Resource Based Theory Creating and Sustaining

Question: Discuss about the Resource Based Theory for Creating and Sustaining. Answer: Introduction: The course of action recommended to the CEO in case of the first hospital for improving the operations related to the HRM at the hospital is that first of all the hospital should have a separate HR department instead of the CEO, the finance manager and the middle level managers carrying out the operations related to the HR. the reason for this is HRM is receiving increasing significance in the contemporary world and with the organisations looking for more competitive advantage it is essential that there is a specialised HR department rather than the CEO and the finance manager who are already burdened with their respective functions performing the additional function of HR in the organisation. The role of HR today includes job analysis, selection and recruitment, staffing, training and development, laying down policies and procedures, performance management along with motivating the employees, overlooking the occupational health as well as safety to the managers of the middle level (Gilley, Eggland, Gilley, 2002). All this results in decreased employee turnover and absenteeism and increases their performance. The CEO, the finance manager and the middle level managers have to perform their respective functions and cannot be expected to do justice to both the functions and they also lack awareness about the specialised HR functions as they feel that it is not a part of their jobs. Besides this the external consultant paying a visit only once a week for overlooking the development of HR practices and policies is not a solution as day to day observations are required to develop and implement such policies in a manner that is effective as well as efficient. The team will have to meet on a regular basis for developing strategic HR capability which is incongruence with the organisational goals and for developing key performance indicators like complaints, employee morale, accidents, absenteeism, employee turnover, etc. for every HR function so that regular monitoring of HR processes, practices and policies can be done. Such a scenario will result in a situation like happened in the case of the first hospital like inconsistent application of the practices and policies of HR causing industrial disruption. Hence, we can say that since HR department plays a role which is crucial in terms of staffing, training, developing practices and policies and also in assisting in the management of people so that both the people as well as the organisation are able to perform to their maximum capability in a manner that is highly fulfilling (Marchington Wilkinson, 2002). The hospital thus needs a separate HR department comprising an HR manager along with his team who will be able to obtain the goals of the organisation through their employees. HRM might be described as an approach that is strategic for the managing employee relations and the focus of which is on leveraging the capabilities of the people for achievement of sustainable competitive advantage (Bratton Gold, 2003). The major functions that are performed by HRM consist of planning, recruitment as well as selection, appraisal along with performance management, reward management, union-management relations, development and also employee relations along with health as well as safety (Bratton Gold, 2003). This achievement of all of this is possible by a set of practices that are of distinct type, programs and policies of employment which are integrated and hence only an HR department within the organisation can perform this role. A separate HRM within the hospital will be able to increase the contributions that the employees make towards the organisation. Such contributions can be in the form of new ideas and working productively for attaining success. This way the HRM should be able to minimise the negative forces on the organisations and will be able to establish higher standards in places of work for each employee (Armstrong, 2006). Such a specialised department will also be able to help the organisations in reaching an optimal performance by complete utilisation of their potential and capacity, convincing the employees for putting in additional efforts to reach the organisational goals, meeting the development and career expectations of the employees, unifying the plans of the organisation and strategies of HR for creating and maintaining a corporate culture, offering a working environment that will stimulate energy and creativity, creating working conditions that will stimulate concept of total quality, teamwork and innovation and encouraging flexibility for achievement of learning organisations (Barutugil, 2004). The HRM needs to be evaluated in terms of the business as a whole and its functions cannot be taken as being independent of one another. Thus, it is an inevitable necessity for todays organisations to have HRM which is in accordance with the organisational culture, is accurate also a part of a particular organisation strategy and which can carry on with its activities. Hence, it is vital to process the basic HRM functions in context of the strategies as they play a crucial part in making sustainability successful. The HRM also needs to make wise use of its present human resources, supply the future human resources both on qualitative and quantitative terms (Akyz, 2001). The determining factor for human resources training is the strategies, mission and vision of the organisation (Barutugil, 2004). If the hospital is given a separate HR team led by the HR manager, retention of staff and improvements in morale as well as overall quality in terms of safety and care of patients. If the hospital continues to lack HR manager with a motivated and dedicated team of HR it can result in negative events like increasing wage costs, transfer of labour force, decrease in efficiency, accidents at jobs, decline in levels of motivation as well as job satisfaction along with rise in costs of business related supervision and the issues being currently faced by the hospital such as staff grievances of high levels, turnover and absenteeism and shortage of staff decreased quality of care and increase in accidents involving the staff and patients some of which may turn out to be of serious nature. Thus, for being a leading provider of healthcare, the hospital needs to have a separate HR manager with his team which will be able to adopt HR practices and policies for various strategies. In order to be effective, the HR policies of the organisation have to be consistent with other organisational aspects. This will