Question

I'll rate ! don't give me someone else answer
Human Resource Strategy
Discuss human resource strategies that support a Cost Leadership competitive Strategy. Provide examples to illustrate your answer.

Answer 1

First of all, cost leadership is a generic strategy where a company follows a stricture and business model which allows them the ability to create the necessary values of competition in the market. Their entire strategy is defined by the cost of their service, which when compared to the other similar offerings in the market, is relatively cheaper and therefore, price becomes the factor of consideration when we think about their approach in the market.

When we consider HRM in response to a cost leadership function, we can say that the management performs the following functions in order to link their strategy, their market approach, and their organizational functions together. Their approach is dependent upon less frequency of recruitment since recruitment can become an expensive process when conducted extensively, rather, the company tends to favor their current employees, seeing to their growth and development and therefore trains them, in order to allow them better understanding of their processes and functions as well as to create a better, more efficient job process which increases their output capabilities.

On one hand, the company focuses on their people and creating an efficient structure which focuses on recruitment based on word of mouth transfer, on the other hand, sustainable business practices are created in order to create a set structure where the fundamental functions of the company can be performed.

The company then makes use of their strategies, create a better understanding between the management and the workforce, reducing the turnover rate, increase the work capability and output while also successfully spreading their cost of the human resource over a larger time period by having a larger fixed cost of operation in the beginning.