Journal of management and research volume 2 number 2

Journal of Management and Research Volume 2 Number 2 2015
1.8 Input-Transformation-Output Model
Figure-3: Input-Transformation-output Model Example
Source: Robbins& Coulter (2005)
In order to achieve the desired results, inputs are drawn from the environment and are
transformed into outputs. Wright & Snell (1991) delivered indication that basic KSAs are
obtained from the environment as inputs and are transformed to attain the outputs of employee
satisfaction and performance through employees’ behaviors. Human Resource function is
required to gather knowledge, skills and abilities from the environment in the form of hired
personnel. Once the certain competences are acquired in the shape of human resources, the
organizations utilize them by transforming them to meet their organizational goals and try to
retain the knowledge, skill and abilities in the form of resources. Once the resources are imported
from the environment, the organizations transform these resources into outputs and this
assumption of General System Theory (GST) proves that HR function is the system.
1.9 Dynamic Equilibrium
According to General System Theory (GST), an open system cannot attain equilibrium
but the dynamic equilibrium. HR enables the organization to be in the state of dynamic
equilibrium as it allows the smooth flow of information as well as empowers to attain a certain
level of equilibrium due to presence of entropy at some levels. The presence of negative entropy
in human resource function makes the organization to change the state with the passage of time,
as even the dynamic equilibrium cannot be achieved for a long time. Snell & Youndt (1995)

Journal of Management and Research Volume 2 Number 2 2015
contended that the academia and practitioners come to an understanding that HR is a complex
and dynamic phenomenon and people are the basis of competitive advantage with the hastening
of competition in the external market. The ability to get information, interpretation of
information and use of that information is the key to success for any business in the 21 st century.
The term dynamic with reference to the context/environment is representing that the pace of
change is fast. Dynamic equilibrium represents the state of an organization when it is in
continuous interaction with the external environment and the information flows smoothly and
transformation occurs progressively as well as the organization gets an equilibrium state.
Practically speaking, the state of equilibrium is difficult to achieve and sustain. The state of
dynamic equilibrium is attained only when a certain pattern is followed. The interaction of HR
with external environment helps the function of internal and external flow of information.
1.10 Internal Elaboration
The organizations need to be internally developed in an open system according to
General System Theory (GST). The ability of firm to organize will enable it to attain
sustainability. The organized firms look for differentiation to attain sustainable competitive
advantage. HR functions are well organized in its each area. It has its sub-systems, certain
components and different levels, which make it more persuaded towards goal orientation.