IQRA UNIVESITY GULSHAN CAMPUS

Organizational Capability as a
Competitive Advantage: Human
Resource Professionals as
Strategic Partners
Review submitted to Miss Abida Shaheen

Submitted by:

Muhammad Farrukh Siddiqui (2882)

Faraz Shakoor (3436)

Faizullah Khan (3052)

Younus Khattak (2050)

Umair Tariq (2507)

 REVIEW

This paper has been written by Dave Ulrich. This paper includes the HR
professionals and organization capabilities. The faster change in world economy
towards transitional competitive mechanism are became lass effective as
competitors meet or copy each corporate initiative. There was economic downfall in
America from 1980-1986 includes National economy downfall in manufacturing,
federal budget deficit, imbalance in trade and reduction of farmers are major
aspects.

Industries are also transforming and reducing workforce during that period.
This economic downfall brings two central themes. 1) Change has transformed the
economy, traditional industry structure and firm. 2) Competitiveness response to
this rapid change has forced U.S. firms to focus on gaining and maintaining
competitive advantage.

Competitive advantage majorly been defined; a firm’s competitive

advantage comes from firm’s customers or competitive advantage is to offer a
unique product or service. It can be, being able to build new product more
efficiently to technological or operational capability.

Organizational capability becomes the source of competitive advantage

distinguish successful firms from unsuccessful firms. Organizational capability
involves economic capability, strategic capability and technological capability.
Employees are the most important part to enhance the organizational capability,
but it is more than just people, infect it is the organization and people management
systems that focus’s people attention and shape their behavior to create an
organizational capability. HR plays a most important role. HR activities include
organizational planning, staffing, rewards, development, appraisals and
communication. HR must practice these activities effectively and proactively.

To enhance the organizational capability HR professionals require two major

new competencies which are professional and personal competency. HR
professionals must know about the business’s nature, they must be competent
within the HR department; HR professional must predict the change and respond to
it proactively, HR professionals should build the good relationship with line
managers, HR professional must quantify their performances and be data based,
they should prioritize and ensure the simple successes, they must share their
successes to tell others about their contribution in organization’s success, they
must interact with the employees to know their problems. In personal
competencies HR professional requires to think strategically for the success of their
organization, HR professionals must develop credibility as a personal competency,
be straight in discussing problems, and be a leader to motivate people and to direct
them towards organization’s success.

This HR practices build a competitive advantage to organization. In addition,

firm’s organizational capability represents a firm’s unique attributes that may be
translated to customer value