Competitive advantage may derive from the integration of strategy and human resources for three reasons. First the ability to implement strategic initiatives increases when strategic and HR plans merge; this ability may be a source of uniqueness. In one division of Camden, for example, the management team learned that receivables were averaging 90 days, an extensive time given the cash demands. Upon further analysis they learned that the incentive system rewarded 100% commission at point of sale. By offering 50% commission at point of sale and 50% on receipt of cash, the 90-day receivable time fell quickly to 30 days. By changing the incentive system, Camden quickly implemented a cash flow strategy.
Strategies happen because of people. Behaviors may be shaped through HR practices. When strategies and HR practices have a common focus, strategic initiatives are implemented more quickly.
Competitive advantage may derive from the integration of strategy and human resources for three reasons. First the ability to implement strategic initiatives increases when strategic and HR plans merge; this ability may be a source of uniqueness. In one division of Camden, for example, the management team learned that receivables were averaging 90 days, an extensive time given the cash demands. Upon further analysis they learned that the incentive system rewarded 100% commission at point of sale. By offering 50% commission at point of sale and 50% on receipt of cash, the 90-day receivable time fell quickly to 30 days. By changing the incentive system, Camden quickly implemented a cash flow strategy. Strategies happen because of people. Behaviors may be shaped through HR practices. When strategies and HR practices have a common focus, strategic initiatives are implemented more quickly.
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