Module 8: Organizational Development and Human Resource Factors

PROGRAMME : EXECUTIVEDIPLOMA in
PROJECT MANAGEMENT

MODULE : MODULE 8:
Organizational Development and Human
Resource Factors

FACILITATOR : Mr. Vigneshwaran

MATRIX ID : JX78946HP702

DATE OF SUBMISSION : October 9, 2008

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Module 8: Organizational Development and Human Resource Factors

Table of Contents

1 Introduction Summary...................................................................................................3
2 Human Capital Management........................................................................................4
2.1 Basic Functions of Human Capital Management......................................................4
2.2 Human Capital Management as a growing importance factor in an organization’s
growth 5
2.2.1 Adhering and adapting to employee’s needs.......................................................5
2.2.2 Increasing responsibility in the evolution of a Manager.....................................6
2.2.3 Legal matters.......................................................................................................6
2.2.4 Consistency.........................................................................................................7
2.2.5 Expertise.............................................................................................................7
2.2.6 Increasing cost of Human Capital Management ................................................8
3 Human Capital Management moves from operational to strategic...........................8
3.1 Human Capital Management Challenges................................................................10
3.1.1 Economic and Technological Change...............................................................11
3.1.2 Workforce Availability and Quality..................................................................11
3.1.3 Demographics and Diversity.............................................................................12
3.1.4 Organizational Restructuring............................................................................13
4 Human Capital Management and the Organizational Culture ...............................13
4.1 Organization/ Industry Life-Cycle Stages and HCM Strategy explaining Appendix
1 15
5 HCM as a strategic business contributor to improve the organization...................17
5.1 Strategies to improve the organization....................................................................19
5.2 Linking the HCM Strategies and Plans to the Organization for Effective Strategic
Contribution...................................................................................................................22
6 Final Summary..............................................................................................................24
7 Appendixes.....................................................................................................................26
8 Bibliography (information not used directly but used to supplement information)
27
9 References (text you actually used but not entirely)..................................................28

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Module 8: Organizational Development and Human Resource Factors

1 Introduction Summary
Human Capital Management is regarded as an important function in your
organization. How would you use the theories learnt to improve this resource-
capital management in your organization?

There are three key enablers to have an effective management: people, process

and technology. Out of these key three enablers, the most important component is people.

With people, your organization’s key strategic capital would always be its human capital

because people capital defines the organization as well as it is also a reflection of either a

performance of positives or negatives. In focusing this enabler called people capital to

excel in organizations, organizations endure high budgetary expenditures to ensure

success which does not necessarily guarantee success. However, the combination of an

effective strategy and sound investment of human capital management does serve as the

catalyst of an organization’s positive market competitive performance.

Human capital management is regarded as important in an organization because

without it, a company would cease to exist. This paper on Human Capital Management

which we will cover on at matters of recruitment, compensation, training and

development, will show how HCM has moved from an administrative role to a strategic

contributor to an organization. Weak human capital management can be caused by many

factors such as hierarchical management, focus intensive on processes, and too inward

organizational focused.

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Module 8: Organizational Development and Human Resource Factors

In ensuring the competitive success of an organization, Human Capital

Management must look beyond the administrative activity role and more into

contributing as a strategic role in an organization. By formulating strategies, you would

then have a formalized design of a human capital management system that is meant to

manage effectively the use of human talent from the aspect of recruitment, compensation,

training and personnel development. Having a formalized human capital management

system, an organization is then able to bring in the necessary human capital resources for

the work required by the organization and compensate them for their task. In addition,

should problems arise, they would be able to meet the challenges in managing human

capital with the proper planning and measure put in place as a result of proper strategic

planning.

2 Human Capital Management

2.1 Basic Functions of Human Capital Management

Human Capital Management is a set of strategies or a formalized system that

focuses on the policies and practices in managing the people resource activity in a work

environment. Within the organization, the Human Capital Management functions as a

internal organization that focuses on the policies and strategies in managing people

resource activity. Their functions cover these roles:

• Staffing (human resources planning, recruitment and selection)

• Human resource development

• Compensation and benefits

• Safety and health

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Module 8: Organizational Development and Human Resource Factors

• Employee and labor relations

• Records maintaining

• Research (providing a human resources information base, designing and implementing

employee communication system)

• Interrelationship of human capital functions. (Virtual University of Pakistan

2006)

2.2 Human Capital Management as a growing importance factor in an

organization’s growth

Human capital management is viewed today as becoming more and more critical

to an organization’s success in today’s corporate world. They play an important role in

creating the organization because human capital management talks about the

management of human resources in terms of recruitment, compensation, training and

development. Success of an organization today is dependant on its people because

without it, no organization can provide competitive advantage in today’s business world.

