HRM as a segnificant factor in creating competitive advantage

In a world in which all work is knowledge work and intellectual capital is crucial for economic success, it is logical that the ability to attract, retain, and use the talents of people provides a competitive edge. An organization requires the utilization of a complex array of resources to grow, survive and achieve the ultimate mission or objectives that sustains its existence or creation. The mobilization and deployment of these resources – human, financial and material – in the right resource-mix, gives the organization leverage toward the desired end of these resources. The human resource is the most potent and central, contributing significantly to corporate bottom line and competitiveness. The organization therefore gains sustained competitive advantage through people, the organization workforce. The human resource of an organization offer the potential synergy for sustained competitive advantage, when properly deployed, maintained and utilized. This paper strives to identify that HRM can be considered as a source of competitive advantage of the firms. Human resources, their knowledge, skills and competencies as well as synergy among them, become the most valuable asset, the new source of wealth, and the key ingredient of competitive advantage. The aim of this paper is to reveal that human resources management is essential to ensure the success of any organization which is based on the belief that an organization gains competitive advantage by using its people effectively and efficiently.