Kelly (2001) argues that internal alignment of HR is one of the critical business strategies, and the main driver of internal alignment of HR is to lower the costs and drive up the profitability. On the other hand, HR strategy with related to external costs assists Mountain bank to have the knowledge of local labor and study the method they could be profitable to the organization in the future. Typically, the Mountain bank needs to study the components of labor in the external environment and devise a strategy to obtain the high quality labor to achieve competitive advantages. Mountain could obtain cost reduction by hiring skilled labor from the region. Typically, Mountain bank will incur low costs in the training of skilled labor and this HR strategy will allow the bank to lower the costs.
(Seyedjavadin & Zadeh 2008).
One of the simple HR strategies is differentiation strategy, and the strategy assists managers to provide distinctive level of service and make the customers to distinguish the service of an organization from the service of the competitors. By providing distinctive level of service within the same industry, customer will be prepared to pay a premium price. Using differentiation strategy could assist firm to lower costs (Bratton, 2005). Mountain bank could use differentiation strategy by focusing on exceptional retail banking and customer service. The bank should also differentiate their mortgage and corporate banking. One of the methods to achieve differentiation strategy is to leverage the strong retail banking into the gain of corporate and real estate. The Mountain bank could achieve advantage by cross selling. The strategy is to use tellers and customer representatives to convince customers having retail bank accounts to open mortgage or corporate accounts from Mountain Bank.
HR Strategy Recommendation with respect to Mountain Bank Tellers
Mountain Bank should increase the staff that would handle the teller jobs. The banks should employ part-timers or floating tellers to handle the banking activities during the launch hours and pay day. This HR strategy will improve...
Experience has shown that bank tellers are very critical to the success of Mountain bank. Customers experience with tellers is the driver to the customer's satisfaction. With improvement in the technological development, tellers have become strategic importance to banks. Thus, Mountain bank could enhance its competitive market strategy by increase the number of tellers.
Conclusion
This paper discusses the strategy that Mountain bank could employ to enhance its competitive advantages. The paper reveals that Mountain bank implements different banking services such as retail banking, consumer lending, mortgage banking, and corporate banking. However, the paper reveals that retail banking is more profitable than other banking services. To improve HR resources strategy in order to enhance the competitive advantages of the Mountain bank, the paper identifies HR strategy with related to external and internal costs. The HR internal cost strategy is to improve the competence of the internal staff to lower the costs. The paper also discusses method the Mountain bank could employ to adopt differentiation to achieve competitive advantage. Implementation of differentiation will assist Mountain bank to implement banking service that will be unique to the banking service of its competitors, and the strategy will assist Mountain bank to achieve competitive advantages. Since bank tellers are critical to the success of Mountain bank, the paper suggests the increase in the number of tellers to assist Mountain to improve their service towards customers.
References
Bratton, J. (2005). Strategic human resource management. Palgrave.USA.
Kelly, J. (2001). Employee Relations. Human Resource Management. 23(1): 94-104.
Purcell, J. (2001). The meaning of strategy in human resource management. In J. Storey (ed.), Human Resource Management: A critical text (pp. 59 -- 77). London: Thompson Learning.
Seyedjavadin, S.R. & Zadeh, M.H. (2008). HR Strategy & its aligning with the Human Capabilities and Organizational Strategy. University of Telran.
