ENGINEERING IN BUSINESS SCIENCES

Final Work of the Human Resources module

Human resources as a competitive advantage

Presented by Alexsandra Ledezma

Supervised by Dr. Stin Vander Korg and Dr. Ian Towers

Asunción, April 8, 2019

Introduction

In This paper a study on the relevance of human resources as a

competitive advantage is made.
The Competitive advantage is defined as any factor that allows
the organization to differentiate its products or services from those of
its competitors. One of these factors is the human resource.
The Advantage comes from the organization of work, training,
training and experience available in the organization. Adaptability to
changes and employee engagement are other benefits of competitive
advantage. There Are A number of aspects where the effective
management of human resources can give the business an extra
benefit over its competitors.
Globalization has made the same competitive resources
available to any company, so the need to find sources of advantages
that are difficult to emulate by competition has become fundamental
to the success of the organization.
For this reason, human resources and management become one
of the main sources of sustainable competitive advantage in
companies and their correct management has become the foundation
of modern business competitiveness, proving that the People make a
difference in how an organization works.
Human Resources
The Human Resources of a business (HR) or human resource
(HR) in English, is a function and/or department of the area of '
Management and business Management ' that organizes and
maximizes the performance of officials, or human capital, in a
company or organization with the To increase their productivity.
Human resources outside the context of a function or a department of
a company is synonymous with human capital, that is, they would be
the officials of a company. (S, 2019)

Importance of the Human resources department

Human resource management is extremely important in a
company or organization because it manages the human resource,
hence the least predictable and dynamic resource.
Good human resource management generates, as a chain process, the
following benefits and benefits:
Improves and leverages workers ' skills and abilities
Increases the performance, quality and production of both the worker
and the company.
Good interpersonal relationship between workers creates motivation
and good weather.
The good interpersonal relationship between workers and HUMAN
RESOURCES makes everyone feel listened to and valued
The renovation of jobs or the creation of new jobs are harmoniously
implemented for all.
Job posts are occupied by persons competent for that job and
compatible with the work team.
This type of resources are those that give an identity to the
organization, because they are the ones that form the culture of the
company through factors like the type of communication and the
motivation existing. (S, 2019)
Competitive Advantage
A competitive advantage is any feature that insulates our
company from competitors. We Say that it is a sustainable
competitive advantage when it stays in time.
For competitive Advantage, the characteristics or attributes of a
product or a brand that give a certain superiority to its immediate
competitors are understood. This superiority, wherever it exists, is of
a relative nature, since it refers to the best competitor in the market
product. One speaks, then, of the most dangerous competitor or also
of the priority competitor. (VC, 2019)
But It's not just about being different. It's about making a
difference and at the same time being the best in a way that customers
value positively. To further clarify the concept, let's look at other
features:
• The Competitive Advantage is unique. The Company has its
exclusivity.
• It is a tangible benefit for consumers.
• It Must be sustainable in the long run. If It's temporary, it's not
an advantage.
• It is Not imitation; Seek the opposite: innovation.
• He's Looking For superior benefits. Is linked to productivity.

Human resources as a competitive advantage.

"The most valuable capital of all is that which has been invested in human
beings" (Economics Principles, Alfred Marshall)
According to the theory of Resources and Capacities (Side &
Wilson, 1994), the difference in performance between companies can
be attributed to the difference of resources and capacities existing in
the organizations.
The ultimate goal of any company is to generate a sustainable
competitive advantage, with a higher profitability than that of
competing companies (Amit & Schoemaker, 1993; Hoopes, Madsen
& Walker, 2003). To this end, the organizations use tangible
resources (buildings, machinery, financial resources...) As intangible
resources (human capital, prestige, brand image) in the development
of their strategies. Intangible resources have a greater tendency to
generate greater and/or better advantages Compe Itivas because they
are often rare and socially complex, which makes them difficult to
imitate (Itami, 1987; Barney, 1991; Peteraf, 1993; Black & Boal,
1994; Rao, 1994). For this reason, human capital has long been
regarded as a critical intangible resource in most companies (Pfeffer,
1994).
Capacities are either collective or individual skills or competencies of
an organization. Many authors (Ulrich & Lake, 1990; Reich, 1991 and
Pffefer, 1994) conclude that workers are the last resource of
sustainable competitive advantage to the extent that, those companies
that wish to succeed in a globalized environment such as today must
make adequate investments in resources In order to incorporate and
train workers who have better skills and abilities than their
competitors.
As recognized by Wright, Dunford and Snell, 2001, the human
resources model of each company, has to be studied in relation to its
specific environment taking into account three fundamental
components:
• A: The human group of the company, its knowledge and
professional skills.
 • B: The relationships between the individuals that make up the
company and their degree of commitment to it.
• C: Strategic Personnel Management
The harmony between these three elements can contribute to generate
a real and sustainable competitive advantage, depending on their
degree of fulfillment and adaptation to the strategic variations of the
company.
Organizations must implement a value-creating strategy that
allows them to generate and maintain a competitive advantage that
differentiates them from their competition and that the latter cannot
easily imitate them. It must Also be feasible to achieve a sustained
return on time and defend against competitive forces. The
Competitive advantage is obtained from the resources of the
Organization itself. Resources are the basic element of capacity-
building and, from them, the competitive advantage. We Can refer to
any production factor that is available to the company, or that it can
control in a stable way. Among These factors of production, the assets
are means that the company possesses, while the capacities are
something that the organization can make from the use of those
assets.

