The CS: Culture, Capabilities and Composition

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The management of a company conducts culture audits using employee surveys to determine the quality of the working environment. People are considered as strategic resources and the core capabilities of an organization, with their unique skills and knowledge providing a competitive advantage. Managers must manage the number and types of employees to ensure effective contribution to the organization. Forecasting is a critical element of planning, and can be done using quantitative and qualitative approaches to predict the demand for and supply of employees. Human capital readiness is evaluated through gap analysis to identify any gaps in the availability of important talent in the organization.

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Culture: auditing values, belief and attitude Management will conduct culture audits to determine how far the quality of the employee’s working environment. One common way is by using an employee survey. From the employee survey, company can obtain variety of things ranging from environmental problems that exist in the organization to provide feedback to management. Capabilities: people as strategic resources Core capabilities are a set of knowledge within the organization that differentiate the organization with competitors and deliver value to consumers.

Example: Fed Ex has core competencies in the delivery of packages and employee relations. People are the key organizational capabilities of the core, especially at companies using knowledge base like a software company that it needs to prosper them. There are several ways to achieve competitive advantage through people if they can meet several criteria including a valuable resource (when it can increase the effectiveness and efficiency of the organization), rare (have the ability, skill and specialized knowledge that is rarely held), it is hard to imitate, and should organized.

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Composition: the human capital architechture. Managers must manage the number and who will remain employed, who is contracted and how to manage different types of people, knowledge and skills in the organization to be able to contribute. There are several trends, for strategic knowledge worker, they have special knowledge and skills directly related to corporate strategy and hard to replace such as: R & D. Then, supporting labor that have usual skill, not so important as to possess the knowledge and strategic, and available in the labor market.

The last is alliance partners, this group has characterized as unique skill, but not directly attributable to the company’s strategy. Forecasting: A critical Element of Planning Forcasting firm’s demand for employee To forecast, we can use two approaches, qualitative and quantitative. The quantitative approach can be done with trend analysis in which the various criteria the company predicted on the basis of the index.

Several step to make trend analysis are: choose a proper business factors, plot trends past, calculate the ratio of productivity over the last 5 years and make projections of human resources required for the desired year. For the qualitative approach, organization can use management or expert judgment knows better about the organization. Both must be done so organization can have accurate forecasting. Forcasting the supply of the employee In addition to foresee the needs of the organization of employees, the organization must see if the Human Resources has to offer will meet the demand for the company too.

This can be done by creating:

  • Staffing table and markov analysis
  • Skill and management inventories
  • Replacement chart and sucession planning
  • Assesing a Firm’s Human Capital Readiness: Gap Analysis

Human capital readiness is a process to evaluate the availability of an important talent in the organization and compares it with the existing supply. The difference between quantity and quality needed and the quantity and quality available is the gap that must be repaired.

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The CS: Culture, Capabilities and Composition. (2017, Mar 04). Retrieved from

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