How Modern Business Can Remain Competitive Essay

How Modern Business Can Remain Competitive - Essay Example The concept of adopting Best Practices has ensured that many organizations, in varying degree have incorporated means of addressing above areas successfully, copying from the pioneers and thus nullifying the competitive advantages, which was developed by these early developers. In today’s globalize scenario, the competitive advantage lies in the manner an organization manages itself and specifically derive a competitive advantage through its human capital. Therefore, it is of crucial importance that companies develop their remuneration strategies to reward performance that will drive the organizational success. Evidence that the business environment is increasingly competitive is everywhere. Greater Free Trade has facilitated the movement of not only the traded goods but the factors of production as well. Organizations seeking competitive advantages are increasingly seeking out global locations, which offer a comparative advantage in terms of their factor endowment (Hill 2004). More and more companies from the developed world are moving its labor-intensive production facilities to low labor cost countries in the developing world. This is also facilitating an unprecedented level of technology transfer and facilitating the competitiveness of these developing nations’ products in terms of quality, efficiency, and productivity. Today developing countries like China, India, and Mexico pose cost competitions on an unprecedented scale for the world players, especially those who are operating in high wage cost in developed nations.   Thus it is of paramount importance that organizations in developed nations adopt their own strategies in managing their organizations, specifically the human capital to seek out areas of competitive advantage. This involves increasing productivity, efficiency and reducing costs through numerous aspects of Human Resource management involving better selection and recruitment, development and training, fostering of learning environments, fostering innovation, performance management and implementing effective rewarding strategies to drive performance.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