With the globalization, people have become the most important driver for growth and new businesses. The following points specify the importance of the new people economy
Business Management is a combination of know-what, know-why and know-how. If these three questions are answered properly, the business managements become easier to execute.
People are the only ones who have capability to produce and process it
Today, capital, technology, raw material and information are freely available to any organization without any borders. They can use the same to expand their business and increase their profitability.
So only factor that provides competitive edge is People. Employees work as main moving force for any organization and responsible for any growth.
From the points specified above, we can say that Knowledge = Competitive Edge
Three main factors providing competitive edge
All the above comes from the effective and efficient use of Knowledge which in turn is derived from People. Knowledge integrates diverse functions to achieve customer satisfaction and to deliver the best possible results/services to all the customers.
Manufacturing = People
The concept was started with Adam Smith’s production model for division of labor. Nowadays, every manufacturing company is driven by its people and their clever use of technology and capability makes it more effective than its peers. The efficiency and capability of its people can be used by sharing proper knowledge among all the employees and accessing new technologies.
People’s Product = People
Breakthrough products like Apple ipod, iPhone can only be created only through intensive, planned human efforts. The success of new products depends on the proper research and development, patent and ability to turn ideas into final products or services.
Marketing = People
Customer Satisfaction is the key in competitive environment which also drives the sales volume. The marketing depends solely on the people and their capability to either sell a product or build a flagship brand. The direct sales depend on the relationship between the buyer and the seller which again depends on the people.
Management Technique = People
Management techniques mainly refer to identify the core competency for a company. For a FMCG and Telecom company, the core competency is the marketing division and for financial services company the core competency is the finance division- again the people. The success lies in recruiting right people and changing mindsets and pushing decision making down the line in hierarchy.
Organizational Structure = People
Organization structure helps to spread knowledge and share responsibility among all the employees. The lean structure helps the management to take quick decisions and spread it to all the employees. Organization structure can be changed from task oriented to result oriented to get quick results and increase flexibility in the overall system.