The role of strategic human resources management in developing competitive advantage in the telecommunication industry in Kenya

Abstract

The changes in the business environment with increasing globalization, changing demographics of the workforce, increased focus on profitability through growth, technological changes, intellectual capital and the never ending changes that organizations are undergoing have led to increased importance of managing human resources. The main objective of the study was to determine the role of strategic human resource management in developing competitive advantage in the telecommunication industry in Kenya. Policy and decision makers at various levels of management may gain value added information on the human resource strategies that influence competitive advantage. This study employed a cross sectional study design. The target population for this study was the 4 leading telecommunication companies in Kenya i.e. Safaricom limited, Airtel Kenya, Yu mobile and Orange Kenya. Primary data was used in this study using an interview guide. The study found that although there are many ways by which companies can gain a competitive advantage, HRM practices enable telecommunication companies to gain a competitive advantage to a greater extent. So there appears to be a significant benefit from having HRM considerations represented in the strategy formulation stage rather than only in the implementation stage. The study therefore recommends that once the strategy is formulated and the appropriate HRM thrust identified, specific HRM practices need to be developed. These practices, such as staffing and compensation, are the ones that actually create the competitive advantage for the company. In addition, selection of the most appropriate practices should be appropriate to the strategy and lead to behaviors that are supportive of the strategy; for example, if cooperative behaviors are needed among employees, then group or organizational level compensation incentives should be provided rather than an individual-level incentive system.