Skilling the Workforce to Make them Employable and Contribute to Economic Growth
Need for a Skilled Workforce Any employer needs a workforce that is competent and has expertise in the niche that it operates in. For instance, manufacturing industries need skilled workers who are able to function effectively on the shop floor and this means that whoever they employ must be adept at handling machinery, taking up […]
Unique Skill Set Model of Human Capital Management
Human capital management refers to development of human capital through regular trainings, skill development activities and retaining talented employees. An individual who strives hard for the maximum part of the day to accomplish the goals and objectives of an organization are its real assets. Machinery, capital, innovative ideas and office furniture do play an essential […]
Hybrid Model of Human Capital Management
As the name suggests, hybrid model of human capital management is a mix of common resource pool model and unique skill set model. In hybrid model, employees are multiskilled and have diverse set of experiences and backgrounds. Hybrid model employees come from varied backgrounds and have a generalist profile. In a layman’s language hybrid model […]
Elements of Personnel Management
Following are the elements of Personnel Management: Organization- Organization is said to be the framework of many activities taking place in view of goals available in a concern. An organization can be called as a physical framework of various interrelated activities. Right from manpower planning to employees’ maintainance, all activities take place within this framework. […]
Flexi-Work Options for Work-Life Balance
Many organizations in the contemporary scenario have realized the importance of work-life balance for the employees, so that they remain healthy and happy, which will directly reflect on their productivity at work and overall job satisfaction. Research has proven that by compelling the employees for achieving higher targets/production, may yield results in the short run […]
Organizations work towards the achievement of their mission and strategic objectives. This requires a thorough understanding of the resources required for achieving the same. Resources here imply financial and non financial both and they are equally important and interdependent.
Technically these resources have been divided into two, non contingent and differentiating capabilities.
Whereas non contingent capabilities are basics that enable an organization to compete and exist in the marketplace, differentiating capabilities are those that differentiate an organization from that of the other and offer competitive advantage.
Effective marketing management, for example can be one of non contingent capabilities. Similarly many HR processes aspire to develop non contingent capabilities but they often fail to align with the strategy and offer competitive advantage. Most of these processes end up developing people in similar areas and similar capacities as their rival firms but this fails to provide any competitive advantage.
For organizations to develop competitive advantage through HR processes it is very important to define strategic differentiating capabilities and then develop a process for identifying and developing the same. This empowers the HR people to create an impact on the organizational strategy and also provides a link between talent management and strategy.
For HR to prove that talent management can be of strategic importance to organizations, the critical relationship between the two must be proven. Talent management specially needs to be projected as a differentiating strategic capability that can offer real and substantial competitive advantage.
According to research conducted by various bodies it was found out that creation of differentiating strategic capabilities signifies the relationship between business strategy and human resources.
Human resources, it was deduced are the primary sources of strategic advantage. The research study was primarily based on Resource based view (RBV) of an organization. This view has gained significant ground among HR practitioners as basis of models for formation and structure of resources.
Unlike other non contingent capabilities that can be developed easily and cannot contribute to a large extent towards the development of a sustainable competitive advantage, differentiating strategic capability such as strategic HR through talent management can. However for human resources to qualify as potential sources of competitive advantage they should fulfill the following criteria:
There are not many things in the business environment that can fulfill all the above criteria and offer unique competitive advantage except human resources and that is under the jurisdiction of talent management. There is also a need to understand the strategic intent of the organization before defining strategic capabilities.
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