The paper “ Strategic Human Resources Management and Competitive Edge in the Context of Resource-Based View” is an outstanding example of the literature review on human resources. Human Resource management has developed in its range to the point where it has become an industry rather than just a simple profession. Even though there may be a significant argument regarding the actual functions human resource should carry out and how it should be done, a human resource established a place at the senior management table by the early 1990s through their capacity to unravel and solve practical problems in areas such as staffing, employee relations, training among others (Peter, 2003).
Jackson and Schuller (1995) explain that the practice of Human Resource Management revolves around all aspects of how people are employed and managed in institutions. Therefore, human resource management can be explained as a strategic, integrated, and articulate approach to the employment, development, and well-being of the people working in firms. It has a robust conceptual basis drawn from the behavioral sciences as well as from human capital, strategic management, and industrial relations theories. Whether in the public or private sector, all organizations, aspire to attain strategic objectives.
Private sector organizations have particularly been on the forefront compared to public institutions. Therefore, private sector firms have taken advantage of the SHRM of the RBV approach in realizing competitive advantage. This calls for a clear understanding and connection between these strategic objectives and the key competencies required for their realization. To realize sustainable competitive advantage firms need two kinds of capabilities; non-contingent and differentiating capabilities (Hoopes et al. , 2003). Non-contingent capabilities are those competencies that every firm needs, to varying extent, for instance, effective financial management.
These capabilities are the basics that will enable an institution to be “ just as good” as its competitors. Differentiating capabilities are competencies that distinguish one institution from another and are the basis of real competitive advantage (Petra and Juan, 2002).
Barney, J 1991, “The Resource Based View of Strategy: Origins, Implications, and Prospects.” Journal of Management, vol. 17, no. 1, pp. 97-211.
Batt, R 2000, ‘Strategic segmentation in front-line services: matching customers, employees and human resource systems’, International Journal of Human Resource Management, vol.11, no. 3, pp. 540-61.
Boxall, P and Purcell, J 2000, ‘Strategic human resource management: where have we come from and where should we be going?,’ International Journal of Management Reviews, vol.2, no. 2, pp.183-203.
Cleland, J, Pajo, K. and Toulson, P 2000, “Move it or lose it: an examination of the evolving role of the human resources professional in New Zealand”, International Journal of HumanResource Management, Vol. 13, N0.4.pp. 691-704.
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Eaton, S 2000, ‘Beyond unloving care: linking human resource management and patient care quality in nursing homes’, International Journal of Human Resource Management, vol. 11, no. 3, pp.591-616.
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Gray, R 2000a, "Organisational Climate and the Competitive Edge" in L Lloyd-Reason & S Wall [Eds] Dimensions of Competitiveness: Issues and Policies Cheltenham, Edward Elgar Publishing.
Hoopes, D., Madsen, T & Walker, G 2003, Introduction to the Special Issue: Why is there a Resource-Based View? Toward a Theory of Competitive Heterogeneity, Strategic Management Journal, vol. 24, no. 1, pp. 889–902.
Jackson, S and Schuller, R 1995, Understanding Human Resource Management in the Context of Organizations and their Environments, Anna Rev. Psychol. Vol. 46, no. 1, pp. 237-64.
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Peccei, R and Rosenthal, P 2001, ‘Delivering customer-oriented behaviour through empowerment: an empirical test of HRM assumptions’, Journal of Management Studies, vol.38, no.6, pp.831-57.
Peter, B 2003, HR strategy and competitive advantage in the service sector, Human Resource Management Journal, Vol. 13, No. 3, 2003, pp. 5-20.
Petra, D and Juan, M 2002, A resource-based view of human resource management and organizational capabilities development, Int. J. of Human Resource Management, vol.13, no. 1, pp.123–140.
Pinder, C 2008, Work motivation in organizational behavior (2nd edition). New York: Psychology Press.
Ramsay, H, Scholarios, D and Harley, B 2000, ‘Employees and high-performance work systems: testing inside the black box’. British Journal of Industrial Relations, vol.38, no. 4, pp.501-31.
Rugman, M and Verbeke, A 2002, Edith Penrose’s Contribution to the Resource-Based Views of Strategic Management, Strategic Management Journal, vol. 23, no. 1, pp.769–780.
Smith, K., Collins, C and Clark, K 2005, Existing knowledge, knowledge creation capability, and the rate of new product introduction in high-technology firms, Academy of Management Journal, vol. 48, no. 2, pp.346-357.
Stone, B and Vance, R 2009, Apple’s obsession with secrecy grows stronger, The New York Times, June 22: B1.
West, G and DeCastro, J 2001, ‘The Achilles heel of firm strategy: resource weaknesses and distinctive inadequacies’. Journal of Management Studies, vol.38, no.3, pp.417-42.