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Dr. Paul M. Swiercz Department of Management Science The George Washington University 202-994-0399 prof1 @ gwu.edu

Human Resource Systems for Competitive Advantage. Dr. Paul M. Swiercz Department of Management Science The George Washington University 202-994-0399 prof1 @ gwu.edu. “There is nothing quite so practical as a good theory”. Kurt Lewin. Outline. Introduce strategy and competitive advantage

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Dr. Paul M. Swiercz Department of Management Science The George Washington University 202-994-0399 prof1 @ gwu.edu

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  1. Human Resource Systems for Competitive Advantage Dr. Paul M. Swiercz Department of Management Science The George Washington University 202-994-0399 prof1@gwu.edu

  2. “There is nothing quite so practical as a good theory” Kurt Lewin

  3. Outline • Introduce strategy and competitive advantage • Review of systems theory • Resource Theory of the Firm • FourSquare Model of Competitiveness

  4. Strategy is: • The pattern of decisions that integrates goals and actions into a cohesive whole, directing the allocation of the organizational resources toward the develop of a distinctive competence

  5. Three Levels of Strategy • Corporate • Business • Functional

  6. Systems Theory • All systems are open systems • Boundaries between systems are artificial • Large systems are chaotic • Systems tend to be homeostatic

  7. Sustainable Competitive Advantage The unique position an organization develops in relation to competitors that allows it to outperform them consistently. (Hofer and Schendel, 1978)

  8. Resource Theory of the Firm • Firms are bundles of resources • Firms within a strategic group are mostly similar and modestly different • Resource differences are the source of sustainable competitive advantage

  9. Resource Sub-groups • Physical • Human • Organizational

  10. Distinctive competence is: • the special skills, capabilities, technologies, products, or resources that enable a firm to distinguish itself from its rivals and create a competitive advantage

  11. Stages of Capitalism • Petite Capitalism • Industrial Capitalism • Global Capitalism

  12. FourSquare Model of Competitiveness Finance Operations Marketing Rewards Staffing HR Influence Design

  13. What is Strategic HRM? Two step definition: the HR System is the set of policies and practices that mediate the relationship between employer and employee. Strategic HRM is directed at the development and implementation of an HR System contributing to the creation of a sustainable competitive advantage.

  14. FourSquare Model of Competitiveness Financial Operations Staffing Rewards Marketing Influence Human Resources Design Competitive Strategy HR Sub-systems Employment Relationship Individual Behaviors Firm Performance Inducement Investment Involvement Contribution

  15. Summary • HR is a key performance sub-system • Strategic HR is primarily concerned with the employment relationship • the HR system is an organizational resource in its own right

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