- ‘Mirage Investments Ltd’ is a wealth management company with multiple locations in India. The top management plans to create a dynamic human resource department for managing employee relations. You have been hired as their HR business Partner. Explain to the top management, what will be the objectives of your HR department in this organization. Give some examples in the context of this company.
DYNAMIC CAPABILITIES AND ORGANIZATIONAL AGILITY
Teece e.a. (1997) developed the dynamic capabilities framework to analyze how and why certain firms achieve and sustain competitive advantage in dynamic environments. By focusing on dynamic capabilities, the research on achieving sustainable competitive advantage takes inside-out approach (Grant, 1996). The resource based view (Barney, 1991) is one strand of literature in this approach, emphasizing firm-specific capabilities and assets as the fundamental determinants of success. The dynamic capabilities framework refers to the combinations of competencies and resources that can be developed, deployed and protected as sources of competitive advantage. Eisenhardt and Martin (2000) expand the concept of dynamic capabilities by stating that the effective patterns of dynamic capabilities varies with market dynamism. In other words, organizations need a different level of dynamic capabilities depending on the level of dynamics in the environment. Dynamic capabilities are focused on achieving and sustaining a competitive advantage (Teece e.a., 1997, Eisenhardt and Martin, 2000). Following the emerging trend in the strategy literature achieving and sustaining a competitive advantage is focused on effective strategy implementation (Barney, 2001). Becker and Huselid, in their article on strategic Human Resource
Management, place an emphasis on strategic business processes in strategy implementation and therefore in achieving and sustaining a competitive advantage: „That focus on strategy implementation is operationalized and made concrete by a focus on strategic capabilities and activity systems reflected in strategic business processes‟ (2006: 903). Strategic business processes refer to those business processes that are the source of the value customers derive from the firm‟s products or services (Becker and Huselid, 2006). This approach has an important implication for analyzing dynamic capabilities. The focus on dynamic capabilities varies for strategic and non-strategic business processes. In fact, we assume that only in strategic business processes the presence of dynamic capabilities leads to sustainable competitive advantage in a dynamic environment. Therefore the focus of our paper is on key strategic business process and whether organizational practices aimed at achieving organizational agility are linked to these key business processes
Reference : https://wendbaarheid.files.wordpress.com/2010/07/working-paper-iira-hrm-2010.pdf