Labour Market and Resource-Based View Analysis

The provided document is an assignment that covers a range of topics including labour market reforms, resource-based view, and Brexit's impact on the UK employment model. It presents summaries of 13 different research papers and articles, covering aspects such as digitalisation of the economy, occupational and environmental drivers of competitive threat, informalisation in low-wage labour markets, and more. The assignment likely requires students to read these summaries and apply their knowledge to answer questions or complete tasks related to the resource-based view and its application to labour market analysis.

THE BROAD THEORIES
AND PROCESSES
RELATED TO HRM AS A
STRATEGIC ACTIVITY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Q1 Explain resource based view..................................................................................................1
Q2 Threats the organizations are facing in labor market of UK..................................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Resource based view is a technique through which company can evaluate its performance
regarding the usage of resources that permit them to stand in a competitive marketplace. Further,
this report will highlight the concept of resource based view and its importance (Quinn and
Davis, 2015.). Further, the project will outline how resource base view help the company to gain
the competitive advantage over its rivals with the help of VRIN framework that consists of four
components i.e value, rare, imitable, non-sustainability, on the flip side, the project will outline
how the resource based view helps the company to accomplish their goals and objectives and
achieve success. Moreover, the assignment will outline the threats and challenges that an
organization faces in the labor market of UK which encompasses of rise of gig economy,
unemployment, automation etc.
TASK 1
Q1 Explain resource based view
The resource-based view is a method through which we can view an organization and
accordingly forming a strategy. Basically, this concept explicate the firm to be a collection of
assets. However, it's far those sources and the manner that they're blended, which make
corporations different from each other. Further, it is taken into consideration as an inner-out
approach even as analyzing the company which means that beginning of the evaluation is the
internal surroundings of the enterprise.
Moreover, This method is primarily based at the idea that firms include diverse kinds of
tangible and intangible sources which is inclusive of property, techniques, competencies, data,
understanding, and many others. However, when these assets are mixed, they create enterprise
competencies some of which create a combination of center competencies that offer competitive
advantage to the company (Vernon, Hocking and Tyler, 2016). Further, resource based view is
based on two principles namely; sourcing decisions and corporations architecture wherein, the
sourcing decisions says that the if the company do not any their competencies then it won't be
possible to build the strategies in order to cope up with competitive market, on the other hand,
the corporations' architecture says that the company should develop such architecture that
recognize competencies and different technologies that they need to develop to remain
competitive.
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Further, in the resource based review structure, assets are given the important role of
helping corporations in accomplishing higher organizational performance and aggressive gain.
Therefore, the concept has been evolved and determined via research and the information that
helps it. Further, resource based review impose that companies achieve success based on their
assets and talents in preference to their products and services. Thus, in resource based theory, the
important terms include tangible assets, intangible sources, and skills wherein, tangible assets are
incredibly apparent for instance homes, plant, device, one of a kind license, land, borrowers,
personnel, patents, stocks etc, which may be touched and sensed and further, they have a
physical structure. Moreover, intangible sources are more difficult to realize which includes
competencies, experience and information of personnel, advisers, dealers and provider.
Moreover, skills, expertise and experience can be incorporated within the organizations in-
residence databases, non-public and organizational networks, manufacturers and popularity.
Further, a corporations' lifestyle and values are very crucial for the resources particularly, for
instance, the winning attitudes to consumers, quality and exchange (Bromiley and Rau, D.,
2016).
Resource Based View For Competitive Advantage
A competence is a capacity to do something, wherein, the competence in context of organization
means that a company has a power or an excessive competence interest if it leads over its
competitors on a competitive issue that customers prefer, on the other hand, a business enterprise
has a weak spot or a low competence if it performs lower than their competitor on an aggressive
component that customers' cost. Thus, competence is a manner of describing how successfully
the company carry out its vital activities. Further, competitive advantage is a reward that a
company has over its competitors that enable them to generate income or margins or keep more
patrons than the rivalry. Thus, a company's competitive gain develop from the assets that the
company possess. However, the resource based view of the company follow VRIN framework
which includes four factors namely; value, rare, inimitable, non-sustainable (Kull, Mena and
Korschun,2016).
Valuable: assets of the companies are more valuable if it provides strategic advantage to
the organization. Moreover, resources develops value as it assist companies in accomplishing the
market opportunities or enables in decreasing marketplace threats. Thus, the resource based view
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doesn't provide any advantage of owning a useful resource if it does not enhance value of the
corporations.
