Chapter 2

Question 1

What is the resource based view of HRM?

Answer 1

-Valuable - employees have superior performance because of their skills, commitment, etc.
-inimitable- according to Porter, it can take about 7 years to imitate a competitive skill
-Rare- high competition for talent
-Hard to substitute- changes made by HR are hard to replicate

Question 2

What is the contingency perspective of HR?

Answer 2

Although high performance strategies work, it might be more cost effective for a firm to pursue a differentiation strategy

Question 3

What is the behavioural theory of HR?

Answer 3

An effective HR system will identify what behaviours it needs from its employees

Question 4

Strategic HR planning

Answer 4

Focus on forecasting Human Resources supply and demand while ignoring managements ability to support the process

Question 5

What are some reasons that strategic HR planning is important?

Answer 5

-employees help an org achieve success (employees are strategic resources)
-planning process results in improved goal attainment
-HR makes sure human assets are managed and matched to org strategy

Question 6

What are the 3 ways of linking HR processes to strategy?

Answer 6

-start with org strategy and create HR strategy
-start with HR competencies and craft corporate strategies
-reciprocal relationship

Question 7

Linking HR process to strategy: Start with an org strategy and then create HR strategy

Answer 7

-traditional approach

Question 8

Linking HR process to strategy: start with HR competencies and craft corporate strategies

Answer 8

-better for small businesses as they recognize and capitalize on the capacity of an employee
-does not account for environmental analysis and changing HR practices

Question 9

Linking HR processes to strategy: reciprocal relationship

Answer 9

-combination of other two strategies
- HR contributes to business strategy and v/v
-firm develops employees and then capitalized on their skills

Question 10

What is HR strategy differentiation?

Answer 10

Different role assume different roles in strategy implementation

Question 11

What are two considerations for a position to be considered strategic ?

Answer 11

-is the position responsible for creating strategic capabilities of the business?
-when different job holders may vary substantially in their job performance

Question 12

Important points for external fit of an effective HRM strategy

Answer 12

-HR programs aligns with the overall strategy of the org
-HR leaders are part of the strategy discussion

Question 13

Important points for internal fit of effective HRM strategies?

Answer 13

-fit with other functional areas: HR works with other departments
-fit among all HR programs: things like selection, training, and appraisal must work together