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- HRM – the HRM system provides the final aid in the management of the cultural system, and must be used to develop work-orientated cultures within the organisation. For example, the company’s training and development processes can enhance these cultures, and compensation can nurture and develop them (for example by promoting those whose culture supports the goals of the organisation).7
1.2Describe the role HR should pay in assisting to gain a competitive advantage.Resource-based paradigm- HR system can contribute to sustained competitive advantage by facilitating development of competencies that are company specific- Biggest problem is employee turnover- Design and implement turnover management strategies- Allocate bigger portion of profits to employees y means of gainsharing or share options- Culture of belonging can be created- Alignment of individual interest with organisational goals important(1) Degree to which behaviour helps individuals to meet their goals(2) Relevance of each organisational goal to individual- High level of interest alignment realised at three levels of motivation by three interest-alignment levers(1) Extrinsic motivation – most directly influenced by reward system , includes issues such as power and recognition(2) Hedonic intrinsic motivation – enjoyment individual experience in completing task(3) Normative intrinsic motivation – driven by goal of engaging in behaviour that is compliant with norms/values of organisation- Alliance partners can play a significant role through network resources- Services that resources provide, not resource themselves that generate value for companyBest-practices paradigm- Implies direct relationship between particular HR approaches and company performance- Bundles/systems of HR practices have more influence on company performance than individual practises- Impact of HR practices on company performance may be enhanced when practices are matched with competitive requirements inherent in company’s strategic posture- Three primary perspectives:(1)Universal approach – assumes certain best HRM practices will contribute to performance of company, regardless of strategic goals of the company(2) Contingency approach – attempts to link HRM systems/practices to specific organisational strategies(3) Configurational approach – pattern of HRM practices/systems that contributes to attainment of organisational goals- Seven practices consistently considered to be strategic in nature:(1) Internal career opportunities(2) Formal training systems(3) Appraisal measures(4) Profit sharing(5) Employment security(6) Voice mechanisms(7) Job definitionProcess paradigm- Anchored in both resource-based view (RBV) and best-practice theory- HRM processes deeply embedded in company-specific dynamic routines by which company attracts, socialises, trains,motives, evaluates, compensates its HR- HRM processes continuously evolving/adapting by drawing on past experience to refine effectiveness of processes to meet changing needs of organisation