Maximizing human capital in Asia: from the inside out

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Development of core competencies, agile organizations, and efective management of human resources will be key to efectively responding to future business needs. Results also indicate the lingering efects of the Asian inancial crisis and competition from local and global competitors will afect organizational and people management in the years to come. Gardner Patrick M.

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Gardner tmg13 cornell. Wright pmw6 cornell. It is intended to make results of Center research available to others interested in preliminary form to encourage discussion and suggestions.

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This study addresses this debate. Development of core competencies, agile organizations, and effective management of human resources will be key to effectively responding to future business needs.

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Results also indicate the lingering effects of the Asian financial crisis and competition from local and global competitors will affect organizational and people management in the years to come. These findings inform practitioners and shed light on the application of the Resource Based View of the firm to the study of human resource management. The Resource Based View RBV of the firm seeks to explain the variance in rents attained by firms by focusing on the different sets of organizational resources acquired as a source of those rents.

These models assume that firms within an industry or strategic group are identical in the strategic resources that they control and the strategies that they pursue. If for some reason resource heterogeneity does occur, it will be quickly eroded as resources are highly mobile. These models take an "outside-in" perspective where "outside" environmental factors solely affect the internal operations of the firm.


The RBV suggests that firms obtain competitive advantage by implementing strategies that exploit their internal strengths through responding to environmental opportunities, while neutralizing external threats and avoiding internal weaknesses Barney This paper will first examine what executives of organizations operating in the Asia- Pacific region see as the organizational resources that must be developed for the competitive advantage of their companies. This broad definition includes human, organizational, financial, and physical resources.

Barney and others Teece, et al, have outlined a framework for determining if a resource can be considered a source of sustained competitive advantage. The key elements of this framework require resources to create value, be rare, imperfectly imitable, and be embedded in an organizational context to maximize its value.

HR capability can be defined as routines embedded in the tacit and implicit knowledge of organization members functioning to acquire, develop, nurture, deploy, and redeploy human resources in a dynamic, competitive environment Boxall, ; Kamoche, ; Teece, et al. Human resource practices, especially when combined into bundles and matched to business strategy could be argued to meet the above definition of a resource MacDuffie, ; Arthur, The RBV argues that resources are what are important for firm performance. But though competitive resources are important, without proper implementation or utilization, these resources may not result in competitive advantage.

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For example, 3M had the technology for creating adhesives that could be easily removed from material on which it was applied but until they combined this technology with small pads of paper to create Post-It Notes, this technology was not adding to the profitability of the organization. Either HR practices or HR capability are the key levers for creating firm value with human capital. This paper will consider the possibility that HR capability plays a role in creating sustained competitive advantage and will attempt to shed light on the above debate by systematically analyzing the results of a series of interviews with HR practitioners in the Asia Pacific region.

We examine the issues perceived to be important to HR practitioners, how they are responding to these issues, and how they adapt to change. Our study provides insight into the role of HR practices and HR capability as well as a summary of the key issues facing practitioners in the region.

In particular, this study sheds new insights because at the time of the study, participating companies in the Asia Pacific region were reacting to the effects of the Asian financial crisis that hit the region several years earlier in During the one-year period from December 23, through December 22, , the South Korean exchange rate dropped This sudden souring of the Asian economy came as a surprise to many since for the three previous decades, Indonesia, Korea, Malaysia, and Thailand had an impressive record of economic performance highlighted by fast growth, low inflation, macroeconomic stability, strong fiscal positions, high saving rates, open economies, and thriving export sectors.

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  7. The researchers identified and contacted highly knowledgeable practitioners in the area of HRM from consulting firms and a variety of companies operating in the Asia Pacific region to participate in this study. Thirty- three high level executives from thirty-two different companies operating in China, Hong Kong, Japan, Korea, the Philippines, Singapore, and Thailand participated in the study. Subjects were identified and interviewed or surveyed by two of the authors and two non-author research partners.

    Of the participants, thirty-one were HR executives, and two were management consultants. Approximately Table 1 lists the distribution of country participants.

    Maximizing Human Capital in Asia : Elizabeth Martin-Chua :

    Interviewers documented the content of the interviews by taking notes throughout the session. The information was summarized into a standard interview content sheet. Multiple responses were allowed for each question. Each response was documented separately. Respondents providing information via written surveys indicated their responses on a sheet similar to the interview content sheet. The written surveys were translated into the national language of the respondent before the surveys were administered whenever necessary. The surveys were initially translated from the English version and then back- translated into English by two qualified individuals to ensure the accuracy of the translations.

    The responses to the written surveys were then summarized by one of the authors into the format used in the face-to-face interviews.

    In the cases where the responses were not provided in English, the responses were translated into English by the researchers before proceeding with further data analysis. The research design assumes that environmental trends have implications for organizational capabilities and people issues.

    The HR function needs to play an integral role in responding to these environmental issues by facilitating the building of appropriate organizational capabilities, and by delivering effective solutions to the corresponding people issues. Thus the interviewers posed three basic questions to study participants: 1. As you look over the next years, what are the three major trends or issues in the external environment that will have the greatest impact on your firm?

    First, each response to each question was printed on a separate slip of paper with a code identifying the case ID of the respondent. This would have generated three slips of paper with the same ID code. Starting with the first question, all the response slips were mixed together in one pile. One of the authors sorted the responses into smaller piles based on similarity of content.

    Piles were sometimes merged into larger groupings or broken into two or more distinct groupings. After the piles were sorted into different categories by content, another author reviewed the clusters for appropriateness. The ID codes for each category pile was recorded, entered into a spreadsheet, and summary statistics calculated. This process was repeated for all three open ended questions. Participants seemed to be concerned with the economic reforms and retrenchment that typically follow regional economic crises. Further decreases in demand by manufacturers and consumers are expected as they continue to cut back on spending to stay financially afloat.

    The increasing number of bankruptcies of businesses is also causing a chain effect of decreasing sales, production, and increasing unemployment Business Week, Surprisingly, some respondents predicted economic opportunities rather than crises. The specific requirements or preferences of your reviewing publisher, classroom teacher, institution or organization should be applied.

    Philips AmbiScene is a flexible lighting concept designed to help retailers create inspiring and meaningful shopping experiences. It can change the lighting in every conceivable way e. There are some in particular who have given me license to operate freely within their businesses in a way that has directly enriched this text.

    Enter a digit Phone Number. Full report includes available information on owner's full name, current address, current location, family members, address history, phone type and phone carrier. It is something that can only be developed after a long period of time in the organization. The decrease was partially offset by EUR million related to re-issuance of treasury stock and net share-based compensation plans.

    The number of outstanding common shares of Royal Philips Electronics at December 31, was million million. The finding underscores the challenge that HR faces over the next decade.

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    But a fast-changing business environment will require HR leaders to make significant changes in what they do and to their mindset in order to deliver on those needs. From technology-shy to technology-savvy.

    Maximizing Human Capital in Asia : From the inside Out [Paperback]

    From metrics to insights. In the future, CHROs must use data to make better decisions. In the future, most rule-based processes will be automated.