The factors below will illustrate the dynamic growing importance of human

capital management in today’s organization:

2.2.1 Adhering and adapting to employee’s needs

The employee today faces a lot of personal responsibilities like health care, family care

including child and elderly care as well as family vacation planning. The today’s worker

also seeks to balance between the working life and individual personal pursuits. As such,

the HCM is central to planning, controlling and executing such policies designed to

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Module 8: Organizational Development and Human Resource Factors

accommodate the demands of the employee’s needs as well as balancing the employer’s

needs and requirement.

2.2.2 Increasing responsibility in the evolution of a Manager

The role of management today has evolved from not only just managing the work activity

of the human capital and processes but has gone beyond. The today’s manager looks at

the complexities and demands in challenges to businesses such as local and foreign

enterprise competition, evolving new technologies and new major improvement in

scientific research and development. As a result, HCM is tasked with developing and

executing strategic business decisions relating to the organization’s objectives and

matching that with the competency of the human capital. This results in strategic

decisions being made with concern to matters of recruitment, compensation, training and

personnel development.

2.2.3 Legal matters

The introduction of fair and proper legislation has increased the importance of human

capital functions today. Some policies are listed below:

• Social Security benefits (employee’s provident fund and social medical security)

• Observance to a country’s national holiday

• Family and sick leave

• Labor relations

• Compensation

• Work safety

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Module 8: Organizational Development and Human Resource Factors

The points above are some of the policies that has entrenched the importance of having a

proper HCM in not performing administrative but also in a strategic role in managing

today’s human capital. However, should these policies be infringed, this would result in

costly back-pay awards, class action legal suits, and legal penalties.

2.2.4 Consistency

Managers need to be consistent when making certain decisions such as compensation,

because it can be viewed as either unfair or uneven. Without the consultation of the

HCM, the compensation structure can be viewed as uneven and unfair. HCM keeps the

level of consistency equal because they ensure the stability of fairness when it comes to

matters of promotion, compensation and personnel development.

2.2.5 Expertise

In today’s organization they face many challenges, many of which are external in nature,

for example, competition. As a result, HCM is tasked with coming up with new ideas in

response to those challenges. Challenges such as compensation and candidate selection

are one of those responses. Compensation packages developed with attractive benefits

such as allowances on transport travel, meals, entertainment and gadget, telecommuting

and bonuses, and organization’s stock purchase plan or given stock options to employees,

loans for housing, academic and training. HCM also looks into the employee matching

and selection process. They have to look into subjective and objective interviews,

providing tests to potential candidates such as psychometric testing (the measurement of

knowledge, abilities, attitudes, and personality traits). This is for HCM to evaluate a

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candidate’s ability to solve problems under pressure must have team spirit, logical

analytical thinking, excellent communication skills, negotiation skills and

creativity.These methods have added on the commonplace traditional matching and

selection of potential employees. With this regard, the knowledge base of the skilled

human capital department is needed to ensure the ongoing advancement in human capital

management.

2.2.6 Increasing cost of Human Capital Management

The largest contributor of organizational cost today is the cost of human capital. With the

increasing demand for businesses globally and advancement in technology, the highly

skilled employee today has become a valuable asset. As a result, budgetary expense for

managing human capital is considered the highest in budgetary expenditure of an

organization. (Virtual University of Pakistan 2006)

3 Human Capital Management moves from operational to strategic

The traditional role of HCM has today been increased to not look only at

administrative and daily operations but to a more strategic role. HCM has now moved to

being a strategic partner in contributing to the success of an organization by developing

and executing the human capital management strategies and practices. For HCM to

execute the new role in strategy, they must look into developing their skills and attitudes.

