Human resource management (HRM) is that part of management process which makes, enhances, manages and develops the human element of the enterprise measuring their resourcefulness in terms of talents, abilities, total skills, creative, knowledge, and potentialities for effectively contributing to the organizational objectives. Human resources are precious and a source of competitive advantage. Human resources may be tapped most effective by mutually standard policies which promote promise and foster an inclination in employees to act flexibly in the interests of the adaptive organization’s pursuit of excellence. Human resource policies can be joined with planned business and used to reinforce appropriate culture. Human resources play a critical role in enabling the organization to effectively deal with the external environment challenges. The human resource management has been accepted as a strategic partner in the formulation of organization’s strategies and in the implementation of such strategies through human resource planning, employment, training, appraisal Continue reading
Business Strategies
The Role of Human Resources in Mergers and Acquisitions
Mergers and acquisitions represent ways for companies to grow, develop strategic positioning, acquire technologies and talents and develop synergies. However, more than 80% of the mergers and acquisitions done failed to produce any benefits while half of them led to a reduction of the value of the companies. This figure is really surprising when we consider the number of mergers and acquisitions occurring in a year. Nevertheless, a merger or an acquisition can also represent an opportunity. Indeed, one case out of eight represents a successful merger (or acquisition) where both companies come out stronger (such as the merger of Glaxo Wellcome and SmithKline in 2000). According to the specificities of both companies, of the industry, the success factor may vary from one situation to another. Whatever the reason why an organization is going to a merger or an acquisition, the good management of the Human resources during this process Continue reading
Case Study: An Analysis of Competitive Advantages of Honda Corporation
There are several factors that can contribute to a firm’s ability to be competitive in its industry. Building blocks of a competitive advantage include efficiency, quality, innovation, and responsiveness to customers. A firm with a competitive advantage may experience higher profits than the average profit in the industry while competing for the same customers. In the case of Honda, this is true. Honda has many distinctive competencies based on its resource and capabilities that allow it to have a competitive advantage in the auto manufacturing industry. Three areas that give Honda a competitive advantage in the auto industry include Honda’s engineering and design, research and development, and brand equity. Honda is unique in that its corporate structure is made of three companies. Honda Research and Development is in charge of research and development of innovative products for the company. Honda Motor produces, sells, and services the all Honda products. Honda Continue reading
What is First Mover Advantage? Definition & Examples
In the business world that is characterized by cutthroat competition, businesses do whatever is in their capacity to gain a competitive advantage. One of the common desires for any business is to dominate an industry or a region by being the first to enter into the specific business area. As a business concept, first mover advantage is a highly preferred concept where businesses seek to dominate given business areas by being the pioneers. Although many examples show first mover advantage is not always the best, there are equally many success stories of being the pioneers in a given business area. Firstly, from a management viewpoint, any business that acquires customers in an area where other companies have not been established ends up being the market leader as the pioneer in the given business area. Such an organization has the technological leadership of the products it creates. The process of developing Continue reading
Case Study of Dyson: Competitive Advantage through Innovation
Dyson, an electrical manufacturer, is solely owned by Sir James Dyson, and its headquarters are based in Malmsbury, Wiltshire. Dyson was the first company to introduce a bagless solution to conventional vacuum cleaners. After securing a significant market share in the vacuum cleaner industry, the company decided to diversify in to new products and countries. Dyson’s vision is to make products more environmentally friendly and easy to use; his ongoing mission is to promote design and innovation through the production of his products. Today Dyson has a presence in 45 countries and still maintain a 46 % and 32% share in the UK and US Vacuum cleaner market, respectively. Dyson has strong brand recognition, as the qualities projected by James Dyson become associated with the product itself. The product is instantly identifiable by the brand name, because of the innovative design portrayed. Even though Dyson is a leading vacuum cleaner Continue reading
The Role of Strategic Leadership in Change Management
Strategic Leadership The term ‘strategy’ is very common in the business world today. However, the word ‘strategy’ has been broadly used that it has lost clear meaning. Despite the significance of strategy, there is astoundingly little consensus on what it means. Nonetheless, the fact is that behind every success, there must be a strategy. A strategy is an ambiguous term normally linked to long-term planning, prearranged goals, and a preferred system of creating a balance between the organizational resources and externalities. The contemporary schools of thought in strategic management strongly suggest that strategy should be comprehended as the creation of the organization’s goals, which is realized through joint effort, regarded as a constant process, and distinctive strategic vision and core values are terms that are often used in strategic management. Strategic vision refers to the executive views on the long-term direction. On the other hand, core values are the principles and Continue reading