Journal of Modern Business Administration

This paper mainly discusses how to optimize the cost management of human resources by using the value chain theory, and then enhance the core competitiveness of enterprises. The paper first analyzes the importance of human resource management and the fierce market competition faced by enterprises under the background of economic globalization. Then, it elaborates the overview of value chain theory and its application in human resource cost management, pointing out that value chain theory can provide enterprises with a comprehensive perspective to analyze and optimize human resource activities from recruitment, training to performance management. Through value chain analysis, enterprises can more accurately identify which human resource activities have a direct impact on the basic activities of enterprises, so as to optimize resource allocation and maximize cost benefits. In addition, this paper also studies the positive impact of value chain based human resource cost management on enterprise cost efficiency, market response speed and the improvement of human resource management level. Finally, the paper emphasizes the important position and function of the value chain based human resource cost management in modern enterprises, and suggests that enterprises combine their own characteristics and market environment to further improve this management system.

Value chain theory; Human resource cost management; Core competitiveness