As such, the human capital development would be able to lead change, facilitate business

growth and enhance innovation across the organization. In doing so, the human capital

department would start a changes process strategically executing at the same time the role

of a strategic partner and change agent. (Norman and Powell 2004)

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Module 8: Organizational Development and Human Resource Factors

The role of the change agent here is to manage the transformation of the

employee. HCM is regarded as the vanguards and the vehicle of an organization’s culture

and are also the main contributors to identification and implementation of change

processes. In Figure 1, Ulrich (Ulrich 1998) differentiates four roles for the up-to-date

HCM derived from two dimensions. The first dimension represents the focus of HCM

and it ranges from operational to strategic. The second dimension reflects the human

capital activities and distinguishes between managing human capital processes and

managing people. Crossing these axes we arrive at the four roles of HCM: strategic

partner, change agent, administrative expert and employee champion.

Figure 1 : Human Capital role framework (Ulrich 1998)

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Module 8: Organizational Development and Human Resource Factors

For HCM to excel in a new role, strategy, the HCM professional has to be

developed and be transformed. Not only will HCM take on the operational role but they

will also undertake a strategic role in leading change, augment innovation and assist the

organization growth and success. Thus, the change transformation happens for HCM at a

strategic level enabling HCM to be a change agent as well as a strategic partner. For

example, in Accenture, a technology management consulting company, the HCM

professionals have to develop new skills such as guiding and supporting. These skills are

then used to add value to building the competence skills at senior director level. This

program is called “High impact Program for HR People”. Central to this program are

coaching, mentoring, problem sharing, networking and exchanging support (Norman

and

Powell 2004).

3.1 Human Capital Management Challenges

In today’s competitive business world, the role of HCM has

become very challenging as well. Not only does the HCM professional

have to play an operational role, the person has to be able to

contribute at a strategic level towards the organization’s growth and

success. According to a study by the Hudson Institute, entitled

Workforce 2020, the study has indicated issues concerning the labor

workforce. (Judy and D’Amico 1997) In that study, the challenges

facing HCM are:

• Economic and technological change

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Module 8: Organizational Development and Human Resource Factors

• Workforce availability and quality concerns

• Demographics and diversity issues

• Organizational restructuring

3.1.1 Economic and Technological Change

Economic changes can alter employment patterns due to increasing

demand in a particular occupational skill or an industrial shift. For

example, Malaysia’s current industrial focus has moved from

manufacturing and agriculture to service and information

communications technology industries.

As a result of this shift, organizations have had to lay off a number of

employees. At the same time, with a growing global marketplace,

organizations have been forced to also increase productivity and

decrease labor costs in order to become more competitive. With the

growing influence of information communications technology related to

the global commerce, organizations now faced with a different set of

challenges to recruitment and retention of employees.

3.1.2 Workforce Availability and Quality

In most parts of the world today, there is significant labor demand due

to the lack of supply of workers with the necessary skills. This is a

result of the growing use of information communication technology and

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Module 8: Organizational Development and Human Resource Factors

its correlation to global business because with technology, this

decreases the challenges to global commerce. As a result, HCM is

being challenged to recruit and train new employees. At the same

time, the quality of hiring of an employee is also a concern because

employers in many organizations today seek to recruit employees who

have technical competencies in engineering or information

communications technology, skills which are considered niche.

3.1.3 Demographics and Diversity

In the past where men were supposed to work with retirement

package, now it is not the case. Today, the workplace is a more diverse

environment with peoples of different ethnic background, both male

and female as well. HCM today has had to adapt to a different working

environment.

In the current workplace today, you would have dual-career couples

and working single parents. With the decline of the traditional family,

where there is only a single income earner and usually male, the

concept of balancing family and work poses a challenge to human

capital management. For example, matters relating to employment

relocation and transfer which some employees maybe less than willing

to accept. Also, the balance of work and family life comes to a

challenge especially for employees who have families as the employee

faces a decision between child rearing and employment. In order to

alleviate this situation, important HCM legislation are put in place that

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ensures that employers provide up to 2 weeks of unpaid parental/

family leave to employees.

3.1.4 Organizational Restructuring

Organizations today are differently structured than it was the past few

years as it strives to achieve market competitiveness. Today with

mergers and acquisitions of organizations, organizations seek to

become more competitive to succeed in business. However, this could

result in drastic and sudden organizational changes, which could

sometimes have a negative effect. Examples of negative effects are

employee redundancies, facilities closing and out-placing workers. As a

result, jobs are redesigned and this affects the employee. As an agent

of change, the HCM professional has to manage this human

consequence of change.

