Work Of Barney J Contribute To Hrm Management Essay

Work Of Barney J Contribute To Hrm Management Essay In 1991, Jay B. Barney authored a journal entitled Firm resources and sustained competitive advantage. The literatures main argument is that sustained competitive advantage can be obtained if the firm effectively and efficiently utilize its resources and capabilities that are valuable, rare, inimitable and non-substitutable (Barney 1991). This view of strategic analysis was regarded as the resource-based view (RBV) and different from what has been the customary external environment analysis which was exemplified in Porters five forces of competition (Porter 1979). Thus, focus was given to the strengths and weaknesses of a firm as much as the opportunities and threats of the external environment as the source of competitive advantage and foundation for creating strategies (Grant 2008). The RBV has been considered by many authors as contributing to the wider fields of study about resources and sustained competitive advantage (CITE) including human resources management. Hence, the focus of this literature is on the above mentioned work of Jay Barney and its contribution in the field of Human Resource Management (HRM) and the relationship of Strategic Human Resources Management (SHRM) with sustained competitive advantage. The essay will be presented accordingly in three parts. First is a discussion of the theories presented in Barneys work as regards RBV. Second are the ramifications of the RBV theory to the concept of HRM and SHRM. And last is a reflection on the limitations or critiques regrading RVB and the things to come for the study of SHRM. THE RESOURCE BASED VIEW OF THE FIRM At the onset, literatures regarding strategy and sustained competitive advantage were focused mostly on the external analyses of opportunities and threats in the environment of the industry for some time (Barney 1991). Porters five forces of competition exemplifies this focus of a firms position in relation to its external environment. Accordingly, strategies and sources of competitive advantage were made based on the analysis of the firms competition within its industry, the threats of new entrants, the threat of substitute products, the bargaining power of suppliers and buyers (Porter 1979). However, Peteraf (1993, p. 186) acknowledges that competitive advantage is not the product of varying industry attractiveness alone and that the RVB is a factor that contributed to such an understanding. Competitive advantage as described by Pralahad and Hamel (1990) is the product or result of several years of building core competencies that are superior to its rivals, and applying these compe tencies more effectively than its competitors and that the length of time to build core competencies and obtain competitive advantage is also relative to the capacity of firms to learn and apply learning more effectively. The foregoing explanation of CA thus foresees that resources intrinsic to a firm or firm resources are sources of SCA. With Barneys work, emphasis was given to a varying perspective towards strategy in which sustained competitive advantage is achievable if the firm takes advantage of resources that are valuable, rare, inimitable, and non-substitutable (Barney 1991). According to Barney (1995, p. 50), resources of a firm include all the financial, physical, human, and organizational assets used by a firm [and] human resources include all the experience, knowledge, judgement, risk taking propensity, and wisdom of individuals associated with the firm. Grant (2008, p. 131) further classifies resources into three: 1) tangible resources these are the financial and physical assets of a firm; 2) intangible resources which are the technology, reputation and culture possessed by the organisation; and 3) human resources which encompass the skills, knowledge, capacity for communication and collaboration, and the motivation that exists within the firm. All of these resources with the aforementioned characteris tics, when utilized effectively and efficiently through a firms organisation, systems and knowledge can be a source of sustained competitive advantage (Barney, Wright, Ketchen 1991). Based on the rationalisations mentioned, human resources are likewise potential sources of sustained competitive advantage. THE RESOURCE BASED VIEW AND HUMAN RESOURCE MANAGEMENT In his work, Barney consequently recognizes the importance of the RBV theory in the field of HRM, and that human resources can be valuable, rare, inimitable, and non-substitutable, and therefore become sources of sustained competitive advantage. Aside from specific human resources, policies and practices in HRM are valuable and inimitable since these resources cannot be easily replicated and requires a substantial period of time to get established (Barney 1991; Boxall 1996). Another characteristic of human resources is that of being rare or unique individually and as a group, for which Grant (2008) stresses that the key to competitive advantage is to exploit the firms unique resources, since strategies purely based on industry selection and positioning results in similar strategies among firms in an industry. These characteristics which epitomize RBV theory in Barneys work has been instrumental in providing the appropriate attention deserved by human resources in strategic planning, which leads to the notion of Strategic HRM (Wright, Dunford and Snell 2001). Further explanation provided by Pynes (2009, p. 31) is that SHRM is based on the assumption that in a dynamic environment, organizations need to be dynamic as well, this necessitates the need to acquire realistic information on the capabilities and talents of their current staff-in essence, their human resources. However, while RBV theorizes that competitive advantage can be sourced from the firms human resources, it is not solely the foundation from which profitability can be obtained in as much as a firms position in an industry cannot also be the sole source of competitive advantage. Competitive advantage