Applying Resource Based View to Strategic Human Resource Essay Example for Free

Applying Resource Based View to Strategic Human Resource Essay What is Resource Based View in Strategic Management? Almost all business management courses have a module that includes study of  strategic management. Our homework helps experts have expertise in the field of strategic management. There are different perspectives and approaches to field of strategic management. This blog post would discuss in detail what resource based view of strategic management is. This perspective stresses and based on the perspective that resources of the company whether tangible or intangible like brand name, assets, cash, customer loyalty, research and development capabilities are an important and main aspect while forming or pursuing a unique strategic position for a company. This concept of strategic management rather than being driven by the environment is internally resource driven and in this perspective of strategic management the organization is viewed as a collection of capabilities and competences. Organizations leverage new actives from its existing core competencies. According to Barney (1991) analysis of the impact of a firm’s environment on its competitive position is based on two assumptions. First, firms within an industry or a strategic group are identical in terms of strategic relevant sources they control and the strategies they pursue and second, these models assume that should resources heterogeneity develop in an industry or group will be very short lived because the resources that firms use to implement their strategies are highly mobile i. e. they can be bought or sold in factor markets (Barney, 1991). Resource based view assumes that companies within an industry or group may be heterogeneous with respect to the strategic resources they control and these are not perfectly mobile, thus heterogeneity can be long lasting (Barney, 1991). Simply, it is suggested that firm resources may be heterogeneous and immobile. According to Daft (1983), firm resources include all assets, capabilities, organisational processes, firm attributes, information, knowledge, etc. controlled by a firm that enable the firm to conceive of and implement strategies that improve its efficiency and effectiveness. According to Barney (1991), firm resources that hold the potential for sustained competitive advantage must have four attributes which are valuable, rare, In-imitable, and non-substitutable. So in resource based view of the firm, strategy of the firm is basically dependent on firms’ resources. This view again as the market based view is focus on some important aspects but at the same time ignores some other basic aspects of strategy formulation for a company. So resource based view of the firm is also not a balanced view. We hope that this blog post is useful for the students and practitioners of the field ofstrategic management. Please email us [emailprotected] com  if you need any  strategic management  helpregarding the module of strategic management. The Resource Based View (RBV), argued by some to be at the foundation of modern HRM,[13]  focusses on the internal resources of the organisation and how they contribute to competitive advantage. The uniqueness of these resources is preferred to homogeneity and HRM has a central role in developing human resources that are valuable, rare, difficult to copy or substitute and that are effectively organized. Overall, the theory of HRM argues that the goal of human resource management is to help an organization to meet strategic goals by attracting, and maintaining employees and also to manage them effectively. The key word here perhaps is fit, i. e. a HRM approach seeks to ensure a fit between the management of an organizations employees, and the overall strategic direction of the company (Miller, 1989). The resource-based view to strategic human resource management (SHRM) focuses on the costly to copy attributes of the firm as the fundamental drivers of performance and competitive advantage (Cooner 1991). Linking to the understanding of the resource based view of the firm; Barney (1991) described competitive advantage as â€Å"when a firm is implementing a value creating strategy not simultaneously being implemented by any current or potential competitors†. The task is to maintain this competitive advantage in such a way that competitors’ efforts to replicate that advantage are frustrated and eventually cease. The resource-based view focuses on the promotion of sustained competitive advantage through the development of the human capital rather than merely aligning human resources to current strategic goals (Torrington et al 2002). This essay will show various ways on how the resource-based view of SHRM in organisations can contribute to enhanced organisational performance. Human resources can provide competitive advantage for the business, as long as they are unique and can not be copied or substituted for by competing organisations, competitive success not coming from simply making choices in the present, but from building up distinctive capabilities over significant periods of time (Boxall 1996).

