Podcast
Questions and Answers
Which of the following is NOT a requirement for a resource to contribute to Sustainable Competitive Advantage (SCA)?
Which of the following is NOT a requirement for a resource to contribute to Sustainable Competitive Advantage (SCA)?
Strategic fit refers to an organization’s ability to adjust to its environment.
Strategic fit refers to an organization’s ability to adjust to its environment.
False
What is the role of HRM and human capital in achieving SCA?
What is the role of HRM and human capital in achieving SCA?
HRM practices attract, develop, motivate, and retain employees to contribute to organizational objectives.
An organization’s dynamic capabilities are ways to use its processes and managerial ______ to respond to the business environment.
An organization’s dynamic capabilities are ways to use its processes and managerial ______ to respond to the business environment.
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For diversity to be a source of SCA, HR managers must prioritize which of the following?
For diversity to be a source of SCA, HR managers must prioritize which of the following?
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Transformation in the workplace should be exclusive and selective.
Transformation in the workplace should be exclusive and selective.
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What term describes the alignment of an organization with its environment?
What term describes the alignment of an organization with its environment?
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Match the following terms with their definitions:
Match the following terms with their definitions:
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Criteria for HRM practices to contribute to SCA include asking whether a resource is valuable, rare, and ______.
Criteria for HRM practices to contribute to SCA include asking whether a resource is valuable, rare, and ______.
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Which of the following describes how organizations can achieve SCA?
Which of the following describes how organizations can achieve SCA?
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Study Notes
Sustained Competitive Advantage (SCA)
- SCA refers to factors that differentiate an organization from its competitors, enabling it to maintain market share and increase profits.
- SCA can come from organization-specific advantages and effective organizational design, which enhances profitability.
- Human resources (HR) play a crucial role in unlocking employee potential and shaping organizational culture and responsiveness.
Human Resource Management (HRM) and Organizational Performance
- HRM influences organizational outcomes but lacks a one-size-fits-all approach due to varying organizational environments.
- Contingency theory emphasizes that each organization requires tailored management strategies instead of universal best practices.
- The ability-motivation-opportunity (AMO) framework fosters horizontal fit by aligning HRM practices with internal strengths and external opportunities.
Competitive Advantage and Resource-Based View
- Competitive advantage involves strategies offering unique value not leveraged by competitors, while SCA relates to rare sources that are difficult to imitate.
- SCAs arise from internal strengths that effectively address external opportunities.
- The resource-based view (RBV) assesses resources through the VRIO framework: Value, Rarity, Imitability, and Organization.
Organizational Resources and Strategic Fit
- Key organizational resource groups include Financial, Physical, Human, and Organizational capital.
- To contribute to SCA, resources must be valuable, rare, inimitable, and non-substitutable.
- Strategic fit is the alignment of an organization with its external environment, while strategic flexibility denotes its ability to adapt.
Capabilities versus Dynamic Capabilities
- An organization’s capabilities encompass its functionality and managerial skills that shape its business environment.
- Dynamic capabilities enable organizations to adapt processes in response to changing markets and competitive landscapes.
Diversity in the Workplace
- For diversity to contribute to SCA, HR must prioritize employee needs, context for success, and removal of functional barriers.
- Transformation should be intentional, inclusive, and empower marginalized groups.
HRM Practices and Human Capital Contribution
- HRM practices form a systematic approach to attract, develop, motivate, and retain talent, ensuring alignment with organizational objectives.
- SCA emerges from effectively managed HRM practices combined with high-quality human capital.
- Special treatment in HRM for employees with core competencies can strengthen organizational competitive edge.
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Description
This quiz focuses on Chapter 2, exploring the concepts of human resources and dynamic capabilities in relation to sustained competitive advantage. It covers the roles of exploitation and exploration strategies, and how they contribute to maintaining a competitive edge in the business landscape. Test your understanding of these crucial theories in management.
