People resourcing Essay Example | Topics and Well Written Essays - 2000 words

People resourcing - Essay Example These changes offer organizations opportunities and challenges for success in equal measure. These conditions cause the change the nature of human resource planning. Success in the current dynamic market requires companies to improve performance. Improvement includes reducing costs, improving quality, innovativeness, creativity, and speed aimed at productivity. These duties rest on people who make up the organization because they make both long-term and short term organizational solutions. Human resources encompass most important resources in any organization that operates with the aim of achieving success (Wernerfelt 1984, 19). A volatile business environment means that the management of business organizations must comprehend that primary means of gaining competitive advantage have changed. The business world has seen various companies collapse in the economic recession that is slowly being managed. Companies hit by the recession range from world leading insurance, manufacturing, an d processing companies. National governments across the world had to salvage some the companies to save them from imminent collapse. The environment saw other companies close their operations in some parts of the world to minimise expenditure. The economic downturn did not spare national economies with Greece’s economically crumbling. The European Union is struggling to help the country resuscitate its economy. Italy is also struggling. Human resource planning must be used to develop new strategies that will help the company remain competitive in the market. Human resource planning helps the company to consider issues that enable gaining of competitive advantage. The management of companies should recognize that usual sources of success are still reliable but human resource planning enhances sustainability of success. Usual mechanisms that lead to success include economies of scale, production technology that covers both process and product, and protected markets. The input b y success factors offers competitive advantage. Human resources appear at the top of the ladder in the management hierarchy of organizations. This illustrates their importance in the running of business companies. Human resources management conducts job analysis processes before recruiting qualified employees with appropriate skills for specific jobs. It also enhances commitment of employees and makes sure that the company retains the best by taking care of their welfare (Lado 1994, 31). When the human resource department does this, it motivates employees because it takes care of the needs of the workforce. A business organization enjoys a competitive advantage by creating value for its clients. The organization must focus on product and service differentiation. It is important that the company give services and products that are unique. To do this, human resources must single out different markets and treat them as individuals. The concentration should be on particular market segme nts or groups and make sure that the products and services they receive are effective and more efficient than those provided by competitors are in the same market (Wright 2007, 56). In the process of achieving competitive advantage, human resources take a three-pronged approach including cost leadership,