Essays on Strategic Management of Human Recourse and Innovation - WesFarmers Case Study

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The paper "Strategic Management of Human Recourse and Innovation - WesFarmers" is an outstanding example of a management case study. There are four problems that are assumed and are required to rectify by the business manager, John Tomey. The first one is the unsatisfactory capabilities and skills of the staff and the managers as well. The second is the behavior of the staff, who either do not live the values or they do not consider numbers in measuring the performance. The third problem is the little experience of John Tomey in building the skills of the workforce.

Lastly, employee commitment is low in WesFarmers. It is also assumed that the competitive advantage of WesFarmer is the manufacturing and supply of ammonia. Moreover, there is an assumption, which states an aim to be achieved over the next three years and it is about growing the business by more than 20%. 1.2 Pieces of Advice to John In order to build and grow the workforce and to improve the performance of the business of Wesfarmers Chemicals, Energy and Fertilizers, this section will provide some SHRM models that can be useful for John to ace in his aim. 1.2.1 Resource-Based View In order to reach the level of capabilities, John is advised to use the Resource-Based view.

It is a model of strategic human resource management that can view the firm and provide a number of resources, in which human resources is the major one. These resources and their combination offer the firm to have an element of differentiation from other competing firms. Thus, it is an inside out approach that evaluates the internal resources and it will give the aspect of differentiation in the WesFarmer.

Since the internal environment lacks in motivation and the performance is needed to be increased, the advantage of this model is that it is more concerned for the internal environment as compared to the external one. The resources and capabilities are the major internal environmental factors that can affect the performance of WesFarmer. Hence, strategic action must be made by John Tomey to focus on internal factors. John can use RBV in three different analyses that will be discussed one by one in the following sections. Core Competencies It is difficult for John Tomey to focus on each and every activity and their required capabilities.

So, in this case, John can solely pay attention to only those capabilities that are linked up with the sustained competitive advantage. The capabilities that are important in gaining competitive advantage are known as the core competencies. Here, John is expected to devise such competence that is distinct, rare and exceptional. Dynamic Capability WesFarmer can modify its operations and functions and cope with the world by using this analysis.

Through the dynamic capabilities of the WesFarmer, it can integrate, establish and re-arrange the competencies that are internal and external at the time of changing environments. Knowledge-Based View This theory advocates the ability of a firm to learn the concepts and processes faster than the competing firms. In this way, a competitive advantage can be secured by John. Furthermore, it can also urge the WesFarmer to make its competitive advantage sustainable. It emphasizes on the explicit and tactic knowledge and the learning ability of the workforce.


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