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In response of the above question, we will have a glimpse on what is globalization and how it is effect on organizations then we move on resource based theories and other related theories in the context of Strategic Human Resource. With globalization, time and space are no longer a barrier to making deals anywhere in the world. Computer networks permit instantaneous transactions, and the market watchers operate around the clock on a 24/7 basis. The boundaries are shrinking and businesses expanding. As markets become more open as evidenced by free trade agreements between nations more foreign firms are likely to enter domestic market. Further, since firms are operating in global markets, competitive moves in a domestic economy may negatively impact the firm in another segment. This places pressure on firms to move into international markets in order to maintain their competitiveness. Clearly, globalization requires that organizations increase their ability to learn and collaborate and to manage diversity, complexity and ambiguity. Top-level manager can't do it all alone. Maintain the intellectual resources and put in to right track is one of the major issues in today's world. For effectively maintaining the resources we highlight some resource theories.
Feminine Managerial Style and SHRM
To gain more competitiveness in workforce, Human Resource has promoted workforce diversity. The new innovation in the field of Human Resource is feminine management styles. This style of management use by women at workplace that increases more responsiveness to different kind of employees. Some researchers have shown that males and females tend to be equally effective in managerial style, another study shown that female executives are rated high by her bosses, peers and coworkers. A European study counter this feminine managerial style as in today's world organizations need flexibility, partnering, teamwork, trust and information sharing etc. In such kind of organizations effective manager must use more social and interpersonal behaviors and they listen more, motivate and provide support to their workers. These kind of manager or leaders more influence rather than control and inspire. And this type of qualities usually women posses and do better than men.
According to a researcher Smith (2000), feminine managerial styles encourage organization to focus on the emotional side of corporate culture.
SHRM According to Resource Based Theory
The resource based view of the firm combines two perspectives:
(1) The internal analysis of phenomena with a company and
(2) an external analysis of the industry and its competitive environment
It goes beyond the traditional SWOT analysis by integrating internal and external perspective. It is a very useful framework for gaining insights on why some competitors are more profitable than others. Resource Based View is very helpful to formulating the strategies for individual business and diversified firms by revealing how core competencies embedded in a firm can help it exploit new product and market opportunities. The firms have categorize Resource based view in three categories, the followings are:
1. Tangibles Resources (Financial, Physical, Technological Organizational etc.)
2. Intangible Resources (Human, Innovation/Creativity, Reputation etc.)
3. Organizational Capabilities (Firm Competence etc.)
The resource based view is valuable not only for one department or any individual; it's a concept to achieve the competitive advantage over other firms. Resource based view should apply on whole organization for better utilization of resources. In this question our focus will be Intangible Resources and more narrowly we will discuss the Human Resource importance in this view.
According to Resource Based theory, intangible resources much more difficult for competitors to account for or imitate. The practices involved to manage these intangible resources should be unique in order to be unique in market. For Human Resource Point of view it includes employee's experiences and capability, trust, effectiveness in team work, managerial skills and many more.
According to Knowledge Management Theory:
Knowledge has become the direct source of competitive advantage for companies selling ideas and relationships as well as an indirect source of competitive advantage for all companies trying to differentiate themselves from rivals by how they create for all competitive advantage. As noted by Dr. Roy Vagelos, Merck's former CEO: "A low value product can be made by anyone anywhere. When you have knowledge no one else has access to-that's dynamite. We guard our research even more carefully than our financial assets". Creating and applying knowledge to deliver differentiated products and services of superior value for customers requires the acquisition of superior talent, as well as the ability to develop and retain that talent. Research shows that to promote this knowledge culture organization should adopt the strategies create an environment with strong social and professional relationships, where employee feel strong "ties" to their subordinates, coworkers and organization. A leading management writer says that "As the number and qualities of interconnections between individuals and ideas go up, the ability to combine and recombine ideas accelerates as well". Technologies must also be used effectively to influence human capital to facilitate collaboration among individuals and to develop more sophisticated knowledge management systems. The challenge and opportunity of management is not only to acquire and retain human capital but also to ensure that they develop and maintain a strategic perspective as they contribute to the organization. This is essential if management is to use its talent to effectively help the organization attain its goals and objectives. Organizations increasingly need to anticipate and respond to dramatic and unpredictable changes in the competitive environment. With the emergence of the Knowledge Management concept, human capital has become the key to securing advantages in the market place that persist over time. I would like to quote an example over there of very well known company Ford Motors. A study has been conducted on the Ford motors to analyze the rapid growth. Ford has trained its employees rigorously; first they created a knowledge culture and took all employees on board to become involved in this knowledge management process that they can shape up its human resource as human capital.
In today's growing economy where boundaries are going to lessen and lessen, human resource is the key resource and tool to maintain the competitive advantage. While research also has strong argued that Resource Based View has positive relationship with Strategic Human Resource. According to the Resource Based View, to retain and make intangible resources (Human Resource) more strategic, organization needs to develop such strategies, in which the employee's involvement should take part in company's decision making, develop such culture in which employees have social ties with their colleagues and organization. A culture should be very friendly and knowledge sharing in which Feminine Management Style not to disturb.