Strategic Human Resource Management Resource Based View
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Strategic Human Resource Management
2012 - Assignment 1
Topic 2: The Resource Based View of the firm is the dominant theory in strategic HRM. Critically discuss its contribution in the explanation of the proposed link between HRM strategy design and organisation performance.
Resource Based View (RBV) has instigated a paradigm for theoretically analysing organisational sustainable competitive advantage. Strategic managers use RBV to assist in making directional decisions which must take into consideration the strategic management process, organisational climate, strategic liabilities and assets, dynamic capabilities and core competencies. The VRIO model will be discussed to assess how strong an organisations competitive advantage is. RBV encounters a level of criticized shortfalls which will be discussed and alternative organisational performance models which can be used in addition to RBV for assisting in strategic decision making.
Sustaining a competitive advantage in any industry proves itself to be a challenging task to strategists. Barney (1991) initiated a fundamental theoretical start to the understanding of how organisations are able to have a sustained competitive advantage. The paradigm developed is now known as RBV. Strategic Human Resource Management (SHRM) use this concept to assist in understanding the influencing factors to develop the competitive advantage which provides analytical information which is used to make internal strategic decisions (Arend, 2008).
RBV for sustainable competitive advantage has the composition of following terms; Value, Rareness, Imperfect Imitability and Substitutability (Barney, 1991) see Figure 1 below for the integrated model. Barney’s model has impacted on the field of HRM in two important ways; RBV’s influence has been instrumental in establishing a macro perspective in the field of HRM research(Snell et al., 2001b). Secondly, RBV has provided a theoretical and contextual framework which has
Strategic Human Resource Management
2012 - Assignment 1
Topic 2: The Resource Based View of the firm is the dominant theory in strategic HRM. Critically discuss its contribution in the explanation of the proposed link between HRM strategy design and organisation performance.
Resource Based View (RBV) has instigated a paradigm for theoretically analysing organisational sustainable competitive advantage. Strategic managers use RBV to assist in making directional decisions which must take into consideration the strategic management process, organisational climate, strategic liabilities and assets, dynamic capabilities and core competencies. The VRIO model will be discussed to assess how strong an organisations competitive advantage is. RBV encounters a level of criticized shortfalls which will be discussed and alternative organisational performance models which can be used in addition to RBV for assisting in strategic decision making.
Sustaining a competitive advantage in any industry proves itself to be a challenging task to strategists. Barney (1991) initiated a fundamental theoretical start to the understanding of how organisations are able to have a sustained competitive advantage. The paradigm developed is now known as RBV. Strategic Human Resource Management (SHRM) use this concept to assist in understanding the influencing factors to develop the competitive advantage which provides analytical information which is used to make internal strategic decisions (Arend, 2008).
RBV for sustainable competitive advantage has the composition of following terms; Value, Rareness, Imperfect Imitability and Substitutability (Barney, 1991) see Figure 1 below for the integrated model. Barney’s model has impacted on the field of HRM in two important ways; RBV’s influence has been instrumental in establishing a macro perspective in the field of HRM research(Snell et al., 2001b). Secondly, RBV has provided a theoretical and contextual framework which has
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