Please read the following and provide a recap of everything you’ve learned and can use in a marketing business:
The VRINE model and human resources.
The VRINE system a deliberate method to evaluate and asset (Carpenter, 2008) What you do with that asset has more to do with your strategic model. I have made the case that the management team, particularly the middle management team is the most important resource a company has, or is it?
Value: The value of an individual middle manager is related to not only how much they can change create in revenue, but how much than can prevent in losses. The best example would be the mythical manufacturing VP in our StratSim. If he had simply had the authority and foresight to hit the stop button as we produced cars until the losses were measured in the multiple billions. We hypothetically fired the fictional man, because it is illegal to have him taken on to the assembly line and hive him welded onto the new model.
Rarity: Lets face it, when you look at resumes there are literally millions of middle managers and one should easily replace another. However if we look at that mythical head of manufacturing being welded on to a car the answer becomes less clear. How often will that manager exercise individual initiative? In the military the problem becomes a concept called “Career Development” it creates an environment where the individuals progression to the next step become more important than performance in the current. If rising to a position of authority requires a focus on career progression how do you identify the people who rise through dedication to their jobs? That person just became rare.
Inimitability: Can the competition duplicate this? This would lead to the question of whether the system builds the person or the person has to be found with the system. Nature or nurture? The answer is that if we assume people will adapt to the environment then the human resources management system is very duplicatable, it is after all a system of rules that is published and there is a whole world of photo copiers. If that were the case then we would see companies full of highly competent middle management. Sadly that is not the case. The Department of Defense has a universal personnel management system but gets a wide variety of command climates and groups of managers (we call them officers). So in theory the middle manager is very easily duplicated but in practice they are difficult to duplicate.
Nonsubstitutability: Can the same job be done by others? To some extent we see that we can use fewer, we can build flatter organizations that have fewer middle managers, but we need to have some. Also the intangible relationships and long term knowledge is not easily found when you hire another to fill that slot. So for mediocre or ‘Meets Standards’ middle managers, they can be hired and fired without consequence, but the more they are required to act on their own the less likely there is a substitute.
Exploitability: Going back to the value of middle management, the answer should be that they are very exploitable, can be used for a wide variety tasks. If we assume that we are using them to solve problems, cross talk, act on their own initiative. Then the answer is very, if we assume that they are there to compile information and pass it up the line for decisions then they are not exploitable. In “In Defense of a Liberal Education” (Zakaria, 2016) the case is made that technical education is less important than the ability process a wide variety of data and look for connections. Having the basics to understand what the specialists are telling you is critical. If that man now having an engine being mounted on his mid-section been able to understand what his cost overruns were doing to our profitability he would opening his bonus check about now.
Is the middle manager valuable according to the VRINE model? Sorta. The value of the layers between the strategist and the execution are only as valuable as they are contributory to the mission and that is a result of the HR framework and corporate culture in which they work.
Carpenter, M., Sanders, W. (2008). Strategic Management: A Dynamic Perspective. Upper Saddle River, N.J: Prentice Hall.
Firms use value-chain activities to have a higher performance, so they can compete with their rivals. By delivering greater value or comparable value at lower cost, a company can have a competitive advantage. We are all engaging in value-chain activities in the SSM. We are competing with one another by using different configurations to increase sales and market share. Company Y offers a better vehicle after upgrade, but if Company Z offers a similar type of upgrade and sells the vehicle at a lower cost, then Company Z might steal customers and sales from Company Y.
Primary and secondary value-chain activities are used to help a company gain an advantage to compete with rivals. The primary type activities include inbound logistics, operations, outbound logistics, marketing and sales, and service. The secondary (support) activities include human resources, accounting and finance operations, technology, and procurement (Carpenter & Sanders, 2008, p. 82). Porter’s Value Chain lays out a step to step process on how primary and secondary activities can work together to create that competitive advantage. The steps are shown below:
Step 1 Identify subactivities for each primary activity
Step 2 Identify subactivities for each support activity.
Step 3 – Identify links
Step 4 – Look for opportunities to increase value
(Mind Tools, 2016)
I support the primary activities by being part of the secondary activities where I assist with accounting and human resources. Our firm is constantly brainstorming ideas to acknowledge and reward employees. The strategic tactics used increase the employee retention. Besides the standard health, vision, and dental benefits, the company works on building a “family” and supportive work environment. It is a tight knit group that goes the extra mile to show the employees they care. Work-life balance is encouraged. The company promotes team-building by organizing employee appreciation events, forming sport teams, and participating in community activities. Other companies might offer better benefits, but the company tries to compete by offering great perks to the job. Some of the perks might include box tickets to the Giants games or Laguna Seca Raceway, Costco Membership, or gym membership.
Kirstie
References
Carpenter, M., Sanders, W. (2008). Strategic Management: A Dynamic Perspective. Upper Saddle River, N.J: Prentice Hall.
Mind Tools. (2016). Porter’s Value Chain: Understanding How Value is Created Within Organizations. Retrieved October 27, 2016, from
https://www.mindtools.com/pages/article/newSTR_66….