Rarity: Resources ought to be difficult to recognize in some capable and existing
competitors of the company. As a result assets must be uncommon or unique to provide
aggressive benefits. Thus, resources which might be possessed through a several firms within the
marketplace region can not provide aggressive advantage, as they cannot plan and execute a
completely unique enterprise strategy in evaluation with other rivals.
Inimitable: Inimitable approach means making replica or re-create the resources will not
be viable. However, imperfect imitability may be many through difficulties in obtaining
resource, evasive relationship among ability and competitive gain or complexity of sources.
Thus, assets may be basis of sustained aggressive benefit only if firms that do no longer hold
these sources can not acquire them (Steiner and et.al., 2017).
Non-sustainable: Non-sustainability of assets means that resources can’t be replaced via
any other opportunity useful resource. Thus, competitor can’t acquire equal overall performance
via changing sources with other opportunity sources.
Therefore, resource based review ought to allow a company to perform tasks and act up
in a manner that result in excessive income, low charges, high margins, or enhances financial
statement of the company. Moreover, resources are precious once they permit a firm to think of
or put into effect techniques that modify its performance and effectiveness. Moreover, Resource
review helps managers of companies to understand why competences may be sensed as a
corporation vital asset and, on the same time, to realize how the ones property may be used to
enhance enterprise overall performance. Thus, resource based review of the company evaluate
that characteristics associated with previous experiences, organizational subculture and
competences are critical for the achievement of the company.
Moreover, the resource based review help the companies to get accomplish their goals
and achieve success by formulating the various strategies relevant to price formulation of their
products through which they can earn profits and can recover their costs, setting quality standard
of the company, developing innovation in their products in order gain huge customer base etc.
Further, through resource-based review company can get success by adopting good practices
within their company like engaging workers, rewarding efforts, staying committed towards the
sustainable environment etc. As an example, the company should reward employees by
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appreciating their efforts and providing them bonus or opportunities for promotions, further, they
should provide them vacation as a gesture for their hard work etc.
Further, the resource based review enable the firms to achieve their long term and short
term objectives which is centered on overall performance of company (Wu and Chiu, 2015).
Thus, focusing on the improvement of assets facilitates the company to achieve success in future
time period. Moreover, it helps the company to concentrate on the resources which help them to
improve in preference to just the objectives they are trying to fulfill. Further, it increases their
knowledge of the key components of overall performance. Thus, the resource based review will
have a tendency that helps the company to deal with extra high profile standards and work in
opposition to the resource improvement targets. Hence, through resource-based review the
company will be able to recognize the key factors through which they can improve and enhance
their performance. Further, the organization will be able to secure various resource and skills that
may be required by the company to achieve success in future context. However, through resource
based review companies would be able to maintain their position by adopting and enhancing the
resources that are beneficial for the future performance.
Q2 Threats the organizations are facing in labour market of UK
There are various challenges that organizations are facing in the labor market of the UK namely;
automation, gig economy, Brexit, increasing costs etc.
Automation: From the current scenario of labor market in UK it has been observed that
the increasing use of advanced technologies and the upward push of automation within
conventional blue collar facet of the economy and also now more and more inside white collar
economy. However, inside blue collar and guide labor sectors, where it's far common for group
of workers to be hired on a short basis with better personnel turnover, extended level of
automation ought to probably lessen the requirement for some positions for job. Consequently, it
impacts the placements section of the companies in UK who due to the decreasing demand for
labor may see their revenue decreasing (Barney,2015). As an instance amazon are growing their
drone distribution, Uber are introducing driverless cars and model had been created which could
lay bricks faster and adequately than people can.
Brexit: Many lower professional transient roles have traditionally been filled with team
of workers from EU international locations, the dubiety caused by the continuing Brexit neortage
may be all the way down to fewer European migratory in search of employment in the united
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kingdom due to the brexit impact. However, company owner are facing labor and abilities
shortages at some stage in the food deliver chain in addition to in sectors including production,
healthcare and hospitality etc. Further, it is also been observed that the European nationals the
companies who have employed had been view as either leaving their company or the United
Kingdom in 2017 (Chatzoglou and et.al., 2018).
Rise of the gig economy - increasingly more workers are demands for the ability of
determining when and how long they will perform their tasks. However, there are few employees
who enjoy the power and freedom that gig working gives, it may offer employers with
difficulties for handling staffing levels and it fails to offer employees with the equal protections
that personnel are afforded but the gig working is properly handled, the built-in flexibly permits
employers to speedily and without difficulty scale the body of workers whilst keeping workforce
engagement and loyalty.
