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The organizational capabilities are crucial intangible assets of the company

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The organizational capabilities are crucial intangible assets of the company

what individuals respect about organizations is not how their specific management approaches or how they are structured, but their capabilities which include their ability to respond to changing needs of customers or innovate.  The organizational capabilities are crucial intangible assets of the company. These capabilities cannot be touched or seen, but they have the potential of making all the difference in the business world, considering the market value.

These capabilities, including collective abilities, skills, and expertise of a company, comprise the investment outcome in training, staffing, communication, compensation, alongside other human resources. The capabilities represent the ways that individuals ad resources are incorporated with the purpose of accomplishing work. Further, capabilities form the personality and identity of the company by describing what is considered good at doing. They are also perceived as stable over time, and competitors find it challenging to copy than product strategy, capital market access, or technology. In most cases, managers may not pay attention to them as they are not easy to measure, compared to tangible investments including  plant and equipment. Nevertheless, these capabilities are found to give the investors confidence especially in future earnings. When compared to other firms, the differences of the intangible assets explain whys the market valuation of one company is higher compared to the other.

Capabilities in an organization merge when a firm delivers on the combined abilities and competencies of its employees. An employee possess the required literacy or may exhibit leadership skill, although the organization at large may or may fail to embody similar strengths. In addition, capabilities put an organization in a position of turning its technical knowhow into outcomes. For instance, a core competence in marketing will not add value if the company is not in a position to spark change.

The talent capability of an organization describes the skills that are required in an organization. When tapped well, talent can contribute to increase in productivity, and increased retention in the organization. The overall performance of an organization improves when organizations capitalize on talent capability. Speed is also a key capability of an organization which involves recognition of opportunities and acting to them quickly. These allows an organization to exploit new markets, build new employee contacts, create new products or execute new processes of business. Where time saving is achieved, it translates to improvements in labor productivity and also increased responsiveness and enthusiasm to opportunities. The next advantage can be seen where the organization demonstrates shared mind set and coherent brand identity. This cuts across both employees and customers of organization where the focus is ensuring they develop a positive and consistent image of and also experiences with the company. This increases customer loyalty, and retention of employees in the organization. As a result, productivity improves where the employees feel more motivated and recognized.

Accountability is also a key capability in an organization, which  ensures that the company taps high performance from its workers. This is helpful for high performance and good reputation for the company. Further, organization can gain tremendous benefits from maximizing on collaboration capability by ensuring the efficiency and leverage. The efficiencies occur through economies of scale, pooling of technologies or services or through sharing of talents and concepts.

The learning capability of an organization allows it to generate and generalize ideas through experimentation, benchmarking, competence acquisition, and regular improvement. In the case of individuals, learning includes letting go the old practices and embracing new practices in the organization. Moreover, organization focus on leadership capability to ensure that they produce the most effective leaders in the company. The clear leadership brand makes the leaders be easily identified by the competitors in the industry.

Organizational capability include customer connectivity which includes establishing lasting trust with the targeted customers. Customers are key in an organization as they contribute to the profitability of the business and the ability of connecting with customers forms a strength to the business. Customer connectivity also increase their loyalty in your products and provides a competitive advantage in the market. The next capability includes strategy unity, which is an important aspect of a business as it spells the understanding of employees about the strategy of the organization. A proper understanding of the strategy helps the organization achieve their goals and succeed in their operation as everybody knows what is expected to be done.

Innovation in a business is essential capability which includes doing something new in both process and content. Innovation is focused in the future success of the company and its delights customers, excites employees and builds confidences among the investors in the business. The efficiency capability of an organization is crucial in costs management and allows the company to grow and realize large profit margins.

  1. Summary and Conclusion

III. Structures of the U.S Tariffs System: A Framework

  1. Theoretical Framework for Capitalizing on Capabilities

How to write the theoretical framework.

Leadership theories

Talent management theories… egalitarian theory in business…. human capital theory

Egalitarianism describes a philosophical perspective that stresses on equal treatment and equality across religion, gender, political beliefs and economic status. In the business setting, egalitarianism company describes the organization that advocates and also employs the egalitarian structure for the employees of the company. This is interpreted that employees at all levels of the business will enjoy same organizational status and workplace benefits. The theory advocates for various benefits including equality and shared recognition. The main advantage of this approach is providing opportunity for all employees to ensure that they contribute equally and also share success recognition. every employee to be responsible for the individual and also the team tasks in the absence of a chain of authority. In this way, the organization culture encourage personal accountability and also provides the employees with more freedom. Besides, the egalitarian organization can make use  of its structure to recruit and attract employees in in the organization.

