Building a Competitive Organization through HRM Initiatives: A Macro Perspective

An organization's ability to learn, and translate (that) learning into action rapidly, is the ultimate competitive advantage. ~Jack Welch

Jack Welch and the Basic Concept of Competitiveness

Jack Welch, former Chairman and CEO of General Electric, a.k.a. G.E., is probably one of the world’s most influential CEO in modern business management. When he speaks, other CEO's listen. Because he makes sense, and he has proven his management theories when he led G.E. to its unprecedented growth and profit. In fact, when he “left GE, the company had gone from a market value of $14 billion to one of more than $410 billion at the end of 2004, making it the most valuable and largest company in the world. (Wikipedia)”

Why take the pain to mention Welch here? Because in my mind, he taught us about the value of competitiveness in business. He cautioned businesses:

“If you don't have a competitive advantage, don't compete.”

True!

Role of HRM and Competitiveness Defined

In a very competitive market today, unchanging in spite of the economic downturn, a business that have not learned to adapt to changes and has no competitive advantage will be easily overrun by its competitions.

However, it is also true that keeping the business and its people or human resource (HR) competitive is not easy. Albeit, it is one of the most important roles of HR professionals.

Competitiveness, as meant in the sports circle, is the new ball game of doing business. Being competitive does not only mean being better or outclassing your competitors. Being competitive means being able to compete head on with any changes in the market. It is having a human resource that are willing to learn new ways of doing business and being able to use them, as Welch advised.

HRM (Human Resource Management) departments and professionals in businesses have to take on the mandate of building a competitive HR in their respective organizations. Business survival is not only dependent on how good your product and services are, how excellent is your customer service, and how efficient your business processes are but on how competitive your employees who carry out these performances. New technology, business strategies, complicated processes, and management systems are inutile without a competent human resource behind them.

Building a Competitive HR: HRM Creating Value within the Organization

HRM professionals or departments can create real value within their respective organizations when they focus on developing the competencies and positive values of their employees. These are but fundamentals in building a competitive human resource –there is more.

Competitive human performance, not machine and systems performance as some would suggest, is the core of business performance. When organizations are able to harness effectively the talent, energy, and motivation of their employees, they will have an ideal competitive business edge. The competencies of these people, when sharpened and harnessed to their full potential, will greatly enhance the overall value and competitiveness of the organization. Thus, there lies the real value contribution of the HRM professional –building the framework and environment for continuous competency development.