Resources Overview
Resources constitute a critical part of business success in any industry, including the public sector. This category generally encompasses five areas that directly affect organizational capability – human, physical, financial, information, and intellectual resources (Presentation, Unit 1). Hence, superiority in any of these factors compared to other companies in the same industry grants a competitive advantage that can differentiate the organization from the rest of the rivals.
In the public sector, human resources are arguably the most significant area. The research shows that leaders and employees in this industry require more humanity-oriented competencies and mindsets, such as altruism, emotional support, and emphasis on social relationships (Yang and Xiang, 2020). Yang and Xiang (2020) argue that, compared to the private sector, public work revolves around the concepts of a “social man,” a people-centered approach, and all-round development. This policy helps leaders and employees build trustworthy connections with the public, positively affecting the financial and social outcomes of work. Hence, while human resources are critical in all industries, they are particularly significant in the public sector, and a focus on reliable leaders and competent employees grants a competitive advantage.
Among other categories of resources, it is crucial to emphasize the importance of intellectual capability. Innovation is one of the central concepts in the public sector because people continually demand the improvement of provided services and implemented policies (Presentation, Unit 6). In this sense, intellectual resources enable innovation, creating a nourishing environment for the growth of leaders who strive for positive change in the organization. Extensive research supports this perspective, stating that innovation not only enhances the outcomes of public policies but also creates a more productive environment in the workplace (Hijal-Moghrabi, Sabharwal and Ramanathan, 2020). It improves the organizational culture by allowing more creative freedom for employees, who, in turn, use it to facilitate relationships with the public. As a result, a focus on human and intellectual resources is a highly effective method to achieve a competitive advantage in the public sector.
Strategic Implications of Resource Availability
The availability and the lack of resources have significant strategic implications due to their impact on organizational productivity. In the former case, companies can utilize their resources to achieve a competitive advantage through the excellence of human resources, an abundance of wealth, or a creative approach to innovation. In other words, resource availability creates an extensive number of opportunities for the organization (Presentation, Unit 6). For instance, Bamel and Bamel (2018) emphasize that resources and knowledge management (KM) are two primary areas of development that enable strategic flexibility, allowing the company to make weighted decisions and evaluate its business processes. On the other hand, a lack of resources or emphasis only on one category significantly reduces the number of organizational opportunities and development options (Presentation, Unit 6). It negatively impacts the company’s dynamic capabilities, and firms have to sacrifice some of their resources to mitigate problems in other areas (Bamel and Bamel, 2018). Ultimately, resource availability is a highly advantageous position for companies in most industries due to its impact on organizational performance.
Sustainability Management Strategies
Sustainability has become an essential concept in public management due to growing risks to people’s social, economic, and environmental health. It is particularly significant in the public sector due to the emphasis on social relationships and communication with ordinary people. In this context, human and intellectual resources remain the vital components of public policies because innovation and value co-creation enable sustainable development (Tommasetti et al., 2020). Hence the first strategy concerns the emphasis on human and intellectual resources to facilitate sustainability within the organization.
Another approach ensures that all relevant stakeholders in the company have the same vision for future development. Tommasetti et al. (2020) highlight that stakeholder involvement and “synergistic integration of resources” are highly effective methods to guarantee cooperation on the questions of sustainability. It means that integrated processes that include executives, leaders, and senior management are critical for creating an organizational culture that cares about social and environmental problems. Moreover, the authors suggest that this approach can significantly improve public approval ratings due to its focus on value co-creation and transparent communication.
Lastly, some sustainability strategies derive from the economic issues in the public sector. For instance, Circular Economy (CE) practice is a relevant framework that encourages recycling and reusing products instead of creating new ones (Klein, Ramos and Deutz, 2020). It is continually becoming more prevalent in the public sector because the government is a vital stakeholder in all business areas and can either encourage or prevent CE policies. In this context, the research shows that public organizations that support CE practices obtain higher public approval ratings and have a positive impact on environmental health (Klein, Ramos and Deutz, 2020). The exact strategies primarily concern the optimized usage of resources within organizations, the introduction of renewable energy sources, and the encouragement of recyclability (Klein, Ramos and Deutz, 2020). Ultimately, CE strategies have a positive impact on sustainable development, and they are gradually becoming more prominent in the public sector.
Reference List
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