Question

In your opinion, is the human resource function, or the management accounting function, more important to the competitive advantage of the contemporary firm? You should use evidence and examples to justify your arguments.

Answer 1

In my opinion, the human resource function, is more important than the management accounting function for the competitive advantage of the contemporary firm.

How HR Can Be Used as a Competitive Advantage

Some of the ways that  Human Resource management that  helps in creating and maintaining a competitive advantage for the contemporary organization:

• HR can utilize data for analyzing turnover rates and determine where problems may lie, thus enabling the company to more immediately find issues and get them solved.
• HR can help managers  to source the right potential to get the skills the company required to grow and be competitive as well. The expertise of HR can allow the organization to know where to look for specialized talent when needed.
• HR can give a deep insight into the going market rates for talent and what it might take to get high-quality hires on board.
• HR can give insights about how other organizations within your industry are structured. Also the information that can be useful in determining which positions the company still needs to create or fill in order to become or remain competitive is also obtained.
• They can utilize data for indicating how the skilled pool  of employees are evolving over time, and in order to show business leaders where skills gaps may exist so those gaps can be addressed accordingly.
• HR management is also used to design employee development programs that take into account both the strategic and long-term needs of the organization, ensuring that key employees get the right training before it must be utilized.
• HR helps to put together succession plans that accounts the organizational strategic goals. This enables the organization to remain competitive even when there is turnover in key roles.
• HR can analyze which employees are high performers and alert the management about who should be fast-tracked for promotions and new projects and also who all should be omitted from the firm.

Example:

If the organizational turnover data indicates that most turnover occurs through new hires, the team can focus on what  may be the cause of that. Or if the data indicates that one group has a increased turnover rate than the other group of the business, human resource management can focus on that and can remain competitive.

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