How to leverage human capital for competitive advantage and innovation

Howto leverage human capital for competitive advantage and innovation

Howto leverage human capital for competitive advantage and innovation

However,organizations should use different strategies to influence and takeadvantage of the employees in producing innovative products andenhancing their competitive advantage. First, organizations shouldcreate a positive working environment, which motivate employees tothink differently. This can be achieved through retreats andteam-bonding activities.

Secondly,organizations can create innovative teams where each team will begiven the mandate of developing new ideas on how to enhance workprocesses (Cheng, Sanchez-Burks &amp Lee, 2009). This is based onthe notion that each employee has the ability to reason differently,but forming teams create a platform to combine different ideas intoviable solutions that benefit the organization.

Third,the organization needs to support creativity openly. This is becausesome employees could be very creative, but unwilling to assume riskssince they are not aware of whether their employer believes increativity. The management may achieve this by rewarding teams orindividual employees for each of the new ideas they develop.

Itis evident that many employees are creative, but the opportunity todemonstrate their creativity. The management can then take advantageof creative and well trained employees to develop unique and qualityproducts that cannot be matched by competitors. In addition, creativeemployees are more effective (Rahnama, Mousavian, Alaei, &ampMaghvan, 2011). Effectiveness, differentiated, and quality productsenhances the competitive advantage of organizations.

Humancapital is the most important type of resources that theorganizations own given that the ability of the organization toexploit other resources depends on the quality of its workforce(Memon, Mangi &amp Rohra, 2009). This confirms that targeting humanresources to enhance the competitiveness of the workforce is the bestmethod.


Cheng,C., Sanchez-Burks, J. &amp Lee, F. (2009). Taking advantage ofdifferences: Increasing team innovation through identity integration.Researchon Managing Groups and Teams,11, 55-73.

Memon,M., Mangi, R., &amp Rohra, C. (2009). Human capital a source ofcompetitive advantage ideas for strategic leadership”. AustralianJournal of Basic and Applied Sciences,3 (4), 4182-4189.

Rahnama,A., Mousavian, S., Alaei, A., &amp Maghvan, T. (2011). The survey ofrelationship between creativity of staff and organizationaleffectiveness. AustralianJournal of Business and Management Research,1 (6), 97-104.