Effects of Global Competitiveness on Strategic Human Resources

Effects of Global Competitiveness on Strategic Human Resources

Human resources play a vital role in an organization because their performance influences its performance and competitive advantage. Organizations have begun capitalizing on the ideas generated by their human resources to increase productivity and create a competitive advantage. Different organizations worldwide have embraced Strategic human resource management by combining competent employees with other complementary human resources practices to increase competitive advantage. Global competitiveness has had a significant impact on strategic human resources. Organizations have realized that the role of human resources is not only a factor of production but also a tool for justifying the means used to enhance production due to the disruptions in the labor market created by an increase in demand for talented employees, brain drain, and innovation. Therefore, global competitiveness has created the perception that human resources are assets, leading to the shift from human resource management to human capital management. Get in touch with us at eminencepapers.com. We offer assignment help with high professionalism.

Human capital management focuses on changing the traditional administrative functions of the human resource management department, such as compensation, payroll, performance management, training, and recruiting, into opportunities to increase business value, productivity, and engagement. According to Zakaria (2011), modern human resource management practices in globalization include context-specific and purposive human capital practices that support an organization’s needs and plans. Context-specific human capital practices include employee attributes that contribute to the organization’s performance, such as a positive attitude toward work and good listening skills. Purposive human capital practices include influencing employee conduct based on the organization’s plans and needs. For example, the human resource management department may organize a training program to equip employees with specific skills that will be used to implement the organization’s plans. Human resource managers also focus on the intangible aspects of human capital, including the abilities, knowledge, and skills employees use to complete assigned tasks and achieve the organization’s goals. Human resource managers also focus on tangible human capital, including labor costs that should be met to meet productivity goals and a return on investment while preventing the transferability of essential skills that can be leveraged to improve organizational performance.

Global competitiveness has prompted organizations to design a competitive strategy that can be increased by systematically improving human resource practices and aligning them with their competitive strategy. According to Sayyad (2017), organizations in the modern business environment have developed the assumption that human resources are assets that should be continuously improved to meet organizational goals. Global competitiveness has also led to management through measurement, which includes human resource interventions and guidance on what to measure and how to report and measure the outcomes of the human resource interventions. One of the interventions is career management. Organizations use career management to help employees advance their competencies and seek guidance in determining their passion, purpose, and position. Mentorships are also vital in creating a sense of belonging for high employee productivity. Organizations use various career management approaches, such as creating mentorship programs, tracking and quantifying employee performance, creating a challenging work environment, and creating a learning organization culture. According to Hawkins (2019), a learning organization culture is an organizational framework that enables employees to continue expanding their skills, knowledge, and innovation opportunities. Global competitiveness requires organizations to continue equipping employees with the knowledge and skills needed to adjust to the changes in the business environment.

The second intervention human resource managers use to respond to global competitiveness is employee training and development programs. Organizations use training and development to equip employees with the knowledge and skills to complete assigned tasks. Training and development programs are also essential in achieving the productivity levels that organizations require to create a competitive advantage. The increased competition for talented employees also creates a need for regular training and development to create job loyalty linked to increased employee retention. The third intervention is performance management. According to Shrivastav et al. (2021), performance management includes appraisals, rewards, and aligning employees to the required performance standards. Global competitiveness puts organizations under pressure to perform better than competitors, thus creating a need to increase employee performance by checking the gaps between the organization’s expectations and what the employees deliver. Organizations also use performance management to ensure that employees are fairly compensated, thus increasing commitment and productivity.

Moreover, global competitiveness has transformed how organizations view human resources and their commitment to improving human resources’ value. Therefore, global competitiveness can be considered the backbone of human resource management interventions used to improve human resources as assets. Global competitiveness has also changed the needs and preferences of organizations about human resources. For instance, organizations are more focused on employee retention due to increased competition for talented employees, thus focusing on increasing job satisfaction. On the other hand, human resources are becoming enlightened about their vital role in the organization as human capital, thus demanding a conducive environment and better compensation and benefits. Therefore, the main impact that global competitiveness has had on human resources is changing the perception that employees are human resources to considering employees as human capital.

References

Hawkins, P. (2019). How the learning organization learns and its culture Coevolves. The Oxford Handbook of the Learning Organization, 180-196. https://doi.org/10.1093/oxfordhb/9780198832355.013.10.

Sayyad, N. (2017). The Impact of Competitive Strategies and Strategic Human Resource Management on Firm Performance of Palestine Nermeen. Archives of Business Research, 5(1). https://doi.org/10.14738/abr.51.2464.

Shrivastav, P., Munjal, N., & Singh, A. (2021). The Impact of Strategic Human Resource Management practices on Global competitiveness. European Journal of Molecular & Clinical Medicine, 8(1). https://ejmcm.com/article_10666_87209bacdf1501e8fa674e810b474379.pdf.

Zakaria, S. (2011). Transforming human resources into human capital. Information Management and Business Review, 2(2), 48-54. https://doi.org/10.22610/imbr.v2i2.882.

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Effects of Global Competitiveness on Strategic Human Resources

1. Effects of global competitiveness on strategic human resources
2. Connections between job satisfaction, compensation, benefits, and loyalty and commitment of the worker to the company
3. Employee turnover and learning to measure and control it
4. Forecasting and predicting the supply and demand cycle within human resources