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Questions and Answers
What is sustained competitive advantage?
What is sustained competitive advantage?
It is the range of factors that set an organisation apart from its competitors in a way that allows maintenance of market share and an increase in profit.
Which of the following factors contributes to sustained competitive advantage? (Select all that apply)
Which of the following factors contributes to sustained competitive advantage? (Select all that apply)
What is the role of human resources in achieving sustained competitive advantage?
What is the role of human resources in achieving sustained competitive advantage?
HR shapes the culture and responsiveness of the organization and can unlock employee potential.
Exploitation and exploration strategies are unrelated to sustained competitive advantage.
Exploitation and exploration strategies are unrelated to sustained competitive advantage.
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What does the AMO framework stand for?
What does the AMO framework stand for?
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The resource-based view of SCA uses four lenses: Value, Rarity, Imitability, and ______.
The resource-based view of SCA uses four lenses: Value, Rarity, Imitability, and ______.
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What is strategic fit?
What is strategic fit?
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In a SWOT analysis, threats are internal factors.
In a SWOT analysis, threats are internal factors.
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Which of the following is NOT a group of organizational resources?
Which of the following is NOT a group of organizational resources?
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What are dynamic capabilities?
What are dynamic capabilities?
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For diversity to contribute to sustained competitive advantage, HR managers must prioritize the removal of barriers to organizational functioning.
For diversity to contribute to sustained competitive advantage, HR managers must prioritize the removal of barriers to organizational functioning.
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Study Notes
Sustained Competitive Advantage (SCA)
- SCA refers to factors that differentiate an organization from its competitors, allowing maintenance of market share and profit increases.
- SCA can stem from organization-specific advantages, employee potential unlocked by HR, and effective organizational design.
Human Resource Management (HRM) and Organizational Performance
- Research indicates HRM significantly influences organizational outcomes.
- Contingency theory asserts that management practices must adapt to unique organizational environments, as no singular best practice exists.
- Vertical fit denotes the alignment of organizational strategy with business strategy, while horizontal fit ensures HRM practices align internally.
Ability-Motivation-Opportunity (AMO) Framework
- Motivational theories suggest that individuals are driven to perform when they expect their efforts will yield valuable rewards.
- The AMO framework is utilized to achieve horizontal fit by combining HRM bundles to enhance employee performance.
Competitive Advantage vs. Sustained Competitive Advantage
- Competitive advantage involves value-creating strategies not yet adopted by competitors.
- SCA consists of rare competitive advantages that are difficult to imitate, leveraging internal strengths to capitalize on external opportunities.
Resource-Based View of SCA (VRIO Framework)
- Key lenses for assessing resources include:
- Value
- Rarity
- Imitability
- Organization
- Resources must be exploited fully to neutralize threats and leverage opportunities.
Organizational Strategies for SCA
- SCA can be fostered through exploitation (maximizing current resources) or exploration (innovating and adapting).
- Strategic alignment of business functions is crucial, considering tensions between short-term and long-term goals.
Types of Organizational Resources
- Four main groups of resources are:
- Financial capital resources
- Physical capital resources
- Human capital resources
- Organizational capital resources
- For resources to contribute to SCA, they must be valuable, rare, imperfectly imitable, and non-substitutable.
Dynamic Capabilities
- Dynamic capabilities refer to an organization's ability to adapt its processes and managerial skills in response to changing environments.
- Diversity in the workplace should focus on:
- Employee empowerment
- Supporting thriving environments
- Removing barriers to functionality
Criteria for HRM Practices
- HRM practices must be designed to attract, develop, motivate, and retain employees effectively.
- Exceptional HRM combined with strong human capital leads to superior organizational performance and sustainable competitive advantages.
Special Treatment of Employees
- Organizations may achieve SCA by providing special treatment or recognition to employees who possess core competencies.
- This can lead to enhanced products, improved service, and increased innovation.
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Description
This quiz focuses on Chapter 2, which delves into the concepts of human resources, dynamic capabilities, and sustained competitive advantage. You will explore the roles of human resources and strategic approaches like exploitation and exploration that contribute to maintaining a competitive edge in business. Test your understanding of these critical themes in organizational management.
