advantage (Amit & Schoemaker, 1993; Barney, 1991; Schoenecker & Cooper, 1998). Human capital is more mobile than other intangible resources (Teece, Pisano, & Shuen, 1997). Therefore, it may seem an unlikely source of sustained competitive advantage. Hence the organization must search for the means and ways to retain them to achieve completive advantage.
Competitive advantage is gained only when the organization selects or develops these resources and structures work tasks and the reward system in ways that motivate the team to perform well and thereby contribute to organizational effectiveness (Guzzo & Shea, 1992). Some organizations reward employees financially when they demonstrate an ability to acquire and master new knowledge (Jenkins & Gupta, 1985; Gerhart, 2000; Lawler, ch-10).Also some studies like, Jackson & Schuler, 2002 considers that organizational structures for rewards improve organizational performance and proves competitive advantage rather than team effectiveness and selection and training.
But according to Dobbins, Cardy, Facteau, & