Developing Dynamic Capabilities in Human Resource Management to Address Market Disruptions
Keywords:
dynamic capabilities, human resource management, sensing, seizing, transformingAbstract
This study examines how organizations develop dynamic capabilities within human resource management functions to face market disruptions. Dynamic capabilities framework identifies three micro processes of sensing, seizing, and transforming. Sensing requires intelligence systems that collect external data from multiple sources and involve line managers in signal interpretation. Seizing demands rapid decision making mechanisms with authority delegated to cross functional teams and strategic partnerships with external institutions. Transforming requires fundamental philosophical shifts about HRM roles, competency upgrades for HR professionals, and new metrics linking HR activities to business outcomes. Top management commitment over long periods and adequate investments in technology and human development determine success of all three processes. Major obstacles include rigid organizational structures, bureaucratic delays, line manager resistance, and gaps between sensing and seizing capabilities. Technology enables but cannot substitute human judgment and interpersonal communication. Dynamic capabilities development requires continuous learning mechanisms refined through evaluation and benchmarking.
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