VRIN Framework (by Birger Wernerfelt)

(To identify resources that give firms a competitive advantage)

Certain resources give the business a competitive advantage. These have the VRIN
characteristics, which can be discovered by focusing on four essential qualities:

● Value: Resources that can bring value can be a source of competitive advantage. Keep
in mind that not all resources are equally easy to obtain.
● Rareness: Resources that are available to all competitors rarely provide any significant
competitive advantage.
● Imitability: ​An ideal resource cannot be obtained by competing businesses.
● Non-substitutable: ​An ideal resource cannot be substituted by any other resource.

Explanation:
● In 1984, Birger Wernerfelt came up with the resource-based view (RBV) as “a basis for
the competitive advantage of a firm that lies primarily in the application of a bundle of
valuable tangible or intangible resources at the firm’s disposal.” This influential theory
has become the basis of several frameworks, including VRIO.
● According to Wernerfelt’s theory, a business is a bundle of resources. Businesses differ
depending on what these resources are and how they are combined with one another.
Resources include but are not limited to processes, capabilities, assets, attributes,
information, and knowledge. Together, they allow businesses to execute their relevant
activities.

Types of Employee Training

(from session 1 on Developing People in Organizations)

General Organization Specific

Technical Example: Internal Learning Example: JIT

Programme ILP (Technical)

Behavioral Example: Example:

1. Leadership (for
mid-managers)
2. Art and science of
living
3. ILP (Behavioral)
Process of Training (ADDIE Five-Step Training Process)
Sources:
● HRM Textbook (pages: 228): explanation in detail
● https://www.learnupon.com/blog/addie-5-steps/#:~:text=Addie%20is%20an%20acronym
%20for,focus%20on%20reflection%20and%20iteration​.
● https://en.wikipedia.org/wiki/ADDIE_Model

ADDIE: 5 Steps To Effective Training

The Addie model is an instructional design methodology used to help organize and streamline
the production of your course content. Developed in the 1970’s, ADDIE is still the most
commonly used model for instructional design.

ADDIE is an instructional systems design (ISD) framework that many instructional designers
and training developers use to develop courses.The name is an acronym for the five phases it
defines for building training and performance support tools:

Phases of ADDIE (Analysis, Design, Development, Implementation and Evaluation)

Analysis phase

● The analysis phase clarifies the instructional problems and objectives, and identifies the
learning environment and learner's existing knowledge and skills. Questions the analysis
phase addresses include:
○ Who are the learners and what are their characteristics?
○ What is the desired new behavior?
○ What types of learning constraints exist?
○ What are the delivery options?
○ What are the pedagogical considerations?
○ What adult learning theory considerations apply?
○ What is the timeline for project completion?
○ The process of asking these questions is often part of a needs analysis.[6] During
the needs analysis instructional designers (IDs) will determine constraints and
resources in order to fine tune their plan of action.

Design phase
The design phase deals with learning objectives, assessment instruments, exercises, content,
subject matter analysis, lesson planning, and media selection. The design phase should be
systematic and specific. Systematic means a logical, orderly method that identifies, develops,
and evaluates a set of planned strategies for attaining project goals. Specific means the team
must execute each element of the instructional design plan with attention to detail. The design
phase may involve writing a design document/design proposal or concept and structure note to
aid final development.

Development phase
In the development phase, instructional designers and developers create and assemble content
assets described in the design phase. If e-learning is involved, programmers develop or
integrate technologies. Designers create storyboards. Testers debug materials and procedures.
The team reviews and revises the project according to feedback. After completing the
development of the course material, the designers should conduct an imperative pilot test; this
can be carried out by involving key stakeholders and rehearsing the course material. [7]

Implementation phase
The implementation phase develops procedures for training facilitators and learners. Training
facilitators cover the course curriculum, learning outcomes, method of delivery, and testing
procedures. Preparation for learners includes training them on new tools (software or hardware)
and student registration. Implementation includes the evaluation of the design.

