MGB130: SHRM and Sustainable Competitive Advantage at ASM Essay Assessment 1

Assessment 1

Task:

Elliot, you are an employee of Apex Strata Management, and a graduate in HR from QUT. Elizabeth, one of the ASM Directors has asked you to brief the management team on possibly upgrading the SHRM processes. There seems a difference of opinion at the Director level as to whether ASM should invest in a complete rework of their HRM systems into a SHRM or undertake a more piecemeal approach into individual activities (e.g. recruitment, selections, performance management etc.)

Your Brief needs to advise the Board as to the probability of the investments driving/underpinning Sustainable Competitive Advantage (SCA) to ensure ongoing profitability. SHRM in this context refers to the Strategic Human Resource Management function.

Introduction

In increasingly competitive markets, organisations are recognising the importance of human resources in generating sustainable competitive advantage (SCA), rather than viewing HR as an administration function (Neves & Borges, 2018). This change has created a shift from traditional Human Resource Management (HRM) to Strategic Human Resource Management (SHRM). HRM focuses on , where SHRM aims to. Apex Strata Management (ASM) are currently facing this challenge, as there is a difference of opinion at the Director level regarding whether ASM should invest in an overhaul of its HRM systems into SHRM or adopt a piecemeal approach that improves individual HR activities such as recruitment, selection, and performance management. This essay argues that while both SHRM systems and piecemeal HR investments can deliver performance benefits, a fully integrated SHRM approach is more likely to underpin sustainable competitive advantage for ASM, provided it is supported by effective leadership, organisational alignment, and implementation capability. Therefore, this essay outlines SHRM theory and links to SCA, evidence supporting SHRM systems, evidence and limitations of piecemeal approaches, moderators and risks associated, and a final recommendation.

Body Section 1: SHRM and Sustainable Competitive Advantage 

Purpose: Build the theoretical foundation.

Key points to cover:

• Define SHRM:
• Integration of HR practices with organisational strategy
  • Explain Sustainable Competitive Advantage (SCA):

• Resource-Based View (RBV)
• Human capital as valuable, rare, inimitable, and non-substitutable
  • Link SHRM → SCA:
• Strategic alignment
• Consistency across HR practices
• Long-term performance outcomes

Body Section 2: Argument for a Full SHRM System Overhaul

Purpose: Present the strongest case for full investment.

Points you could include:

• Vertical and horizontal alignment of HR practices
• Synergies between recruitment, performance management, development, and rewards
• Empirical evidence:

• Studies showing high-performance work systems improve firm performance
  • Strategic clarity and cultural consistency

Better support for long-term organisational effectiveness

Body Section 3: Counterargument Piecemeal HR Investments

Purpose: Demonstrate balance and critical thinking.

Cover:

• Arguments forpiecemeal approaches:
• Lower upfront cost
• Reduced implementation risk
• Faster short-term gains
  • Evidence showing incremental HR improvements can improve outcomes
  • Practical appeal for risk-averse boards

Assessment Requirements Brief Summary

Assessment 1 required the student to prepare a professional briefing paper for the Board of Apex Strata Management (ASM). The task was framed as a real-world workplace scenario in which Elliot, an HR graduate and ASM employee, advises senior directors on whether to:

• Invest in a full Strategic Human Resource Management (SHRM) system overhaul, or
• Adopt a piecemeal approach by improving individual HR functions such as recruitment, selection, and performance management.

The brief needed to evaluate which option is more likely to underpin Sustainable Competitive Advantage (SCA) and ensure long-term profitability.

Key Pointers to be Covered

• Clear distinction between HRM and SHRM
• Explanation of Sustainable Competitive Advantage (SCA) using theory
• Application of the Resource-Based View (RBV) to human capital
• Evidence supporting integrated SHRM systems
• Balanced discussion of piecemeal HR investments
• Consideration of risks, moderators, and implementation challenges
• A clear, justified recommendation to the Board

Step-by-Step Approach Guided by the Academic Mentor

The academic mentor supported the student through a structured, staged approach to ensure the assessment met academic, analytical, and practical requirements.

Step 1: Understanding the Business Context and Task

The mentor first helped the student interpret the task as a strategic business briefing, not just a theoretical essay. Emphasis was placed on:

• Writing for a Board-level audience
• Maintaining a professional advisory tone
• Directly responding to the question of investment probability leading to SCA

Step 2: Developing a Strong Introduction and Argument

The mentor guided the student to:

• Introduce the shift from traditional HRM to SHRM
• Establish ASM’s strategic dilemma
• Present a clear thesis statement arguing that a fully integrated SHRM system is more likely to deliver SCA than piecemeal investments, while acknowledging both options

This ensured the essay had direction and clarity from the outset.

Step 3: Building the Theoretical Foundation (Body Section 1)

In this section, the mentor focused on academic rigor by:

• Defining SHRM as the alignment of HR practices with organisational strategy
• Explaining SCA using the Resource-Based View (RBV)
• Linking human capital to being valuable, rare, inimitable, and non-substitutable
• Demonstrating how strategic alignment and consistency across HR practices lead to long-term performance

This step ensured the argument was theory-driven and academically grounded.

Step 4: Presenting the Main Argument for SHRM (Body Section 2)

The mentor then helped the student construct the strongest case for full SHRM investment, focusing on:

• Vertical and horizontal alignment of HR systems
• Synergies across recruitment, performance management, development, and rewards
• Use of empirical evidence supporting high-performance work systems
• The role of SHRM in shaping organisational culture and strategic clarity

This section was framed to clearly show why SHRM is more likely to underpin sustainable competitive advantage.

Step 5: Addressing the Counterargument (Body Section 3)

To demonstrate critical thinking and balance, the mentor guided the student to:

• Acknowledge the appeal of piecemeal HR investments
• Discuss benefits such as lower costs, reduced risk, and quicker short-term outcomes
• Reference evidence showing incremental HR improvements can still improve performance
• Explain why such approaches may be attractive to risk-averse boards

This strengthened the credibility of the final recommendation by showing evaluation of multiple perspectives.

Outcome Achieved

Through structured mentoring and academic guidance, the student successfully produced:

• A coherent, well-argued briefing paper
• Clear integration of theory, evidence, and practical business considerations
• A balanced comparison of strategic options
• A justified recommendation aligned with ASM’s long-term competitiveness

Learning Objectives Covered

This assessment and mentoring process addressed the following learning objectives:

• Understanding and application of Strategic Human Resource Management
• Ability to link HR strategy to Sustainable Competitive Advantage
• Use of theoretical frameworks (RBV) in real-world contexts
• Critical evaluation of alternative strategic approaches
• Development of professional, board-level business communication skills
• Evidence-based decision-making and recommendation writing

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