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Five modes of competency By, G.

SURESH I MBA

COMPETENCY
COMPETENCIES With regards to the resource based

view, intangible assets are emphasized as important components supporting competitive advantage development, especially for small and medium enterprises. Within such assets, several scholars depict that competencies are important factor that human resources in the enterprises should posses for enhancing competitive advantage.

FIVE MODES OF COMPETENCY


cognitive flexibility to imagine alternative

strategic logics cognitive flexibility to imagine alternative management processes coordination flexibility to identify, configure and deploy resources resource flexibility to be used in alternative operations operating flexibility in applying skills and capabilities to available resources

cognitive flexibility to imagine alternative strategic logics

Competence mode I derives from the cognitive flexibility of an organization to conceive of alternative ways of creating value in markets. The source of this mode of competence is, in essence, the collective corporate imagination of an organizations managers in perceiving feasible market opportunities for the organization to create value.

cognitive flexibility to imagine alternative management processes


competence mode II include the ability to identify the

kinds of resources required to carry out a given strategic logic, to create effective organization designs for the processes that will use the required resources and to define appropriate controls and incentives for monitoring and motivating the value-creating processes envisioned by a given strategic logic.

coordination flexibility to identify, configure and deploy resources.


Coordination flexibility depends on the ability of a

firms managersin this case, usually the midlevel managers of larger firms, but also top managers of smaller firmsto acquire or access, configure and deploy chains of resources for leveraging product offers capable of creating value in the markets targeted by the firm.

Resource flexibility to be used in alternative operations


competence mode IV derives from the ability of the

resources in an organizations resource chains to be used in alternative ways. In essence, within the resource chains available to an organization, the intrinsic resource flexibility of the resources composing those chains will constrain the different ways in which the organizations available resource chains can be used.

operating flexibility in applying skills and capabilities to available resources


While competence mode IV derives from the intrinsic

flexibilities of the resources in a resource chain to be used in alternative processes, competence mode V derives from the ability of an organization to use the flexibilities of its firm specific and firm-addressable resources effectively and efficiently over a range of operating conditions.

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