chapter 1 review Flashcards
What are the components of Porter’s Strategy typology?
Pick between Low-cost Strategy and differentiation strategy and the decide what the focus of the strategy
What is low cost strategy?
creating value by reducing costs
What is differentiation strategy?
creating value by convincing the market that your product / service is different from all the others
Resource-based view (RBV)
a company’s competitive advantage comes from the valuable, rare, inimitable, and non-substitutable resources it possesses.
Resource characteristics (Think VIRO)
Valuable, rare, inimitable, and organizational process
Core capabilities
bundle of skills and technologies within an
organization that distinguish it from its competitors and deliver value
to customers.
What are the two dimensions of human capital that differ according to architecture?
Value of human capital and uniqueness of human capital
What are the four types of workers in the human capital architecture model?
Strategic knowledge workers, Core employees, supporting labor, and alliance/ external partners
strategic knowledge workers
high uniqueness high value
core employees
low uniqueness, high value
supporting labor
low uniqueness, low value
alliance/ external partners
high uniqueness, low value
What is human resource management (HRM)?
the policies, practices, and
systems that influence employees’ behavior, attitudes, and performance.” They are considered “people practices.”
What are the four dimensions of HRM practice?
Managing the HR environment, acquiring and preparing HR, assessment and development of HR, and compensating HR
What is the structure of the HR environment?
Service centers, centers of excellence, and business partners
Service centers
a central place for stuff like enrolling in training programs and changing benefits
Centers of excellence
HR specialists who develop effective HR systems and help implement them
Business Partners
HR staff members who work with business-unit managers on strategic issues
What are the two generic HR strategies?
High performance work system (HPWS) and control-oriented work system
HPWS
maximizes productivity and performance through utilization of employee abilities and motivation
Control-oriented work system
minimizes employee knowledge and skill requirements and limits variability of performance across people
Principals of a HPWS
selective staffing, extensive training, enhanced job security, enhanced participation, performance-based pay rates, high pay
How does HRM link to business strategy?
employee benefits, organizational benefits, organizational outcomes and competitive advantages
