MGT510 | Key Resources and Competencies of the Organizations | Management
What are the resources?
Resources are considered as a very important aspect of any organization or company that can be tangible or intangible. Tangible is the physical assets of the company like labour, finance and plant and intangible are the non-physical assets of the company that involve reputation, information and knowledge. They can be considered under some broad categories as discussed below:
- Physical Resources: It contains different types of machines, buildings or the production of capacity regarding the company. The nature regarding these resources like the condition, age, capacity as well as location regarding each resource will determine the usefulness of these types of resources.
- Financial resources: It involves cash, debtors, capital and creditors as well as suppliers of the money.
- Human Resources: It includes some people in the company. The intangible resources regarding their skills as well as knowledge are likely to be necessary.
- Intellectual Capital: It involves patents, business systems, customer databases and brands.
The resources can be threshold resources that involve those which are required t meet the minimum requirements of the customers and therefore to continue to unique and exit resources. The unique resources are the resources that strengthen the competitive advantage and are also not easy for the competitors to obtain or imitate. These types of resources are very essential for the organization to run the business effectively and smoothly.
Competencies’ is the term which is used to mean the processes and activities via which the company implements its resources efficiently. Competencies can be categorized in different aspects as described below:
- Core competencies: These are the activities that underpin the competitive advantages and also hard for the competitors to obtain or imitate.
- Threshold competencies: These are the processes and activities required to meet the needs of customers.
Distinctive managers, writers and consultants use different ideas and terms in clarifying the importance of organizational potential. Strategic capability can be separated or characterized as the abilities and assets of the company needed for it to flourish or survive.
Developing strategic abilities
There are several ways in which managers can make the strategic abilities:
- Adding & evolving capabilities: Abilities can be involved or changed so that they turn out to be entirely the strengthening related to the outcomes that delivered against some critical success factors.
- Extending abilities: Administrators can identify strategic abilities in one territory regarding the business that may be client administration in a geographic unit related to multinationals that are not currently present in various speciality
- Stretching capabilities: Managers may view the probability to develop new administrations or items out of exiting capabilities.
- Entrepreneurial bricolage: Some strategic abilities can be fabricated by misusing some aptitudes, assets and learning that have been dismissed or overlooked by other people.
- Ceasing exercise: The existing activities and processes not central to the delivery of value to the consumers and can be accomplished away with or decreased in cost.
- External capability development: There can be some mechanisms for looking this to make different capabilities remotely. For instance, some managers can cry to create or learn some new capacities by the procurement.
Key elements related to resource management
There are several elements of resource management and some key elements are as follows:
- Resource Histogram
- Resource Histogram
- Resource Dependency
- Responsibility Assignment matrix
- Resource breakdown structure