Human Resource Costs and Business Strategy: Striving for Competitive Advantage in the Pharmaceutical Industry

1987 ◽  
pp. 59-67
Author(s):  
Ira T. Kay ◽  
Martin Leshner
Keyword(s):  
Pharmaceutical Industry ◽  
Competitive Advantage ◽  
Human Resource ◽  
Business Strategy ◽  
Resource Costs

scholarly journals An Exploration Of The Impact Of Strategic International Human Resource Management On Firm Performance: The Case Of Foreign MNCs In China

2011 ◽  
Vol 15 (4) ◽  
pp. 31
Author(s):  
Chanzi Bao ◽  
Farhad Analoui
Keyword(s):  
Firm Performance ◽  
Data Collection ◽  
Human Resource Management ◽  
Competitive Advantage ◽  
Human Resource ◽  
Business Strategy ◽  
International Human Resource Management ◽  
Sustained Competitive Advantage ◽  
International Human

The intense competition arising from globalization not only demands MNCs to seek low cost, innovation, speed and adaptability, but also brings the need to manage their human resources globally and strategically so that it becomes a source of sustained competitive advantage. It has thus led to the evolution of strategic international human resource management (SIHRM) in the literature, which not only acknowledges the need of balancing global integration and local responsiveness, but also emphasises the importance of seeking strategic fit between HR policies and business strategy, in turn leading to a superior business performance. Although it has been widely accepted that HR policies make a direct and positive impact on firm performance, the researcher believes there appears to be limited research undertaken in the context of the developing world. Hence this paper focus upon the case of China with reference to foreign MNCs operations and the challenges faced from the dual pressure of balancing globalisation and localisation. Consequently, the researcher selected a case study approach with a triangulation data collection method. Specifically, a two-stage primary data collection process of questionnaires and semi-structured interviews were undertaken in four selected subsidiaries of MNCs in China. Thereafter, a series of statistical process was conducted, i.e. frequency analysis, reliability analysis, correlation and regression tests along with the transcripts from the rich data set of interviews. The finding of this research strengthened the mainstream literature where there is a direct and positive relationship between HR polices and firm performance. Furthermore, this research also reinforced a number of views from previous studies on the importance of aligning HR policies with business strategy to attain strategic integration and thus the achievement of firm performance. However, in contrast to previous studies this research found the quality enhancement of products and service was the preferred and currently adopted business strategy amongst the studied foreign MNCs Chinese subsidiaries, whereas the traditional view regards cost reduction as contributing to the competitive edge in China. Moreover, this research also discovered that although headquarters initially transferred their standardised HR policies and procedures to Chinese subsidiaries, they subsequently delegated authority to subsidiaries. Therefore, foreign MNCs are seeking to balance global standardisation and local adaptation, which is a relatively new development although it has been noted in the literature. Thus, MNCs reconcile control and adaptation rather than satisfying one at the expense of the other, whereby the trend is for Western HR policies to be gradually accepted and internalised by the younger generation of the Chinese workforce. Furthermore, drawing from the findings of this research upon the theoretical principles of Harvard Model (Beer et al., 1984), Guess Model (Guess, 1997, 2000) and Choice Model (Analoui, 2007) in terms of the link between HRM policy choices, HRM outcomes and firm performance, this research made recommendations to foreign MNCs to consider the adaptation of a set of HR policies that can generate competitive advantages, enhance employee commitment, increase job satisfaction, which lead to an improvement of firm performance. In addition, this research suggested foreign MNCs not only need to continually recognise the important role of the HR department in the devolvement of HR functions to line managers with the provision of training and organisational assistance, but also need to acknowledge the role of senior managers in achieving vertical integration between HR policies and business strategy and their influence in HR polices. Finally, foreign MNCs are encouraged to engage the HR department in the strategic level of the organisational operations (i.e. strategic planning process), in addition to its involvement on the functional/operational level of activities to achieve the sustained competitive advantage in the contemporary business context of China.

scholarly journals Creating Competitive Advantages for Companies by Developing Strategic Human Resource Management in the Face of the Challenges of the Revolution 4.0

2019 ◽  
Vol 1 (4) ◽  
pp. 103-112
Author(s):  
Kosasih
Keyword(s):  
Resource Management ◽  
Human Resource Management ◽  
Competitive Advantage ◽  
Human Resource ◽  
Business Strategy ◽  
Industrial Revolution ◽  
Strategic Human Resource Management ◽  
Competitive Advantages ◽  
Library Research ◽  
The Face

Since the development of technology with the Internet of Thing and Artificial Intelligence or what we know as the 4.0 industrial revolution, the competition for each company is to survive and develop very fast. For this reason, every organization or company must be able to show a competitive advantage that distinguishes the company from others. One of the efforts to create this competitive advantage is to increase the human resources the company has. For this effort, the organization or company must be able to develop strategic human resource management. Therefore, the aim of this research is to describe the influence of the concept of corporate strategic human resource management that can affect competitive advantage. The method used is library research by processing literature related to this study using a qualitative approach. The research results obtained from the literature used show that both strategic human resource management is very influential for the company's competitive advantage. The implication of this research is expected to contribute in determining business strategy and policy through the theories of this research.