The resources in the companies can be grouped in the following

categories:
• Tangible Resources: They are easier to identify and to value
because they are collected in the financial statements of the
companies, in the case of those assets with physical
materialization, and of the finances.
• Intangible Resources: Technological (the technologies and
available knowledge applicable to processes, products, etc.),
organisational (Prestige, trademark), Human capital (experience,
know-how, propensity to accept risks, Motivation, the loyalty
and the wisdom of the individuals associated with the company,
 the social capital or network of relationships that an individual
possesses.
In Order For Resources to have the potential to generate sustainable
competitive advantages, they should be:
• Valuable — Create or implement strategies that improve
efficiency and efficiency
• Uncommon: If the valuable resources are also owned by
competitors, these resources will not in itself be a source of
benefits
• Non-Imitation: Competitors cannot obtain them, eg. Corporate
culture, interpersonal relationships
• Non-Replaceable: they are not substituted for other resources or
combination of them
Sastre and Aguilar propose a model that shows the characteristics of
the resources that are sources of competitive advantages and that have
a high value for the company, for which there must also be two
conditions: the scarcity and the heterogeneity of the resource.
In Order For the competitive advantage to be sustainable over time
and resources to be considered strategic, four additional features must
be met:
• Durability: The resources and capacities on which the
competitive advantage is based should not be depreciated over
time.
• ' Irreplaceability ': resources should not be quickly overcome by
innovations.
• ' Inimitable or Irreproducibilidad ': it is necessary that the
resources are impossible to imitate or to reproduce on the part of
the competition.
• ' Non-transferability ': it must avoid its transfer in the market
with mechanisms such as industrial or intellectual property
rights.
The Human resources of a company will become a source of
competitive advantage when they also meet these characteristics, so
as to be a cost savings for the organization and to generate a
differentiation with the competition.
Analysis of a real case of competitive advantage
based on human resources: Google Mexico.

The director of Google Mexico said that hiring the best

candidates for each job and having a good working environment
drives the growth of a company.
Employees are the strength of a company that seeks to innovate,
because it is they who will take the company to the next level and
develop new business models. So said John Farrell, director of
Google Mexico at a conference at the annual Congress of the Mexican
Association in Human Resources Management (. AMEDIRH).
The Director of one of the most important technology
companies in the world for the region, said that the culture of a
company should find a balance between monetary gains, projects to
invest and training employees to be the engine of The company.
Google Currently has more than 28.000 workers worldwide and
reports annual revenues of 30 billion dollars, of which 30% are net
earnings.
According to Farrell, the development of innovation in a firm is
essential to cope with the changing environment of today's businesses,
even more so in the technology sector that has had explosive growth
in recent years.
That'S why the seeker has directed his human resources
management towards the impulse of innovation centered in seven
steps.
• 1. Have A clear vision: You must have a specific objective that
is shared by the whole company.
"It Must be the idea that illuminates the path of the whole
organization. This aligns resources and motivates the members of the
company. It Must be something universal that propels the employee
out of bed every day, "Farrell said.
• 2. Long-term Focus: While everyone is concerned about the
quarterly results of a company, innovative companies must see
beyond to see how the market will move and whether they have
the talent needed to cope.
• 3. Allocate Resources for Innovation: in Google 20% of the
budget is destined to the generation of business opportunities,
while 10% is used to generate unique market opportunities.
According to John Farrell, this is indispensable to attract special
talent that will be critical in future projects.
• 4. Hiring The best: You must place the best person for each job,
because if the square is a girl, the worker will not give their full
potential. In Google For example, a committee is created to
decide if a person enters the company and once it has been
approved, the proposal is sent to Larry Page for authorization
and final signature. Being so scrupulous at the time of hiring
has allowed. Google will become the best talent, something that
drives the growth of the company.
• 5. Structured Chaos: A work environment should be encouraged
to allow the flow of creativity, feedback and positive
competition. This can be accomplished to the general working
groups that seek to develop the same idea from different
perspectives.
• 6. Foresight/Insight: It is important to have a task force dedicated to
generating continuous improvements to the company's business model or
flagship product, as Google developers do. But in the same way it is
indispensable to have another working group that is dedicated to generate
long-term projects that involve great conceptual advances.
• 7. Working Environment: It is important to understand that
today's workers, the so-called millenials, cannot be managed by
other generations. It is counterproductive For them that a micro
boss manages his time with too strict schedules and works better
for target management.
"These workers do what is their passion, they do better. It Is better
and cheaper for the company that its employees feel comfortable to
give all their talent. The Manager must understand that for new
employees the line between personal life and work is being erased,
"assured Farrell.
Conclusion
In 21ST century companies, human resources become the main
asset to which they must attract, develop, motivate, preserve and
protect; and its correct management becomes an indispensable
requirement for organizational competitiveness. The modern approach
to Human Resources Management conceives Human Capital as a
source of sustainable competitive advantage.
The management of human resources should focus on achieving
results by aligning the personal objectives of each individual or
collaborator with the objectives of the Organization. If This is
achieved, they will have a greater disposition, commitment and know
to such an extent how and to what degree their work and performance
will be generating a value maximization of the company.
The Challenge of human resources is in the transformation of the
organizational culture, where its collaborators develop the
competencies required from their knowledge and skills, generate a
greater sense of belonging, create leaders to Become value-added
production people for the company. All This, points to the success
that organizations constantly seek if they want to survive in a world,
where only the one that is able to adapt to the various changes that
occur in the environment will stand out.
References
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systems and sustained competitive advantage: A competency-
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University Press: Cambridge, MA.
• PFEFFER, J. (1994). Competitive Advantage Through People:
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