Competencies and Behaviors Related to Strategy Execution - Essay Example

HR systems are the most critical in HR architecture since they are the source of value creation and have greater inimitability depending on how they are aligned with the overall corporate strategy. According to the Resource-based View (RBV) of the firm, human resources are the most strategic assets for the firm and should be recognized in order to attain competitive strengths.  In implementing the SHRM strategy, the firm should focus on the key strengths and capabilities. According to Porter, the firm should emphasize cost leadership and differentiation in the competitive strategy (Becker and Mark 902).

            Current trends focus on differentiation in the SHRM since business processes should create value for the organization (Becker and Mark 903).unique and firm-specific HR architectures will create and sustain competitive strength for the firm. Modern SHRM literature focuses on the holistic view of human resources since all employees have unique talents and contribute differently to the value creation process. Effective human resource management strategy includes both HR core architecture that creates equal value to all business processes and HR differentiated architecture that provides specific skills and attributes for the effective performance of certain strategic jobs in the organization.

Focus on the managerial significance

            According to five national surveys conducted between 1991 and 2000 and data from 3200 firms, the standard deviation from HR systems change is 10-20 percent in the value of the firm. An increase of one standard deviation leads TO a 4.6 percent increase in return on assets (ROA) (Becker and Mark 907).

Specific empirical issues

            SHRM should focus on intermediate outcomes since financial performance should not be the only dependent variable and outcome of SHRM. The focus should be on strategic business processes that involve a high level of human resources. The new focus should be on contingencies and fit since HR architectures should also be differentiated. HR managers face challenges in measuring employee performance after the differentiation strategy since it entails more workload (Becker and Mark 919).

Personal opinion

            Strategic human resource management should aim at creating value for the whole organization. Human resource systems should be utilized to assess the skills, competencies, and behaviors in order to gain an understanding of how the organization has effectively utilized its investment in human resources. Since human resources are the most critical resources of the firm, organizations should utilize unique HR architecture in the management of human resources. A combination of HR core architecture for the management of human resources that creates equal value to all business processes, and HR differentiated architecture for unique and strategic human resources that include specific attributes is essential for Human resource value creation, and attainment of organizational competitive edge.

Conclusion

            HR managers should focus on competencies and behaviors related to strategy execution. HR systems should make more investments in strategic jobs in order to differentiate employee performance.