Organization Profit, Economic Crisis And Strategic HR

With the current economic and financial crisis that hit the region and affected organizations, the obsession with achieving the profitability rates of these organizations is very high to the point of concern and tries in various ways and means to make profits ..... The question arises here does strategic human resources capable and have a role to help organizations to making profits?

If we look at the Porters approach to competitiveness, we find that they fall under three elements:

Cost Leadership.

🔻 Increase profits by reducing costs.

🔻 Increase market share by charging lower prices, with reasonable profit.

2. Individuality:

Offering unique products or services that are different from your competitors' products and more attractive to customers.

3. Focus:

Focus on specific niche markets, and by understanding the dynamics of that market and the unique needs of customers within it.

If we look at the three elements that make competitive advantage for organization to make profit and get out of the economic crisis depends on the human element in the organization that are able to activate these three elements of competitiveness.

The strategic human resources help to formulate a strategy that enables organization with its current conditions and capabilities to work on any of the three elements or togather and know the gap and work to fill it through the recruitment of talent or training of employees and involve the employees and officials in the strategy within the daily work and help departments and support to achieve the strategy and plans programs to fill the gaps, study and measure the status and performance of employees and organization and adapt them to the appropriate organizational culture to push everyone to work together and achieve strategy and provide measurements and facts that ultimately lead to decisions in Senior management to achieve profits.

Therefore, there is a significant correlation between profits, metrics, objectives, corporate strategy, employee performance, organization's current status, gaps, and strategic human resources.