Summary: Challenging 'strategic Hrm' And The Relevance Of The Institutional Setting. | Paauwe

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• 1 Introduction

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• One of the more fundamental aspects of the ongoing debate about the assed value of HRM relates to best practice vs best-fit. What does Paauwe means with those terms?

  Best practice suggests the universal success of certain HR practices, while best fit acknowledges the relevant impact of contextual factors.
  

• According to Delery and Shaw there are 3 general agreements. Which 3?

  1 Human capital can be a source of competitive advantage
  2 HR practices have the most direct influence on the human capital of a firm
  3 The complex nature of HRM systems of practice can enhance the inimitability of the system.
  

• 2 What are the theoretical foundations of strategic HRM as we know it?

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• The RBV has become the dominant theory in the debate on SHRM and on how HR and related HRpractices can have an effect on firm performance. In the RBV the emphasis in on gaining sustainable competitive advantage by effective and efficient utilization of the org. resources. This view led to a change, which one? (Paauwe)

  A change from an outside-in approach (emphasis on external issues) tot an inside-out approach (internal resources are the starting point for understanding org. success).
  

• This theory (see above) is applied to the field of HRM because of necessary conditions for org. success. Which 5 conditions are this? VRINN

  1 People who encompass properties of Value (contribute to the firm efficiency and effectiveness)
  2 Rarity (not widely available)
  3 Inimitability (can't be easily replicated by competitors)
  4 Non-substitutability (other resources can't fulfill the same function)
  5 Non-transferability (they can't be purchased (aangekocht) in resource markets)
  

• What is firm heterogeneity?

  The relative durable differences in strategy and structure across firms in the same industry that tend to produce economic rents and a sustainable competitive advantage.
  

• The condition of not easy to intimate is one of the most important. Firm resources can be imperfectly imitable to one of a combination of the following three reasons: (Paauwe)

  1 The ability of a firm to obtain a resource dependent on unique historical conditions
  2 The link between resources possessed by a firm and a firm's sustained competitive advantage is causally ambiguous
  3 The resource generating a firm's advantage is socially complex
  

• According to Delery and Shaw the RBV affords the researcher 4 advantages in investigating the strategic nature of HRM. Which 4? (Paauwe)

  1 Its focus is on competitive advantage from the perspective of inimitable (humans) resources that are less visible or transparent.
  2 Its emphasis on the complexity of org. systems in determining competitive advantage.
  3 Its concern with sustained competitive advantage or profitability at firm level
  4 Its breadth can be applied to a variety of research issues.
  

• What are the black box issues (Priem and Butler)?

  It refers to the numerous references to resources being useful withouf careful attention when, where and how they may be useful. It is a restriction of RBV.
  

• What is the overall criticism of the inside-out perspective?

  That it tends to neglect (verwaarloost) the importance of contextual factors, incl. factors such as threats of market entry and of suppliers.
  

• 4 New institutionalism

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• What does new institutionalism (NI) assumes? (Paauwe)

  That organizations conform to contextual expectations in order to gain legitimacy and increase their probability of survival. In general the institutional theory shows how the behavior of organizations is a response not solely to market pressure but also to formal and informal institutional pressures from regulatory agencies (e.g. the state), from general social expectations and from actions of leading organizations.