Going to the Territory :: Going to the Territory Essays

Going to the Territory    Ralph Ellison’s essay â€Å"Going to the Territory† is truly a definition of American culture.   Ellison’s essay is a description of his journey from Oklahoma to Brown University and along the way he uncovers truths about the way Americans selectively acknowledge their history and ignore important aspects of their culture and let them fester into an uncontrollable problem.   Ellison had a connection to Brown University before he even made it out of grammar school.   His principal was the first colored man to graduate from Brown and Ellison received an award in memorial to Dr. Inman Page, Ellison’s grammar school principal.   It is through his time spent at Brown and his journey there that he realizes that American culture is based upon what people choose to hear and see.   â€Å"Considering the ironic fact that Americans continue to find themselves stumbling into (as well as over) details of their history, tonight’s is a most American occasion†¦At any rate, in the two hundreds years of our existence  Ã‚  Ã‚   a great deal has been overlooked or forgotten† (123).   Ellison says that Americans ignore the social problems of our country, which results in the problems growing out of control.   Race is one of these problems.   According to Ellison, race is a result of people’s personal interests.   People are so self interested that they look past the pressing issues of today.   â€Å"Our unknown history doesn’t stop having consequences each though we ignore them† (133).   Because we as Americans ignored such issues as racial inequality- in that the debt Americans owe the black community is not repayable.   We think that by instituting laws to make all persons equal is enough, but this equality is never achieved, but looked past as though it is fine.   Ellison speaks of Black culture as being imitated and mimicked by many non-white citizens.   He mentions Europeans dancing like the Negroes, and how they other members of society find it absurd for them to behave in such a way.   These people are subject to the prejudices of those who have overlooked the instances of inequality in the past.   Today, people who pose as Blacks are subject to much scrutiny and discrimination.   They are termed â€Å"wiggers† and and are often seen as offensive.   Ellison thought that this mimicking behavior was okay and acceptable.

Cruelty in Animals Essay

As human beings, we cannot live without other people. In order to survive, we need each other and should help each other. However, we need not only people but also other creatures, such as animals. Their presence is essential in human life as well. They can provide food, help us to earn money, be our companion and many more. Therefore, it is important to treat them with respect as we treat other human beings. In Indonesia, however, many people seem to not fully aware about the importance of appropriate treatment for animals. Many animals are being mistreated by some heartless Indonesians. As the proof of the existence of cruelty in animals, some issues are given. Mistreatment of animals in the zoo is one of the underlying issues today. Many zoos in Indonesia are neglecting and being cruel to animals. Recently, the news about Surabaya City Zoo shockingly showed us how poor some people treat animals. Many animals were starving and didn’t have enough water. The cages are dirty and too small for their needs. Those cages were also littered with plastic rubbish thrown by some visitors; starving animals eat them sometimes. Moreover, many animals were chained and couldn’t move properly. As the result, many animals died unnaturally because of those terrible conditions. Another issue that has been discussed long since is cruelty to monkey as the part of _Topeng Monyet_ or Masked Monkey show. In this street performance, the monkeys are forced to entertain crowds for money by wearing masks and other outfits to imitate humans. They are also forced to ride mini bicycles, sit on tiny stools and even play dead. Perhaps, it seems okay for some people because this is part of traditional culture. However, the cruelty to those monkeys actually happens worse behind the shows. Besides exploiting, many handlers also treat them so badly. The monkeys often live in pitiful conditions, are riddled with disease and forced to live in small cages. Furthermore, metal chains fastened to their neck and eventually infect their skin. Cattle mistreatment is another controversial issue of cruelty in animals. We  need to highlight a topical issue of Australian cattle exported to Indonesia which are abused. Upon arrival in Indonesia, the cows shipped from Australia are lifted by a crane using a cruel technique. Workers usually unload the cows from a boat with ropes hanging around their necks. Moreover, another torturous method is employed in some Indonesian abattoirs. In order to make more money, some butchers force cows to drink a huge amount of water to increase their weight just before slaughtering them. These cows are called _sapi gelonggongan_. Many cattle are often slaughtered with blunt knives afterwards. A lot of people might feel some serious concern about the fact that many animals are often abused and exploited in Indonesia. Therefore, those controversial issues should be resolved immediately. We should not let those creatures end up suffering in this way. We should repay for what those animals have given to us by taking care of them properly.

