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Questions and Answers
What is the general consensus regarding the relationship between HR practices and firm performance?
What aspect of HRM research has been criticized, particularly from the second stream of research?
Which statement about HR practices is true?
Since 2000, what has been a key focus of HR research with respect to performance?
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Which of the following statements reflects an area of disagreement identified by Boselie regarding HRM?
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What is the starting point for determining competitive advantage in the HR value chain?
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Which of the following factors is NOT a critical factor that creates competitive advantage?
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According to the resource-based view, what does the characteristic 'inimitable' refer to?
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Which of the following is NOT classified as an internal resource in the resource-based view?
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What does the VRIO framework stand for?
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Which HR practice is mentioned as positively affecting employee attitudes and behaviors?
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Which of the following does NOT align with the resource-based view of a firm?
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Which of the following describes a characteristic of human capital as a source of competitive advantage?
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What does the inimitability of resources indicate in the context of achieving competitive advantage?
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Which of the following factors makes a resource difficult to imitate according to the VRIO framework?
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What does organizational support enhance according to the VRIO framework?
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The critical HR goal of social legitimacy focuses on which of the following?
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What are distal outcomes in the context of HRM?
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Which of the following is NOT a level of performance output defined in the VRIO framework?
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What type of flexibility encompasses the organization’s capacity to adapt to changes in its environment?
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Which of the following statements about the role of critical HR goals is TRUE?
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Which of these factors is NOT associated with causal ambiguity?
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Which of the following describes the impact of employee scandals on organizations?
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What is a primary risk of linking distal outcomes with HRM?
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Which of the following statements correctly represents the organizational component of the UBGs?
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Which type of flexibility relates to the varying use of employees based on demand?
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What are intended HR practices primarily concerned with?
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Who predominantly implements actual HR practices within an organization?
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What is primarily influenced by employees' perceptions of HR practices?
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Which of the following best describes a professional organization?
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In the context of HRM, which role do line managers play?
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What aspect is NOT a primary concern when defining critical HR goals?
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Which factor is closely linked to the effectiveness of an HR value chain?
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How should organizations view their employees according to effective HRM principles?
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What is the focus of the Work Ability Index?
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Which of the following best defines employability?
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What can managers do to combat the fear of investing in employees' employability?
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What do the factors that significantly influence work ability include?
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What is a proposed benefit of communication in an organization?
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Which of the following dimensions supports the concept of employability?
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How should organizations adapt to ensure sustainability?
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According to the discussion, what is a significant misconception about employees in HRM?
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What is the relationship between work ability and career success?
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Which of the following is not a factor in retaining employees?
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Study Notes
Reverse Approach HR Value Chain
- The HR value chain represents the goal-setting and strategic decision-making of a firm.
- Determine competitive advantage--this looks at the ultimate business goals (UBGs).
- Determine critical factors--things that create competitive advantage (e.g., productivity, innovation, flexibility).
- Determine employee attitudes, behaviors, and cognitive factors--which positively affect critical success factors (e.g., motivation and job satisfaction).
- Determine HR practices--which positively affect employee attitudes and behaviors (e.g., selective recruitment and selection, extensive training and development, teamwork).
Resource-Based View (RBV) of the Firm
- RBV is a dominant theory in strategic management.
- It changed the approach to strategy from "outside-in" to "inside-out."
- The emphasis shifted from external, industry-based competitive issues to internal resources used to start organizational success.
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Sustained competitive advantage is determined by internal resources that are valuable, rare, inimitable, and non-substitutable:
- Valuable resources are economically beneficial.
- Rare resources are scarce.
- Inimitable resources are difficult to copy.
- Non-substitutable resources are difficult to replace.
- Internal resources can be financial, physical, organizational, or human.
VRIO Framework
- The VRIO framework represents the qualities of RBV (valuable, rare, inimitable, and non-substitutable).
- It is a hierarchical framework, meaning that the previous level must be achieved to improve the position relative to competitors.
- For long-term success, organizational support is crucial.
