LEADERSHIP AND STRATEGIC HRM: TOWARDS SUSTAINABLE COMPETITIVE ADVANTAGE
Sharma, A., Indian Institute of Technology, India
As the world moves into twenty first century, the greatest strategic challenge is to create organizations that are innovative, efficient, global, local, focused on today and vigorously changing for tomorrow. In this rapidly changing global business environment, the stages of awakening, envisioning and re-architecting are required for creating and sustaining organizational capabilities and this can be best initiated and facilitated only through leadership and human resources of the organizations. To develop, redevelop its strategies for designing and overseeing the necessary systematic change, the leadership can encourage its employees to learn and perform towards activities and goals of the organizations. This study hypothesized that higher the degree of consonance between leadership and strategic HRM, more are the chances of achieving sustainable competitive advantage by an organization. The paper attempts to focus on the aspects of leadership in strategic HRM and their combined role in achieving sustainable competitive advantage. Based on a questionnaire survey of 300 managers from diverse MNCs in New Delhi, India, the study suggests that performance excellence is the cultivation of leaders who view their employees as the center of creative solutions and not just as members of a team. The results show that leaders develop their talents, provide them with proper resources and motivate them with rewards. These leaders also act as master managers performing both transformational and transactional leadership behaviours. The study also develops a model of leadership capability for strategic HRM.