respond give feedback to discussion posts 3 5 sentences

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A resource represents a competitive asset that is owned or controlled by the company, whereas a capability is a competently performed internal activity that is developed through the deployment of the company’s resources. Resources are assets which an organization owns, which could be physical, tangible and human financial, structural, cultural Capabilities are skills which help in utilizing resources to achieve a desired result. Resources and capabilities are core to an organizations competitive advantage. Accounting software is its resource, and managing the software skillfully without any issues to gain a competitive advantage is a capability. To be more clear, in Southwest Airlines, Aircraft’s are its resource, and capability is to run the aircraft at low cost, ability of its pilots to overcome any hurdle while flying, and good customer service are its capabilities. Both resource and capability can be a source of competitive advantage. Without resource, you cannot show or display your capability. And without capability, there is no use of a resource. Both together can be a source of competitive advantage in the market place.


A resource is any personal talent or outside supply that can be tapped for help or support. A capability is something a person or a thing is able to do. The skills your resources possess are elements which you use in daily business processes to generate a certain service or product. Capabilities, on the other hand, are a collection of these skills, experience and qualifications. Resources and capabilities together ensure that you develop a competitive advantage that becomes a sustainable formula for the future. (Mohan, 2018) Utilizing your resources and capabilities to the greatest possible effect gives you a competitive advantage. This is evident while trying to formulate a long-term business strategy. (Mohan, 2018)

If you take a company like Papa Johns. If they didn’t have the resources and capabilities to overcome all of the problems they have ran into over the past few years they would have been closed down by now. The have relied on good business skills to keep this company going. That says a lot. To me it seems like they haven’t missed a beat. Organizational capabilities provide a company with an advantage in the marketplace. When an organization continues to create new capabilities and develops existing ones, it will maintain the advantage over its competitors. Capabilities that provide a competitive advantage include knowledge, product licenses and innovative designs. (Kelchner, 2019)


The basis for competitive advantage can be found within the company’s staff. These are the people the perform daily tasks and functions that keep the business running. Employees are considered to be a competitive advantage because of their experiences and knowledge about the company cannot be easily duplicated by the competition (Hitt, Miller, & Colella, 2018).

Management has five key characteristics of high involvement management they are:
Extensive training
Selective hiring
Decision power
Information sharing
Incentive compensation

The evidence that exists to support these characteristics are the studies that find these approach to have a positive effect on the performance of employees. Hiring the right person that fits the culture of the company is the first step. Once the right person has been selected, they will receive the proper training to do their job effectively and efficiently (Hitt, Miller, & Colella, 2018). As the employee learns how to do its job well and is provided with the information needed, they will be compensated with an incentive. High-involvement management thus creates a plan for learning, teaching, and rewarding


How does human capital provide a basis for competitive advantage? What are the five characteristics of high-involvement management, and what evidence exists to support the effectiveness of this approach?

Investing in human capital is the fabrication of a prosperous organization. Human Capital is an immaterial asset as it covers all the competencies of the people within a company. These competencies vary between skills, knowledge, training, and the potential of each worker. Finding the right applicants with the right mix can be challenging but getting the right people to stay in an organization once you have found them can be even harder. If done diligently, this will eventually be the reason for the company’s extension and growth.

The five characteristics of high-involvement management are:
1. hire the right employees
2. focus on training and development
3. place importance on communication
4. empowering employees decision-making
5. rewards that are linked to performance outcomes

Researchers have found that high-involvement work methods can be generalized to the service industry area, and impressive results have been documented. High-involvement management applications were associated with worker morale, worker retention, and substantial financial achievement.

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