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How might exemplary human resource practice enhance and strengthen a firms value chain activities 1 Definition of Value Chain The value chain is a systematic approach to examining the development of competitive advantage It was created by M E Porter in his book Competitive Advantage 1980 The organization is split into primary activities and support activities Primary Activities include Inbound Logistics Operations Outbound Logistics Marketing Sales and Service Support Activities include Procurement Technology Development Human Resource Management HRM and Firm Infrastructure The goal of these activities is to offer the customer a level of value that exceeds the cost of the activities thereby resulting in a profit margin The firms profit or margin depends on its effectiveness performing in these activities efficiently they are not isolates one another one value chain activity often effects the cost or performance of others 2 Human Resource Management HRM supports individual primary and support activities and entire value chain There are four components of HRM functions 21 Effective recruiting development and retention mechanisms for employees Recruiting HRM evaluates human capital through interview see whether the candidate is competent to the job Sometimes HR ranges interview vie capability test by STAR technique Situation Task Action Result require candidate describes a special task that he has been needed to accomplish how did he analyzed and make solutions what did he implement and accomplish how did the event end and what did he learn from that etc httpwwwquintcareerscom So that HR could be defines the special strongpoint of this person For example Salespeople are required to develop and maintain excellent relationships with customers they need communicate with customers and internal staff actively and patiently Thus personality test and stress test may taken by HR in interview questions such as are you usually walk fast or what color do you like mosthttpwwwpersonalitytestnet if the person used to walk fast perhaps he is impetuous people who likes blue may he is
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