Thomson Travel Agent: What are the key issues faced by HR. How can they be addresses to achieve competitive advantage - Essay Example

Thomson travel agent Introduction Thomson travel agency began operation back in 1965. The main aim of the business is to provide accessible foreign travel to all. Thomson travel agent offers services ranging from 5star hotel services to cruise ship holidays (Goldenberg 1984, p.5). Thomson is currently spread out through the world offering holiday services to its customers. Thomson travel agent has employed a large workforce around the world. Competitive advantage refers to attributes that a business organization possesses which provide it with strategic advantages over their competitors in the same industry.

Competitive advantage provides a business with strength over its competitors in a business environment. The theory of competitive advantage was postulated by Michael E Porter in 1985 (Porter 1986, p. 29). There are two basic types of competitive advantage which are; cost advantage and differentiation advantage. Cost advantage is attained if an organization provides similar products and services as their competitors, but at a lesser cost. Differentiation advantage occurs when an organization produces goods or services which have more benefits as compared to their competitors.

Human resource refers to an organization’s workforce mainly comprised of human labor. Thomson travel agent employs a large pool of workforce globally. Human resource management within an organization is tasked with selecting, training, attracting, hiring, assessing and rewarding of employees (Jackson, Mathis and John 2011, p.14). Human resource department also ensures that employees comply with employment and labor rules. Body Thomson travel agent has a competitive advantage over its competitors when it comes to human resource.

Human resource management is an essential support activity in Porter’s value addition chain (Simms and select knowledge 2001, p.8). Human resource management refers to the recruitment, training, hiring, motivating, rewarding and retaining of employees. At Thomson travel agent, employee recruitment is conducted through advertisements of available jobs. Advertisements are conducted via the internet and popular media such as television and radio. This assists the company in selecting their employees over a broadened employee pool.

A broadened employee pool ensures the company selects the best talents in the industry. Selection of talented employees provides the company with an advantage over their competitors (Porter 1986, p.22). The company motivates its employees through bonuses and holiday giveaways to the best performing employees. It also offers subsidies to their employees on their holiday packages. These motivation skills towards their employees assist the company to keep its employees excited and hardworking in their jobs.

Thomson creates an advantage over its competitors by ensuring their employees are content. Contented and hardworking employees in a firm provide excellent work for the firm and this adds value to the company. Proper employee relations within the organization also ensure that the internal business environment at Thomson is stable attracting potential investors and customers. Human resource can also provide an advantage for the organization by upholding common values among employees. This assists the company in planning for long term goals and strategies.

By ensuring that employees provide satisfactory services to their customers, Thomson travel agent creates customer loyalty and base (Jackson, Randall and Susan 2007, p.56). Conclusion Human resource in the form of labor or people is a key source of value to an organization. Thomson travel agent creates a clear advantage over its competitors through proper management of their human resource. Thomson travel agent ensures that its employees are well trained, remunerated, supervised and assessed.

These practices ensure that Thomson travel agent creates a competitive advantage. The employees at Thomson travel agent are able to provide services and conduct the company’s business at high standards which ensure customer satisfaction. Customer satisfaction creates loyalty to Thomson travel agent ensuring they are able to maintain a competitive advantage over their competitors within the industry. References Goldenberg, S., 1984. The Thomson empire. New York: Beaufort Books. Jackson, R. L., 2011.

Human Resource Management:essential perspectives. Kentucky: Cengage learning. Jackson, R. S., 2007. Strategic human resource management. New York: Wiley-Blackwell. Porter, M. E., 1986. Competition in global industries. New York: Harvard Business Press. Simms, S. K., 2001. Human Resource Planning. Hertfordshire: Select Knowledge Limited.