Role of Human Resource in Achieving Competitive Advantage

2525 Words11 Pages
Sustainable Competitive Advantage and Company Performance Seminar Project Role of Human Resource in Achieving Competitive Advantage Role of Human Resource in Achieving Competitive Advantage INTRODUCTION Scanning and analyzing the external environment for opportunities and threats is not enough to provide and organization a competitive advantage. Analysts must also look within the corporation itself to identify internal strategic factors - critical strengths and weaknesses that are likely to determine whether a firm will be able to take advantage of opportunities while avoiding threats. This internal scanning, often referred to as organizational analysis, is concerned with identifying and developing an organization's resources and competencies. Resources are an organization's assets and are thus the basic building blocks of the organization. They include tangible assets, such as its plant, equipment, finances, and location, human assets, in terms of the number of employees, their skills, and motivation, and intangible assets, such as its technology, culture and reputation. What is the ROLE OF HUMAN RESOURCES in a given organization in achieving competitive advantage? STUDY Capabilities refer to a corporation's ability to exploit it resources. They consist of business processes and routines that manage the interaction among the resources to turn inputs into outputs. A capability is functionally based and is resident in a particular function. When these capabilities are constantly changed and reconfigured to make them more adaptive to an uncertain environment, they are called dynamic capabilities. A competency is a cross-functional integration and coordination of capabilities. A core competency is a collection of competencies that crosses divisional boundaries, is widespread within the corporation, and is something that the

More about Role of Human Resource in Achieving Competitive Advantage

Open Document