1The classical or traditional theory.

The traditional or classical theory focuses on the formal structure of a company. The theory takes into consideration the company as a machine while the human resource are seen as distinct parts or components of the organization. This approach is characterized by the detection of errors and seeking ways to correct them when they occur. This theory is aimed at improving the output of the organization. The theory assumes that the workers within the organization are relatively stable based on the change happening in the firm. In this approach, author and control need to be vested on a central administration which helps in attaining an integrated and centralized system. The classical theory also emphasizes on the technological factor of the business and looks at ways of making the employees within the company to become more productive. The approach as addresses the organizational structure which should be designed to improve the efficiency of employees.

  1. The Human Relations or Neo-classical theory.

The neoclassical theory addresses the human factor. The approach was pioneered by Elton Mayo who focused on human relations to enhance both productivity and satisfaction levels of employees in an organization. The theory was initially described by the experiments of referred to as Hawthorn experiments that were performed at Illinois plant of a Western Electric Company and was carried out between the year 1927 and 1932. The human relations movement explores the elements that foster improved performance on the part of employees. The enhancement of employees’ working conditions, enhancing their social relations, lowering the working hours and also improving monetary gains help in productivity enhancement. The Hawthorne studies were performed to investigate the impact of better physical facilities on the output of employees. Various experiments were carried out on the employees to establish the influence of distinct conditions one the workers’ efficiency. The first stage of the experiment included five girls who engaged in the electrical assembly testing. The experiment showed that there was substantial improvement in the performance of the girls. the improvements subjected on the girls initially were all systematically removed. There was an observed fall in the output level, although it was more than the initial performance. The third phase of the experiments reintroduced the improvements, where the productivity roared. The final phase pf the Hawthorne studies included an investigation of the work practices, that consisted of fourteen men and four supervisors, who were working in a bank wiring observation room. The studies showed that a company is a formal arrangement that is characterized by human resources and organizational functions, and it is also asocial system with successful operation happening only with the use of psychology principles alongside other behavior sciences. The observations deduced on the need to take into consideration the impact of social factors as they improve employee productivity. The approach also stressed on informal groups in organizations, appropriate leadership and proper communication between the top management and the staff members which facilitates understanding between the employees and management.

  1. The decision-making theory.

The decision making theory describes an interdisciplinary model of arriving at certain decisions considered most beneficial during an uncertain setting. It explains how rational person need to behave under uncertainty and risk. The approach involves the adoption and the use of rational choice that aid in the management of business, private or governmental organization through an efficient approach.

  1. The systems approach.

The systems approach is a model that is established on the assumption that breaking down a sophisticated idea into a simple and easy one that allows understanding of the units aids in better knowing the concept’s complexity. The systems approach was first proposed by Ludwig von Bertalanffy where it was initially referred to as General System Theory. He perceived the organization as an open and organic system, made up of interdependent and interacting parts kwon as subsystems. The generalization under the system is that everything is interdependent and interrelated. The systems approach notes that a system is made up of interacting components arranged in a way that generates a unified whole.

The systems approach focuses on the overall effectiveness of the systems taking into account the interdependent of the subsystems. These approach when applied in an organization takes into account its objectives as well as the performance of the multiple departments making up the organization.  The approach is useful in studying the functions of complex organization needs to bring together the various functions including organizing, planning, controlling and directing to attain the goals and objectives of the organization.

contingency theory,

the contingency approach sees organizations as open systems that require careful management meet ad also balance the internal needs as well as adapting to circumstances of the environment. In this approach, there is no a defined best approach to organizing, and the appropriate form is based on the type of task or the setting one is dealing with. The management under this theory is required to be concerned with alignment achievement and attaining good fits. This model was developed by Fred Friedler and it focused on leadership contingency approach in organizations. The model suggested that leader member relationship is high when the leader is generally respected and accepted by the followers. Further, the extent of task structure is considered high is the task is found to be very structured. The organizational structure is found to impact the performance within the organization.

Theory X and Theory Y

Theory X and theory Y were developed in 1960 by Douglas McGregor that were used to explain the beliefs of a manager concerning what motivates their employees and how it can impact their style of management. The approach notes that in an organization setting where the employees display lack of motivation and dislike their work, it is essential to apply the authoritarian management style. The method is considered very hands-on and typically incudes micromanaging the work of individuals to provide that it gets done and its known as Theory X. in contrast, McGregor suggested the Theory Y which notes that is the management perceives their employees as taking pride in the work assigned and deem it a challenge, then the leaders need to make use of participative style of management. In this approach, the managers involve the employees and trust them with their work. The approach aims at motivating the employees to improve their performance.

the scientific management theory.