Evaluation phase
The evaluation phase consists of two aspects: formative and summative. Formative evaluation
is present in each stage of the ADDIE process, while summative evaluation is conducted on
finished instructional programs or products. Donald Kirkpatrick's Four Levels of Learning
Evaluation are often utilized during this phase of the ADDIE process.
Knowledge, Skills, Abilities and Other Characteristics (KSAOs) for
job description/requirements

Knowledge, skills, abilities and other characteristics (KSAOs) are the attributes required to
perform a job:

● Knowledge refers to the body of factual or procedural information that can be applied,
such as knowledge of foreign languages or computer programming languages.
● Skills are the capabilities require to perform tasks accurately, such as psychomotor
activities like typing speed or driving ability.
● Abilities are more stable characteristics that can include cognitive, sensory and physical
abilities, such as empathy.
● Other characteristics are traits that do not fit into the other categories, including values,
work style, personality and degrees and certifications.

Nadler Tushman Framework

Sources:
● (detailed)
○ A Model for Diagnosing Organizational Behavior, David A. Nadler, Michael L.
Tushman, Organizational Dynamics, 1980
○ Organizational Framebending: Principles for Managing Reorientation, Nadler and
Tushman, 1989
○ Understanding Organizations, The Process of Diagnosis, Warner Burke, 1992
● https://www.toolshero.com/management/nadler-tushman-congruence-model/#:~:text=Th
e%20Nadler%2DTushman%20Congruence%20Model%20is%20a%20diagnostic%20too
l%20for,the%20organisation's%20productivity%20and%20profitability​.

The Nadler-Tushman congruence model was developed by David A. Nadler and M.L. Tushman
in the 1980s.

The Nadler-Tushman Congruence Model is a diagnostic tool for organisations that evaluates
how well the various elements within these organisations work together. The result is the
identification of performance gaps. These gaps have to be closed in order to improve the
organisation’s productivity and profitability. The gaps are identified because the
Nadler-Tushman congruence model looks at the way the company processes information and
input from both internal and external sources. Furthermore, it analyses communication
structures to make them process the information as effectively as possible.

The Nadler-Tushman Congruence Model is based on four elements. These elements are work,
people, structure, and culture. According to this model, then, an organisation’s performance is
the result of the way these elements work together. The model provides a step-by-step plan with
six steps. This step-by-step plan, further explained in this article, can be used to identify a
performance gap. This allows you to compare the current situation with the desired situation and
forms an important first step in developing a concrete strategy in order to close the performance
gap. The goal and result of this model is to realign company activities so that everyone strives
for the same goal.

The Organisation As an Interacting Whole

As can be seen from the image, an organisation in fact consists of four elements that work
together in order to process input into output. This process is referred to as the transformation
process: natural resources, components or other means are processed and turned into
something new. This includes the financial means, used to purchase all the other means.

This transformation process takes place continuously within the organisation. The organisation’s
environment is not as stable. Organisations are exposed to countless threats and opportunities
and need to use their means in such a way as to achieve maximum profitability. Threats and
opportunities can be identified using the SWOT model. Other environmental factors can be
identified using PESTLE.
The finished products or services are then delivered to the external market. The market’s
reaction is important to the organisation, which will always consider and process it in the form of
feedback.

The transformation process itself, which can be made more efficient using the Nadler-Tushman
Congruence Model, consists of the following four elements.

Work
Work refers to the tasks carried out by employees. It’s important that the result of these tasks
are aimed at the company objectives. It should be apparent which skills or knowledge are
required for tasks and company activities, and these should be present to a sufficient degree
within the organisation.

People
People are an important part of the organisation and the congruence within it, and form an
important part of the Nadler-Tushman Congruence Model. A company aimed at innovation is
looking for pioneering, fast-thinking people. A sales company is mostly focused on finding sales
talent. It should be known of employees which skills and knowledge they possess, whether they
have experience, and what education they have followed. It should also be known how they
would like to be individually rewarded and compensated for their work. For motivated staff, it’s
also important that they should be able to develop potential within themselves.

Structure
Although aligning the work from the first of the four elements is important, aligning the
organisational structure is even more important. Structure is the third component of the
Nadler-Tushman Congruence Model. It creates consistency between what an organisation
wants and what it does. A company that responds to new market developments needs a flexible
corporate structure that is able to quickly adjust to the changing market. A company chain with
outlets in various regions would benefit more from a hierarchical structure with regional
managers.

