Why might one argue that the use of labour is the main component of a Coursework

Why powerfulness one argue that the social occasion of lug is the main component of a firms profit outline - Coursework showcaseHuman capital reinforcement is the ability to shake exceptional human talent into the firm. The human advantage is chance upond through combination of processes such as innovation, learning and cooperation. It is important to develop employees and teams in order to grow a firm that is able to learn deep down and out of industry cycles. The supporters of Resource based batch argue that human labour be resources that offer above normal returns and not assets bought and traded. This is because carnal assets ar usually purchased and are available in the market, therefore, competing firms having the free discretion to acquire the assets and be at equating (Bowman 2003). The resources that offer competitive advantage are the ones that are not easy to duplicate. Human resources have narrow skills or talents that are embedded in the routines of a par ticular firm. These resources are difficult to duplicate or export from one firm to another. Thus, most firms have used human labour as the strategy for improvement in their win and competitive advantage. Barney and Porter illustrate how it is hard to duplicate human labour strategy by saying that even if one firm was to steal researchers from one company to theirs, they provide not reap the maximum benefits from these scientists because the environment and business strategies differ. Labour as the Main Component of a Firms Profit Strategy In business organizations, both the undertakings and behaviours those of value to the firms routines, social structure, and cultures of the firm, and say and using these resources in combination with other inputs, are all the activities done by employees in the firm. This pith that firms profits comes from the activities of employees labour that transforms other inputs into goods and services. This leads the proponents of resource based view t o conclude that resources that produce more profits are human resources than inert or physical resources. RBV also state that in order to get maximum output from the human resource, a strategy must be put forward to achieve this. They refer this as the creation of the resource. An example of this is a producer who uses a new invention before it is adopted by other firms, will sell more than his competitors and gets surplus profits. RBV argues that it is the manipulation or use of physical assets by the workers that are a source of profits. The assets as stated earlier, are available and distri exclusivelyively firm is free to acquire them. However, the main constraint is their price. They are not constructn as a resource in resource based view because they are not incomparable. However, labour that is employed is unique and taken as the most crucial resource. If the prices of these assets necessary for production of commodities were to go down, then individuals or groups would t ake over scale production without requiring to be employed by the capitalists. An example is that if the prices of car parts were within the reach of the masses, then capitalists would abandon this industry (Bowman, 2003). The reasoning behind this is that the financial power is what enables capitalists to purchase physical assets and employ talented and skilled workers to produce commodities for them at a profit. The assets are not unique but the unique factor that enables them to get profits is the use of human resource or labour. In increase to labour, RBV also categorises inert inputs such as special equipments as resources. However, these resources are just used in some stage of production and moreover they are also produced by human labour. RBV supporters argue that if the workers are used to create resources for the firm, then the current deployment of the resource is greater than the price originally