Do Personality-Based Human Capital Resources Matter To Firm Performance?

Running head: Personality Vs Performance 1
Reviewing the Article
“Do Personality –Based Human Capital Resource Matter To Firm Performance?”
Student’s Name
University Affiliation

Personality Vs Performance 2
Summary
The article starts with an evaluation of various models and theories that explains how
personality influences the performance of a firm. According to Oh, Kim, & Van Iddekinge,
(2015) organizational performance is influenced by human capital resources based on individual
personality. The article analyses the Personality-based human capital resources using the
Attraction-Selection-Attrition prospective (ASA), Strategic Human Resource Management
(SHRM), and Human Capital Research in stressing on the issue of Personality in Organizations.
The study is based on qualitative research of various firms and managers.
It is evident that managers play a significant role in a firm because of their huge
involvement in administration of most activities done. Relatively, employees also take part in
the overall organizational performance. We note that there is a disparity in individual
personality, skills, and knowledge depending on areas of specialization. In addition, according to
Posthuma, Campion, &Masimova (2013) suggest that human capital resources are considered as
valuable resources in an organization relative to the individual personality.
The authors of the article point out the relationship between the ASA model and the
Organizational emergence of personality whereby ASA implies that most organizations hire and
keep those individuals whose personalities suit the organization. According to King, & Ryan,
(2015) organization performance helps us to understand ASA theory. The model shows that
firms formulate the organizational personality profiles, which helps to find individuals who will
use their personality in contributing to organizational goals. These profiles vary across
organizations by uniqueness, therefore, creating disparities in inter-firm performance.

Personality Vs Performance 3
It is important to take into consideration that personality influences major departments
of an organization such as the finance sector. Ployhart & Hale, (2014) suggest that human
resource based on personality influences finance succession and workforce productivity of a
firm. This phenomenon has been used by most organization to ensure that they keep the best
performance both internally and externally. Organization rather spend many resources on hiring
qualified personnel who will act as assets in the organization by improving both labor
productivity and financial productivity. Notably, the resource-based theory suggests that Human
resource is the most valuable asset to any organization. According to Bergeron, & Martinez,
(2014) a productive labor force is necessary for an organizational performance.
Moynihan, & Peterson, (2014) Personality influences performance in two levels that is
the individual level and the Organization level. Authors outline the huge gap between the two, as
it is unclear to suggest whether there is a relationship between personality-performance in
organizational levels and individual levels or whether the two have the same impact towards a
firm. In addition to that, Utility analysis deduces personality performance at the organization
level from the individual level by estimating the market price of total performance contributed by
both. Authors suggest that studies have not properly addressed this relationship by majorly
putting more emphasis on the intrafirm and less emphasis on inter-firm.
It is, therefore, significant to determine the performance of a firm based on personality
perspectives at the organization levels. Reading through, we note that the gap between Inter-firm
and Intrafirm has been contributed by external (financial) and internal (operational)
performances of a firm. On the other hand, research stresses on closing the gap between micro
and macro performance levels by putting more emphasis on human resources.