increase the organisational commitment and engagement of the staff. This in turn will result in an effect that is positive on the patient care quality. Having in place appropriate practices and policies will help the organisation in eliciting employee behaviours which are consistent with its strategy (Rose Kumar, 2006 ; Ozcelik Ferman, 2006). Key Features for Building Sustainable HR Capability Remaining competitive and achieving better performance is supposed to be a major challenge especially for firms of today that exist in an environment of high velocity. Intensive competition along with great uncertainty is experienced by firms in such environments. Hence, for survival in such circumstances, the organisations should possess the ability of being able to renew their resource base in accordance environmental alterations. The emergence of the Dynamic Capabilities View (DCV) has attempted to resolve the complex issue related to sustainable competitive advantage in the todays environment which has become increasingly dynamic (Einsehardt Martin, 2000). The main assumption for this is that organisations that are able to figure out and also sense new opportunities and in addition to that are able to bring about reconfiguration in both their resources as well as capabilities in accordance with the alterations in the environment that have been recognised and opportunities will b e in a position of creating and sustaining a competitive advantage (Teece, 2009). The HRs capability has been recognised as being a major source for such a type of sustainable competitive advantage and hence the related organisational performance (Barney Clark, 2007 ; Ambrosini Bowman, 2009). The key features for building sustainable HR capabilities include being able to look at the function of HR function as being more than just delivering administrative services that at are cost effective and providing expertise on the way of leveraging the human capital (Jamrog Overholt, 2004). At the same time, the function that is performed by HR practitioners as leaders of change and strategic partners in business has also become crucial (Walker Stopper, 2000 ; Rennie, 2003). The competitive forces which is faced by the firms today also lead to the creation of new mandate for the HR which has necessitated changes in the role and structure of the HR function and added to it roles as well as responsibilities. The business environments increasing harshness and competitive pressures have resulted in making HR a specialised function (Macky, 2008). Consequently, it has become essential for HR practitioners to understand that they possess the potential of playing a vital role in maximisa tion of the organisations HR efficiency and their role has also become more strategic simultaneously and their roles have been divided into strategy and operations (DuPlessis, 2010). The workforce of an organisation is their lifeblood and represents the resources which are most valuable and potent (DuPlessis, 2009). Hence, the extent to which the management of workforce is there happens to be crucial for the enhancement of internal effectiveness and improvement of organisations competitiveness. A role that is increasingly vital is played by HR practitioners in maximising the HRs efficiency in an organisation as the employee behaviour is supported by HR which is vital for accomplishment if key process of the organisation and thus advancing the organisations success and sustainability (Nel, et al. 2011). With globalisation emerging and developments taking place in technology, the shift in the direction of a workforce that is knowledge-based and intense competition for labour that is skilled has created new competitive realities and has put the organisations under pressure of reacting to changing conditions for cultivation of competence in HRM (Horgan, 2003). The normative view that exists currently is that a strategic HR practitioner is viewed as a professional who has the ability of developing, planning and implementing a large number of activities pertaining to the organisation with the performance of the organisation (Murphy Southey, 2003). The practices as well as policies of HR have implications of strategic nature on the performance of the organisation and therefore on being able to take decisions in relation to any structures pertaining to employment, the HR practitioners need to possess the capability of making strategic choices (Boxall Purcell, 2000). The HR also has to make decisions that are significant and truly strategic in nature and have a perspective that is long term as changes occur in the conditions of business and the response of the organisation to such conditions which influence the organisational success (Barney Hesterly, 2006). The literature review is an indication that firms that are able to deploy their HR capabilities as capabilities that are dynamic possess the potential for building a sustainable competitive advantage. This is especially true in environments that are of high velocity. The firms that demonstrate a commitment stronger than others towards deploying HR capabilities as their capabilities of dynamic nature are able to achieve greater success and vice versa. There is an increasing consensus that human capital that is effective is crucial to the success of the organisation and thus, the function focus of HR needs to be highly strategic. HRM which is effective provides employees with the chances of making effective and productive contributions to the overall direction of the organisation and accomplishments of its objectives and goals. Employees have the most crucial value in a workplace making HRM a key factor for any business to be successful. All the other functions are dependent on the HR function for their success. Only if the right persons are recruited by the HRM at a time that is right and at a place that is also right, the other functions will prove to be successful. In the globalised world which has businesses that are a component of competitive markets globally, managing HR capabilities at every level is forced upon the business so that they can build sustainability. Thus, the HR forms the most crucial assets that any organisation possesses and hence effectively managing them is necessary for contributing towards the firms sustainable competitive advantage. Bibliography Akyz, . (2001). De?i?im Rzgar?nda Stratejik ?nsan Kaynaklar? Planlamas?. Sistem. Ambrosini, V., Bowman, C. (2009). What are dynamic capabilities and are they a useful construct in strategic management. International Journal of Management Reviews , 11 (1), 29-49. Armstrong, M. (2006). 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