Recruitment: From the recent studies i have been observed that in June 2016, the
sequence of robust labor demand, low unemployment and 95% fall in European people
becoming a member of the United Kingdom body of workers among Q1 2018 and Q1 2016, has
put a lot of strain on recruitment. Thus, recent records referred to that around 40% of companies
in UK are facing issues in recruitment for the duration of 2018, as every other 30% of employees
faces a similar issue in keeping personnel (Degryse,2016). Thus, the ratio of difficult-to-fill
vacancies has continued on an increasing percentage. However, in the year of 2018, around 70%
of companies with vacancies said that as a minimum a number of the ones were proving
difficult-to-fill, in comparison to 51% in the year of 2017. However, negotiations and the
declining the pound value which means that a few European people are supporting the roles
toward home. Thus, this loss of supply results in unfilled vacancies or exploding costs
particularly within the agricultural facet and the travel, hospitality and amusement sectors.
Moreover, united kingdom companies are facing struggle to fill jobs positions in their
corporations, factories and hospitals according to a new study that indicates the shortage may be
all the way down to fewer European migratory in search of employment in the united kingdom
due to the brexit impact. However, company owner are facing labor and abilities shortages at
some stage in the food deliver chain in addition to in sectors including production, healthcare and
hospitality etc. Further, it is also been observed that the European nationals the companies who
have employed had been view as either leaving their company or the United Kingdom in 2017.
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Unemployment: However, it is being observed in labor market of UK also led to the
increment in unemployment ratio according to the different age sectors. Further, it has been
observed that there are around 500 people between the age group of 18 yrs to 24 yrs who are
employed i.e. 13% of total population, further, there are around 400 individuals between the age
group 25 yrs to 34 yrs who are struggling for unemployment i.e. around 5% of total population,
on the other hand, there are around 450 people of age group between 35 yrs to 45 yrs who are
unemployed i.e. 4% of total population and eventually there are around 300 people who are
facing the challenge of unemployment between the age group of 50 yrs to 60 yrs i.e. around 3%
of total population (Polavieja,2016). Moreover, the labor market also impacting the employment
in various sectors like agriculture sector, manufacturing sector, construction sector etc, Wherein,
there are 35000 people who are unemployed in agricultural sector i.e. 3% of the entire population
and there are around 10000 people who are unemployed for a long period i.e 2%, moreover,
there are around 1,30,000 people who are facing the issue of unemployment i.e. 4% of entire
group and there are 40,000 people who are facing the same problem for loner period of duration
i.e. 11%, on the other hand, there are around 71000 people in transport sector that are facing the
issue of unemployment and in the same sector there are 24,000 people who are facing the same
issue for longer period i.e around 5% of total population, further, there is IT department where
around 35000 people are facing the issue of unemployment i.e 3% of people and there are around
10000 people who are same the same issue for longer duration i.e 2% of entire population,
moreover, there are around 40000 people who are facing the unemployment issue in finance
industry i.e 2% and there are around 10000 people who are facing the same issue for longer
duration i.e. 2.1% of entire population (Kierzenkowski and et.al., 2016).
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Reduction in Mid-level Employment: Labour market of United Kingdom is facing a
threat of declining number of mid level employment. Employment in this sector in declining
there are no jobs left in this sector and job profile in this type of employment is changing at a
faster rate thus, employees are not interested in entering into jobs in Mid-level. This threat is
known as hollowing out affect because workers who are skilled goes for high level jobs and low
skilled workers prefer law level jobs. Emergence of new technology and innovation in products
& services creates this threat in labour market of UK. Further increase in number of competitors
also removes jobs of this type of employment(Galgóczi and Leschke, 2016).
For analysing this threat, condition of labour market of UK is analysed along with
different dimensions which creates threat of reduction in mid-level jobs. After analysing labour
market of British it is find out that different type of employment in country and type of industries
which are hiring & firing employees develops threats of reduction in mid-level occupation.
Offering of occupation in accordance with education qualification, remuneration and training can
help labour market of United Kingdom in removing this threat. Reduction in this type of job
affects income level of individuals of UK which in turn affects economic situation of country.
Reduction of this type of job increases rate of unemployment in United Kingdom to 6%.
There is also a decline in regional labour market. Further, many companies are hiring new
employees and giving termination to new employees as they are not appropriate for performing
the job effectively & efficiently. Technology is changing rapidly thus, company want to acquire
or retain talented staff at the work place. High vacancies are available in UK market in
Hospitality Sector and social & health care services. Whereas, wholesale & retail business firms,
manufacturing companies and administration companies are firing employees as they do not
require many labours and their operations are changing with time. For Example in manufacturing
companies production process of output is changing according to change in demand for products
and strategies used by their competitors for which companies are required to adapt & create
effective ideas and talented staff. For that reason manufacturing companies are firing employees
who are not skilled form jobs(Koch, 2017).
