This website uses cookies to ensure you have the best experience. Learn more

The Value Of Human Capital As A Sustainable Advantage

3052 words - 12 pages

XYZ Bank was established in 1998, in a developing country. During the first ten years, following its establishment, it was known for its pace setting innovativeness, fast growth, and strong financial performance which culminated in its listing on the local stock exchange. Notwithstanding the entrance of several new players, XYZ prided itself in its products, its robust ICT systems and banking halls with an ambience that this far has not been matched by its competition; a well groomed team that worked hard and produced the desired results for years and annual financial results that communicated the story of their success.
Over the last five years, despite its wide branch network and an 800 employees workforce, XYZ Bank's fortunes have been on a downward trend. It is now characterised by high staff turnover, damaged relationships between employees, decreased motivation to perform, resulting in losing market share and the business has posted losses three years running. As far as the founding executives are concerned, these are temporary setbacks, which should resolve themselves over time because they have a performance management system in place. At the end of every year, the Human Resources department ensures that every employee's performance appraisal is conducted and salaries are adjusted in line with the performance ratings.
Faced with mounting losses and a salary bill that keeps inflating at the end of each year, without being backed by profits, the Board of directors is worried by developments it views as unsustainable and is scouting for a way out of the quagmire. Recently, the chairman of the Board invited Enhancement Consultants to come and carryout three tasks namely:
i. to explain the concept of attaining sustainable competitive advantage from human capital;
ii. having noted the failure of the existing PM system to explain the concept so that the executives fully appreciate it and what it can do for XYZ Bank;
iii. to propose a PM system for XYZ Bank and indicate its implementation modalities.

The Value of human capital as a sustainable advantage
In a world where most of what used to be sources of sustainable competitive advantage such as more sophisticated technology, access to information among other things have become common place, one asset that has remained the differentiator and, therefore, major potential source of sustainable competitive advantage is human capital. Included in the latter are the skills possessed by employees, their intelligence, judgement, relationships and even intuition. After conducting several studies Bartlett and Ghoshal (2002) concluded that human capital constitutes the key strategic resource that must form the foundation of a firm's strategy.
Given the strategic importance of human capital (Chadwick and Dabu 2009), implementing a PM system as a way of fully harnessing this resource is every organization’s imperative as a way of remaining competitive. XYZ Bank's experience with PM has not...

Find Another Essay On The Value of Human Capital as a Sustainable Advantage

Operations management as a source of competitive advantage

2776 words - 11 pages ContentsExecutive Summary2Introduction3Section A4Section B17Recommendations21Conclusion22Appendices23Bibliography26Executive SummaryThe following assignment looks at operations management as a source for gaining a competitive advantage, operations management and TQM are defined and discussed as to their importancy in the organisation. The differing ways of gaining a competitive advantage are explained as is the way organisational structures and

The Advantage of a college education

948 words - 4 pages high school. Every single year of attending college aids in the structuring of a student’s independence, as well as, support encouragement of self-confidence. Furthermore, an appropriate college education would give students the advantage of controlling the direction they wish to proceed in life. Also a major advantage of higher education for parents is the fact that they can aid their children with their school work. During the course of

How does a Value Chain analysis model help the organisation develop and deliver sustained competitive advantage?

2956 words - 12 pages the organisation's competitive position. The idea of the value chain is based on the processes within organisations and seeing manufacturing as a system which consists of sub systems, each with inputs, transformational processes and outputs. These involve the acquisition of resources such as money, labour, materials, land, equipment, human resources. How the value chain is carried determines costs and affects profit.(Rowe, Et Al. 1994) from

The Value of a Dollar

675 words - 3 pages Value of a Dollar Ask each student individually to select the correct coin out of a jar. Then the student must tell you how much each coin is worth. CHOSEN COINS Students Answer Yes No Penny Nickel Dime Quarter Fifty Cents Dollar VALUE OF COINS Students Answer Yes No Penny Nickel Dime Quarter Fifty Cents Dollar Performance Assessment This assessment is an example of a performance assessment that could be

The Value of a Doctor

2899 words - 12 pages internal medicine instead hinges on a multiple-choice exam. Chen reveals that the current medical education system actually compromises patient care by producing doctors who care more about curing the disease, than healing the patient, and occasionally even encourages depersonalization. She admits that as a product of her extensive training, “I learned from many of my teachers and colleagues to suspend or suppress any shared human feelings for my dying

