternatives into useful applications that lead to
change and improvement. They have found that, in today's business environment, an
essential element to an organisation's success is adaptability. You must be able to
manage at the speed of change, and that takes creativity and innovation.
Ostrenga, Ozan, McIlhattan, and Harwood 1992 note that those companies that are
effective at rapidly bringing innovative new products and services to the market have
gained a huge competitive edge in today's business world.
Deming 1993 notes that the moral is that it is necessary to innovate, to predict the needs
of the customer, give him more. He that innovates and is lucky will take the market.
Csikszentmihalyi 1988 notes that what we call creative is never the result of individual
action alone; it is the product of three main shaping forces: a set of social institutions, or
field, that selects from the variations produced by individuals those that are worth
preserving; a stable cultural domain that will preserve and transmit the selected new
ideas or forms to the following generations; and finally the individual, who brings about
some change in the domain, a change that the field will consider to be creative.
Creativity is a phenomenon that results from interaction between these three systems.
Without a culturally defined domain of action in which innovation is possible, the
person cannot even get started. And without a group of peers to evaluate and confirm
the adaptiveness of the innovation, it is impossible to differentiate what is creative from
what is simply statistically improbable or bizarre (Dean 1998).
Schuler and Jackson 1987 have emerged from Porter discussion of competitive
advantage three competitive advantage strategies that organisations can use to gain
competitive advantage: Innovation, Quality enhancement and Cost reduction:
Innovation strategy: the primary focus here is developing products or services
different from those of competitors or offering something new and different. A vital
component of any innovation strategy is getting employees to broaden their skills.
Quality enhancement strategy: the primary focus here is enhancing the product and/or
services. Quality enhancement often means changing the processes of production in
ways that require workers to be more involved and more flexible.
Cost reduction strategy: firms typically attempt to gain competitive advantage by
being the lowest cost producer.
The question is who brings the innovation, quality and the cost reduction
strategy to the firm?. We believe that it comes from the right employee who is
motivated by the right human resources practices. In the next sections we will deal with
the issues of how the right employee is employed and motivated.









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The Resource-Based View Model

What are the firm resources?
Firm resources include all assets, capabilities, organisational processes, firm
attributes, information, knowledge, etc. controlled by a firm that enable the firm to
conceive of and implement strategies that improve its efficiency (doing things right) and
effectiveness (doing the right things). In the language of traditional strategic analysis,
firm resources are strengths that firms can use to conceive of and implement their
strategies. Firm resources can be conveniently classified into three categories: physical
capital resources, human capital resources and organisational capital resources.
Physical capital resources include the physical technology used in a firm, a firm’s plant
and equipment, its geographic location, and access to raw materials. Human capital
resources include the training, experience, judgement, intelligence, relationships and
insight of individual managers and workers in a firm. The organisational capital
resources include a firm’s formal reporting structure, its formal and informal planning,
controlling, and coordinating systems, as well as relations among groups within a firm
and between a firm and those in its environment (Barney 1991: 101).
The resource-based view of the firm is presently being touted as an alternative
theory of strategy to that developed by Porter 1985. Instead of focusing on positioning
in the product market, it argues that firms achieve sustainable competitive advantage by
developing resources, which add unique or rare value, which can’t easily be copied by
others. Thus the firm with superior access to physical resources, which others can not
buy, holds a superior advantage. For example, a manufacturing firm, which invents a
superior process technology, holds an advantage over its rivals.
Barney 1991 suggests that in order to understand sources of sustained
competitive advantage, it is necessary to build a theoretical model that begins with the
assumption that firm resources may be heterogeneous and immobile. To have this
potential, a firm resource must have four attributes.
• It must be valuable, in the sense that it exploits opportunities and/or minimises
threats in a firm’s environment.
• It must be rare among a firm’s current and potential competition
• It must be imperfectly imitable
• There can not be strategically equivalent substitutes for this resource that are
valuable but neither rare nor imperfectly imitable.
Firm resources can be imperfectly imitable for one or a combination of three
reasons:
1. The ability of a firm to obtain a resource is dependent upon unique historical
conditions.
2. The link between the resources possessed by a firm and firm’s sustained competitive
advantage is causally ambiguous.
3. The resource generating a firm advantage is socially complex.
Wright, et al. 1994 have shown that the human resources can be a source of
competitive advantage because they meet the criteria for being a source of sustainable
competitive advantage. Human resources add value to the firm, are rare, cannot be
imitated and are not sustainable. Also they have characterised human resources by
unique historical conditions, causal ambiguity and social complexity, which means that
not all firms can successfully develop human resources as a sustain competitive