Synergy in HR and Strategies, a Contemporary Need for the Pakistan Pharmaceutical Industry

2013 ◽  
Vol 03 (09) ◽  
pp. 46-55
Author(s):  
Ehtasham Ghauri ◽  
Don McMurray
Keyword(s):  
Pharmaceutical Industry ◽  
Competitive Advantage ◽  
Human Resource ◽  
Knowledge Workers ◽  
Global Business ◽  
Strategic Objectives ◽  
Hr Practices ◽  
Personnel Practices ◽  
Unified View

The empirical evidence laid out in this paper analyses the current human resource management (HRM) practices and their strategic orientation in the Pakistan pharmaceutical industry. The study emphasises and exhibits the evidence for the need to align human resource (HR) and organisational strategies, and objectives in order to retain competitive advantage, knowledge workers and achieve long term strategic objectives. This research is based on multiple qualitative in-depth case studies conducted in the industry, and recommendations indicated in the paper are based upon the empirical findings and synergistic evidence from contemporary western literature. The absence of formal HR functions in 50% of the organisations in the industry and still clerks looking after HR matters, transpire a message for organisational strategists and decision makers that 20th century personnel practices and strategies in today’s dynamic economy may not enable organisations to sustain businesses, achieve strategic objectives and gain competitive advantage. This further points out the reality that organisations even in a developing country like Pakistan cannot be an island anymore in modern and dynamic interconnected global business sphere, and may be easily displaced by organisations from other parts of the world. In order to sustain businesses, retain knowledge workers and attain competitive advantage, it is crucial that HR strategies in the industry are to be aligned to long term strategic objectives, to every functional level and especially revenue generating sales and business development functions of an organisation. This can facilitate an organisation, that employees at every level will have a converged and unified view of organisational and functional strategic objectives. The essentiality of HR practices and HR functions perceived by this study respondents and the evidence from organisations implementing better HR practices advocate that organisations in the industry can also leverage from these practices in obtaining competitive advantage, achieving strategic objectives and retaining their knowledge workers. This further creates the need that other organisations within and out of the industry should be benchmarked for advancement in HR practices and strategies.

FROM BUSINESS STRATEGY AND SOCIAL CAPITAL PERSPECTIVE TO TRAVEL AGENCIES’ COMPETITIVE ADVANTAGE

2018 ◽  
Vol 2018 ◽  
pp. 310-310
Author(s):  
Chih-Hsing Liu ◽  
◽  
Jeou-Shyan Horng ◽  
Sheng-Fang Chou ◽  
Yung-Chuan Huang ◽  
...  
Keyword(s):  
Social Capital ◽  
Competitive Advantage ◽  
Business Strategy ◽  
Travel Agencies ◽  
Social Capital Perspective

PENGELOLAAN MODAL MANUSIA DALAM KAITANNYA DENGAN MANAJEMEN KINERJA

2018 ◽  
Vol 6 (1) ◽  
Author(s):  
Amanda Setiorini,MM.
Keyword(s):  
Human Capital ◽  
Resource Management ◽  
Human Resource Management ◽  
Competitive Advantage ◽  
Performance Management ◽  
Human Resource ◽  
Business Environment ◽  
Business Organization

Globalization changes the business environment, which demands change from every business organization involved, to succeed in the new environment. For that purpose, human resource management needs to be directed to the development of human capital, which assumes employees as assets, not costs, for the company. The implication is that management needs to recognize each of its employees in order to maximize their potential and manage it to be a competitive advantage. This is where performance management plays a very important role.

Human Resource Management, TQM, and Firm Performance in Small and Medium-Size Enterprises

2000 ◽  
Vol 25 (1) ◽  
pp. 43-58 ◽  
Author(s):  
Gaylen N. Chandler ◽  
Glenn M. Mcevoy
Keyword(s):  
Resource Management ◽  
Firm Performance ◽  
Human Resource Management ◽  
Human Resource ◽  
Business Strategy ◽  
Best Practice ◽  
Medium Size ◽  
Current Debate ◽  
Total Quality ◽  
The Relationship

This study analyzes the moderating effect of two key human resource practices on the relationship between organizational strategy and firm performance. In a sample of 66 small to medium-sized manufacturing firms we found that a total quality management strategy was most effective when supported by significant training and group-based incentive compensation. This result is discussed in light of the current debate in the field about “best practice” versus “fit” models of human resource management and business strategy.

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