4 Human Capital Management and the Organizational Culture

The culture of an organization is based on the professionally

accepted norms and common values the working place in an

organization. Basing firmly on the on the vision and mission objective

of the organization, the employees would be able to share values and

beliefs which allows the employee to be able to define the necessary

work opportunities and plan strategies. In doing so, the organizational

culture would be defined by the different characteristic of each

employee that contributes to a norm of expected behaviors, values,

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philosophies, rituals, and symbols used by the organization’s

employees. However, organizational culture takes time to evolve as it

takes time for shared experiences to evolve as an organizational

culture.

The correlation between organization culture and human capital

management is the recruitment and retention of employees. In being

able to attract talent to organizations, employee prospects look at the

internal organizational culture of the organization that would set apart

from another. However, where organizations that supports a working

culture that values the employee or view business situations such as

risks and changes thereby requiring immediate responses can a

positive differential factor when it comes to attracting new talent.

With that in mind, the evolution of organizational culture starts

with the different life cycle of an organization from the view of a start

up to firmly established organization. Each different stage of an

organization’s growth affects the human capital management strategy.

For example, the human capital management strategy will differ from

an Information Communications Technology company that is three

years old vs. a company that is like IBM or HP. If you look at Appendix

1, this will explain the relationship between the life cycle of an

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organization and the Human Capital Management activities. (Coff

1997)

4.1 Organization/ Industry Life-Cycle Stages and HCM Strategy explaining

Appendix 1

Embryonic

At this stage is where the entrepreneurial character exists in the organization. As the

organization is still at infancy and starting, the amount of resources in terms of capital

finance, compensation packages are modest. Recruitment of candidates is based on

individuals who already have the necessary skill-sets. Personnel training and

development is based on ad-hoc demand basis and is usually on the job.

Growth

At this stage, where an organization is growing at a pace rate, so does

the need for stability to sustain its growth. This juncture is where

necessary additional capital investments are needed to expand

facilities, marketing, and human resources to take advantage of the

growth rate of business demand of the organization’s business. It is

important to have human capital management plans to oversee

necessary attracting and recruiting talent and not just deal with

immediate business demand pressures. Human capital management

efforts have to be expanded to ensure career planning, compensation

practices and retention plans so that an organization is able to ensure

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the organization has the necessary employee staff and is able to

attract and recruit talent.

Shakeouts

At this level as the industry reacts to rapid growth, not all organization

will survive. At the stage, most organizations will be acquired, merged

or cease to continue in operations.

Human capital management is very focused at this level of the

organization because it to ensure that the necessary human capital is

retained whilst reorganizing and reducing labor to manage costs

efficiently. However, a balance is needed at this level by using short

term and long term inducements targeting high potential and niche

skilled employees who will ensure the organization’s survivability.

Maturity

At this stage of the cycle, the organization should be stable and thus

its culture are stabilized as well. As a result, stability of the

organization will allow human capital management to be developed

further in having formalized plans, policies and procedures. Also, at the

maturity stage of the organization, this would also the human capital

management to allow plans for new compensation plans for

recruitment as well as reward incentives for the retention. Personnel

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Module 8: Organizational Development and Human Resource Factors

training and development plans would also be executed at this stage

for the benefit of the employee.

Decline

At this stage, where the organization has grown beyond stabilization, it

sometimes would face resistance to change. As an organization

diversifies or decides to seek in another direction, human capital

management faces a challenge in order to execute the organization

strategy. This is because employees or organized employees would

demand no decrease in pay as well as better employment security. At

this level, plans such as productivity enhancement and cost reduction

programs are introduced such as layoffs, early retirement programs or

simply facility closure or transfer.

5 HCM as a strategic business contributor to improve the organization

Over the years, human capital management has been gaining

recognition in its effort as a strategic business contributor to the

organization. With the ever growing market competition amongst

enterprise in business so does the demand for attracting and retaining

talent. Even organizations that are not-for-profit must be able to

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manage their human capital and in an organized business oriented

style. As such, today not only has the human capital professional has

have to manage administrative human capital tasks, they now also

have contribute to the strategic success of the organization. (Ulrich

1997)

. The points below will state the different strategic of HCM in

contributing to the organization:

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5.1 Strategies to improve the organization

Enhancing Organizational Performance

The HCM professional can contribute to the strategic success of the

organization by establishing activities by enhancing organizational

performance. Through planning and development, as well as delivery

of organization activities this will enhance organizational performance.

