Differentiation strategy
According to the Mcbain (2004), competitive strategy is a stable set of practices and it helps the HR system remarkably. Best practice creates the superior performance. This approach is typically underpinned by a resource view of strategic HRM, which argue that human resources can provide competitive advantage through 'best practice' and it helps the organisation for designing competitive strategy.
According to the definition of the competitive strategy we can say that best practice help the organisation for making competitive strategy through the stable set of practices which are emphasis on knowledge and experience of the management, quality of management process. Competitive strategy helps the organisation for getting the competitive advantage from local and global market. HR manager of the organisation make the competitive strategy through the consideration of current market position, ability of human and technological resources.
Best practices also help the organisation for making the competitive strategy. Best practice show the way for making the competitive strategy easily. Because best practice is universalistic and it helps us to intelligently fashion particular practices to organisational specific context. The integration of human resource functions into the organisational strategy support and implement the strategic plan to achieve competitive advantage (Wofford 2002).
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RESOURCE BASED VIEW:
Large scale reviews of the strategic management literature now emphasis on resource based view as a major body of thought concerned with explaining sources of competitive advantage. Resource based model concerns about internal analysis (strengths and weaknesses) and external analysis (opportunities and threats) in which is very significant for the organisation (Boxall and Purcell 2003). HRM of the organisation make competitive strategy by considering SWOT analysis that is strength, weakness, opportunities and threats.
Core capabilities are knowledge sets composed of four dimensions. The content dimensions are employee knowledge and skill, physical technical systems, managerial systems and values & beliefs (Leonard 1998 as cited in Boxall and Purcell 2003). Business strategy includes all stake holders such as investors, customers, employees, suppliers, regulators. It is also a well organized plan and action that firms formulate to compete in a given market setting.
Competitive strategy emphasis on the industry attractiveness, competitive environment, firm's capabilities with opportunities, competitive advantage through distinction, responding to shifts in competitive advantage (Pitts and Lei 2006). STRATEGIC IMPLEMENTATION: After completing the strategy formulation, SHRM implement the strategy which is involved with five important variables. 'Five important variables of strategic implementations are organizational structure; task design; types of information and information systems; the selection, training and development of people; and reward systems' (De Cieri et al.2005 p. 63).
Some important strategies, the strategies are cost leadership (an integrated set of actions designed to produce products at the lower cost), differentiation strategy (an integrated set of actions designed to produce products that customers perceive as being different in ways that are important to them) (class lecture sheet). DIFFICULTIES OF IMPLEMENTING SHRM: There are some difficulties for implementing SHRM through the best practice. Sometimes strategic human resource manager can not put his strategy what he thinks.
Because implementing strategy depends on current situation of the internal and external environment. SHR manager should conscious about some features such as organizational culture, strategy, technology, structure, size, legislation, external market situation. According to the Hill, Jones and Galvin (2004), if the company does not emphasis on environmental condition, the company can face some problems. HRM need to be conscious about the proper practicing of 'best practice'. Reference list: Miles R E and Snow C C, 1984, 'designing strategic HR system' p. 37 Definition of business strategy in the web, viewed 9th august 2006,
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