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. 126.96.36.199 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. 188.8.131.52 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. 184.108.40.206 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.
Banker, R., Chang, H. & Pizzini, M., 2004. The balanced scorecard: Judgmental effects of performance measures linked to strategy. The Accounting Review, 79(1), pp. 1-23.
Becker, B. & Gerhart, B., 1996. The impact of human resource management on organizational performance: Progress and prospects. Academy of management journal, 39(4), pp. 779-801.
Boxall, P., Purcell, J. & Wright, P., 2007. Chapter 24. In: The Oxford handbook of human resource management. UK: Oxford Handbooks Online, p. 489–491.
Chell, E., 2001. In: Entrepreneurship: globalization, innovation and development. London: Thomson, p. 233.
Christiansen, J., 2000. Building the innovative organisation. London: Macmillan.
Cooke, W., 2007. Multinational companies and global human resource strategy.
Davila, T., Epstein, M. & Shelton, R., 2006. Cultivating Innovation: How to Design a Winning Culture. In: Making innovation work. s.l.:s.n., pp. 237-261.
Davila, T., Epstein, M. & Shelton, R., 2006. Learning Innovation: How Do Organizations Become Better at Innovating?. In: Making innovation work. s.l.:s.n., pp. 211-235.
Davila, T., Epstein, M. & Shelton, R., 2006. Mapping Innovation: What Is Innovation and How Do You Leverage It?. In: Making innovation work. s.l.:s.n., pp. 29-58.
Hart, S., 1995. A natural-resource-based view of the firm. Academy of management review, 20(4), pp. 986-1014.
Helfat, C. & Peteraf, M., 2003. The dynamic resource‐based view: capability lifecycles. Strategic management journal, 24(10), pp. 997-1010.
Hodge, B., Anthony, W. & Gales, L., 2003. In: Organisation theory: a strategic approach, 6th edn. New Jersey: Prentice Hall, p. 51–78.
Kaplan, R. & Norton, D., 1995. Putting the balanced scorecard to work. Performance measurement, management, and appraisal sourcebook, Volume 66.
Kassulke, A., 2006. Building a creative company. In: Management Today. s.l.:s.n., p. 24–7.
Lipe, M. & Salterio, S., 2000. The balanced scorecard: Judgmental effects of common and unique performance measures. The Accounting Review, 75(3), pp. 283-298.
MacKenzie, 2001. Innovation and imagination at work. In: AIM Management today series. Roseville: McGrawHill Australia, p. 17–33.
Mahoney, J. & Pandian, J., 1992. The resource‐based view within the conversation of strategic management. Strategic management journal, 13(5), pp. 363-380.
Martinsons, M., Davison, R. & Tse, D., 1999. The balanced scorecard: a foundation for the strategic management of information systems. Decision support systems, 25(1), pp. 71-88.
Millmore, M., 2007. Performance Management: so much more than annual appraisal. In: Strategic human resource management: contemporary issues. s.l.:Pearson Education.
Millmore, M., 2007. SHRM in a changing and shrinking world: internationalisation of business and the role of SHRM. In: Strategic human resource management: contemporary issues. s.l.:Pearson Education.
Millmore, M., 2007. Strategic Human Resource Management (SHRM): a vital piece in the jigsaw of organisational success?. In: Strategic human resource management: contemporary issues. s.l.:Pearson Education.
Millmore, M. L., P, S., M, T. A. & Morrow, T., 2007. Strategy and Human Resource Management. In: Strategic human resource management. Hailow, UK: Financial Times Prentice Hall.
Moreno, V., Pinheiro, J. & Joia, L., 2012. Resource-Based View, Knowledge-Based View and the Performance of Software Development Companies: A Study of Brazilian SMEs. Journal of Global Information Management (JGIM), 20(4), pp. 27-53.
Peteraf, M., 1993. The cornerstones of competitive advantage: a resource‐based view. Strategic management journal, 14(3), pp. 179-191.
Pfeffer, J., 1995. Competitive advantage through people: Unleashing the power of the work force. s.l.:Harvard Business Press.
Schein, E., 1990. Organizational culture. American Psychological Association, 45(2), p. 109.
Tidd, J., Bessant, J. & Pavitt, K., 2001. Managing innovation. 2nd ed. Chichester: John Wiley & Sons.
Wernerfelt, B., 1984. A resource-based view of the firm. Strategic management journal, 5(2), pp. 171-180.
Wright, P., Dunford, B. & Snell, S., 2001. Human resources and the resource based view of the firm. Journal of management, 27(6), pp. 701-721.