Achieving Competitive Advantage


AchievingCompetitive Advantage

Ofrelationship, human, and organizational capital, which bestrepresents the driving force behind competitive advantage? Why?

Surveyafter survey has established that business executives believe findingand building the apt talent should be one of their key priorities,and their organization’s human capital is the most important asset(Mangi,2015).Many firms understand how to leverage financial capital, equipmentand machinery. However, when it comes to matters relating humancapital, the tasks in the work process are designed to follow astandardized and simplified process, and the workforce is controlledthrough a well-formulated hierarchical reporting connection, closesupervision and budgets (Saga &amp Gregor, 2012).

Humancapital is the key asset that can enable a firm to take fulladvantage of their economic prospects, maintain growth and create thecapacity needed to attain the social goal in order to be in aposition to decisively challenge the 21stcentury (Saga &amp Gregor, 2012).Competitiveadvantage indicates the firm’s knack and power to gain and retainmarket share in the business line and industry. It is closelyconnected to a firms effectiveness and ability to meet all thedemands of the stakeholders. An organization can only achievecompetitive advantage if it is able to acquire adequate knowledge onthe capability and needs of the workforce, and recognizes therequirements and importance of the workforce (Mangi,2015).Whenfirms attract and retain the right peoples as well as make franticefforts to organize and manage them effectively, human capital can bekey source of competitive advantage. Human capital is paramount toachieve competitive advantage because it is an integral part of theorganization. The role of human capital in this endeavor is greaterthan that of organization capital because it is considered to be thewealth and resource to achieve goal set (Lawler, 2010)


Mangi,A.R. (2015). Human Capital a Source of Competitive Advantage “Ideasfor Strategic Leadership. Australian Journal of Basic and Applied Sciences, 3(4): 4182-4189

Saga,N.and Gregor, A. (2012). Human Resource Management: As a Source ofSustained Competitive Advantage of the Firms. DOI.2012. V46. 1

Lawler,E.E. (2010). MakeHuman Capital A Source of Competitive Advantage.Centerfor Effective Organization (CEO). 08-15 (551). Retrieved from: