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HR AS A COMPETITIVE ADVANTAGE
A Mini Report submitted to Jawaharlal Nehru Technological University, Kakinada in
the partial fulfillment for the award of degree of
Submitted by
M V SAI KIRAN
ROLL NO:19KQ1E0077
2019-2020
CERTIFICATE
This is to certify that the mini report titled HR AS A COMPETITIVE ADVANTAGE with
reference to HUMAN RESOURCE MANAGEMENT is a bonfide work of M V SAI
KIRAN Reg. no: 19KQ1E0077 in partial fulfillment for the award of degree Master of
business administration by J.N.T.U. Kakinada.
3 HUMAN RESOURCES AS A 4
SOURCEOF COMPETITIVE ADVANTAGE
6 SUBCONTRACTING 7
7 YOUR FIRST (AND SUBSEQUENT) HIRES 8
8 REFERENCES 9
INTRODUCTION
The four Ps of marketing – product, place, promotion, and price – certainly
present many compelling ways to differentiate your firm’s product or services from
those of your competition, and it is often where new entrepreneurs start. However, as
you plan to get your business off the ground, you need to consider more than just
marketing strategies to achieve a sustainable competitive advantage, no matter which
market your firm is in. One of the most important aspects of your business is what
is known as your HR strategy and your human capital – you, your team, and your
employees.
5) SUBCONTRACTING,
Therefore, it is critical that you approach these decisions strategically from the very
beginning. Moreover, you do not have to be an expert in HR at this stage to do so. It is
critical, however, that you are able to answer these questions:
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You may choose to compete by offering the lowest prices on the market. To
do so, you must ensure that your operating expenses are as low as possible to
maximize profit. By deriving your human capital from a pool independent contractors
and/or offshore, for example, you may be able to minimize HR expenses, which,
when combined with other methods of reducing business expenses, may help you
achieve significant profits. While many Fortune 500 firms have received significant
criticism for the use of offshore vendors, they have leveraged this strategy to achieve
tremendous profits.
The good news is that with the proliferation of the digital world, and the growth of
multinational distribution channels, has come a world full of would-be entrepreneurs
both in the U.S. and abroad. There are undergraduate and graduate degrees in
entrepreneurship, start-up networking groups, and even reality shows like Shark Tank,
which illustrate actual entrepreneurs obtaining funding and strategic partners. Short of
auditioning for a reality show, how do you go about finding like-minded individuals
willing to work on your business idea, for only the promise of possible success?
Expertise: You need to find someone who can compensate for the areas in
which you are lacking. This goes without saying, but be sure that they are actually
capable of doing the work through thorough background and reference checks before
you assign them a critical task.
You may be a sole proprietor, or even just a fledgling entrepreneur with zero capital,
just an idea and insomnia. You may think to yourself, “I cannot afford to take a
salary, so how much HR planning can I do?”
To start with, it is unlikely that you have enough time or expertise to fulfill all of the
functions of your firm – from marketing to IT to accounting to legal to finance to
sales. Some of these functions will have to be obtained from third parties as business
services. How do you go about obtaining these services in such a way that advances
your overall business strategy? How you approach plugging up your deficits as an
individual is a human resources problem and sets the stage for how your firm handles
human resources down the line.
First, review your business strategy. If you are competing on cost than you
will automatically rule out low cost providers. If you are looking for ways to
differentiate your firm, you may gravitate towards firms that tout their creativity.
SUBCONTRACTING
Your time is finite and valuable. Chances are you may be burning the candle at both
ends trying to produce a certain type and number of products/services, in the early
stages. But what happens when a client comes to you with a lucrative order for a
related product/service that you don’t have the time, or possibly the expertise, to
offer?
One solution is subcontracting the work to a third-party firm. This can be lucrative: by
increasing capacity, you may be able to meet increased demand, and/or offer new
products/services. But be careful. A subcontractor’s performance or lack thereof
reflects on your brand, not theirs. You are ultimately responsible –and liable- for
meeting the client’s demand, which makes subcontractor selection a crucial decision.
Once you have reached a point where you can hire, you may have already made many
HR decisions. You may not have thought of them as such, but team-building,
obtaining business services, and subcontracting are all HR decisions. A strong
employee can increase productivity and profits, while a weak employee can decrease
the same, and even potentially harm tarnish your reputation.
When hiring, “[it helps], if I form a relationship with the person prior to the job,” says
Brian Murphy, owner of Murphy’s Tavern and Victory Cantina in New York City. “It
keeps me competitive because people don’t only work because it’s their job, but they
often try harder to ‘help me out’ because of the bond we form. I also tend to [give] the
recommendations of other valued staff [great weight when hiring].”
Ensure that your hires are aligned with your business strategy and
tactics. Do not just hire because you can. Make sure that each new employee is hired
to accomplish some aspect of your firm’s strategic plan.
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REFERENCES
1. https://www.cleverism.com/hr-strategy-competitive-advantage/
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