discussing the strategy and role of Human Resource Management.

Because of the high level of competitive rivalry in the external environment , businesses must build a sustainable competitive advantage In this respect , according to Michael Porter 's framework for strategy formulation , an organization has three strategies : differentiation , cost minimization and focus (cited in Lewis , 2009 . However the problem with implementing these strategies is that they can be copied overnight by competitor organizations and therefore the competitive advantage is not sustainable . The objective of developing a sustainable competitive advantage can be met through developing an organizational culture because each is unique . The

issue of building an organizational culture is one of human resource management . The process of human resource management ensures that the right people are in the right place . This facilitates the development of strategic human resource management which leads to the creation of human capital . With human capital the management of a business organization is in a position to create an organizational culture in which employee interests are aligned to organizational interests . Thus the effectiveness of the corporate strategy is maximized

In the fast changing external environment , compliance with legislation is no longer sufficient . Businesses must be able to anticipate future changes in social , economic and environmental issues and change their organizational structures accordingly (cited in Legge , 2001 . Therefore the critical success factor is the process of managing change . When it comes to managing change , employee resistance is the biggest limiting factor and for this reason the issues of employee motivation and empowerment become critical . These issues can only...