Supervised by Dr. Stin Vander Korg and Dr. Ian Towers
Asunción, April 8, 2019
Introduction
In This paper a study on the relevance of human resources as a
competitive advantage is made. The Competitive advantage is defined as any factor that allows the organization to differentiate its products or services from those of its competitors. One of these factors is the human resource. The Advantage comes from the organization of work, training, training and experience available in the organization. Adaptability to changes and employee engagement are other benefits of competitive advantage. There Are A number of aspects where the effective management of human resources can give the business an extra benefit over its competitors. Globalization has made the same competitive resources available to any company, so the need to find sources of advantages that are difficult to emulate by competition has become fundamental to the success of the organization. For this reason, human resources and management become one of the main sources of sustainable competitive advantage in companies and their correct management has become the foundation of modern business competitiveness, proving that the People make a difference in how an organization works. Human Resources The Human Resources of a business (HR) or human resource (HR) in English, is a function and/or department of the area of ' Management and business Management ' that organizes and maximizes the performance of officials, or human capital, in a company or organization with the To increase their productivity. Human resources outside the context of a function or a department of a company is synonymous with human capital, that is, they would be the officials of a company. (S, 2019)
Importance of the Human resources department
Human resource management is extremely important in a company or organization because it manages the human resource, hence the least predictable and dynamic resource. Good human resource management generates, as a chain process, the following benefits and benefits: Improves and leverages workers ' skills and abilities Increases the performance, quality and production of both the worker and the company. Good interpersonal relationship between workers creates motivation and good weather. The good interpersonal relationship between workers and HUMAN RESOURCES makes everyone feel listened to and valued The renovation of jobs or the creation of new jobs are harmoniously implemented for all. Job posts are occupied by persons competent for that job and compatible with the work team. This type of resources are those that give an identity to the organization, because they are the ones that form the culture of the company through factors like the type of communication and the motivation existing. (S, 2019) Competitive Advantage A competitive advantage is any feature that insulates our company from competitors. We Say that it is a sustainable competitive advantage when it stays in time. For competitive Advantage, the characteristics or attributes of a product or a brand that give a certain superiority to its immediate competitors are understood. This superiority, wherever it exists, is of a relative nature, since it refers to the best competitor in the market product. One speaks, then, of the most dangerous competitor or also of the priority competitor. (VC, 2019) But It's not just about being different. It's about making a difference and at the same time being the best in a way that customers value positively. To further clarify the concept, let's look at other features: • The Competitive Advantage is unique. The Company has its exclusivity. • It is a tangible benefit for consumers. • It Must be sustainable in the long run. If It's temporary, it's not an advantage. • It is Not imitation; Seek the opposite: innovation. • He's Looking For superior benefits. Is linked to productivity.
Human resources as a competitive advantage.
"The most valuable capital of all is that which has been invested in human beings" (Economics Principles, Alfred Marshall) According to the theory of Resources and Capacities (Side & Wilson, 1994), the difference in performance between companies can be attributed to the difference of resources and capacities existing in the organizations. The ultimate goal of any company is to generate a sustainable competitive advantage, with a higher profitability than that of competing companies (Amit & Schoemaker, 1993; Hoopes, Madsen & Walker, 2003). To this end, the organizations use tangible resources (buildings, machinery, financial resources...) As intangible resources (human capital, prestige, brand image) in the development of their strategies. Intangible resources have a greater tendency to generate greater and/or better advantages Compe Itivas because they are often rare and socially complex, which makes them difficult to imitate (Itami, 1987; Barney, 1991; Peteraf, 1993; Black & Boal, 1994; Rao, 1994). For this reason, human capital has long been regarded as a critical intangible resource in most companies (Pfeffer, 1994). Capacities are either collective or individual skills or competencies of an organization. Many authors (Ulrich & Lake, 1990; Reich, 1991 and Pffefer, 1994) conclude that workers are the last resource of sustainable competitive advantage to the extent that, those companies that wish to succeed in a globalized environment such as today must make adequate investments in resources In order to incorporate and train workers who have better skills and abilities than their competitors. As recognized by Wright, Dunford and Snell, 2001, the human resources model of each company, has to be studied in relation to its specific environment taking into account three fundamental components: • A: The human group of the company, its knowledge and professional skills. • B: The relationships between the individuals that make up the company and their degree of commitment to it. • C: Strategic Personnel Management The harmony between these three elements can contribute to generate a real and sustainable competitive advantage, depending on their degree of fulfillment and adaptation to the strategic variations of the company. Organizations must implement a value-creating strategy that allows them to generate and maintain a competitive advantage that differentiates them from their competition and that the latter cannot easily imitate them. It must Also be feasible to achieve a sustained return on time and defend against competitive forces. The Competitive advantage is obtained from the resources of the Organization itself. Resources are the basic element of capacity- building and, from them, the competitive advantage. We Can refer to any production factor that is available to the company, or that it can control in a stable way. Among These factors of production, the assets are means that the company possesses, while the capacities are something that the organization can make from the use of those assets.
