Dr. Paul M. Swiercz
Department of Management Science
The George Washington University
202-994-0399
prof1@gwu.edu
“There is nothing
quite so practical as
a good theory”
Kurt Lewin
Outline
• Introduce strategy and
competitive advantage
• Review of systems theory
• Resource Theory of the Firm
• FourSquare Model of
Competitiveness
Strategy is:
• The pattern of decisions that
integrates goals and actions
into a cohesive whole, directing
the allocation of the
organizational resources toward
the develop of a distinctive
competence
Three Levels of Strategy
• Corporate
• Business
• Functional
Systems Theory
• All systems are open systems
• Boundaries between systems
are artificial
• Large systems are chaotic
• Systems tend to be homeostatic
Sustainable Competitive
Advantage
The unique position an organization
develops in relation to competitors
that allows it to outperform them
consistently.
(Hofer and Schendel, 1978)
Resource Theory of the
Firm
• Firms are bundles of resources
• Firms within a strategic group
are mostly similar and modestly
different
• Resource differences are the
source of sustainable
competitive advantage
Resource Sub-groups
 Physical
 Human
 Organizational
Distinctive competence
is:
• the special skills, capabilities,
technologies, products, or
resources that enable a firm to
distinguish itself from its rivals
and create a competitive
advantage
Stages of Capitalism
• Petite Capitalism
• Industrial Capitalism
• Global Capitalism
FourSquare Model of Competitiveness
Operations
Marketing
Finance
Staffing
Rewards
HR
Influence
Design
What is Strategic HRM?
Two step definition:
the HR System is the set of policies and practices that
mediate the relationship between employer and employee.
Strategic HRM is directed at the development and
implementation of an HR System contributing to
the creation of a sustainable competitive advantage.
FourSquare Model of Competitiveness
Competitive Strategy
HR Sub-systems
Staffing
Operations
Financial
Rewards
Marketing
Human
Resources
Influence
Design
Employment
Relationship
Inducement
Investment
Involvement
Individual
Behaviors
Contribution
Firm
Performance
Summary
• HR is a key performance subsystem
• Strategic HR is primarily
concerned with the employment
relationship
• the HR system is an
organizational resource in its
own right