Scientific management describes a theory that involves analysis and synthesis of workflows in an organization. The primary purpose of the approach is enhancing economic efficiency, particularly in productivity level of labor. The approach was established by Frederick Taylor, which has since transformed the way companies perceive their employees and the organization at large. The initial perception of employees was that they were lazy individuals and would work inefficiently and slowly to protect their job. Tylor suggested that production would ultimately improve if optimization and simplification of jobs was taken into consideration. Besides, he proposed that the skills of an employee should be taken into consideration and matched to a particular job. The individual’s training is also key in assigning the employee the specific job. In his theory, Taylor initially created the concept of breaking down every job into its component parts and also timed every specific part to establish the significantly efficient approach of working. The principles of scientific management include looking at every task or job scientifically to establish the best method of performing the job. It also requires hiring of the right workers for the specific job and also train the employees to attain maximum efficiency as they work. The approach also expects the management to monitor the employee performance, and give direction as well as training when need arises. Scientific management suggest that work should be divided between the management and labor to ensure that the organization’s management can  plan and engage in training while the workers can implement the job or task efficiently.

  1. The Evolving Trends of Capitalizing on Capabilities

trends in organizational leadership.

as a team lead or a manager in an organization, it is essential to consider how your principles of leadership influence the individuals around you. The goal of a leader is keeping the workers guided, motivated and engaged every time. The leadership of an organization should be adapted to the company’s needs, goals and challenges experienced. There are multiple trends in the modern leadership approach in organizations.

First, there is an observed trend of a decrease of age based seniority contrary to the past where the senior employees would be considered first during promotions to managerial or leadership positions in the majority of organizations. In the modern business world, promotion also takes into consideration the leadership talent or the capacity of all employees. The primary factor in this approach is applying the relevant strategies that can potentially attract, engage, and ensure retention of workers across employees of different generations.

The next trend in leadership is increasing manager-employee relationship in the organization to promote workforce management. This goal can be attained by focusing on particular soft skills including people skills and emotional intelligence since employees will feel more comfortable towards a leader who is in a position of relating their challenges and concerns. The next trend includes investing in human capital, as the emergence of technology has threatened  human capital in organization. Employees are considered the most valuable assets of an organization, hence cannot be replaced by technological advances. Investing in further learning of employees is key as it improves their performance and overall growth of the business. Nevertheless, technological advancement is also a common trend in the modern business environment. It should be combined with talent to serve customers and also helping in distinct talent management areas including assessments, training  among other worker development activities. Through the use of Artificial Intelligence, you can assemble valuable data concerning your employees.

Trends in Organizational Structure.

One of the trends in organizational structure in a company includes reengineering the business processes or adoption of the new technology that aid in opening up multiple organization design options including virtual teams and virtual corporations. The primary attributes of a virtual corporation are such as technology as information technology in an organization helps the geographically distant firms to form partnerships and engage in joint business. It also includes opportunism through the alliances and excellence is guaranteed as each partner introduces individual competencies. Besides, trust is enhanced as the network structure makes the organizations more depended on each other and compels them to ensure stronger relationships. Technology advances also allows organizations  to develop virtual teams and thus geography is not considered a restriction in the modern business setting. In this trend, there is reduced travel costs and time as well as reduced relocation and use of specialized talent regardless the location of the employees.

The modern business world is also witnessing an increase in outsourcing of labor and multiple functions including pay roll functions such as wage rates, managing benefits and recording hours. In the modern business environment, outsourcing cuts across production, customer service, information technology, engineering as well as sales and marketing. The next trend in organization structures includes structuring for global mergers. This requires careful analysis of how to integrate the different cultures during mergers to ensure a successful transition into a completely new and competitive business.


the next trend includes globalization in the modern business. Companies operate in an international economy that its characterized by increased competition while at the same time there is significant collaboration and interdependence. Globalization has forced companies to seek competitive edge by offshore outsourcing where functions are shifted to other countries where the business is located. Globalization has contributed to increased mobility of global capital as well as labor markets, creating more opportunities due to increased customer base.

