Human Resource and Market Economy
The three important areas of human resources are skill, ability, and knowledge. Knowledge plays most vital role in the modern industry as rail road played its role during the 19th century business and as assembly line played its role during the 20th Century. According to P.F . Durcker ? knowledge is the only meaningful resource today? All other resources flow freely across borders.
Knowledge and Competitive Advantage
Modern business has been undergoing changes at a fast rate due to changes in technology, liberalization of economies etc. The changes in the business resulted in severe competition. The business should have knowledgeable employees to have competitive advantage over the competitors. In the words of Thaygarajan, Managing Director, Glaxo, “organizations that have world class ambitious will need to nurture knowledge workers? As Adi B. Godrej, Chief Executive Officer, Godrej soaps puts it, “all corporate strengths are dependent on people?
Products and Human Resources
Many companies compete based on the strength of their products. These companies have to use people as the source spring for wining concepts. In fact, product improvements are generated by people, creative and innovative products and services can be developed and modified only through intensive and planned human efforts. A successful product is developed by using knowledge as a core competence of the company.