(Forbringer and Oeth 1998)

Involvement in Strategic Planning

In the past where human capital managers play a more supporting

back end role in administration and operations now they are needed as

past of a strategic planning team. The HCM professional is now viewed

as a strategic partner alongside other strategic roles such as finance,

technology, production, sales and other business department concerns.

The HCM professional is able to provide input by providing information

on the labor workforce by staffing availability, employee cost and

necessary staffing requirement and staffing specifications.

Decision Making on Mergers, Acquisitions, And Downsizing

When companies are acquired, merged or even downsized, they must

take into account the HCM issues they have to face. HCM professionals

are needed to be part of the discussions as you look into matters such

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Module 8: Organizational Development and Human Resource Factors

as merged organizational cultures and operations. According to

studies, its has been found that less than one-third

of those involved in mergers surveyed have adequately considered

HCM issues. (Wall Street Journal 1997)

Redesigning Organizations and Work Processes

Organizational structure follows the strategic planning set by HCM.

According to Ulrich, it is the HCM that is the architect of the

organization structure. He feels that the HCM professionals would look

into new ways to align the organization and its work with the strategic

thrust of the organization. The HCM professional would analyze the

internal strengths and weaknesses of the human capital in an

organization in order to gain strategic competitiveness for the

organization by working with the organizational managers and

executives in coming up with the analysis.

(Ulrich 1998)

Ensuring Financial Accountability for HCM results

In the past, HCM was seen as an activity of an organization, now it is

seen as contributing to the organizational performance by looking at its

financial cost and benefit of the HCM effort. For example, to reduce

costs in employment vacancies and high employment turnover rate in

certain departments, the HCM professional can introduce high wages

as well as program incentives in departments where there are high

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employment turnover rates. (Davidson 1998) This shows that HCM

does more than its typical activity and task performance but it also

looks at contributing to the organizational strategy by looking at the

returns of investment of human capital. In addition, with effective and

efficient HCM programs, it also contributes to better financial

performance of the organization rather than being a cost activity

center. (Huselid 1995)

Outsourcing HCM Activities

Nowadays, most organizations seek to outsource activities that can be

handled in a cost effective manner. HCM is no exception. The activities

in outsourcing HCM activities are payroll, shift activity planning, system

maintenance, specialist HCM external expertise consulting and

recruitment. In this manner, the organization’s HCM is able to be more

flexible and able to adapt in changes to the organizational structure.

The advantages in outsourcing is that the HCM does not have to be

saddled with operational costs such system maintenance of its HCM

processes, some HCM professionals in the organization may not have a

certain level of expertise an external HCM professional has.

(Outsourcing Guide 1998) However, there are concerns such as the

competency of the vendor, loss of control of data as well as risk of

information loss of HCM data and the negative performance of the

outsourcing vendor selected. In order to alleviate the concerns of

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outsourcing, the service level contract must define the activity clearly

indentifying the outsourcing relationship. The organization’s HCM must

come up with a detailed analysis and must have periodic key

performance indicators to provide key reporting to ensure service

levels are met. (Mitchell III 1998)

5.2 Linking the HCM Strategies and Plans to the Organization for Effective
Strategic Contribution

In order to be an effective strategic contributor, the

organization’s HCM must link the HCM strategy to the organization’s

plans. Figure 3 will show the relationship among variables that will

determine the HCM plans an organization will develop.(McKee, Hill,

Jones 1998 and Kochan and Barocci 1985)

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Figure 3

Business strategy affects strategy and HCM plans as well. When an organization

decides to further improves itself or decides on a different business strategy, the HCM

must be able to support the strategy by coming up with adequate HCM planning so that it

can well coordinated with the organization’s business strategy if there is any

organizational human capital deficiency that must be remedied. (Barney 1997)

To show the relationship between the relationship between strategy and

HR,

two basic business strategies can be identified: cost-leadership and

differentiation. (Porter 1980) Figure 2-4 will show the different HCM

needs under each strategy and the appropriate HCM measures

suggestions. (Ragburam and Arvey 1994)

• The differential strategy is a HCM strategy in dynamic

environments where there are rapid changes in an organization

such as ICT companies. This is because companies as seek to

continuously find new products and new segments. When certain

specific skills are needed for a new market or product, it is a

challenge to develop internally the resources. With this

challenge, using this strategy, the HCM would be able to shorten

the time frame and would use external resource to adequately

staff the organization.

