Producing Sustainable Competitive Advantage through the Effective Management of People - Essay Example

The shifting trends of competitive analysis and the sustainability of the organizations have also been possible.

I think that the concept of people management and its role in the sustainability and competitiveness of the organization is directly proportional to one another. The example of Southwest airline mentioned in the article clearly suggests that despite having the best rates of its stock, the company did not achieve success and growth; while, in the later years, it achieved a competitive advantage by successfully competing in the industry with the help of its efficient labor force.

The example of Nordstrom also suggests that the favorable employee compensation and benefits schemes led the store to success. The factors such as employment security, selectivity in recruiting, high wages, incentive pay, employee ownership, participation and empowerment, and their training and development contribute to the organization big time. I think that, besides the monetary benefits, even nonmonetary enhancements such as promotions and autonomy also help enrich the employee’s morale. Thus, the suggestion of people management is and has proven to be beneficial at every level of the organization.