- Inimitability is one of the most important characteristics of desirable resources.
Path Dependency, Casual Ambiguity, & Social Complexity
- A resource can be difficult to imitate for three reasons:
- Path dependency: The ability to obtain a resource is dependent on unique historical conditions.
- Causal ambiguity: The link between organizational resources and sustained competitive advantage is difficult to understand.
- Social complexity: The resource generating an organization's advantage is socially complex and difficult to understand.
- Competitive advantage comes from past events, not just current choices.
Competitive Advantage & Critical HR Goals
- Boxall & Purcell: Linking Competitive Advantage to Ultimate Business Goals (UBGs)
- UBGs are twofold:
- Creating and maintaining viability with adequate returns to shareholders.
- Striving for sustained competitive advantage.
- UBGs are twofold:
- Organizational performance is represented by critical HR goals (labor productivity) and critical non-HR goals (market share).
Linking UBGs to Critical HR and Non-HR Goals
- Critical Non-HR goals include desired outcomes for sales, market share, and brand name.
- Employee scandals can negatively impact a firm and damage corporate reputation.
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Critical HR goals focus on desired outcomes for:
- Labor productivity: Output per unit of input.
- Organizational flexibility: The capacity to change and adapt.
- Social legitimacy: The legitimacy of an organization in the outside environment and to its employees.
- There are tensions between the critical HR goals, for example:
- High cost-effectiveness can be negatively associated with flexibility.
- Too much focus on social legitimacy can negatively impact efficiency and flexibility.
HRM and Performance
- The HR and performance debate involves testing the impact of HRM on performance.
- There is a general agreement that HR practices are weakly linked to firm performance.
- HR practices are personnel interventions or actions that shape the employment relationship in an organization.
HRM Activities and Outcomes
- Three types of HR practices: Intended, Actual, and Perceived
- Intended practices are policies and goals set by HR departments
- Actual practices are implemented by line managers
- Perceived practices are employees' perceptions of HR practices, influenced by their direct supervisors
- Line managers play a significant role in translating HR policies into actual practices
The HR Value Chain
- The HR value chain connects organizational strategy to HR outcomes
- It involves five steps:
- Define critical HR goals
- Identify intended HR practices
- Implement HR practices
- Assess HR outcomes
- Measure the impact on organizational performance
Guest Lecture by Lucienne Stavenuiter
- Employees are not resources, but the core assets and capital of an organization
- They add value and should not be viewed as costs
- The impact of technology:
- Head work - Technology & data design, clever use of analyzed data
- Handwork - Robotisation
- Pass-through data tasks - ICT (e.g., secretaries)
- HRM as a staff function has no direct influence on performance and is outdated
Work Ability
- Defined as the physical and mental condition to work, now and in the future
- Work Ability Index is a validated tool for measuring, predicting, and training work ability
- House of Workability includes factors influencing work ability:
- Personal: health, coping style, personality
- Organisational: norms & values, learning climate, personnel management/policies
- Functional: competencies, time in function, career involvement
- Manager: inspiration, learning value, work-home interference
- Mentor: social network, position on labor market
Five Dimensions of Employability
- Employability: The ability of a person to add value to an organization today and in the future, recognizing the value of the work for themselves
- Five dimensions of employability:
- Good - Delivering quality products or services
- Agile - Adapting to change
- Flexible - Adapting to changes and recovering from setbacks
- Connected - Aware of external trends
- Balanced - Meeting all needs and maintaining a healthy work environment
Employability and Work Ability
- Management/employability paradox: Managers are hesitant to invest in employee development for fear of losing them to competitors
- Research shows that investing in employee development increases their commitment and reduces turnover
- The combination of work ability and employability leads to:
- Career success
- Higher productivity
- Innovation
- Flexibility
- Agility
- Less absence
- Retention
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Description
Explore the HR value chain and the resource-based view of firms through this quiz. Understand how strategic decision-making and internal resources contribute to competitive advantage and employee effectiveness. Test your knowledge on critical success factors and HR practices.