Human Resource Management

The area that contributes the most to helping the firm gain a competitive advantage is acquiring human resources. This is because having the right mix of employees and their abilities vary greatly to suit the firm's business needs can give the firm an edge over its competitors. By recruiting the most suitable talent in the market and having a competitive compensation and reward structure, the firm can become an employer of choice and gain competitive advantage. The area that contributes the least to helping the firm gain a competitive advantage is assessing work and work outcomes. While tracking and measuring performance is important, it should always be done in support of the other areas of human resources management such as recruitment, compensation, and training. It should not be used as a primary measure of success as it can lead to a lack of motivation and innovation, and discourage employees from achieving their potential.