and sustained competitive advantage can be attained by combining the customary external analysis, industry positioning and attractiveness with that of the analysis of the organizations internal resources (Collis Montgomery 1995). Through SHRM in particular, organizations can be better equipped to plan their human resource requirements in accord with the current needs within the organizations as well as with the present situation in the external environment (Pynes 2009). In essence, Barneys work has become a foundation from which HRM and SHRM gained prominence in the study of strategy and sustained competitive advantage. (Wright, Dunford, and Snell 2001) THE RVB, ITS LIMITATIONS AND CRITIQUES Priem and Butler (2001), provides a well acknowledge critique of the RBV literature offered by Barney about the RBV a theory. The critique is summarised in four areas wherein Barney offered counter arguments for each. Barney categorises Priem and Butlers (2001) assessments as: 1) the RBV theory is tautological; 2) failure to recognize that the composition of resources however diverse can generate similar value for a firm, and as such, cannot be a source of competitive advantage; 3) the 1991 article failed to give emphasis to the role of product markets; and 4) the theories derived has limited prescriptive implications. (Barney 2001, p. 41) These critiques, limitations, and assessments relating to various RBV literature, and in Barneys work in particular, has led to the increasing popularity of concepts such as knowledge management, learning organisations, flexible workforce and teamwork (Hartel, Fujimoto, Strybosch, Fitzpatrick, 2007, p. 14) Thus, giving groundwork from which further and more intricate study has evolved. CONCLUSION To sum up, the foregoing discussions presented Barneys 1991 work emphasising on resources that are rare, valuable, inimitable, and non-substitutable as foundations of sustained competitive advantage. More importantly, it has provided a backdrop from which due importance was given to the human resources of a firm in strategy formulation and contributed immensely to the notion of strategic HRM. Wright, Dunford, and Snell (2001) considers Barneys propositions on the sources of sustained competitive advantage as an influential in making or shaping the RBV premise significant in the context of strategy and in SHRM as well. For the future of RBV and SHRM, the articles critiques and limitations have instigated further study of the RBV theory and likewise opened new horizons for research in the field of HR and SHRM. Thus it is adequate and appropriate to say that the RBV theory which was emphasized in Barneys work contributed in the shift from strategy based on external factors and brought t o view the internal competencies and human resources of a firm in formulating strategies (Hartel, Fujimoto, Strybosch, Fitzpatrick, 2007, p. 14). There is a great depth of field for study and research in HRM and SHRM for which the RBV theory is relevant and a vital resource, future researches is definitely and will be very important to further appreciate and understand the relevance and essence of human resources in an organization. Annex A: Summary and Assessment of critiques to the Resource-Based View (RVB) (Kraaijenbrink, Spender, and Aard 2010, p. 360) Critique Assessment 1) The RBV has no managerial implications. Not all theories should have managerial implications. Through its wide dissemination, the RVB has evident impact. 2) The RBV implies infinite regress. Applies only to abstract mathematical theories. In an applied theory such as the RBV, levels are qualitatively different. 3) The RVBs applicability is too limited. Generalizing about uniqueness is not impossible by definition. The RBV applies to small firms and start-ups as well, as long as they strive for an SCA. Path dependency is not problematic when not taken to the extreme. The RBV applies only to firms in predictable environments. 4) SCA is not achievable By including dynamic capabilities, the RBV is not purely static, though it only explains ex post, not ex ante, sources of SCA. Although no CA can last forever, a focus on SCA remains useful. 5) The RBV is not a theory of the firm. The RBV does not sufficiently explain why firms exist. Rather than requiring it to do so, it should further develop as a theory of SCA and leave additional explanations of firm existence to TCE. 6) VRIN/O is neither necessary nor sufficient for SCA. The VRIN/O criteria are not always necessary and not always sufficient to explain a firms SCA. The RBV does not sufficiently consider the synergy within resource bundles as a source of SCA. The RBV does not sufficiently recognize the role that judgment and mental models of individuals play in value assessment and creation. 7) The value of a resource is too indeterminate to provide for useful theory. The current conceptualization of value turns the RBV into a trivial heuristic, an incomplete theory, or a tautology. A more subjective and creative notion of value is needed. 8) The definition of resource is unworkable. Definitions of resources are all inclusive. The RBV does not recognize differences between resources as inputs and resources that enable the organization of such inputs. There is no recognition of how different types of resources may contribute to SCA in a different manner. Lastly, Kraaijenbrink, Spender, and Aard (2010) have summed up the critiques as regards the RVB and offered evaluation and counterarguments to each (see Annex A). Among the eight critiques cited, three of which were acknowledged as not easily dismissible as the other five. The three assessments were concerned about the nature of resource and value as being indeterminate and the narrow explanation of a firms SCA. Another weakness in the RBV theory was the prominence of the attention given to individual resources compared to the importance of the conglomeration of individual resources and, which according to Kraaijenbrink, Spender, and Aard, does not reflect the real meaning of competitive advantage. (2010, p. 359)