Diversity in organization is an increasing trend that the management should take into consideration while managing employees. Diversity is also associated with increase in globalization where people from different backgrounds, countries and cultures. Individuals from different cultural backgrounds possess distinct values, attitude, and norms. Tapping the different talents and focusing on adopting diversity in workplace will improve organizational performance. Due to globalization and diversity of employees, organization manage to achieve flexibility. This is because the organization need to function globally and also embrace the diverse workforce, compelling the organizational leaders to embrace flexibility and attract broad strategies and skills with the diverse groups of individuals in the organization.

trends in human resources.

besides merely engaging the employees and providing a priority to their level of satisfaction, trends in modern organizations are more focused to enlighten the overall human resource culture. The human resource department has moved far to enhance employee experience that includes enhancement of organizational culture and performance management. The HR department concentrates on analyzing the employee data to tackle staff’s needs and improve productive office atmosphere.

Organizations have also adopted the approach of allowing the employees to learn management systems regardless of the position they hold within the organization. Giving employees an opportunity to learn is essential for any organization whose purpose is to grow. This s because an enhanced skill set has the potential of helping an employee to perform better which is reflected at the overall performance of the company. Further, the human resource has witnessed trends in digitized recognition and rewards which compel employees to improve their performance. Digital recognition and peer to peer recognition for the employees’ contribution especially through social media platforms trigger their performance in the workplace. The  Human resource department is also making use of online skill assessments which is considered an optimal and effective talent management tool.

trends in market and customer service.

the customer service is characterized by trends such as online presence where increased conversation happens through the social media. This forms a great platform that companies can use to connect to their customers and hence business need to ensure social media presence and online store are put in place. The platforms provide services including customer support and this has witnessed an upward trend over the years. Other trends include business intelligence as well as performance analytics, which offer key insights and empower the workers to make informed business decisions. The real-time support is also an emerging trend in the business world where customers want to know that they can reach you in real time. The potential customers will be interested in visiting your website and there should be  a perfect time for live chat with them. Customer service is also witnessing the need for personalization of the services to specific customers. The Internet of Things is a common trend in the business setting as it impacts ecommerce and online shopping, which  will turn objects into potential sales channels especially for retailers. IoT improves management of inventory, enhances overall efficiency,  increases marketing opportunities and makes websites become more perceptive.

trends in operational improvement.

the operations management in an organization is also witnessing tremendous trends in the current and the future business environment. This includes trends in employee experience investment where the business invest in individual development and growth of the workforce. This will improve the satisfaction of employees, which in turn improves their performance. This can be attained by encouraging accessible and transparent internal communication when recruiting and training workforce. Facilitating peer to peer communication in an organization will provide benefits such as enhancing processes and outcomes, improving workplace morale, as well as increasing and encouraging employee collaboration. Another trend in operations management include introduction of mobile communication tools in the workplace or employees  are allowed to bring their own device in their place of work. Automation of the internal process in the entire business is also an increasing trend in managing organizational capabilities  as it helps in saving money and increasing efficiency. Automation allows employees to concentrate on their customers and the products that the company produces.

  1. Summary and Conclusion


  1. Future Patterns of Growth and Structural Change
  2. The Elements for Cultivating Competitiveness of Resources

leaders of organizations across the world strive to ensure that their companies attain competitive edge in the market. The managers focus on making the performance of the companies increase without regard to the industry of size of the company. There are various aspects that need to be taken into consideration to increase competitiveness of resources within an organization.

First, you need to engage people, which is a common trend in the modern business environment. There are various approaches that can be applied to ensure that your people in the organization engage more, feel passion for the work they do, strengthen employee commitment and deliver their  best performance. The management needs to build a robust understanding of your business approach in the entire workforce of the organization. Employees need to understand the primary competitors, why customers buy from  the business and also how they can contribute to the company’s unique differentiation. Engaging your people in an organization can also be attained through building trust since the workers should understand that the executives and managers care about their needs, which makes them focus on success of the business. Further, leadership should concentrate on every department to improve their procedures to ensure they achieve competitive differentiation for the company.

The next element is leveraging high impact leadership practices. This includes proper communication within the company where managers and leaders should communicate clearly using simple language, interactively, creatively, and also daily regarding the core business subjects including current organizational activities, organizational and departmental performance, obstacles, progress and solutions.

Identification and removal or the internal roadblocks includes understanding how well aligned are the policies, structure and procedures of company with your competitive differentiation approach. The policies and work procedures of the business need to enable  employees to get the rights things done easily and quickly.

The use of strategic training and development is a key element  on increasing competitiveness of resources. The majority of companies have their workforce approach or that is beyond the traditional retirement age. Besides, low levels of engagement can potentially contribute to increased employee turnover because more opportunities for jobs become available to individuals. organization need to have training put in place to allow individuals carry out crucial work when workers retire or leave the organization. Besides, the company’s training effort should prepare the company with necessary skills required in the future. All workers need to be trained based on the current as well as future focused training requirements. The management should create career paths for employees to progress to certain roles that’s will likely be needed in the future. This calls for an understanding of your employees and their future goals.