The Foreign Exchange Reform In China And Hedging Currency Risk Finance Essay - Free Essay Example

Sample details Pages: 8 Words: 2252 Downloads: 10 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? China, one of the large emerging markets, with the implementation of its reform and opening up policy made in 1978. China has successfully transformed itself from an inflexible centrally-planned economy to an open and market-oriented economy, and accomplished remarkable progress in trade market. China has maintained high and stable growth rates for over two decades. Don’t waste time! Our writers will create an original "The Foreign Exchange Reform In China And Hedging Currency Risk Finance Essay" essay for you Create order Since China is becoming an increasingly important member in the worlds economic scene, the movements of the foreign exchange rate could be an important issue for Chinese firms. On 19 of June 2010, Chinas central bank declared that it will further implement the reform of foreign exchange and enhance the flexibility of RMB exchange rate (Money for life guide, 2010). In the recent financial crisis, it has shown that Chinas exchange rate policy is a substantial international issue (Zhang, 2001). However, Chinas central bank is in dilemma because of the effects of the foreign exchange reform and the currency risk to the Chinese companies. In the influences of the foreign exchange reform to Chinese enterprises, Anderson, UBSs chief Asia economist, stated that the impact of importation should be better than the impact of exportation for Chinese firms. However, in the external business competitions, Chinese firms engage in importing machinery and raw materials from other countries, are de finitely affected by the foreign exchange reform. Their selling prices are down right now because of losing the competitive advantage from exchange rate reform. But Woetzel, director of McKinsey Companys Greater China Office, argued that the exchange rate reform will bring Chinese enterprises to the international market, and the effect of the whole foreign exchange reform process will allow Chinese companies to meet the international standards (Let the world to aware of a brilliant future of Chinas economy 2005). This essay is organized as follows: Section 1, review the process of Chinas foreign exchange rate reform and the new Renminbi (RMB) exchange policy and its impact on Chinas balance of trade and the economic development. Section 2, briefly discuss about the impacts of foreign exchange reform in China and the risk to Chinese firms. Section 3, focus on the currency risk affecting the multinational companies in China, examines the relationship between foreign exchange rate arrangements, and states the solution to hedge the currency risk during the foreign exchange reform. Section 4 concludes the paper. 2. The Foreign Exchange Reform in China Renminbi (RMB) has become a national currency in 1949, but it has been invariable and inconvertible. Consequently, RMB was limited to be an accounting instrument and a capital for allocating companys resource. With its market isolation from outside world, RMB could not athletically take action to the unpredictable foreign exchange rate, nor make appropriate adjustment that based on the change supply and demand of foreign exchange immediately. Zhang (2001) explained that this situation is essentially related to the monopoly condition of Chinas foreign trade policy, only dozen of authorized import and export corporations could cooperate with foreign firms under the import and export contract. Furthermore, these foreign trade corporations (FTCs) had to relinquish the earnings from foreign trading because they had to exchange the currency from the Bank of China at the official exchange rate, and normally the rate is not reasonable. Obviously, there were no incentives for traders under this business circumstances, the changes in the official exchange rate would definitely affect the multinational firms financial profits. In order to improve incentives and promote export performance, China has endeavoured at least four times to reform and loosen its foreign trade management system since 1978 (Zhang, 1997). The main progress of the reform was launched in the last two decades, it proposed to fracture the traditional foreign exchange system between domestic firms and the world markets by dispersing the authorization of the trading right. It also introduced the agency system for increasing the initiative and autonomy to the trading companies in the early 1980, and permitted them to assume independent accountability through the contract responsibility system (CRS) since the late 1980s. However, Iwatsubo Karikomi (2006) states that the past reform on Chinas exchange rate system did not seem to have significant effects. Figure 1 Exchange Rates of the RMB US dollar (1979-1994) (Source from Zhang, 1997) To summarize the whole process of the Chinas foreign exchange reform, it can be divided into 3 main