RESOURCE-BASED THEORY (RBT)

• 1959 PENROSE-firm as a bundle of productive resources.

• 1984 WERNERFELT-firms compete based upon resource positions they hold.

• 1991 BARNEY – emphasized the internal resources of a firm as sources of competitive advantage.

RBT RATIONALE

• People as the most important resource in an organization

• Human resources are viewed as the most crucial source of competitive advantage

FORMULA

• RBT = People as competitive advantage = SHRM

CASE STUDY EVALUATION

• QUESTION: SHOULD THE HUMAN RESOURCE MGT. DEPT. OF ABC COMPANY BE THE SOLE
AUTHORITY IN DESIGNING TRAINING PROGRAMS FOR THAT COMPANY?

• IF YOU ANSWER YES, YOU BASED ON RBT

• IF NO, BASED YOUR ANSWER ON CONTINGENCY THEORY

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RESOURCE-BASED THEORY (RBT)

• 1959 PENROSE-firm as a bundle of productive resources.

• 1984 WERNERFELT-firms compete based upon resource positions they hold.

• 1991 BARNEY – emphasized the internal resources of a firm as sources of competitive advantage.

RBT RATIONALE

• People as the most important resource in an organization

• Human resources are viewed as the most crucial source of competitive advantage

FORMULA

• RBT = People as competitive advantage = SHRM

CASE STUDY EVALUATION

• QUESTION: SHOULD THE HUMAN RESOURCE MGT. DEPT. OF ABC COMPANY BE THE SOLE
AUTHORITY IN DESIGNING TRAINING PROGRAMS FOR THAT COMPANY?

• IF YOU ANSWER YES, YOU BASED ON RBT

• IF NO, BASED YOUR ANSWER ON CONTINGENCY THEORY