Wawa Research Paper

The top of the hierarchy was still under development but included sales/production, forecasting and replenishment system. In the middle was an under development strategic sourcing program. At the bottom was the operational master data set: articles files for warehousing, ordering, pricing and scanning up to 45000 SSW. This technology was used to keep records of inventory, orders being processed for suppliers and keep records of the past months orders, which could be used as information to make many Important decisions.An important part of the new IT architecture was the Introduction of Dif (Demand Influencing factors). This system would forecast the changes (holidays, promotions and weather) and factor these changes Into the recommended order that It generates for the stores. Way also started selling gas as convenience stores when it comes to gasoline procurement. In the past they had seven or eight carriers that monitored the gas supply in their assigned stores through technology an d they communicated once a day and these carriers did everything for Way.The technology strategy required Way to unite WBI, NCSC and the Fresh Channel integrated under one banner to create a competitive advantage and be cost- effective. The IT strategy was effective for Way. The Dif that would automatically take demand influencing factors into account and forecast and replenish the system. This system saved a lot of time, energy, and effort for the store managers as rather than having to remember the fact that something is on promotion next week or that the demand has changed due weather/holidays this system takes all the factors into consideration and generates a recommended order.This gives the store manager more time to focus on many different things. In my belief their gas supply strategy was very effective. Way had an advantage when it came to gas distribution as they never owned a gasoline truck and never hired a gasoline driver or invested money in logistics. They were virtua l when it came to gas distribution. The store managers never had to worry that the fuel would run out; they Just had to focus on selling it. I think this system increased Haw's profit margins for selling fuel, as they did not have a lot of capital investment.Their strategies in technology helped the firm become more customer focused, which was their mission to simplify daily lives of people. Way technology strategies helped in reducing a lot of workload for the workers in the store so they could concentrate on customers. Way was in the process of developing a new systematic supply chain as their egoistic had reached capacity and their vendors had been inconsistent in supplying the stores. Way wanted to own the software but not the hardware. They wanted a consolidated facility, owned and operated by a third party.If they wanted to build their own distribution centre, it would have cost them at least the equivalent of 10 to 11 new stores. Way choose Mclean Company of Texas, as they we re by far there largest convenience store distributor in the country. They were in a strategic â€Å"100 – 100 partnership†. NCSC was a 220,000 square-feet building and had 5 different imperative zones. The NCSC used to dispatch trucks between 1 am and 4:mama and every store had consistent deliveries with a 2-hour EAT. This allowed the management to plan for enough labor so they could shelf the products upon arrival.In the convenience story industry many of Haw's competitors did not realize that delivery timings were affecting their customers. It has happened to me a number of times when I go to a 7-11 and if they are getting a delivery their parking lot will be full and the store will be over crowded and understaffed as most the workers are emphasizing on shelving he items instead of paying attention to customers. NCSC handled 1800 SKU and it turned over products in ten days. Although Way owned the inventory, Mclean use to do everything for Way.They used to give order s to the vendors, manage inventory and inform Way how much they owe to the vendors. NCSC was able to such that all the Way stores could be reached in a day. Way did not want to waste capital on building their own facility as their competitors suffered by doing so. NCSC had only 6 Way employees and their Job was to maintain relations between Haw's marketing department and Mclean merchandising department. This also is a very important lesson for their competitors, as they also should maintain good relations with their distributors because one party cannot succeed at the expense of others.Bluebells stated that the relationship is like a marriage. Most employees of Way and Mclean consider this a strategic partnership and their partnership was a testimony for other players in the industry. NCSC was impressive in the technological aspect also. It promised to be an impressive array of third party logistics, cross docking, virtual management and mutual adjustment within and amongst organiza tions. Operations in NCSC and Fuel supply were meticulously choreographed, tightly coupled and highly efficient..Outsourcing this process, like the NCSC and Fuel channel, to experienced companies would allow Way to develop an efficient distribution network at a significantly less cost, and concentrate the majority of their resources on the customers. Haw's SCM going forward was quite impressive as well. They were going to implement the fresh channel. Fresh channel would be a central kitchen where food items could be prepared which were previously made in stores. This was done in order to maintain uniformity and increase the flexibility. Way has one of the most impressive and effective distribution channels in the industry.Going forward I think the company should continue its traditions of giving the customer more importance. Way should find another company like Mclean or offer Mclean a contract for another location so they could expand on their stores and be NCSC was expected to las t until 2012 but it is already full at the moment, which gives the organization very little room for growth. The Fuel Channel is one of Haw's best supply channel so I think they could add more gas stations to their stores as I have seen many Haw's thou gas stations.This would help the company expand their market and geographical radius. I think Way should also have websites or mobile phone applications, which tell the customers about the number of people in the store or the approximate waiting time. They should also let customers order their food from their kitchen freshly made in the store online. I consider Way to be green to an extent as they have reduced their number of truck deliveries and Fuel channels do not even use one truck. Way is virtual in gas distribution. Way could start using recycled labels on their private products.

