STRATEGIC HUMAN RESOURCE MANAGEMENT

An organisation which builds a relatively consistent pattern of superior returns for its shareholders has developed some form of ‘sustained competitive advantage’ (Porter 1980,1985). Taking a balanced approach, discuss Porter’s statement and include in your discussion reference to the theoretical implications of the resource-based view of SHRM and its limitations

In the past decades, companies have consistently planned their strategy analysis based on the opportunities and threats created by the external environment. In recent years however, technological advancement, political and other economical factors have created many competition and barriers in the marketplace. With the great uncertainties pose a tremendous challenge on businesses attempting to gain steady competitive advantage in the market, as long-term strategy making assumes a relatively stable world, overlooking needs for changes in the business practices. This consequently forced companies to shift their organisational strategic goal to incorporate the importance of human resource management by further analyse its internal resources and skills to achieve sustained competitive advantage in the market. Henceforth for the last decade, strategic human resource researchers have increasingly looked into associating resourced-based approach in attempts to maximize business performance and gaining competitive advantage through internal development (Darroch, 2005).

Assuming a firm is recognised for having sustained competitive advantage in the market means that the company has a relatively enduring form of competitive superiority based on distinctive and enviable competence or capability that competitors may have become frustrated trying to copy (Barney, 1991). This can be viewed as having human resource advantage over the company’s competitors. Though recruitment is