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Human Resources: Align, Differentiate and Add Value

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1.Three tests for any source of competitive advantage are align, differentiate, and add value. Discuss whether these tests are difficult to pass. Can compensation really be a source of competitive advantage?

2.Internal structures are part of the incentives offered in organizations. Look into any organization: your college, workplace, or the grocery store where you shop. Describe the flow of work. How is the job structure aligned with the organizationâ??s business, the work flow, and its objectives? How do you believe it influences employee behaviors?

3.Why bother with job evaluation? Why not simply market-price? How can job evaluation link internal alignment and external market pressures?

4.What is a relevant market? What difference does it make when determining peopleâ??s pay?

5.How would you design a survey for setting pay for welders? How would you design a survey for setting pay for financial managers? Do the issues differ? Will the techniques used and the data collected differ? Why or why not?

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Solution Summary

The solution discusses the different tests of align, differentiate and add value for a source of competitive advantage.

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Human Resources:

Discuss whether these tests are difficult to pass. Can compensation really be a source of competitive advantage

There are three major tests to competitive advantage such as align, differentiate and add value. By properly aligning an organization's values with its business strategy the organization is likely to obtain a competitive advantage over the competing firms which are available in the market. However, this is not considered as an easy test to pass since there has to be a proper alignment of the values first before a firm obtains a competitive advantage. This is considered as a hard test to pass because it will involve a number of activities such as ensuring proper alignment of the organizational performance to its business goals and objectives, aligning financial performance to organizational goals, and aligning an organization's IT performance to organizational objectives. This is a difficult test to pass but not an impossible test (Kumar, Jones, Venkatesan, & Leone, 2011).

Differentiation on the other hand is considered as a hard test to pass however not impossible because achieving competitive advantage by an organization through differentiation is not always sustainable since there are always going to be changes in the customer's tastes and preferences. This means that organizations will always have to put in more effort to ensure that they are always leading in the provision of differentiated products so as to attract customers and obtain a competitive advantage.

For organizations to obtain a sustained competitive advantage, they have to add value to their commodities before availing them in the market for customers to purchase. This is however not considered as an easy test to pass since an organization has to selection a value creation strategy which is unique and has not be selected by other competitors in the industry. The value strategy employed alongside the commodity will assist in adding a positive value to the firm such as through branding of a commodity. The reason behind why it is considered a hard test to pass ...

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