stages. In 1994-1996, that was the first stage of foreign exchange reform, which is called stable development stage. China started to prepare for its regaining of membership in WTO and GATT by reducing substantially tariffs and import licenses. In order to enlarge Chinese markets, China started to implement socialism and market-orient policy and reformed the foreign exchange system in 1994. It launched a new exchange rate policy which based on the markets supply and demand, and managed floating exchange rate regime. China adjusted the exchange rate from 1 USD= less than 6 RMB to 1 USD= 8.7 RMB (see figure 1). The competitive advantage of Chinas product kept increasing in the international markets because of the depreciation of RMB, which can benefit the exportation and attract foreign investments. In general, Chinas economy, foreign reserve account, capit al, and financial projects have continued to move forward (Zhang, 1999). In 1997-2001, after several years of high inflation and speedy growth of Chinas economy, the second stage, high-deflation stage was started to begin. Unfortunately, the impacts of high inflation and Asia financial crisis almost started at the same time. That was a huge economic shock to China because all Asias currencies were devaluated, which deducted the Chinas competitive power in the international markets. The profit from import and export trading fell down to the lowest point in 2001, which lose more than 12 billion USD by comparing before Asia financial crises. Therefore, Chinas central bank reduced the reserve rate from 13% to 8% in March of 1998 and 8% to 6% in 1999, in order to release the pressure of national expenditure. The GDP growth rate reduced about 2-3% by comparing before 1997 (see figure 2) (Xia Chen, 2005). Figure 2 China GDP Growth Rate 1997-2010 Source: TradingEconmics.com; National Bureau of Statistics In 2002 to present, is the third stage of Chinas foreign stage reform, boost development stage. In 2003, Chinas GDP growth rate reached 9.1%, in 2004 and 2005, China maintained 10.1% and 9.9% growth rate in GDP (see figure 2). However, this circumstance enlarged the appreciation pressure on RMB. On 21 July 2005, China gave up the fixed exchange rate that it had adopted and grown into over a decade. Chinas exchange rate had been effectively fixed at 8.28 yuan per USD within a slight range of 0.3 percent plus or minus with no control on the RMBs value against other currencies (Ronald, 2005). At the same time, The People Bank of China launched the new exchange rate policy; the new policy depends on market supply and demand to foreign currencies, adjusts by referencing to a basket of currencies and follows the published exchange rate fluctuation in international markets. The Chinese government stated that the Chinas monet ary management team will keep tuning the RMB exchange rate at a reasonable and balanced level (Huang, 2006). Since then, Chinas balance of payments and trade has undergone several different stages, from high-inflation period to high-deflation period. 3. The Currency Risk in China Chinese companies face additional risks in operating with foreign companies in international circumstance. One of main risks is the currency risk, which appears from changes of exchange rates between different currencies. One simple method is to measure the return in domestic currency conditions and compare it with the returns in local currency conditions, and characterise the Currency effect. However, curry surprise is an essential method to calculate currency risk, which defines as the unforeseen adjustment of the foreign currency relative to its forward rate or market expect rate (Srinivasan Steve 2003). Exchange rate instability can work against an international firm, for example, if a payment in a foreign currency has to be completed at a future date, it cannot be guaranteed that the price in the foreign exchange market will be stable in the future. It is possible that the exchange rate will move against the company, leading the company to suffer loss. On the other hand, th e foreign exchange market can also provide advantages, reducing the payment cost in terms of their home currency. Generally, when the home currency is devalued, the companies can get advantages in exporting goods to other countries because their products become cheaper. In the same way, Firms get benefit in importing from other countries when their currency becomes stronger, it then increases the currencys purchasing power in other countries. Therefore, foreign exchange risk can be a significant issue for Chinese enterprises, it can cause risk in potential corporate profitability, net cash flows, and market value. Thus it influences management decisions of multinational corporations. 