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Critically evaluate how the Resource based view approach to HRM can help or fail to produce the performance outcomes an organisation requires - Essay Example

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For instance, where an organisation’s resources can exhibit VRIO attributes, then these resources places the organisation in a…
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Critically evaluate how the Resource based view approach to HRM can help or fail to produce the performance outcomes an organisation requires
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"Critically evaluate how the Resource based view approach to HRM can help or fail to produce the performance outcomes an organisation requires"

Download file to see previous pages isting resources within an organisation and in a new way instead of acquiring new skills for each new opportunity that presents itself in the business environment is ideal to improving organisational performance. Where organisations focus on RBV approach, resources are ideal in enabling the organisation to achieve better performance. In applying RBV approach, two types of resources are available for organisation to use to exploit opportunities in the business environment; this includes the tangible and intangible resources. However, tangible resources can be accessed easily in the market and as such; they bring little advantage for organisations when considered in the long-term basis since competitors can acquire the same resources. On the other hand, intangible resources denote resources that are not physical and those that are at the disposal of the organisation to use in improving performance. For instance, an organisation can use brand name or trademark to create uniqueness over competitors (Wright, Dunford & Snell, p.711).
In essence, it is impossible for competitors to buy brand reputation of other firms in an attempt to improve their competitive nature in the business environment. Conversely, while RBV aid in improving an organisation’s competitive edge, it has to be noted that for such goal to be realised, the approach has to consider two critical assumptions that include heterogeneity and immobility (Colbert 2004, p.351). This paper examines how RBV approach to human resource management can help or fail to produce the performance outcomes that an organisation requires.
RBV approach to human resource management proposes the view that various resources within an organisation are the key to realising positive outcomes and this includes human capital or resources. These internal resources are also viewed as important in providing an organisation the required competitive advantage in the business environment. This is because when resources within an ...Download file to see next pagesRead More
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