‘Capable Workforce can deliver sustainable competitive advantage to an organization’. Discuss. 1
According to the chairman of Woolworths, James Strong, “One of the most significant factors contributing to the country’s outstanding performance is the quality of its people”. According to him involvement and development of people possessing high quality is very important for an organization to succeed (Stone, 2011). Now a day’s workforce is the main factor of organization’s competitive advantage. The workforce is intangible assets of organizations. To gain a competitive advantage, the part of human resource is the best ever, because it is taken as a wealth success as well as the main component of sustainable competitive advantage (Memon, Mangi, & Rohra, 2009). Human Capital includes the skill, attitudes and knowledge of the employees. Today, all the organization maintains sustainable value in the market, so that they mostly use intangible assets as human capital (Javadein, Estiri, & Ghorbani, 2011). When a human capital is valuable, rare and hardly capable it creates a sustainable competitive advantage. For example given below: Table 1: Human capital and Competitive advantage Performance Type of competitive advantage Hardly capable of imitation Rare Valuable Below average Competitive loss ---- --- No Average Competitive balance ---- No yes Above average Temporary competitive advantage No yes yes Above average Sustainable competitive advantage yes yes yes Source: (Colella & Miller, 2006) All researchers are own vision but of this concept as Wright, et al, 1994 indicates that they meet the criteria for human resource Barney is a source of sustainable competitive advantage. Guest said in 1990 if management trusts employees and give difficult tasks, workers will reply high motivation, commitment and high performance (Jassim, 1987) to respond. This means that in recent years the sources of sustainable competitive advantage technological, financial but now to human. In other words, we can say that achievement now depends on employees' skills, confidence and capacity obligations. 2
Competitive advantage is achieved when a business produces extra profits which are greater than its competitors due to making exclusive product pricing or supply advantage (The VisionLink Advisory Group, 2012). And if the company is to create value over time, the policy the same as another potential competitor also done, but other companies are not able to reap the fruits of this policy to duplicate, then you can say that the organization continues to sustainable competitive advantage. For better compete in the market the capable employees of the successful companies make a product unique, use some different activities and they focus on all of energy areas which affect the organization to maintain sustainable competitive advantage. The Competitive Advantage Process
Image2: Competitive Advantage Process Source: (http://www.vladvisors.com/) According to this Michael Porter’s say that: “At the time a firm gets profits more than industrial average profit, then the firm possesses competitor advantage over its competitors” (The VisionLink Advisory Group, 2012). Employees play vital roles to achieve the targets which set by organization so instead of this organization also know that to achieve the sustainability in the market so the factor is capable employees.
Significance of the Study
"The human element has become important...
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