4. Risk Management for Hedging Currency Risk Since currency surprise has been an essentially noise in currency risk management, hedging currency risk is the act of reducing or negating the risks that arise out of changes in the prices of one currency against another. In order to acquire the maximum profit and minimum loss in dealing with foreign firms, there are several methods for a business to defend the risky currency. The first one is called Internal Hedging Strategies, it means leading and lagging the receipts and payments of cash to gain a business advantage. It can ensure that the local companies utilize the exchange rate movements to guarantee maximum profit. For example, if a company has to pay $1 million on a specific date for imported fabric and receives an export order for $1 million, it can attempt either to setback the payment for imports or request an early payment to the buyer. Therefore, the cash inflow from exportation is used as the payment for imports. This method can reduce the depreciation risk in import -payment and evade the risk in export-receipt by managing both cash flows. The second method is called Forward Transactions. It is a relatively easy method to execute currency risk management. In this situation, both companies have to sign a contract which states a specify exchange rate for the payment or receipt in the future, regardless of what the real market exchange rate at that time is. The main idea behind the forward transaction is that while the exchange rate is set on both parties, they do not have to concern about instability of incomes and costs respectively. The third strategy is Currency futures, the same idea as forward contracts except the pre-set date of the transaction in the future is set. It is a transferable futures contract that specifies the exchange rate at which a currency can be bought or sold at a future date. It allows foreign trade companies to hedge against foreign exchange risk. The advantage of currency futures is exchange-traded., counter-party risk is eliminated, and it also facilitates that currency futures are more transparent in their pricing and more accessible to all market participants (Srinivasan Steve, 2003). The next method is Currency Swaps. It is a swap that involves the exchange of principal and interest in one currency for the principal and interest payments in another currency. This real time transaction can also be utilized for hedging interest rate risks by exchanging their fixed and floating interest rate contract with each other (Nicolaus, 2000). The last method for hedging currency risk is Currency options, these are financial instruments that give the buyer of the contract the right but not the obligation to either buy or sell a designated quantity of a specific currency at a predetermined exchange rate. While a call option gives the owner the obligation to buy the currency at a contracted price. On the same way, a put option gives the holder the right to sell it at an agreed price, regardless of an unfavorable market price for the same. However, foreign exchange risk can be a significant issue for Chinese enterprises, it changes of future cash flow resulting from the unexpected exchange fluctuation and create risk in corporate profitability, net cash flows and market value. Thus it is necessary to evaluate and generate a suitable hedging method to prevent the loss from investing with multinational corporations. 5. Conclusion To summaries this article, subsequent to the review the whole process of Chinas exchange rate reform, it seems that globalization will drive China toward further financial integration. This situation moves determinedly towards increasing exchange rate flexibility. The process and speed of moving towards more flexibility should be deliberate. Particularly, China should concern the developing and emerging markets changing their foreign exchange policy. In the past, some Asia developing countries rushed into opening the capital account in order to formulate their currencies more convertible, but in fact, it results currency and banking crises when hot money left their economies. Since China still has a long way to go for building up a well-built, well-managed and synchronized financial system, it should also continue to give a high priority in enhancing its financial stability. As The Peoples Bank of China said, the reform of the RMB exchange rate will help increase the competitivenes s of the countrys exports on the international markets and it would continue reforms of the yuan exchange rate regime and increase the flexibility of the exchange rate. This paper explores the impacts of foreign exchange rate on trade between China and other countries. Since effective currency risk management has became popular in company corporate level. This essay presented an overview of hedging foreign currency risk exposure with Internal Hedging Strategies, Forward Transactions, Currency Futures Currency Swaps and Currency Options. These instruments have been comprehensively described in terms of their common and characteristics. However, hedging currency risk is a very important strategy in financial planning and budgeting when Chinese companies do businesses with foreign companies.