Culture
The corporate culture consists of values and norms, behavioural patterns and rules, both written
and unwritten. The corporate culture also has great influence on the way it supports and
stimulates the corporate results. Sometimes, an organisation’s culture needs to change before
the organisation is able to adjust to a new business focus. A relaxed, informal corporate culture
may work well for a startup, but will need to become somewhat more mechanical upon growth.
There are also organisations where the focus is on employees and their well-being. This
happens in altruistic organisations.

Step-by-step plan for organisational congruence

We may derive several steps from the Nadler-Tushman congruence model, which can be gone
through in order to achieve congruence and improved performance in the organisation.
1. Identify symptoms
Collect data that show possible failings in the organisation’s functioning. These may be
disappointing results, undesirable behaviour on the part of employees, or something else. Make
sure all symptoms are noted down.

2. Note down input

Investigate the exact means used in the organisation. Consider the organisation’s environment
in the assessment as well, and note down important aspects relating to financial input, human
resources, and history.

3. Identify output
Then, identify what the organisation is producing as its output on various levels. Investigate
individual, departmental, and organisational performance. In the next step, compare the
performances achieved to the desired performances.
4. Identify problems
Assessing and comparing performance, one may find various causes for problems. In this step
of the Nadler-Tushman Congruence Model, use the ​root cause analysis to identify the causes.
It’s important to compare the results achieved to the desired results, as well as selecting areas
where the difference is substantial. For each problem, the consequences it brings should be
noted down. This means direct costs, indirect costs, and opportunity costs.

5. Describe company elements

In this step of the Nadler-Tushman Congruence Model, the four elements explained above are
described. Make sure the descriptions are clear, concrete, and focused on the element’s core
functions. If needed, use corporate models like the ​Business Model Canvas​.

6. Assess congruence
Assess the relative congruence between the various elements of the company. Think of how
information streams flow, what the communication structure looks like, who has been invested
with which powers, and which people are responsible.

Carefully consider the various ways in which the elements interact. Tasks and people, people
and cultures, structure and culture, they all relate to one another and may provide useful
insights into the manner and degree of efficiency of working.

7. Make action plan

Note down how the problems from step 4 of the Nadler-Tushman Congruence Model may be
anticipated and how problems should be dealt with in the future. By linking the problems to
output and finding out what’s causing the discongruence, the exact cause may be traced. Then,
use ​Business Process Re-engineering (BPR)​ in order to reshape the processes.

Hofstede’s Cultural Dimensions (6D) Theory? 

Hofstede’s  Cultural  Dimensions  Theory,  developed  by  Geert  Hofstede,  is  a framework used 
to  understand  the  differences  in  culture  across  countries  and  to  discern  the  ways  that 
business  is  done  across  different  cultures.  In  other  words,  the  framework  is  used  to 
distinguish  between  different  national  cultures,  the  dimensions  of  culture,  and  assess their 
impact on a ​business setting​. 

Hofstede’s  Cultural  Dimensions  Theory  was  created  in  1980  by  Dutch  management 
researcher,  ​Geert  Hofstede​.  The  aim of the study was to determine the dimensions in which 
cultures vary. 
  

Hofstede identified six categories that define culture: 

1. Power Distance Index 

2. Collectivism vs. Individualism 
3. Uncertainty Avoidance Index 
4. Femininity vs. Masculinity 
5. Short-Term vs. Long-Term Orientation 
6. Restraint vs. Indulgence 

  

Power Distance Index 

The  power  distance  index  considers  the  extent  to which inequality and power are tolerated. 
In  this  dimension,  inequality and power are viewed from the viewpoint of the followers – the 
lower level. 

● High  power  distance  index  indicates  that  a  culture  accepts  inequity  and  power 
differences, encourages ​bureaucracy,​ and shows high respect for rank and authority. 
● Low  power  distance  index  indicates  that  a  culture  encourages  ​organizational 
structures  that  are  flat  and  feature  decentralized  decision-making  responsibility, 
participative style of management, and place emphasis on power distribution. 
Individualism vs. Collectivism 
The  individualism  vs.  collectivism  dimension  considers  the  degree  to  which  societies  are 
integrated into groups and their perceived obligations and dependence on groups. 

● Individualism  indicates  that  there  is  a  greater  importance  placed  on  attaining 
personal goals. A person’s self-image in this category is defined as “I.” 
● Collectivism  indicates  that  there  is  a  greater  importance  placed  on  the  goals  and 
well-being of the group. A person’s self-image in this category is defined as “We”. 

