Chapter 3: Human Resource Management and Performance: Adding Value through People Flashcards
HR value chain
- Determine the competitive advantage and sustained comp adv of an org
- Determine the critical factors that create comp adv
- Determine the employee attitude, behaviors, and cognitive factors that positively affect the critical success factors
- Determine the HR practices that positively affect employee attitudes and behaviors
Ultimate business goals (UBGs)
organizational targets for relevent stakeholders aimed at:
- creating and maintaining viability with adequate returns
- creating sustained competetive adv
Delery and Shaw (3)
- Human capital can be source of competative advantage
- HR practices have the most direct influence on the human capital of an organization
- The complex nature of HR systems of practice can enhance the inimitability of the system
resource-based view of the firm
RBV
(Barney-like)
inside out approach, in which internal resources constitute in the starting point for org success
Outside in thinking (Poter and Mintzberg-like)
emphasis on the external, industry-based competitive issues
Barney: Sustained comp adv can be achieved if
the internal resources are valuable, rare, inimitable and non-substitutable
RBV value
economic condition of resource
RBV rare
the scarcity of the resource
RBV inimitability
the degree to which resources are hard to copy
RBV non-substitutability
resources that are very hard to neutralize with other resources which will meet the same ends
VRIO framework - value, rareness, inimitability and org
hierarchical framework for determining the potential org success through internal resources
which is one of the most important qualities of desirable resources in the RBV theory
Inimitability
Path dependency
Valuable resources are developed over time
Causal ambiguity
It is difficult for people who have not been involved in the decision-making process to assess the specific cause-effect relationships in org
Social complexity
Unique networks of internal and external connections are natural barriera for imitation by rivals
Why organization’s resource can be imperfectly imitable and difficult to substitute?
- The ability of an org to obtain a resource is dependent on unique conditions (PD)
- The link between resources possessed by an org and its sustained comp adv is usually causal ambiguous
- The resource generating an org’s adv is socially compex and difficult to understand
disadvantage of UGBs approach
it only focuses on profit org
non-critical HR goals
desired outcomes for sales, market share, etc
critical HR goals Boxall and Purcell
- labour productivity (cost-effectiveness)
- org flexibility
- social legitimacy and employment citizenship
numerical flexibility
flexibility in the use of employees
functional flexibility
the degree to which employees are capable of performing multiple tasks and functions
often manifested through: job rotation, teamwork, job enlargement, and job enrichment
mental flexibility
the employees ability and willingness to change without resistance
also linked with agility - the org’s capability of adapting easily to changes in its external environment
distal outcomes
cognitive aspects
proximal outcomes
directly or almost directly affected by HR practices
employee satisfaction, commitment, motivation, trust, loyalty, retention, and turnover, etc
Boselie et al. There is no general consesus about
what constitutes HRM, what performance is, and whats the link between the 2
Paauwe + Richardson
Reversed causality
HRM activities, HRM outcomes, Performance are influenced by the contingency and/or control variables
and they have relationship between them as well
What do Wright and Nishii emphasize?
the role of line managers
