Strategic Human Resource Management and Innovation
1.I advise John to use Resource based view to accomplish all business. With the assistance of RBV, we can consider that human capital in which the firm contributes can possibly make predominant execution with the way of competitive advantages. This view focuses more on the role of manager for the administration parts. Basically, it deals with physical, human and organization resources that add unique value and are difficult for competitors to imitate. Human resources based on abilities, skills, the attitude of the workers and organizational resources such as framework, schedule and learning components (Colbert 2004).
Human resources also cover values of the organization through the satisfaction and opportunities at the work. Each employer should be acceptable with the employer and support all the activities performed by them such as rewards, performance based appraisal, shared visions and collective learning (Schminke, Arnaud & Taylor 2015). This methodology works on tangible, intangible, human resources and supports VRIO and VRIN framework. Valuable means to empower a firm to diminish cost and react to threats and achieve profit. Rare resources and rare capabilities obtain higher results. Inimitability means hard to copy for the competitors. Organization of resources includes all resources (Cantrell, Kyriazis & Noble 2015).
Non-substitutability of assets suggests that assets cant be substituted by another option asset. Here, contender cant accomplish same execution by supplanting assets with other alternative resources (Florea, Cheung & Herndon 2013). Tangible resources are physical resources, e.g. land, vehicles, machines, hardware, furniture, stock, bonds and money. These advantages are the foundation of an organization that keeps it underway, however, resources are not accessible to clients and expected to maintain the business consistently, Intangible resources are non-physical assets such as licenses, clients, contracts, copyrights, goodwill, internet, computer software, records, logo, culture of the company known as social capital (Roxas & Chadee 2011). The beneath image depicts the relation between all resources and company growth
Image source: (Newbert 2007). (See Figure 1.1 in Appendix A)
The resource-based perspective recommends that company can make an upper hand through the improvement and smart use of core resources and capabilities. Above figure shows the organization capabilities which include dynamic capability and core competency, Dynamic capability as a companys capacity to incorporate, form, and reconfigure skill. It is the heterogeneity of aptitudes and abilities accessible from its assets that gives every firm its uniqueness, due to unique capability more suitable for the John would result to improve outcomes (Viedma Marti & do Rosário Cabrita