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1.

Please describe the role of Human Resources in providing strategic competitive


advantage.
- Thus far we have presented the strategic management process as including a step-by-step
procedure by which HRM issues are raised prior to deciding on a strategy and then HRM
practice are developed to implement that strategy. However, we must note that human
resources can provide a strategic competitive advantage in two additional ways: through
emergent strategies and through enhancing competitiveness.
Emergent Strategies
Having discussed the process of strategic management, we also must distinguish between
intended strategies and emergent strategies. Most people think of strategies as being
proactive, rational decisions aimed toward some predetermined goal. The view of strategy
we have presented thus far in the chapter focuses on intended strategies. Intended strategies
are the result of the rational decision-making process used by top managers as they develop a
strategic plan. This is consistent with the definition of strategy as the pattern or plan that
integrates an organizations major goals, policies, and action sequences into a cohesive
whole. The idea of emergent strategies is evidenced by the feedback loop in Figure 2.2.

Figure 2.2

A Model of the Strategic Management Process

Most strategies that companies espouse are intended strategies. For example, when
Howard Schultz founded Starbucks, he had the idea of creating a third place (between work
and home) where people could enjoy traditional Italian-style coffee. He knew that the smell
of the coffee and the deeper, darker, stronger taste would attract a new set of customers to
enjoy coffee the way he thought it should be enjoyed. This worked, but as Starbucks drew,
customers began asking if they could have nonfat milk in their lattes, or if they could get
flavor shots in their coffees. Finally, after repeated requests from his store managers who
kept hearing customers demanding such things, Schultz finally relented.
Emergent strategies, on the other hand, consist of the strategies that evolve from the
grassroots of the organization and can be thought of as what organizations actually do, as
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opposed to what they intend to do. Strategy can also be thought as a pattern in a stream of
decisions or actions. For example, when Honda Motor Company first entered the U.S.
market with its 250-cc and 350-cc motorcycles in 1959, it believed that no market existed for
its smaller 50-cc bike. However, the sales on the larger motorcycles were sluggish, and
Japanese executives running errands around Los Angeles on Honda 50s attracted a lot of
attention, including that of a buyer with Sears, Roebuck. Honda found a previously
undiscovered market as well as a new distribution outlet (general retailers) that it had not
planned on. This emergent strategy gave Honda a 50 percent market share by 1964.
The distinction between intended and emergent strategies has important implications
for human resource management. The new focus on strategic FIRM has tended to focus
primarily on intended strategies. Thus HRMs role has been seen as identifying for top
management the people-related business issues relevant to strategy formulation and then
developing HRM systems that aid in the implementation of the strategic plan.
However, most emergent strategies are identified by those lower in the organizational
hierarchy. It is often the rank-and-file employees who provide ideas for new markets, new
product, and new strategies. HRM plays an important role in facilitating communication
throughout the organization, and it is this communication that allows for effective emergent
strategies to make their way up to top management. For example, Starbucks Frappucino was
a drink invented by one of the store employees in California; Starbucks leaders (including
Schultz) thought it was a terrible idea. They fought it in a number of meetings, but the
employee kept getting more and more information supporting her case for how much
customers seemed to like it. The leaders finally gave the go-ahead to begin producing it, and
it has become a $1 billion a year product, and one that has contributed to the Starbucks
brand.

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Enhancing Firm Competitiveness


A related way in which human resource can be a source of competitive advantage is through
developing a human capital pool that gives the company the unique ability to adapt to an
ever-changing environment. Recently managers have become interested in the idea of a
learning organization, in which people continually expand their capacity to achieve the
results they desire. This requires the company to be in a constant state of learning through
monitoring the environment, assimilating information, making decisions, and flexibly
restructuring to compete in that environment. Companies that develop such learning capacity
have a competitive advantage. Although certain organizational information-processing
systems can be an aid, ultimately the people (human capital) who make up the company
provide the raw materials in a learning organization.
Thus, the role of human resources in competitive advantage should continue to
increase because of the fast-paced change characterizing todays business environment. It is
becoming increasingly clear that even as U.S. automakers have improved the quality of their
cars to compete with the Japanese, these competitors have developed such flexible and
adaptable manufacturing systems that they can respond to customer needs more quickly.
This flexibility of the manufacturing process allows the emergent strategy to come directly
from the marketplace by determining and responding to the exact mix of customer desires. It
requires, however, that the company have people in place who have the skills to similarly
adapt quickly. As Howard Schultz, the founder and chairman of Starbucks, says, if people
relate to the company they work for, if they form an emotional tie to it and buy into its
dreams, they will pour their heart into making it better. When employees have self-esteem
and self-respect they can contribute so much more; to their company, to their family, to the
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world. This statement exemplifies the increasing important of human resources in


developing and maintaining competitive advantage.
2. Please describe the type of information that is gleaned from job analysis.
- Nature of Information
Two types of information are most useful in job analysis: job descriptions and job
specifications. A job description is a list of the tasks, duties, and responsibilities (TDRs) that
a job entails. TDRs are observable actions. For example, a clerical job requires the jobholder
to type. If you were to observe someone in that position for a day, you would certainly see
some typing. When a manager attempts to evaluate job performance, it is most important to
have detailed information about the work performed in the job (that is, the TDRs). This
makes it possible to determine how well n individual is meeting each job requirement. Table
4.1 shows a sample job description.
A job specification is a list of the knowledge, skills, abilities, and other characteristics
(KSAOs) that an individual must have to perform the job. Knowledge refers to factual or
procedural information that is necessary for successfully performing a task. A skill is an
individuals level of proficiency at performing a particular task. Ability refers to a more
general enduring capability that an individual possesses. Finally, other characteristics might
be personality traits such as ones achievement motivation or persistence. Thus KSAOs are
characteristics about people that are not directly observable; they are observable only when
individuals are carrying out the TDRs of the job. If someone applied for the clerical job
discussed, you could not simply look at the individual to determine whether he or she
possessed typing skills. However, if you were to observe that individual typing something,
you could assess the level of typing skill. When a manager is attempting to fill a position, it

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is important to have accurate information about the characteristics a successful jobholder


must have. This requires focusing on the KSAOs of each applicant.

Table 4.1

A Sample Job Description

Job Title: Maintain Mechanic


General Description of Job: maintenance and repair of all equipment used in the operations
of a particular district. Includes the servicing of company vehicles, shop equipment, and
machinery used on job sites.
1. Essential Duty (40%): Maintenance of Equipment
Tasks: Keep a log of all maintenance performed on equipment. Replace parts and fluids
according to maintenance schedule. Regularly check gauges and loads for deviances that
may indicate problems with equipment. Perform no routine maintenance as required. May
involve limited supervision and training of operators performing maintenance.
2. Essential Duty (40%): Repair of Equipment
Tasks: requires inspection of equipment and a recommendation that a piece be scrapped or
repaired. If equipment is to be repaired, mechanic will take-whatever steps are necessary to
return the piece to working order. This may include a partial. Or total rebuilding of the piece
using various hand tools and equipment. Will primarily involve. The overhaul and
troubleshooting of diesel engines and hydraulic equipment.
3. Essential Duty (10%): Testing and Approval
Tasks: Ensure that all required maintenance and repair has been performed and that it was
performed according to manufacturer specifications. Approve or reject equipment as being
ready for use on a job.
4. Essential Duty (10%): Maintain Stock
Tasks: Maintain inventory of parts needed for the maintenance and repair of equipment.
Responsible for ordering satisfactory parts arid. Supplies at the lowest possible cost.
Nonessential Functions
Other duties as assigned
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