Advantages Of Human Capital

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Abstract

One important thing to know about your competition is by knowing how an organization is using their human resources. An organization must have the edge over its competitors to keep the competitive advantage. This report reviews how human resources can become a competitive advantage for any organization. One of the most important features of an organization is organization, organizations team and its employees and these can be defined as HR strategy and Human Capital. Human Capital is a sustainable gain; different forms of strategic human capital play different roles in different human resources systems interacting with the competitive strategy on sustained competitive advantage.

Introduction

Competitive advantage was always gained through factors such as production capacities, research labs, distribution channels, financial resources and economies of scale. Despite the fact that these variables are still relevant but not sufficient for success in today’s business world. It is normally acknowledged that people are the key resources in the new world market. And all every single other assets are nothing more than commodities that can be acquired at market prices, but only the human asset has potential to learn, grow, develop and contribute. People are the most valuable asset of any company, because all successful management plans are carried out by people. Competitive advantage is usually achieved through technology, strategies like – cost reduction, cost

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