Organizational Core Competency

 

                                                Image Credit  Linkedin.com

Organization must consider organizational core competency while developing and implementing organizational strategy. The strategy of an organization is how to compete successfully and survive and grow in this competitive age. Organizational core competency play very important role and create a competitive advantage for an organization.

“A core competency is unique capability that creates high value and differentiate an organization from its competition”

There are possibly four areas where human resources may become part of core competencies. Many organizations have identifies these competencies in their human resources and are determinant of their competitive advantage.

The four possible are of core competency are as below:

Productivity

Quality/Service

Employee skills

Innovative operation.

Productivity: Organizational productivity is measure of quantity and quality of work done and considering cost of resources used. Productivity can be competitive advantage when less people produce more output or produce better in less time. Only producing better or more output is not necessarily for productivity but also there should be no rectification no rework and no wastes in produce goods. One useful way to measuring productivity of organizational employees to measure unit labour cost. Unit labour cost is computed by dividing the average cost of workers by their average level of output. Using unit labor cost organizational can see and evaluate employee’s performance. Organization pay the worker on the basis of their performance every month and there is a system to do this. 

Quality: there is no any perfect definition of quality, people have described the quality many way.

Quality means:

Fitness for purpose – Defoe and Juran(2010)

A degree of excellence –The Concise Oxford Dictionary

Conformance to requirement- Crossby (1979) 

Quality is a dynamic state associate with products, services, people, process, and environment that meets or exceed expectation and helps produce superior value- Goetsch and Davis(2010)

We can say that quality is defined by the customer, and such will change over time and often unpredictable way. Quality is associated with creating customer value. A quality good or service meets or exceeds the whole range of customer expectations some of which may be unspoken. 

Companies and products are known as per their excellence services and fitness for uses and values provided in the produced product. Everyone want to buy the product which provides, value, compart for use, that have more facility, more advantage, more technology, more durable and safety for use. Quality is not only related to the product or company service, it is relate to everything even human being also. People are also know by their quality of work. Quality is applied everywhere and part of human being life.

Employee skills: Principle of Management says that labours should be categories as per their skills to get productivities and avoid wasted, re-work and rectification in produced goods or output. There are lots of companies which have their training center where they trained workers or developed internally. There are some company where employees are encourage to get new skills, learn new courses, educational leaves are granted and some part of Admission fees are provided by organizations. Current company where I am working, when any employee get awarded any diploma or professional degree, employee is appreciated through circulating memo by management among all employees. This is a part of organizational culture where employees are appreciated and encourage to learn new things to contribute in company knowledge pool.

“A company can manage all the work properly and perfectly when employees are skilled and experienced while manager is unexperienced, unexperienced manager means sometime company hire fresh MBA graduates for managerial role”

“A company cannot manage all the work properly and perfectly when employees are less skilled and experienced while manager is experienced, unexperienced manager means sometime company hire fresh MBA graduates for managerial role”

Innovative Operation: Innovative operation is the process of applying technologies, and also ideas for improving business process. It means keep a business running smoothly and also from receivable to payable and from payroll to inventory. The world of technology has made our life easier and has given us infinite way of communication with each other, still many business has not adopted new technology.

Benefit from innovative operation.

Improve productivity: to improve employee’s productivity by providing them with innovative tools and technologies. That will help of them deliver better result in their day to day activities. It would enable them to work while traveling and on holiday. There are many such tool available online which will benefit the employees greatly without costing much more. These kind of innovative technologies show big result when used properly in the right environment within company if there is proper support from upper management. So this result increase in profit for the company and leads to an increase in customer satisfaction as well as employee productivity. This leads to more positive business performance.