Competitive advantage through HRM
This chapter discusses some changes to the internal working environments of organizations and changes in the external environment of organizations that tend to increase the importance of the HR function and the organization's array of HRM practices. It also discusses how the adoption of HRM practices that have strategic value can help organizations respond to these dynamics. The chapter examines the existing empirical evidence regarding the relationship between strategic HRM systems and important organizational outcomes. It offers some guidelines on how decision makers in organizations can create competitive advantage through HRM. Researchers and practitioners in field of human resource management are increasingly interested in how the management of people or work organizations relates to the ability of organizations to compete in marketplace and, beyond this, to provide a sustainable competitive advantage. An ambitious study by Zatzick and Iverson elegantly demonstrates how strategic HRM can help organizations respond to labor shortages, labor market demands, and dramatic changes in workforce size.