Essay on The Human Resource Based View

1836 Words Sep 16th, 2016 8 Pages
The human resource (HR) function has routinely faced battle in effort to establish, legitimise and justify its position within organisations, in order to demonstrate value and therefore, exercise influence, as a strategic decision-making partner with ability to develop and maintain competitive advantage (Aldrich, Dietz, Clark, & Hamilton, 2015; Wright, Dunford, & Snell, 2001). Focus on the resource-based view (RBV) shifts emphasis away from the external factors such as market environment that drive competitive advantage, to internal factors such as human capital, attracting credibility to the HR assertion that people are the strategic link to competitive advantage (Hoskisson, Hitt, Wan, & Yiu, 1999). Recognition of human capital as a distinct contributor in the quest to harness and maximise competitive advantage has been instrumental in developing the necessary links between employees, and their motivations and competencies for organisational performance, and the organisational systems and structures within which they operate. People systems and structures are of critical HR concern, such as those of senior leadership as a link to positive labour force relations and how an effective leader guides organisational performance to it’s potential, in addition to the employment relations leaders build through establishing culture and unique historical dynamics in the organisation performance pursuit to create competitive advantage (Boxall, 1996). Development of a learning…

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