Human Resources: Key To Competitive Advantage

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Introduction The firm is regarded as a cohesive organism, which learns to adopt or find better ways of doing things essentially in response to its environment. Coff 1994 argues that human assets are a key source of sustainable advantage because of causal ambiguity and systematic information making them inimitable. Guest 1990 says that if management trust their workers and give them challenging assignments, workers in return will respond with high motivation, high commitment and high performance. Sources of competitive advantage have shifted from financial resources to technology resources and now to human capital. In other words, success does not depend primarily on the size of the budget or the products supporting technologies. It really depends on employee’s attitudes, competencies and skills; their ability to generate commitment and trust, communicate aspirations and work in complex relationships. Human Capital A company that is got skilled employees, the ones that are able to operate the companies equipment and the also that follow and knows the companies goals are a good source to the organizations competitive advantage, for example when a company in production industry is got skilled individuals operating the machinery , they will be good quality output . Competence is also an advantage to an organization, every person is got a unique background, culture attitudes and hence other companies can never copy these so the organization is always ahead of its competitors. But in order to get the best from an employee they have to be satisfied by the company first as the corporate philosophy statements sums up their news of source of competitive advantage:”people-service-profits” Fred smithn, founder and CEO of the firm says “we discovered a long time that customer satisfaction begins with employees satisfaction “(waterman, 1994) as people are the primary

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