1993 Ap Us History Dbq

During the 17th century there were many colonies settled in the New World. One thing most of these colonies had in common is the fact that almost all of them were settled by the English. If one were to focus mostly on the New England and Chesapeake colonies, one would find that although they were settled by similar people, they ended up splitting for very different reasons. The New England colonies were searching for religious freedom from the Church of England, whereas the Chesapeake colonies were striving for economic growth.The New England colonies consisted of the settlements of Massachusetts Bay Colony, Connecticut Colony, Colony of Rhode Island and Providence Plantations and Province of New Hampshire. Most, if not all, of these colonies were mainly settled by religious motivation. They did not want to be told by what means they could or could not worship, that was the reason they left England in the first place. Now in this new world they were being given the same rules. They w anted to control their cities by the rules of God that they believed.They wanted to elect their own faithful minister to make the laws and divide up their real estate (Doc D). They also wanted to follow John Winthrop’s idea of a model puritan city, the â€Å"City on a Hill† (Doc A). The first name on a list of emigrants coming to the New England was Joseph Hull of Somerset, he was a Minister. His name was the very first name on the list, therefore his name was the most prominent name on the list, and he was a minister (Doc B). This shows that the New England colonist truly respected members of the clergy.The Chesapeake colonies were settled for very different reasons. They were mainly settled for economic development and prosperity. In many of the Chesapeake colonies, such as Connecticut, the prices and wages were set and agreed upon by the court. They did not have any religious figures decided laws or actions to carry them out. Many of the tradesmen, as well as the la borers, in Connecticut were told to â€Å"consider the religious ends of their calling† and to â€Å"[not] live in the practice of that crying sin of oppression, but avoid it† (Doc E).This means that they were told to end their religious practices but to also avoid the life of sin. By doing this, they made room for more work which would in turn help the settlement prosper economically. There were also many plantations in the Chesapeake colonies. These plantations grew tobacco which inclined many workers to uphold the demand. This helped to draw in many English workers, as well as African Slaves, which ended up helping the economic growth of the colony overall. Lastly, both settlements were colonized by two different types of people, with extremely different motives.The Chesapeake colonies, such as Virginia and Maryland, were colonized by single men looking for the potential development of economic growth, and the ability to make a profit. Whereas the New England Coloni es, such as Rhode Island, were colonized by family men looking for a place where their family could be free from religious oppression. Virginia was colonized by John Smith, a single man who saw the opportunity to make some money and did everything in his power to keep the colony alive in order to do so.Maryland was colonized by Lord Baltimore, another single man who granted real estate to his friends which paved the way for economic growth. Although the New England colonies and the Chesapeake colonies were both settled by Englishmen, they split for very different, but equally legitimate reasons. The New England colonies were searching for religious freedom from the Church of England, whereas the Chesapeake colonies were striving for economic growth.

Coca Cola s Success And Expansion - 928 Words

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