Question

3. How can SHRM confer competitive advantage on organizations?

Answer 1

3.

HRM refers to Human resource management is the function that manages the human resources or employees so that the performance of employees can be improved. These employees can meet the organizational objectives as they are the important assets of the business.

HR is an important function which helps the employees for their career development. However, these functions of HR are focused towards giving the organization the best employees so that they can help in meeting the organizational goal. Directly HR act as an advocate of employees, however indirectly they are the protector of the organization.

HR helps the employees to improve their performance by

• Understanding the employees need.
• Recruit and train employees
• Management of employees relations
• Monitor employees’ performance
• Handle discrimination at work
• Handle performance issues
• Ensure equal opportunities.
• Contribute towards the work life balance.

The strategic HRM confer competitive advantage on organizations in following ways: -

• They recruit and train best talents so that they can contribute to organizational success in the long-run.
• They make the compensation policies and procedures up-to-date as per the changing needs of job requirements and develop incentive system as per the job needs and market conditions.
• They deal with discrimination to avoid conflict situation which may hamper organization performance.

• They monitor the performance of employees so that organizational performance is not hindered. HRM focus on conducting appraisal and performance review so that the employees’ performance can be monitored and corrected effectively.
• They enrich the employees by organizing training and development program so that they can contribute to organizational success. They focus on the career development of employees and provides opportunities for growth.
• They deal with discrimination to avoid conflict situation which may hamper organization performance. They ensure legal compliance with labor and tax law which is very important for the organization.