The role of human resource management in creating competitive advantage for a selected South African state-owned enterprise

Abstract

This study examined the role of Human Resource Management (HRM) in achieving organisational competitiveness in a selected South African State-Owned Enterprise (SOE). It also explored the challenges faced by the Human Resource Management function in achieving organisational competitiveness. The Dave Ulrich model of four Human Resource Management roles in building a competitive organisation was the basis of this study. The roles of HRM include strategic partner, change agent, administrative expert and employee champion (Grobler, Bothma, Brewster, Carey, Holland and Warnich 2012:5). The study proposes a framework for organisational competitiveness application by the Human Resource Management departments in state-owned enterprises (SOEs). The study used a qualitative approach, which allowed the researcher to make use of a case study in the state-owned enterprise. Data was collected through interviews and results were validated with a pilot test. A total of twenty-four respondents were interviewed in this study. The study used a purposive sampling technique for both HRM practitioners and departmental heads. Data was drawn from Human Resource Management practitioners and divisional heads in various sections such as finance, pyrometallurgy, auditing, communication, etc. in a selected South African state-owned enterprise. South African state-owned enterprises are less efficient as they experience high labour turnover, retrenchment, employee salary reductions and the inability to attract talent. Such factors initiated the impetus for this research. The findings of the research show that human resource management roles are not maximised at Mintek since HR professionals mainly focus on basic human resources activities. This is due largely to the slow response of the organisation to adopt new innovative HR approaches that provide competitive advantage, which seems to be common in most state-owned enterprises. The findings also show that some current HR roles at Mintek benefit the organisation somewhat. However, there are challenges preventing the organisation from fully obtaining a competitive advantage since it was shown that a lack of technology, out-dated policies and bureaucracy, amongst other challenges, prevail in the organisation. The study contributed a Human Resource Management framework that allows the HR professionals and management of Mintek to consider the use of electronic HRM and strategic partnerships in the organisation for competitive advantage. In addition, consideration of internal HR strategies and external forces that may affect the organisation was proposed.