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Week 6 – module 5-6 - Coggle Diagram
Week 6 – module 5-6
Resource-Based View (RBV) – Module 6
Core Idea
Competitive advantage comes from internal resources
VRIN Framework
Resources must be
Rare
Inimitable
Valuable
Non-substitutable
Types of Strategic Resources
Technology
Patents
Knowledge (tacit knowledge)
Systems
Skilled employees (human capital)
Organisational Capabilities
Core competencies
Social capital (relationships)
Human capital advantage
Human process advantage
Key Idea Link
RBV → Competitive Advantage
Resource Dependency Theory
Organisations rely on external relationships
Mutual dependence
Supplier relationships
Power imbalance
Foundations of SHRM (Module 5)
Key HRM Models
Harvard Model
HR outcomes
commitment
competence
congruence
cost-effectiveness
Situational factors
labour market, laws, workforce, strategy
Long-term outcomes
organisational effectiveness
employee wellbeing
Stakeholders
employees, management, unions, government, community
HR policy choices
recruitment, rewards, work systems
Michigan Model (Matching Model)
“Hard HRM / strategy alignment”
Influences:
business strategy
organisational mission
HR practices MUST match:
economic
cultural forces
political
Schools of Thought
Best Fit (Contingency)
“Depends on context”
Align with:
culture
strategy
environment
Types of Fit:
Horizontal fit → HR → HR
Vertical fit → HR → strategy
Other fits:
Societal
Organisational
Industry
Criticism:
Hard to measure “fit”
Limited evidence
Complex to implement
connected - not opposites
Best Practice (Universal)
“One best way”
Applied to ALL organisations
High-performance HR practices
Pfeffer’s Practices (cluster together):
Employment security
Selective hiring
Training & development
High wages
Incentives
Participation
Self-managed teams
Promotion from within
Criticism
Ignores context
Expensive
No universal agreement
Culturally biased
Purpose of SHRM
Focus on long-term performance
Integrates human capital + business strategy
HR as strategic partner
Institutional Perspective (Module 6)
Core Idea
Organisations shaped by external environment
Institutional Elements
Social norms
Cultural values
Laws & regulations
Industry standards
Decision-Making
NOT purely rational
Influenced by:
Expectations
Industry norms
Society
Dynamic Capability
Definition
Ability to:
Innovate
Respond to change
Adapt