Resource attainment varies with the type of organization

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Running Head: ORGANIZATIONAL RESOURCES

Significance of Organizational Resources

Table of Contents
1. Introduction....................................................................................................................3
2. Significance of continuing Supply of Organizational Resources...................................4
3. Mobilization of Initial Mix of Resources.......................................................................7
4. Ways through which Organizations Compete for Resources........................................8
5. Resource Attainment Variation with the Type of Organization and Environment......10
6. Conclusion....................................................................................................................12
7. References....................................................................................................................14

Introduction
The success of an organization depends upon its resources, capabilities and core competencies. These three aspects are the base of competitive advantage. Resources are organized to direct towards organizational capabilities. Capabilities in turn are the basis of core competencies that leads towards competitive advantage (Dess, Lumpkin & Eisner, 2009). This process of creation of competitive advantage demonstrates that the most fundamental aspect of competitive advantage is related with the management of organizational resources.
The term resource comprehends a range of individual, social and organizational phenomena. Resource alone does not direct towards competitive advantage as it grounded on the distinctive clustering of a number of resources. This could also be understood with an example of Amazon.com that compounded its service and distribution resources to explicate its competitive advantage. The resources of an organization can be classified into two broad categories that are tangible and intangible resources.
Management of resources is essential for driving competitive advantage. By securing a continuing supply of resources from their environments an organization can attain all its objectives and goals. At the time of creation of an organization, it is vital that the initial mix of resources is mobilized to establish a structural pattern that tends to persist and is imprinted on organizational members (Dess, Lumpkin & Eisner, 2009). In this paper, the significance of organization resources will be discussed along with all issues related with the management of resources.
In addition to this, here in this paper the discussion regarding how all organizations compete for resources will be done along with the consequences and costs of obtaining resources. As well, in this paper the explanation about how resource attainment varies with the type of organization and environment, as well as with the organizations stage of development will be done.
Significance of continuing Supply of Organizational Resources
Organizational resources refer to the structure, procedures and systems of an organization that allows flows of information, training that in turn encourage organizational members. In a company, organizational resources involve the employees' know-how, systems and policies, planning and control systems, financial structures, management systems, and organisational culture and skills of company employees (Edelman, Brush & Manolova, 2002).
Organizational resources can be classified into tangible and intangible resources. Both of these types of resources are essential for attaining competitive advantage. Tangible resources are assets that can be seen and measured. Production equipment & facilities, manufacturing facilities, formal reporting structures and distribution centres are some of the significant example of organization's tangible resources (Stahl & Grigsby, 1997). On the other hand, intangible resources are assets that are embedded profoundly in the firm's history and have compiled over time.
Intangible resources are profoundly embedded in organizations' distinctive practices that are not so easy to be copied by others. This shows the significance of intangible resources along with tangible resources (Hitt, Ireland & Hoskisson, 2009). The substantial examples of intangible resources are as follows:
Knowledge, trust and coordination between an organization's managers and employees, managerial capabilities, core competencies, working pattern of organization's human resources, technical and scientific capabilities, potential to innovate, brand name and position and firm's image in the minds of its target customers and industry (Ryall & Craig, 2003). In addition to this how a firm interacts with its employees, customers and suppliers are also a substantial intangible resource.
The substantial tangible and intangible resources those continued supply is essential from companies environment are as follows:
Tangible Resources:
Subsequent are the significant tangible resources that are essential for a firm:
• Financial resources: These resources include a firm's borrowing capacity and ability to generate internal funds.
• Organizational resources: Organizational resources of a firm include its formal reporting structure. As well, it's formal planning, controlling, coordinating and monitoring systems (Stahl & Grigsby, 1997).
• Physical resources: It includes a firm's location and its facilities in regard to plant and equipment. As well, a firm's access to raw materials and their conversion into finished and quality product.
• Technological resources: this resource of a firm includes technology available to a firm for management of its business operations. This may include patents, trademarks, copyrights and advanced technology (Hitt, Ireland & Hoskisson, ...