Executive Summary Human resource management plays a very important role in ensuring that an organization has a well developed

competitive edge. Human resources over years have been known to largely provide a competitive advantage due to the fact that it is imperfectly imitable, rare, valuable and has no substitutes. It is quite evident that competitors can engage in duplicating competitive advantage through better products as well as technology but it is quite to duplicate a competitive edge via improved management of people. Clearly in today globalised and fast paced business environment, competition is no longer an issue of better products and services but improved human resources. Organization through their human resources has concentrated on creating better services and products so as to create a much stronger competitive advantage. This paper critically analyzes how the various practices of human resource management can provide an organization with a competitive advantage. Therefore, this paper will greatly develops an analytical framework for human resource management in order to formulate and implement human resource practices such as recruitment, training and diversity successfully. Here, three questions regarding identifying, protecting and finally, achieving a stronger competitive advantage through human resources have been raised as well as effectively answered. Keywords: competitive advantage, human resource management, recruitment, training and diversity management Introduction It is quite evident that an organization is defined as a cohesive organism which is expected to learn and adopt better ways of doing business in response to the changing environment. Clearly, there is constant change in business environment due to technological,

environmental, economic and political factors. These changes require organization to compete on new fronts such and effective human resource management practices. Chang and Huang (2005) assert that, for an effective competitive edge, organizations need to improve on their human resource practices through reducing costs while at the same time maintaining quality and distinct differentiation of their services and products. Recently, a consensus has grown among business practitioners and scholars that business environments have become highly competitive as compared to the past due to globalization and technological advancement (Khatri, 2000). Khatri (2000) continues to assert that, business need to focus widely on their various competitive strengths through establishing appropriate human resources practices so as to be in a position to have well developed and structured long term strategies. Human resource practices as a competitive advantage Khandekar and Sharma (2005) highly believes that, human resources practices if appropriately used can greatly provide a competitive edge since it is imperfectly imitable, rare and has no given substitutes. Clearly, competitors can be in a position to imitate competitive edge obtained through better products and technology but on the other hand, it is impossible to imitate competitive edge that has been created through proper human resource management. Khandekar and Sharma (2005) assert that organizations in today global world, organization will survive if they adopt a world class human resource practices. Clearly, employees need to have well developed and knowledgeable practices so that this human resource practice can be their source of a competitive edge. According to Huselid (1995), human resource management practices such as diversity management, training and recruitment can assists an organization to create a sustainable competitive advantage. However, it is important to understand that these practices should effectively be linked with the organization competitive strategy. Huselid (1995)

continues to assert that, human resource practices can considerably contribute to a company performance if correctly configured. It is quite evident that the underlying principle following the argument is that efficient HRM practices that is involved in exploiting synergies amongst such practices as well as the help of a company to effectively execute its competitive strategy provides a basis of continued competitive edge. Schulere, Jackson and Huselid (1997) suggest that for HRM practices to yield maximum competitive advantage there is need that these practices are internally consistent. Clearly, an organization can effectively gain a more competitive edge if this same organization ensures that all its employees add value to its various processes and that its human capital is difficult to duplicate and is unique. Further, HRM practices can consist of various activities through which an organization can develop human capital that will effectively meet outlined competitive edges. Research indicates so as to attain a stronger competitive edge, HRM practices must not simply be institutionalized but rather these practices should be improved to increase effectiveness. Becker and Huselid suggest that due to the constant change in organizational structures as well as product market, HRM practices are gradually taking on an important role in providing a more flexible and motivated workforce that considerably meet fresh market imperatives. It is quite evident that flexible and motivated workforce creates a more competitive advantage as compared to technology, economies of scales and quality that can easily be imitated. Further, HRM practices play a fundamental role in the establishment of core competencies which in turn is known to be a probable basis of competitive advantage. Huang (2000) suggest that effective linking of HRM practices to a well developed and structured strategy increases organizational competitiveness. Clearly, linking of various HRM practices to a given strategy have positive impact on staff productivity, personnel costs and

proper development of management resources. Further, various researches shows that well formulated human resources practices enhance higher organizational performance that result to a strong competitive edge. Here, the primary assumption is that is that these practices impact of employers productivity, personnel costs and finally establishment of proper resources. It is quite evident that there exist numerous HRM practices. Nevertheless, understanding the various practices that have impact on competitive advantage is what this need to enhance organization productivity. Training as a competitive advantage Training as HRM practice plays an important role in assisting the organization achieves a strong competitive advantage. Training is defined as that process that enhances skills, knowledge as well as capability of employees performing organizational tasks. It is quite evident that training is involved in molding employees way of thinking thus leading to quality performance of employees thus creating a competitive edge. Delaney and Huselid (1996) assert that,

organizations that adapted training as a human resource practice realizes that it a continuous process and if effectively utilized can develop a strong competitive edge. Clearly, training is quite important for organizational success as well as development. Training as a HRM practice is important for both employers and employees of a company. According to Stroh and Caligiuri (1998) maintains that, employees through training become more productive and efficient thus gaining a competitive edge that is not imitable. For instance, when an organization engages in training new employees, these employees gives the organization a competitive advantage in that they are in a position to familiarize with the company vision, mission and working organization thus staying ahead of its competitors. Also, organization can constantly engaged in training it existing employees thus enhancing their knowledge adding up to their competitive edge.

Chang and Huang (2003) maintain that, through training employees morale is improved. Here, a company gains a competitive advantage in that employees through training get job satisfaction as well as security. Clearly, the more satisfied an employee is the higher his/her morale thus increases his contribution to the organization success. Neal et al (2005) indicate that while training departments within an organization, there is need that training is in line with organizational objectives and goals so as to survive in todays business environment. It is quite evident that employee will not at any given time reach full potential as well as higher level of productivity unless employees are effectively trained. Generally, training largely impacts on organizational performance, revenue and competitiveness. Paul and Anantharaman (2003) assert that, it is quite important for employers to largely maintain the training that will be necessary to compete. In order to come up with competitive advantage that is not imitable, organizations need to develop a comprehensive training plan that will ensures that costs are reduced. Park et al (2003) maintain that, proper training will ensure that employee perform their duties with less supervision. Clearly having minimal or no supervision by employee creates a better competitive advantage in that employers are able to focus on other issues affecting an organization. Clearly, a well trained employee will definitely be acquainted with his/her job thus needing minimal or even no supervision. Clearly, minimal or no supervision lessen time and effort waste which is considered to be an imitable competitive advantage. Marchington and Grugulis (2000), it is quite evident that errors are more likely to occur if staff lacks skills and knowledge required for carry out some duties. Therefore, training ensures that employee will have less chances of committing errors in a job making this same employee proficient in performing his/her duties. Evidently, through training employee become more eligible for

promotion. Here, a competitive advantage is achieved in that an organization does not recruit

individual may be in a managerial position but rather promote an employee who is versant with the organizations operations (Marchington and Grugulis, 2000). Finally, training ensures that organization increases its productivity. Here, training is a competitive edge since it improves on both efficiency and productivity among employees. Clearly, well trained employees are known to show both quality and quantity in their performance. Further, training ensures that there is less wastage of resources and time when employees are properly trained. Diversity management as a competitive advantage