The Value of a Life

1097 words - 4 pages women should not abort have to deal with values of conscience, human morals, as well as health issues. The first reason why women shouldn’t abort their pregnancy is related to their conscience. Many females have lifelong regrets after they’ve gone through with the procedure. When a woman has an abortion, she will always think about the baby she might have had. This thought will stay in the back of the mother’s head. Some things such as walking next

The Advantage of Sarcasm

850 words - 3 pages The Advantage of Sarcasm “Sarcasm is a form of humor that uses sharp, cutting remarks or language intended to mock, wound, or subject contempt or ridicule, generally saying the opposite of what the statement really is” (Oxford). Brian Dickerson, a free press columnist, does just that to bring the readers over to his side. He utilizes a very convincing combination of sarcasm and emotional appeal in his column called “Promises to Keep? Not in the

Analysis Of 'Democracy As A Universal Value' By Amartya Sen

1527 words - 6 pages In his article, Democracy as a Universal Value, Amartya Sen asserts that democracy is a universal value. In order to develop his argument Sen needs to state his definition of democracy and define what he means by universal value. In the course of Sen's argument he gives his view of the relationship between democracy and the economy. He then defends his view of democracy as a universal value against a main argument that deals with cultural

Capital Punishment as a Form of Deterrance and Permanent Incapacitation

1216 words - 5 pages Capital Punishment as a Form of Deterrance and Permanent Incapacitation Society has always used punishment to discourage “potential” criminals from unlawful action. Since society has the highest interest in preventing murder, it should use the strongest punishment available to deter murder. The death penalty is arguably the strongest deterrent for murder and the strongest punishment for other unspeakable crimes. If murderers are sentenced to

The Human Body as a Computer Interface

1816 words - 7 pages area into four types of human body based interfaces: 1. Body Inspired Metaphor (BIM): Uses various parts of the body as metaphoric interaction. 2. Body As An Interaction Surface (BAIS): Uses parts of the body as points of interaction. In this model, researchers are investigating what parts of the human body are more suitable to be used as interface for a given task. They are trying to find the best spot taking into account cognitive and

The Value and Consequences of Women as Property

1118 words - 5 pages Women are seen as fickle, emotional creatures that spend most of their time on nonsense. Women are also known for their ability to hold a grudge, remember every wrongdoing ever done to them, and for their aptitude for revenge. Most women today would disagree with this stereotype, and women have made great strides, but women’s roles in society have not come as far as we may think. The roles of women in Shakespeare’s Hamlet demonstrate that women

Similar Essays

How Cabela's Maintain Competitive Advantage Through Human Capital

2990 words - 12 pages & Colella, 2011). Before proceeding, the definitions for these three areas must also be given. Human capital, according to the textbook is defined as “the collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organizational workforce” (Mathis & Jackson, p. 5). Staffing is described in the HRL textbook as “providing a sufficient supply of qualified individuals to fill jobs in an organization” (Mathis

Human Resource Management As A Competitive Advantage

2390 words - 10 pages is key to delivering financial success in such a highly perishable, inimitable and subjective industry, (Lockwood & Jones, 1994). From experience, it is the human assets that are a key source of sustainable advantage. However, this utopian ideology is hard to achieve in an industry characterised by high labour turnover, poor perceptions as employers and stressful working conditions, (Berta, 2003). Moreover, 75% of the hospitality workforce in

Value Of A Human Life Essay

1768 words - 7 pages Value of a Human Life What is an individual worth in currency? From birth an individual is worth something. Individuals tend to value life with emotion and ethics. Money is not usually placed into the equation of valuing human lives when one thinks about it. Society however, is all about money. People are life and it costs to live. There is always a need for money in life and society acknowledges that. Death is the absence of life, so what is

The History Of Capital Punishment As A Deterrent To Crime

2741 words - 11 pages Punishment is the execution of a person by judicial process as a punishment for an offense.” Over the centuries capital punishment has been one of the most controversial debates in our society. The decapitation of criminals and domestic opponents has been used by many of our societies. The purpose of decapitating is to decrease crime rates and have a safe society, but many of Americans today argue that capital punishment is and is not a