The resources in the companies can be grouped in the following
categories: • Tangible Resources: They are easier to identify and to value because they are collected in the financial statements of the companies, in the case of those assets with physical materialization, and of the finances. • Intangible Resources: Technological (the technologies and available knowledge applicable to processes, products, etc.), organisational (Prestige, trademark), Human capital (experience, know-how, propensity to accept risks, Motivation, the loyalty and the wisdom of the individuals associated with the company, the social capital or network of relationships that an individual possesses. In Order For Resources to have the potential to generate sustainable competitive advantages, they should be: • Valuable — Create or implement strategies that improve efficiency and efficiency • Uncommon: If the valuable resources are also owned by competitors, these resources will not in itself be a source of benefits • Non-Imitation: Competitors cannot obtain them, eg. Corporate culture, interpersonal relationships • Non-Replaceable: they are not substituted for other resources or combination of them Sastre and Aguilar propose a model that shows the characteristics of the resources that are sources of competitive advantages and that have a high value for the company, for which there must also be two conditions: the scarcity and the heterogeneity of the resource. In Order For the competitive advantage to be sustainable over time and resources to be considered strategic, four additional features must be met: • Durability: The resources and capacities on which the competitive advantage is based should not be depreciated over time. • ' Irreplaceability ': resources should not be quickly overcome by innovations. • ' Inimitable or Irreproducibilidad ': it is necessary that the resources are impossible to imitate or to reproduce on the part of the competition. • ' Non-transferability ': it must avoid its transfer in the market with mechanisms such as industrial or intellectual property rights. The Human resources of a company will become a source of competitive advantage when they also meet these characteristics, so as to be a cost savings for the organization and to generate a differentiation with the competition. Analysis of a real case of competitive advantage based on human resources: Google Mexico.
The director of Google Mexico said that hiring the best
candidates for each job and having a good working environment drives the growth of a company. Employees are the strength of a company that seeks to innovate, because it is they who will take the company to the next level and develop new business models. So said John Farrell, director of Google Mexico at a conference at the annual Congress of the Mexican Association in Human Resources Management (. AMEDIRH). The Director of one of the most important technology companies in the world for the region, said that the culture of a company should find a balance between monetary gains, projects to invest and training employees to be the engine of The company. Google Currently has more than 28.000 workers worldwide and reports annual revenues of 30 billion dollars, of which 30% are net earnings. According to Farrell, the development of innovation in a firm is essential to cope with the changing environment of today's businesses, even more so in the technology sector that has had explosive growth in recent years. That'S why the seeker has directed his human resources management towards the impulse of innovation centered in seven steps. • 1. Have A clear vision: You must have a specific objective that is shared by the whole company. "It Must be the idea that illuminates the path of the whole organization. This aligns resources and motivates the members of the company. It Must be something universal that propels the employee out of bed every day, "Farrell said. • 2. Long-term Focus: While everyone is concerned about the quarterly results of a company, innovative companies must see beyond to see how the market will move and whether they have the talent needed to cope. • 3. Allocate Resources for Innovation: in Google 20% of the budget is destined to the generation of business opportunities, while 10% is used to generate unique market opportunities. According to John Farrell, this is indispensable to attract special talent that will be critical in future projects. • 4. Hiring The best: You must place the best person for each job, because if the square is a girl, the worker will not give their full potential. In Google For example, a committee is created to decide if a person enters the company and once it has been approved, the proposal is sent to Larry Page for authorization and final signature. Being so scrupulous at the time of hiring has allowed. Google will become the best talent, something that drives the growth of the company. • 5. Structured Chaos: A work environment should be encouraged to allow the flow of creativity, feedback and positive competition. This can be accomplished to the general working groups that seek to develop the same idea from different perspectives. • 6. Foresight/Insight: It is important to have a task force dedicated to generating continuous improvements to the company's business model or flagship product, as Google developers do. But in the same way it is indispensable to have another working group that is dedicated to generate long-term projects that involve great conceptual advances. • 7. Working Environment: It is important to understand that today's workers, the so-called millenials, cannot be managed by other generations. It is counterproductive For them that a micro boss manages his time with too strict schedules and works better for target management. "These workers do what is their passion, they do better. It Is better and cheaper for the company that its employees feel comfortable to give all their talent. The Manager must understand that for new employees the line between personal life and work is being erased, "assured Farrell. Conclusion In 21ST century companies, human resources become the main asset to which they must attract, develop, motivate, preserve and protect; and its correct management becomes an indispensable requirement for organizational competitiveness. The modern approach to Human Resources Management conceives Human Capital as a source of sustainable competitive advantage. The management of human resources should focus on achieving results by aligning the personal objectives of each individual or collaborator with the objectives of the Organization. If This is achieved, they will have a greater disposition, commitment and know to such an extent how and to what degree their work and performance will be generating a value maximization of the company. The Challenge of human resources is in the transformation of the organizational culture, where its collaborators develop the competencies required from their knowledge and skills, generate a greater sense of belonging, create leaders to Become value-added production people for the company. All This, points to the success that organizations constantly seek if they want to survive in a world, where only the one that is able to adapt to the various changes that occur in the environment will stand out. References • LADO, A. A. & WILSON, M. C. (1994). Human resource systems and sustained competitive advantage: A competency- based perspective. Academy of Management Review. • AMIT, R., & SCHOEMAKER, P. J. H. (1993). Strategic assets and organizational rent. Strategic Management Journal. • ITAMI, H. (1987). Mobilizing Invisible Assets. Harvard University Press: Cambridge, MA. • PFEFFER, J. (1994). Competitive Advantage Through People: Unleashing the Power of the Workforce. Boston: Harvard Business School Press. • ULRICH, D. & LAKE, D. (1990). Organizational capability. New York, • REICH, R. B. (1991). The work of nations. Preparing ourselves for 21st-century capitalism. New York: Knopf. • WRIGHT, P. M., DUNFORD, B. B. & SNELL, S. A. (2001). Human resources and • the resource based view of the firm. Journal of Management, 27(6) 701-721. • SASTRE CASTILLO, M. A. AND AGUILAR PASTOR, E. M. (2003). Human Resources Management: a Strategic Approach. Madrid: McGraw Hill. • (S, 2019), https://www.significados.com/recursos-humanos/ • (VC, 2019), https://forocapitalpymes.com/ventaja-competitiva/