MN7181 Introduction to Human Resource Management - RBV - Overveiw with People as Competative advantage

Introduction 

The general purpose of HRM is to make sure that the organization is able to achieve success through people, because people are the organization's key source of competitive advantage through their commitment, adaptability and high level of skill as well as performance .
International Journal of Innovation and Economic Development
Volume 2, Issue 2, June 2016 Pages 7-14

RBV - Resource based View 

RBV is an approach to achieving competitive advantage that emerged in 1980s and 1990s, after the major works published by Wernerfelt, B. (“The Resource-Based View of the Firm”), Prahalad and Hamel (“The Core Competence of The Corporation”), Barney, J. (“Firm resources and sustained competitive advantage”) and others. The supporters of this view argue that organizations should look inside the company to find the sources of competitive advantage instead of looking at competitive environment for it. Rothaermel, F. T. (2012). Strat.Mgmt.: Concepts and Cases. McGraw-Hill/Irwin, p. 5

The RBV is one of the contemporary HRM concepts to develop a firm’s strategy .The objective of this discussion  is to observe the RBV perspectives towards Competitive advantage .

The significant of RBV is through an understanding of the relationships between resources, capabilities, competitive advantage, and economic rent. The RBV identified characteristics of “advantage-creating” resources such as value, rarity, imitability and Organization (Clulow et al, 2007; Barney, 1991)

The following model explains RBV and emphasizes the key points of it.

What is Competitive Advantage 

Competitive advantages are condition that allows a company or country to produce a good or service of equal value at a lower price or in a more desirable fashion .

The conditions allow the productive entity to generate more sales or superior margins compared to its market rivals .Alexander Twin Aug 30 , 2019 
Alexandra Twin 

Aug 30, 2019  ( Investopedia )

Competitive Advantage as a advantage to Banking Sector 

According to Alexandra ( 2019 ) Competitive advantage has create in Banking sector specially due to allocating particular staff member to be proficient in a special field such as credit evaluation  , Customer service , structured sales , Auditing etc. People tend to perform exceptionally well on a particular field such as Credit & obtain proficient knowledge and those special knowledge helps to avoid probable risk and keeps banks in a safer note . 

https://www.investopedia.com/terms/c/competitive_advantage.asp

Self Reflection

As per above definition (  International Journal of Innovation and Economic Development
Volume 2, Issue 2, June 2016 Pages 7-14  , ) Banking sector has been much been effected  on service and banking sector could be recognize as one of the highest competitive markets in Sri Lanka .  which represents through service Oriented , committed people .
RBV Core concept is Resource and value and narrow concept as Competitive advantage .
Constant changing economic factors have immensely change peoples ambition on purchasing and negotiations &  adaptability is very much important on overcoming challenging environment in Banking sector .
Banking employees  professional knowledge has been a key competitive factor along with technology has been demarcating financial point in terms of competitive advantage in wining Clients thoughts and behavior .

RBV is a contemporary function to create company HRM Strategy specially for banking sector  where Resource base view has been segregated to two  main sections as Tangible and Intangible sector . .RBV has a direct contacted for Banking strategy since Competitive advantages are rigorously important in creating profits . As Resource based view focus for inner talents of the company Since RBV should focus on Competitive advantage since limited resources are available .
People is considered as Key indicative  on  Competitive advantage & RBV perspective should direct with people in order to maximize Company profits .


References 

1. International Journal of Innovation and Economic Development
   Volume 2, Issue 2, June 2016 Pages 7-14
   
   
2. Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, Vol. 17, pp.99–120.
3. Rothaermel, F. T. (2012). Strat.Mgmt.: Concepts and Cases. McGraw-Hill/Irwin, p. 5
4. Wernerfelt, B. (“The Resource-Based View of the Firm”), Prahalad and Hamel (“The Core Competence of The Corporation”), Barney, J. (“Firm resources and sustained competitive advantage”)  
5. (Clulow et al, 2007; Barney, 1991)
6. Aug 30, 2019  ( Investopedia )
   
   

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