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Module 8: Organizational Development and Human Resource Factors

• The cost-leadership strategy requires the HCM to be able to plan

and develop employees to fit the specialized needs of

organization. However, this requires a long term planning, which

maybe challenging if niche skills are needed internally. On the

other hand, by using this strategy, the HCM would be able to

contribute strategically by focusing on developing internal

resources for the long term.

Figure 2-4

6 Final Summary

In project management, it is important for a project manager to take note of the

matters of human capital management. The right incentive and the right planning would

allow the project manager to have the necessary resources in order to complete the task

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Module 8: Organizational Development and Human Resource Factors

set forth by the project manager. Over the years, human capital management has moved

from the administrative and operational aspect of an organization and now has become a

strategic contributor to the organization. The right strategic plan for the organization and

different stages of organization growth allows the HCM professional to plan and execute

accordingly to the organizational objectives. Being part of a providing strategy, HCM is

now viewed as more of a profit center and away from its past view as an activity based

cost center. By being a strategic contributor, human capital management would be able to

see good returns to the organization such as in reduction of unnecessary costs on

activities that can be outsourced such as payroll and data management, better returns of

investment on labor with proper recruitment planning and avoiding other large costs

thereby allowing the HCM professional deployed to other more important and strategic

tasks.

“The most effective project managers are developed day-to-day, not year-to-year or

project mistake-to-project mistake. Mistakes will happen, even with the best of

mentoring, however, project managers with strong mentors should find their people

effectiveness continually improving. The benefit is that the company and everyone

connected to the project shares in those gains.” Neal Whitten (Whitten 1999)

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7 Appendixes

Appendix 1

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8 Bibliography (information not used directly but used to supplement

information)

1. Management (MGT) 501: Human Resource Management (2006) Virtual

University of Pakistan, Nov 2006

2. Ulrich D (1998) A New Mandate for Human Resource. Harvard Business Review
January- February 1998, pp.125-134

3. Norman C, Powell A (2004) Transforming HR to Deliver Innovation at Accenture.

Strategic HR Review 3 (3), pp.32-35

4. Russell W. Coff, “Human Assets and Management Dilemmas: Coping with

Hazards on the Road to Resource-Based Theory,” Academy of Management
Review, 22(1997), 374—402.

5. Louis R. Forbringer and Carol Oeth, “Human Resources at Mercantile

Bancorporation, Inc.,” Human Resource Management, Summer 1998, 177—189.

6. “The Missing M & A Link,” TheWall Street Journal, October 7, 1997, A1.

7. Linda Davidson, “Measure What You Bring to the Bottom Line,” Workforce,
September 1998, 34—40.

8. Mark Huselid, “The Impact of Human Resource Management Practices on

Turnover, Productivity, and Corporate Financial Performance,” Academy of
Managemen Journal, 38 (1995), 635—672.

9. “The Ongoings of Outsourcing,” Outsourcing Guide, August 1998, 2—5.

10. Howard R. Mitchell III, “A Moving Issue: To Outsource or Not to Outsource,”

HR Magazine, May 1998, 59—68.

11. Neal Whitten 1999, PM Network Magazine.

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9 References (text you actually used but not entirely)

1. Richard W. Judy and Carol D’Amico, Workforce 2020: Work and Workers in the
21st Century (Indianapolis: Hudson Institute, 1997).

2. Dave Ulrich, Human ResourceChampions (Boston: Harvard Business School

Press, 1997).

3. Figure 2—2 are based on ideas suggested by Kathryn D. McKee,

SPHR, CCP; Charles W. L. Hill and Gareth R. Jones, Strategic
Management (Boston: Houghton Mifflin, 1998), 92—96; and
Thomas A. Kochan and Thomas A. Barocci, Human
ResourceManagement and IndustrialRelations (Chicago: Scott,
Foresman, 1985), 105.

4. Jay B. Barney, Gaining and Sustaining Competitive Advantage

(Reading, MA: Addison-Wesley, 1997), Chapter 1.

5. Michael E. Porter, Competitive Strategy: Techniques for Analyzing

Industries and Competitors (New York: Free Press, 1980).

6. Figure 2—4, as adapted, is based on ideas suggested in S.

Ragburam and R. Arvey, “Business Strategy Links with Staffing
and Training Practices,” Human Resource Planning 17(1994), 58.

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