Investing in people and business performance - Theory

7 important questions on Investing in people and business performance - Theory

What does the resource based view of Barney entail?

Organizations flourish when they have an outstanding set of resources that will give an unique, competitive advantage

What is meant with the social exchange theory?

Resources are nested inside individuals (KSA) leverage is needed so the resources will be used

What is meant with SWOT in the resource based theory?

It is about strategic managemenent; characteristics of environment and organization are listed:
  • Positive organizational characteristics = strength (location)
  • Negative organizational characteristics = Weakness (slow response time)
  • Positive characteristics environment = opportunities
  • Negative characteristics environment = threat (competition)

Balance profiting from organizational strength and opportunities form the environment while managing weakness and guarding against threat.
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What is a critic to the SWOT analysis

Leads to everyone taking the same path with same strategy > no competitive advantage

What can be said about the core competent movement?

By looking at those aspects of the organization that contribute to success one can see it is an entire set of resources used to make it and determining the organizational strength

What are the 3 types of resources according to Barney:

  1. Physical capital: tangible assets you can count, replace. Think of financial resources, technology, property

  2. Organizational capital: intangible resources such as policy, values, traditions > making up systems to explain how work is done.
    2a. Structural organizational capital: Culture, routine, processes developed in organization -> written down and communicated
    2b. Social organizational capital: internal and external relationships

  3. Human capital: all KSA in people in an organization

To what must a resource lead to be seen as valuable

  • COst efficiency
  • Better quality of service/product
  • More innovation

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