Most organisations face constant change in their competitive business environment and need to find ways of maintaining a competitive advantage over rivals. One way of doing this is to build up the organisation's core competences. These competences comprise the organisation's business strengths. They are the resources that managers use to counter threats from competitors and to help them to take advantage of any opportunities that arise. Although organisations use many physical resources, their most important is often Human Resources (HR). This is particularly true of organisations that require a highly skilled workforce if their reputation for high quality output is to be maintained.
The global marketplace poses many challenges for business organisations that make it increasingly important for them to manage their strategies well. They may, for example, be competing for contracts worth many millions of £s and many thousands of jobs. An inappropriate decision may cost an organisation a contract that in the short term reduces output, employment and profit potential. The long term consequences may be even greater by causing the company to lose ground permanently to its competitors.
Good decisions come from good managers. Good managers stem from recruiting and developing high quality people and placing them in the right position within the organisation. That is often easier said than done.
This Case Study looks at how Cummins, one of the world's leading manufacturers of industrial products such as engines, sets about recruiting and retaining people to successfully manage its core competences, thus maintaining and developing its position within the global marketplace.