Human Capital and Motivation: Keys to Competitive Advantage
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Human Capital as a Source of Competitive Advantage
Essential competencies are a set of aptitudes and attitudes that predispose individuals to perform their activities at the highest level. The key components for implementing these competencies are: knowing (knowledge), applying knowledge (skills), demonstrating appropriate attitudes and interests, wanting to perform (motivation), and having the ability to do so (available resources).
Human capital is a source of competitive advantage because:
- People differentiate organizations. Their resources and capabilities are not available to all companies under the same conditions.
- They add value to a company and explain differences in profitability.
- They are scarce; few individuals can guarantee high performance