Propelling Your HR’s Competitive Advantage through VRIO Framework
A competitive advantage is a feature that allows a business to outperform its rivals. It enables a company to surpass its competitors in terms of margins and generates value for the company and its shareholders.
The Resource-Based View posits that a corporation must have four traits according to the VRIO Framework by Jay Barny used by the writer of this article as a means to achieve a sustained competitive (HR) advantage:
Valuable Human Capital: Is vital, critical, and essential.
Rare Human Capital: Only very few companies can access these Human Resources based on their knowledge, skills, expertise, loyalty, and work ethics.
Inimitable Human Capital: The skills and attributes of the employee cannot be easily reproduced by competitors, and even if they do, it will be a poor imitation of the original; easily identifiable as a duplicate.
Organize Human Capital: The organization should be able to optimize and utilize these resources to their full potential.
As a result, the VRIO framework gives the company an uninterrupted competitive HR advantage. An organization’s most valuable resource is its human capital. Developing Human Resources policies and practices in a way that allows strategy by applying the VRIO Framework, HR can become the source of sustained competitive advantage as shown in the diagram hereunder:
According to numerous studies, connecting Human Resource strategy with company goals and improving business performance is critical. Employees develop new ideas and solve business challenges, therefore, companies that harness their human capital to meet their business objectives flourish. They exhibit quality, value, and creativity. Employee quality, unlike a company's systems and processes, cannot be duplicated. It all boils down to the fact that businesses with superior staff have a competitive advantage against competitors.
The HR strategy has the greatest influence on what people do on the job. The organization's recruitment, selection, training, performance appraisal, and HR policies will decide what it has and what it can improve. The HR staff can also work on how employees feel with good human resource strategies, including suitable compensation plans and incentive plans; focusing on the quality of work-life through intentional efforts that would assist them to accomplish targeted goals, and listening to their grievances. The combination of physical, emotional, and mental capabilities gained from the HR strategies will result in the best performance from the workforce, which will have a beneficial impact on the organization.
What employees do is mostly determined by their talents, educational attainment, experience, qualifications, training and learning, and how they feel about themselves; which includes their level of self-motivation, commitment, sincerity, morale, positive attitudes, and sense of belonging to their firm.
For a successful corporate plan, HR strategies must concurrently focus on further developing the skills, motivation, and behavior of its employees. HR has a significant role in the achievement of organizational goals and we from Q2 HR Solutions can help you with that.
We are Q2 HR Solutions, a company that provides a holistic approach to Human Resources. Depending on your requirements, we can fashion a program that suits your particular need/s to attain your desired goals. As each organization is unique, our HR solutions shall adapt accordingly. We offer a consultative and advisory approach that shall deliver a huge impact on what matters most to you and your business.
For details about our capabilities, kindly click on the link: www.Q2HRSolutions.com, or you may reach us at info@q2hrs.com and/or telephone no: (02) 8889-6258
We look forward to hearing from you. We want you to experience the HR that makes you and your company the center of our being!
References:
Jay Barny, VRIO
Strategicmanagementinsights.com
Dr. T. Barthwal, SHRM/HR competitive advantage