Impact of Competitive Advantage on Strategic Human Resource Management

&nbsp.According to Armstrong (2006,) human resource is linked with strategic goals to improve the over performance of the business and to develop such an organizational culture that fosters flexibility, innovation, as well as a competitive advantage. For a company, SHRM refers to viewing functions of HR and accepting those functions as a strategic partner of the company that involves in implementation and formation of business strategies through activities like Training, Recruitment, and Selection, Performance Appraisal, etc.
Currently, HRM is considered as nothing more than an administrative duty. In the modern era, the responsibilities of the HR Manager are higher than ever before. Due to Globalization, it must be ensured that the human resource department is handled effectively and smartly. Globalization has caused a diversified workforce where people come from the varying background. Globalization also causes technological changes, changes in the context of business, the concern of business from moving to profit-oriented to growth-oriented and many others (Devana, Fombrumm, &amp. Tichy, 1981. Wrightt, 1998). In the modern era, in order to make a business grow, companies need to achieve a competitive edge and not only look into the transactional activities and administrative aspect of the job but also formulate those strategies that align with the goals of the business. In case the company does not adopt these tactics, then it will lose its relevance sooner or later. According to Huselid and Becker, (1997) companies that align organizational goals with a human resource management system, a considerable change in financial position is observed.
SHRM is considered as a more extensive approach than conventional HRM because it links the activities of an organization with its goals (Singh, 2003). The performance appraisal system involves a strong reward plan.&nbsp.Rewards not only help employees to achieve outstanding performance but also increase the efficiency of the organization.&nbsp.

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