Uncertainty Avoidance Index 

The  uncertainty  avoidance  index  considers  the  extent  to  which  uncertainty  and  ambiguity 
are  tolerated.  This  dimension  considers  how  unknown  situations  and  unexpected  events 
are dealt with. 

● A  high  uncertainty  avoidance  index  indicates  a  low  tolerance  for  uncertainty, 

ambiguity,  and  risk-taking.  The  unknown  is  minimized  through  strict  rules, 
regulations, etc. 
● A  low  uncertainty  avoidance  index  indicates  a  high  tolerance  for  uncertainty, 
ambiguity,  and  risk-taking.  The  unknown  is  more  openly  accepted,  and  there  are  lax 
rules, regulations, etc. 

Masculinity vs. Femininity 

The  masculinity  vs.  femininity  dimension  is  also  referred  to  as  “tough  vs.  tender,”  and 
considers  the  preference  of  society  for  achievement,  attitude  towards  sexuality  equality, 
behavior, etc. 

● Masculinity  comes with the following characteristics: distinct gender roles, assertive, 
and concentrated on material achievements and wealth-building. 
● Femininity  comes  with  the  following  characteristics:  fluid  gender  roles,  modest, 
nurturing, and concerned with the quality of life. 

​Long-Term Orientation vs. Short-Term Orientation 

The  long-term  orientation  vs.  short-term  orientation  dimension  considers  the  extent  to 
which society views its time horizon. 

● Long-term  orientation  shows  focus  on  the  future  and  involves  delaying  short-term 
success  or  gratification in order to achieve long-term success. Long-term orientation 
emphasizes persistence, perseverance, and long-term growth. 
 ● Short-term  orientation  shows  focus  on the near future, involves delivering short-term 
success  or  gratification,  and  places  a  stronger  emphasis  on  the  present  than  the 
future. Short-term orientation emphasizes quick results and respect for tradition. 

Indulgence vs. Restraint 

The  indulgence  vs.  restraint  dimension  considers  the  extent  and  tendency  for  a  society  to 
fulfill  its  desires.  In  other  words,  this  dimension  revolves  around  how  societies  can  control 
their impulses and desires. 

● Indulgence  indicates  that  a  society  allows  relatively  free  gratification  related  to 
enjoying life and having fun. 
● Restraint  indicates  that  a  society  suppresses  gratification  of  needs  and  regulates  it 
through social norms. 

William Kahn’s theory of employee engagement

William Kahn defined engagement as an employee’s ability to harness their “full self” at work,
and identified three psychological conditions that enable it:

Meaningfulness: ​Does an employee find their work meaningful enough (to the organisation
and to society) to warrant them engaging their full self?
Safety: ​Does the employee feel safe bringing their full self to work without risk of negative
consequences?
Availability: Does the employee feel mentally and physically able to harness their full self at
this particular moment?

His findings separate engagement from everyday hard work. A diligent employee, who is able to
harness their full self, will display loyalty and ownership. For example, an engaged employee
will tackle tasks without being asked because they want to, and because they believe that their
extra effort will benefit their organisation.

Kahn also found that engagement isn’t static – an employee’s experiences of the workplace in
different moments can cause fluctuations in engagement. This is good news for employers, as
they have the opportunity to create an environment where engagement can flourish.

The Three Paradigms of Equality & Diversity

Source: ​https://www.ncwit.org/sites/default/files/legacy/pdf/DiversityParadigm.pdf
Based on:

● 1. Ely, R. & Thomas, D. (2001). Cultural diversity at work: The effects of diversity
perspectives on work group processes and outcomes. Administrative Science Quarterly,
229-273.
● 2. Thomas, D. & Ely, R. (1996). Making differences matter: A new paradigm for
managing diversity. Harvard Business Journal, 79-90.

Ely and Thomas identify three different paradigms — each with different assumptions and
outcomes — that can help members of organizations understand how they think about diversity
(See chart on flipside.):
● the Discrimination – Fairness Paradigm
● the Access – Legitimacy Paradigm
● the Learning – Integration Paradigm
The first two paradigms — the most common, to date — result in some positive outcomes but
limit the benefits an organization can gain from diversity.
Only the Learning-Integration Paradigm allows organizations to recognize the full potential of a
diversified workforce.