The organization should also ensure that they focus on the business approach such as  competitive differentiation approaches or value proposition. These could include operational efficiency where the organization provides a universal set of services and products whose design offers cost effectiveness for the consumers. It is essential to ensure that your products make the customer processes become more efficient by improving quality and reducing down time.  Companies need to ensure that robust customer intimacy is maintained through the provision of customer customization t fulfill the individual needs of all customers. Customer intimacy can also be enhanced through establishing robust and long run customer relationships, as well as provision of outstanding customer experiences. The leadership should adopt a leading edge through the provision of innovative and new services and products in terms of the latest practices and technologies. The company can achieve leading edge by ensuring a robust research function accompanied by frequent initiatives of improved and new services and products to meet customer  needs.

6 Sources of Competitive Advantage.

The next driving force that determine competitive advantage include people within the organization. When people in the company are better at creating, innovating, generating and building relationships you are likely to attain competitive advantages in the market. Coping the skills and abilities of your employees by other competitors in the market is a challenge attempt. Organization structure and culture form a key element in  creating competition in the organization. This includes the shared behavior, habits, mission, beliefs, symbols and norms of the company. An organization needs to ensure a practical culture by focusing on the abilities and energies of the employees on generating meaningful outcomes.

Competitive advantage is also realized through superior process and practices of producing outcomes as they can be challenging for the rivals in the industry to copy and replicate. Besides, competition of resources of an organization is realized in its products and intellectual property. This includes the product design while the intellectual property laws safeguard the rights of a company to a particular product, process designs and technology.

Increasing competition of resources includes the use of technology including transportation technology, office equipment, energy, industrial machinery as well as consumer products. Adoption of new technology in the business ensure improved productivity and better outputs compared to the rivals in the market.

  1. The Elements for Cultivating Capitalization resources
  2. The Effect of Competitive Policy on Capitalization

Competition policy.

competition policy is explained as the public policy whose purpose is providing that competition is not undermined or limited in ways that are dangerous to the society and the economy. It is forecasted based on the concept that competitive markets are core to efficiency, investment, growth and innovation. The competition policy was first witnessed in the US when it was clear that competition prompted the substantially larger organization to attempt to lessen the pressure of competition via the formation of cartels, which had detrimental impacts on consumers and smaller firms. The competition policy covers areas such as monopolies, restrictive practices and mergers. For instance, the restrictive practices where competitor firms collude to fix prices are restricted under the competitive policy, but not all collaboration. Sit has been witnessed that large multinational organizations collaborate with rivals especially in research and development area. The abuse of the monopoly is highly discouraged under the competitive policy.

competitive policy affects a business positively as it creates an organizational culture that maintains competition which allows firms to enhance and develop to become a stronger competitor in the industry. The competition policy also encourages businesses to better themselves while at the same time influencing the consumers positively as it the firms can offer a wide range of services that consumers can choose from.

Additionally, competitive policy may also aim at reducing competition between business in the industry. This may be in the form of anticompetitive behaviors including agreements that integrate price fixing, production control and market sharing. Where a business does not take part in the agreements, it faces disadvantages, and therefore the competition policy is enacted to prevent firms from carrying out the anticompetitive conduct.

  1. The Effect of Competitive Policy on Capabilities

the primary aim of competitive policy is encouraging competition, contribute towards enhanced efficiency and make markets work better in individual markets. The competition laws ensures that technological innovation is adopted which encourages dynamic efficiency especially in distinct markets. The policy also provides that practical price competition exists between the suppliers. Further, competition policy aims to protect as well as promote consumer interests via lower price levels and increased choice. To achieve this, there are various competitive policy that can adopted and which impact capabilities.

The deregulation policy includes the laws that cut down monopoly power. These prevent mergers or acquisitions that often contribute to monopoly. Privatization policy can also be adopted in the market which describes the transfer of ownership. There could also be stern laws on anticompetitive conduct which also include penalties against any proven cases of collusion or price fixing.

  1. Impact Analysis of Capitalizing on Capabilities


Impact analysis helps in monitoring the intangible assets of a company and it highlights the most essential taking into consideration of the history and strategy of the company. It also involves measuring how well the organization delivers on the multiple capabilities and contributes to an action plan to execute improvement. Impact analysis can be used in the whole firm, a region or a business unit.

  1. Summary and Conclusion
  2. Summary and Conclusions
  3. Summary
  4. Conclusions




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