391


advantage through imitating the HR practices of firms that have successfully developed
human resources.
Pfeffer 1994 has issued sixteen practices of competitive advantage through
people
• Employment security
• Selectivity in recruiting
• High wage
• Incentive pay
• Employee ownership
• Information sharing
• Participation and empowerment • Teams and job redesign
• Training and skill development
• Symbolic egalitarianism
• Wage compression
• Promotion from within
• Long-term perspective
• Measurement of practices
• Overarching philosophy
• Cross-utilization & cross-training
Finally Gratton 1997 shows that most companies believe that human resource
rather than financial or technological resources can offer a competitive advantage. But
can it provide a sustained competitive advantage, or will competitors be able to imitate
what has been achieved or buy in the same skills and capabilities from the external
labour market, making any competitive advantages purely short term?. The research
also suggests that commitment, trust and pride appear to be sustaining ongoing change
at the organisation and provide a platform for the organisation to increase its turnover
and profitability. Commitment, pride and trust would take the organisation years of
focus, skill and senior management commitment to nurture this kind of culture.
Competitive advantage can best be achieved by seeking improvement in the
management of people, in other words, through better utilisation of human resources.
From the standpoint of researchers interested in competitive advantage, the resource-
based view of the firm provides a framework for examining the rule of human resources
in competitive success and forces us to think more clearly about the quality of the
workforce skills at various levels and the quality of the motivation climate created by
strategic human resource management (Boxall 1996). The next section will focus on
the strategic human resource management and competitive advantage.

Strategic HRM and Competitive Advantage.
The struggle to gain competitive advantage in markets that grow more fiercely
contested day to day has radically altered the complexion of many businesses. The
HRM theorists start arguing that HRM should be recognised as a source of competitive
advantage. The field of strategic human resource management has grown up alongside
the field of strategic management in recent years. It represents attempts by HRM
researchers to relate the worlds of HRM and strategic management to each other (Boxall
1992 and Wright & McMaham 1992). Some researches have shown two models for
strategic human resource management, which will be considered.
The Matching Model or behavioural perspective
The “matching model” (Boxall 1992) or “behavioural perspective” (Lado and
Wilson 1994, Wright and McMalan 1992) of strategic HRM advocated by Fomburn et
al 1984. In its simplest form, the matching model asserts that organisational
effectiveness depends on a ‘tight - fit’ between HRM strategy and business strategy.
The essential idea of this model is that HR practices should be matched to the
firm’s desired competitive position. This is seen to make the organisation more
effective. In other words, management should work out what ‘ behaviours ‘ are
required by the choice of a particular business position and adopt those HR practices,
which reinforce them.
Some authors argues that the firms should choose whether they want to be cost
leaders, or differentiators on the basis of some superior non-price feature such as


392


superior quality, delivery or service. If for example, management chooses a business
strategy of differentiation from competitors on the basis of higher levels of product
innovation, this would call for creative, risk-oriented and co-operate behaviour. The
HR practices would therefore include (Schular and Johnson 1987 cited by Boxall, 1995,
Chapter 12):
selecting highly skilled individuals, giving employees more discretion, using
minimal controls, making a greater investment in human resources, providing more
resources for experimentation, allowing and even rewarding occasional failure, and
appraising performance for its long-run implications.
On the other hand, if management wants to pursue cost leadership, this entails
designing jobs which are repetitive, minimal training, cutting staff numbers to the
minimum and rewarding high output and predictable behaviour.
The attraction of the matching model clearly lies in its simplicity and the way if
offers a basis for integrating HR practices. The disparate functions of HRM are brought
together around a common theme, behavioural consistency with preselected competitive
position. If we think in terms of our conceptual framework, this is the outcome desired
by management. The model has been incredibly popular in conferences and consultancy
circles.
Boxall 1995 has shown several weak points in this model such as; what is
strategy; the typological problem; the unitarism issue; the issue of strategy - making,
and the dynamism issue.
The Capabilities Model
The matching model of strategic HRM is linked to the product market oriented
views of strategy advocated by Michael Porter 1985. A second model is linked to the
resource-based view of the firm.
The resource-based perspective offers a way of theorising the contribution of
HR strategy that does not rest solely on the reactive notions of the positioning model.
Human resources can be defined as the pool of human capital under the firm’s control in
a direct employment relationship (Wright, et al 1994). In resource based thinking,
HRM can be valued not only for its role in implementing a given competitive scenario
but for its role in generating strategic capability (Barney 1991) for its potential to create
firms which are more intelligent and flexible than their competitors over the long haul
firms which exhibit superior levels of co-operation and operation (Grant 1991). By
hiring and developing talented staff and ‘synergising’ their contribution within the
resource bundle of the firm, HRM may lay the basis for sustained competitive
advantage. In order to get more complete model of strategic HRM, it should be linked
to the employment relationship. A theory of strategic HRM must be built on credible
assumptions about the nature of strategic management on the one hand and the wage-
work bargain or employment exchange on the other. The resource-based view of the
firm, quite clearly, provides a basis for asserting that key human resources are sources
of competitive advantage. It helps to lay the intellectual basis for a ‘capabilities’ model
of strategic HRM. Such a model builds on the obvious point that learning is something
that people do. Applying learning in a company involves people with skills who want
to act together, who co-operate in powerful ways.
These are merely a tentative set of ideas but they show how a capabilities model
of strategic HRM offers advantages over the matching model because it forces us to
think more clearly about the quality of the workforce skills at various levels and the
quality of the motivation climate created by management. The matching model fails to