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In mid-level occupation employees who are operating machines and providing services at
administrative position are fired from jobs. This threat also creates inequality related to income
as people with high level of jobs are getting high income and some individuals are getting very
low wages. Mid-level occupation is declined by 5.3% as compared to previous year but there is
an increase in high & low level jobs in UK. Thus, this is a threat for labor market of UK. There is
not a huge difference between wage pay of lower & mid level employees thus, employment in
mid-level industries is declining. Employment share of mid-level industries is also declining in
terms of average hourly wages and this also a threat and this negatively affects growth of labor
market of United Kingdom(Bonoli, 2017).
CONCLUSION
This report briefly summarizes about the concept of resource-based view through
company can determine its performance and can achieve success in future context. Further, the
report have highlighted about how the resource-based view will help the company to gain
competitive advantage in the marketplace which is evaluated through VRIN model which is
consists of four characteristics i.e. value, rare, imitability, non-sustainability, on the other hand,
the project have highlighted about how the resource-based view will help the company to
achieve the success in the future. Moreover, the assignment have highlighted about the threats
and challenges that the company faces in the labor market of UK namely; reduction in mid level
employment opportunities, unemployment according to age factor and in many industries like
manufacturing, construction, education sector, finance sector, IT sector, agricultural sector etc,
and automation, brexit etc, all these factors have impacted various corporations in UK.
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REFERENCES
Books and Journals
Quinn, J.C. and Davis, R., 2015. The potentials and challenges of algae based biofuels: a review
of the techno-economic, life cycle, and resource assessment modeling. Bioresource
technology.184. pp.444-452.
Vernon, D., Hocking, I. and Tyler, T.C., 2016. An evidence-based review of creative problem
solving tools: A practitioner’s resource. Human resource development
review.15(2).pp.230-259.
Bromiley, P. and Rau, D., 2016. Operations management and the resource based view: Another
view. Journal of Operations Management.41.pp.95-106.
Kull, A.J., Mena, J.A. and Korschun, D., 2016. A resource-based view of stakeholder
marketing. Journal of Business Research.69(12). pp.5553-5560.
Steiner, B and et.al., 2017. Applying the resource-based view to alliance formation in specialized
supply chains. Journal of Strategy and Management.10(3).pp.262-292.
Wu, L. and Chiu, M.L., 2015. Organizational applications of IT innovation and firm's
competitive performance: A resource-based view and the innovation diffusion
approach. Journal of Engineering and Technology Management.35.pp.25-44.
Barney, J., 2015. 15 Firm resources and sustained competitive advantage. International Business
Strategy: Theory and Practice, p.283.
Chatzoglou, P and et.al., 2018. The role of firm-specific factors in the strategy-performance
relationship: Revisiting the resource-based view of the firm and the VRIO
framework. Management Research Review.41(1). pp.46-73.
Degryse, C., 2016. Digitalisation of the economy and its impact on labour markets. ETUI
Research Paper-Working Paper.
Polavieja, J.G., 2016. Labour-market competition, recession and anti-immigrant sentiments in
Europe: occupational and environmental drivers of competitive threat. Socio-Economic
Review.14(3).pp.395-417.
Kierzenkowski, R and et.al., 2016. The economic consequences of Brexit.
Teague, P. and Donaghey, J., 2018. Brexit: EU social policy and the UK employment
model. Industrial Relations Journal.49(5-6).pp.512-533.
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Scott, S., 2017. Informalisation in Low‐wage Labour Markets: a Case Study of the UK Food
Industry. Population, Space and Place.23(7). p.e2043.
Hardgrove, A., McDowell, L. and Rootham, E., 2015. Precarious lives, precarious labour: family
support and young men's transitions to work in the UK. Journal of Youth
Studies.18(8).pp.1057-1076.
Forde, C. and Slater, G., 2016. Labour market regulation and the ‘competition state’: an analysis
of the implementation of the Agency Working Regulations in the UK. Work, employment
and society.30(4). pp.590-606.
Bonoli, G., 2017. Labour market and social protection reforms in international perspective:
parallel or converging tracks?. Taylor & Francis.
Koch, M., 2017. Roads to post-Fordism: labour markets and social structures in Europe.
Routledge.
Galgóczi, B. and Leschke, J., 2016. EU labour migration in troubled times: skills mismatch,
return and policy responses. Routledge.
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