Strategic Frameworks
The concept of competitive advantage was originally set forth in the work of Michael Porter more than a quarter of a century ago. He argued that an organization's competitive advantage was created by the value the organization could create for customers. Porter points out that this value was achieved by outperforming competitors in distinctive ways, utilizing what he termed the "Five Forces." Porter also suggested there were generic strategies in the areas of focus, quality, and cost leadership, which also could be used to gain a competitive advantage.
Consider how these different frameworks influence strategic HRM policies and practices, which provide the organization with an opportunity to increase organizational performance and achieve a competitive advantage. In addition, reflect on how HR professionals utilize these frameworks as a way to increase their value as a strategic partner.
· How does using a framework such as resource-based view (RBV) or Porter's Five Forces enable an organization to achieve a competitive advantage, by implementing strategic HRM practices throughout the organization?
· Argue which framework you think is most important for HR professionals to employ: RBV, Porter's Five Forces, or another strategic HRM framework of your choice based on your research this week.
Article: Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard Business Review, 86(1), 78-93.