393


take a long-term view of skill development and simply takes worker motivation for
granted.
The first question articulated at the introduction section which was what is the
competitive strategy? has been elaborated on. The next section will focus on the second
question which was what are the human resource practices?.
Competitive Advantages through the Employees
As we mentioned earlier, competition is an issue of service and product. The
question then is what is the factor that has a major role in both of them?. Schuler and
Jackson 1987 have shown that there is a linkage between competitive strategy, HR
practices and performance. Also HR practice results from different human resources
existing within the organisation. Therefore in the next section we will focus on the
main HR practices that the employees believe have a major impact on their
performance.
What is the major HR practices in the employee’s performance?
A survey has been conducted in three disciplines (engineering, health and
education) in order to find out the required human resources practices of competitive
advantage through the employees. The survey starts by asking the employees certain
questions in order to find out what are the barriers to their potential and what can be
done to motivate them. These questions are as follows:
• What is the nature of your job?
• How is your performance being managed?
• How is your contract negotiated and what influence has this on your performance?
• What are the major factors in your performance?
• Do you or your managers review your performance regularly? How?
• How do you identify the weakness points in your performance?
• What would you change to make your performance more effective and how. Why?
• Do you think that Trust, Reward, Development, and Promotion leads to effective
performance? How?
The employees response
The employees of the organisations have claimed the following points play the
most important roles in improving their performance and long term loyalty which both
lead to a great competitive advantage.

High job security (if the jobs disappear through Economic ,Technical, Social and
Political changes then the employer will offer alternative employment or at least help the
employee to find another one)

High wages

Good communication and strong respect for individuals.

Personal development such as training.

Reward and social relationship.

Performance reviewing and setting goals and objectives.

Job description

Good manager with a good qualification and vision.

Involvement in the selection process.
The above answers coincide with some of Pfeffer’s sixteen practices and Schuler
and Jackson’s 1987 six HR practices (planning, staffing, appraising, compensating,
training and development). These answers can be classified in a HRM terms as: Job
analysis, job description and job evaluation; Generic Function of HRM (Selection,


394


Performance appraisal, Reward and Development), leadership and employment
relations. Now we know the competitive strategy and the human resource practices that
were articulated at the end of the introduction. Therefore we will elaborate on each of
these practices and we will try to develop a numerical model for some of them such as
selection, performance appraisal and we will develop an analytical framework for
strategic management.

