What am I reading?

The abstract and introduction.

What is this article about? How
does the article contribute to our
knowledge and understanding of
the weekly topic AND the essay
topic?

The literature review. A review of

existing research and theory on the
topic. It usually leads to a set of
research questions or hypotheses.

Yu Yun Lim 2016

MGF 2661 HUMAN RESOURCE MANAGEMENT
GUIDED READING WORKSHEET
Barney, J.B., & Wright, P.M. (1997). On becoming a strategic partner: The role of human resources in gaining
competitive advantage (Working Paper 97.09). New York, America: Cornell University Industrial and Labour Relations
School.
Examines the importance of HR through Value, Rareness, Imitability and Organisation (VRIO) framework to having a
sustainable competitive advantage
Identifies why, despite many organisations stating HR is an important asset, organisations make contradicting
decisions to this statement
Examines role of HR manager in having competitive advantage
Identifies problem as inability of HR manager to explain economic advantage of HR for org.
Focus on knowledge, experience, skill and commitment
HR practices = policies, practices that manage humans
Resource-based view:
Physical capital (plant, equipment, finances); Organisational capital (structure, planning, HR system); Human
capital (skills, judgment, intelligence)
Wright, McMahan and McWilliams (1994), Lado and Wilson (1994), Snell, Youndt and Wright (1996): used
resource based view to examine effect on competitive advantage.
Value:
FedEx: link rewards with punishment treat employees right treat customers right customer satisfaction
= VALUE
Continental Airlines: On-time bonus (receive $65 for every time airline was on time and at the top) increased
morale
Something that adds to the output and provides an advantage
Rareness:
Valuable and common = competitive parity
Rarer = more value
Nordstrom: incentive based compensation system make extra effort to serve customers (change tyre in
carpark) not common service in retail industry
Imitability:
Harder to imitate = more value
DuPont: safety record, hard to imitate (makes explosives) even bought the same safety training manuals from
DuPont
Southwest Airline: org. culture extensive selection process fun and trusting cannot imitate the spirit

The methods, data analysis and

results
Outlines and justifies how the
research was done. Presents
analysed data and interprets results.
Conclusion and discussion
This section will tell you what the
findings mean and how they add to
our knowledge of the topic.

and attitude
Organisation:
Ford: assembly line workers more successful than GM as they are more cooperative and teamwork is better
culture and systems allow employees to participate and use cognitive skills
SHRM
System of HR practices rather than individual functions
Strategy/ policies that support the organisation, its goals, its function, etc.
Through direct and indirect means, HR influences how competitive advantage is created and maintained
Interviews with personnel and conclusions are taken from case studies to determine that sustainable competitive
advantage requires specific rather than general skills, with teams rather than individuals and a system of HR policies
and not just a single HR practice.

The conclusion mentions the implications for HR managers and emphasises the fact that employees provide the highest
chance at competitive advantage. To utilise this resource, they must know the value and role of each person plays, they
must remember that HR practices cost resources, know how their own policies compare to those of the competition and
know how the policy will benefit the future needs of the organisation. Finally, the VRIO framework allows HR
managers to participate in planning the strategy with other executives.
Finally,
The introduction of the resource base view provides another approach to seeing the value of employees. This helps to
What did you learn from the explain why the two views, employees as an asset and employees as a resource, exist. The resource based view is
largely associated with strategic human resource management as it views employees as a resource that can add value to
paper?
the company. Based on just this description, it may seem that it supports the second view where employees are treated
How will you use this
knowledge to respond to the as just resources rather than humans. However, the VRIO framework, value, rarity, imitability and organisation, which
was also introduced in this paper can also help to explore how the other view, where employees are assets, view the
in class essay?
value of employees, which in turn, will increase the competitive advantage of the company, all in line with the resource
based view. By having HR policies or practices that will increase the value for the company, that are hard to find in
their competition, that are difficult to imitate or if imitated, are harder for the competition to attain the same level of
efficiency in, and that fit in with the goals, culture and other important aspects of the company. Finally, competitive
advantage is only gained with the work of teams with specific skills who are supported by a whole system of HR
practices or policies rather than just a single practice or policy. This paper shown the important of HR in both creating
and maintaining sustainable competitive advantage.