Human resource practice enhance value chain

Essay by dolindaA+, August 2006

download word file, 5 pages 4.0

How might exemplary human resource practice enhance and strengthen a firm's value chain activities?

1. Definition of Value Chain

The value chain is a systematic approach to examining the development of competitive advantage. It was created by M. E. Porter in his book, Competitive Advantage (1980). The organization is split into 'primary activities' and 'support activities.' Primary Activities include: Inbound Logistics, Operations, Outbound Logistics, Marketing & Sales, and Service. Support Activities include: Procurement, Technology Development, Human Resource Management (HRM), and Firm Infrastructure.

The goal of these activities is to offer the customer a level of value that exceeds the cost of the activities, thereby resulting in a profit margin. The firm's profit or margin depends on its effectiveness performing in these activities efficiently, they are not isolates one another, one value chain activity often effects the cost or performance of others.

2. Human Resource Management

HRM supports individual primary and support activities and entire value chain.

There are four components of HRM functions:

2.1 Effective recruiting, development, and retention mechanisms for employees

(Recruiting) HRM evaluates human capital through interview; see whether the candidate is competent to the job. Sometimes, HR ranges interview vie capability test by STAR technique (Situation, Task, Action, Result), require candidate describes a special task that he has been needed to accomplish, how did he analyzed and make solutions, what did he implement and accomplish, how did the event end and what did he learn from that etc. ( So that HR could be defines the special strongpoint of this person. For example, Salespeople are required to develop and maintain excellent relationships with customers; they need communicate with customers and internal staff actively and patiently. Thus, personality test and stress test may taken by HR in interview, questions such as "are you usually walk fast...