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How Effective HRM is a Competitive Advantage

Operating a business in today’s super competitive environment requires integration of a range of factors. Sourcing, production, marketing and other processes can all ultimately provide key advantages for business when competing in a range of industries. However, despite all the possible protections that can be put in place, most if not all of these factors and processes can still be replicated by competitors.

Human elements and processes, on the other hand, can be extremely hard to replicate. This is why human resource management is often considered such a strong source of competitive advantage – when managed effectively by a company. So what kind of HRM elements can be most difficult to replicate – and a source of competitive advantage?


Competitive advantages are defined by the inability of competitors to replicate. Knowledge, particularly when highly specialised, can provide organisations with a major source of competitive advantage. The power of intellectual capabilities should never be underestimated.”​

HR Planning

A strong planning process identifying talent gaps, supporting business strategy, observing trends and ensure the long-term sustainability of an organisation’s most valuable resource – its people – provides significant value for organisations.


A strong leader can inspire a team to work with increased competency and productivity. The role of a strong leader should never be underestimated in a firm’s performance and ability.


This is unique to each business and close to impossible to replicate, and largely influenced by the role of frontline leaders as mentioned above. A strong, positive company culture impacts the success of an organisation on all measures.

Human Processes

Integrating human resources in your processes, particularly when merged with technological resources can be challenging. Effective analysis of the dynamics between both sets of resources results in superior process re-engineering and advantages.

Why not contact Options Consulting Group for a discussion around your H.R. needs.


John Gilbert
Principal – Options Consulting Group
T: 03 9693 9300
M: 0408 697 128