Competitive Advantage through Job Analysis, Job Description and Job Evaluation
Job Analysis
The job analysis looks at the behavioural needs of a particular competitive strategy (cost
leadership or differentiation) role peculiar to the culture and organisation of the
company. It is like performing a Personal Profile Analysis on an imaginary person.
The goal is to define the ideal individual for the job position from the perspective of the
company and the employees that the successful applicant will work with. Job analysis
is the process of collecting information and making judgements about a specific job
(Wilson, 1995:188). From the stand point of researchers such as (Barney 1991 and
Wright et, al 1994) that competitive advantage only occur when employee’s knowledge,
skills and ability can add value to the firm, are rare, cannot be imitated and are not
sustainable. In order to target employees with the requisite knowledge, skills and
ability, the job has to be carefully defined. The HRM literature promotes careful job
definition in the belief that it will have two effects. First, it is commonly believed to
assist targeting and attraction of potential recruits. Second, job analysis helps potential
recruits to make up their own minds about whether to apply or not (Premarck &
Wanous, 1985, Dakin & Smith, 1995).
Job Description
The job description is generally used to identify the responsibilities, the
objectives associated with each specific task and the reward that associated with good
performance. In order to accomplish the employment relationship effectively, work has
to be designed, programmed, costed, organised and co-ordinated. (Keenoy, 1992) in
other words detailed job description, otherwise can be used by an employee to define
what s/he is not prepared to (“that’s not part of my job” or I’m not paid to do that”)
(Morgan 1986). In a dynamic environment it is impossible to have a good job
description because anticipating the environment changes in advance is impossible and
it is silly to think that any written job description could cover all the possibilities. But
that does not mean we should not describe the job as detailed as possible.
Job Evaluation
Once jobs have been analysed and described, the job evaluation began by
considering several job factors such as: working conditions, necessary technical KSA
(Knowledge, Skills and Ability) and behaviour, salaries and required managerial skills.
A rating of each factor is made on a standard scale, and the total rating points can be
used to rank jobs hierarchically. The recruiting and selection model appendix A can be
used in the rating process by using different criteria and weights such as the above-
mentioned job factors.
Competitive Advantage through the Generic Function of HRM
The aim of Human Resource Management is seen as the optimisation of human
resources value. Devanna et al (Legge 1995:308) suggest four ‘generic functions’ of
HRM, namely, selection, appraisal, rewards and development that act as independent
variables, in a cycle of human resource interventions on the dependent variable of


395


performance. In the next sections we will examine the competitive advantage through
the HRM generic function and some others.
Selection
Security in employment and reliance on the work force for competitive success
mean that one must be careful to choose the right people, in the right way (Pfeffer
1994). The question then is what do we want?. We want --

Employees with more competencies

Employees who self-develop without the need for company training

Employees who have more ideas that are implemented

Employees that have a lower error rate, number of discipline incidents and
absenteeism rate

Employees that have a higher customer satisfaction, higher performance
appraisal scores, bonus rates and promotion rates

Employees that require "low maintenance" from managers

Employees that stay longer before quitting

Employees who produce more return for every dollar of salary paid to them
Selection can be regarded as the primary mechanism in enhancing the organisation
capabilities. The individual behaviour and learning ability can optimise the
organisation’s situation in its environment. The goal of selecting program is to ensure
that the firm is hiring only the highest ability individual. Then the firm must be able to
identify high ability individuals and also the firm must be able to attract and retain those
applicants deemed to be of the highest ability. But in an increasingly competitive
market, it can be almost as hard to attract the right staff as to attract the right customers.
In this research paper we have proposed a model called the scoring model which can
successfully be used in the four generic functions. For further details see Appendix A.
Performance Appraisal and Performance Management
Performance appraisal is defined as a process by which an organisation measures and
evaluates an individual employee’s behaviour and accomplishments for a finite time
period (Moen, 1989: 62, Johnson, 1995: 278). Measuring/reviewing and evaluating the
performance of employees is arguably one of the most important tasks for any manager,
since critical decisions rely on the accurate assessment of an employee’s behaviour.
Historically, organisations tended to develop a performance appraisal instrument and
forms administrated on an annual basis. Even though managers have been repeatedly
told that performance review should be more than just an annual event, they do not
always do it. Employees are often not coached and counselled throughout the year, so
when review time arrives, they do not know what to expect. This leads only to
confusion and resentment (McAfee and Champagne 1993: 24). The question then is
how performance appraisal can be done better and more effectively?. The answer may
be in the approach to managing known as performance management.
Performance Management has three basic components: planning, managing and
appraising performance (see Illustration 1).


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Document Outline

  • Competitive Advantage Through the Employees
  • Rahim K. Jassim \(*\)
  • Abstract
    • Introduction
  • The employees response
  • The above answers coincide with some of Pfeffer\'s sixteen practices and Schuler and Jackson\'s 1987 six HR practices \(planning, staffing, appraising, compensating, training and development\). These answers can be classified in a HRM terms as: Job
  • Competitive Advantage through Job Analysis, Job Description and Job Evaluation
    • Job Description
    • Job Evaluation
    • Competitive Advantage through the Generic Function of HRM
    • Performance Appraisal and Performance Management
    • Rewards
    • Development
  • Guest\'s Framework \(Guest, 1987\)
  • Boxall\'s Framework \(Boxall, 1995 Chaps. 1&12\)
  • A 1-Selection
  • Table \(A.1\) Criteria and weights
    • A 2- Performance, Rewards and Development
  • Table \(A4\). Criteria and weights

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