Professional in Human Resources (PHR) Practice Exam

The term for using employee skills to maintain a competitive advantage is strategic management. This concept involves the formulation and implementation of major goals and initiatives taken by an organization based on consideration of resources and an assessment of the internal and external environments in which the organization competes. By strategically managing employee skills, organizations can leverage their human capital to develop unique capabilities that set them apart from competitors.

In this context, strategic management focuses on aligning the skills and competencies of employees with the company’s objectives and market needs. This includes making decisions about training, talent acquisition, and workforce planning to ensure that the organization has the right people with the right skills at the right time. It emphasizes the proactive approach to harnessing employee potential to create a sustained competitive edge in the marketplace.

Other concepts, such as succession planning, is more about preparing for future leadership needs rather than focusing broadly on using current employee skills for competitive advantage. Forecasting is primarily concerned with predicting future trends or requirements, rather than directly linking skills to competitive strategies. Benchmarking involves comparing business processes and performance metrics to industry standards, which does not specifically relate to utilizing employee skills for competitive positioning.