Human Capital Management

10 important questions on Human Capital Management

What does do VRIO Framework present?

It presents implications for what types of resources both can and cannot be sources of sustained competitive advantage.

What does VRIO stand for?

  • Valuable
  • rare
  • difficult to imitate
  • supported by organization
    • Resources alone insufficient without effective organization
    • Importance of people strategies

Why is the LOS model effective?

Creates an explicit link between employees and the firm's strategic goals.  Employees will experience greater role clarity and a greater sense of task significance. This will improve employee performance
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2 effective people strategies that support LOS

Action alignment (A&O)
Interest alignment

Approaches to managing Human Capital (Su et al. 2018)

  • Commitment-eliciting
  • Compliance-achieving

4 approaches to governing employees (Su et al.)

  • Disciplined approach
  • Hybrid approach
  • unstructured approach
  • bonded approach

What does the hybrid approach of governing employees mean?

  • Motivates employees to exhibit more in-role and extra-role behaviors.
  • Emphasizes both external control and self-control
  • Makes full use of organizational capital, while also increasing human capital
--> Highest organizational performance!

What does the unstructured approach to governing employees mean?

  • Little investment in employees, and lacking a compliance strategy
  • No motivation of in-role and extra-role behaviors
--> Lowest organizational performance

What does the bonded approach to governing employees mean? (commitment > compliance)

Possible lack of attention for in-role behaviours

What does the disciplined approach to governing employees mean (commitment < compliance).

Possible lack of creativity/innovation, and burnout more likely.
Medium organizational performance.

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