A proper fit between a business strategy and a human resource strategy can help retain and motivate employees, which can enhance organizational performance and create a sustained competitive advantage in human capital. The core strategy for many organizations relies on the work produced by its best and brightest employees. Even the most well developed strategy is of little use without the proper employees to execute it. An organization’s approach to compensation and other incentives has a strong influence on attracting, motivating, and retaining valued employees. For example, providing a bonus for a superior performance evaluation, acknowledging employees who have made significant contributions in reaching business goals, and demonstrating support for an employee during personal family situations are all ways that can boost morale within an organization. If employees know that an organization has their best interest in mind, they will continue to work with the organization’s best interest in theirs.
For this week’s Assignment, you will analyze how benefits and incentives can be used to enhance an organization’s sustainable competitive advantage. You will then evaluate how you can align the incentives given by HR with the business goals of an organization.
To complete this Assignment, use the following premise:
Think of the organization for which you work, or aspire to work. It could be the same type of organization that you have chosen to cite for a previous Discussion, the one that you researched for your Week 1 Assignment, or a new one.
Now, imagine that this organization will be opening a new office in your town, and has asked you to head the HR department. The CEO confides in you that he has not been happy with the way that HR has been run in other locations. He would like you to design a new format that will intertwine the organization’s practical business strategies with valuable HR strategies. The CEO tells you that he would like more emphasis placed on the people in his organization, as he believes that they hold the true key to competitive advantage and increased revenue. Both nervous and excited, you start researching the mission, vision, and strategic goals of the company. You know that aligning the HR strategy with these policies in mind will be essential for this shift in value.
Now, respond to the following in a 3- to 4-page paper:
Briefly describe the organization that you have chosen in order to provide context for the remainder of the Assignment.
Analyze your organization from a business perspective.
What is your organization’s mission statement? For example, if you were to search for Coca-Cola’s mission statement, you would find that they aim to, “refresh the world, inspire moments of optimism and happiness, to create value and make a difference.”
Using what you have been introduced to about sustainable competitive advantage, identify whether this organization is currently attaining their overall mission.
If yes, cite scholarly evidence that supports why this organization is a successful company achieving its mission. Provide specific examples that demonstrate ways in which this company rises above competitors.
If no, justify why this organization appears to be failing to meet its mission. Cite specific examples that demonstrate ways in which this company is not as strong as other competitors.
Analyze your organization from an HR perspective.
Formulate an HR mission statement. Your mission statement must align with the business goals and mission of the organization, while also identifying HR as a key partner in driving the organization’s success.
Generate two specific benefits, and/or incentives that HR could use to motivate managers towards achieving the long term organizational goals of the company while creating a competitive edge.
Provide evidence that supports how this would change the way in which managers view and manage their employees, using strategic management practices.
How does shifting the value of the organization towards employees enhance an organization’s competitive advantage?