prahaled and hamel 1990 on general managerial epithet
Answers
It is important for organizations to focus on their competences and draw their strengths from this when they want to get ahead of their competition. According to the Core Competence Model or Hamel and Prahalad Model, which was developed by Gary Hamel and C. K. Prahalad, organizations can move into new markets and market growth possibilities more easily by using their core competences. The reason to define core competences is the (specialized) available knowledge that is difficult to imitate by other organizations. Unlike Michael Porter’s “outside-in-view” this theory focuses on the “inside-out-view”.
Fighting off the competition
By using its core competence an organization is capable of developing unexpected and surprising products provided that the production costs are low and that developments can be realized faster than those of the competition. There are more advantages to be obtained when core competence are applied to all organization-wide technologies and production skills. This will enable the organization to respond quickly and flexibly to a dynamic environment, based on using core competence.
The Core Competence Model
The Core Competence Model focuses on a combination of specific, collaborative, integrated and applied knowledge, skills and attitude. According to Hamel and Prahalad the strategic objectives should not focus on fighting off the competition, but on creating a new competitive space. They should look to the future rather than look back on the past.
Core Competence Model by Gary Hamel and C. K. Prahalad | ToolsHero
The Core Competence Model comprises four core competences:
1. Resources
These are the sources for the development and acquisition of skills and technologies.
2. Capabilities
The various possibilities to build core competences.
3. Competitive advantage
The challenge to acquire and develop the largest possible market share of core products.
Strategy
The strategy to develop the largest possible market share of finished products.
More core competences
To ensure that an organization develops and acquires more core competences, the Hamel and Prahalad core competencies matrix (1994) can be used in which core competences are combined with existing or new markets:
An organization identifies what core competences can be used in existing markets, in which these core competences can be deployed in two manners: in certain markets for specific services or to strengthen the organization’s position.
At the end of the 19th century, several workers or employer were sent to the manufacturing sector of a company, where they have to provide works for long hours.
Therefore, this made the conditions of these employees often rush.
As a result, several companies decided on delivering employees welfare by educating them about health.
However, there are several companies too who reject this decision, and that made a statement of the debate.
At this situation, Prahalad and Hamel brought new thinking about the general managerial epithet in 1990.
According to them, these extant which can be mobilized by an organization is a Human resource as they are mainly carrying the original key to achievement for the future of the organization.
According to them, these people are general managerial epithet as they are the real asset of an organisation.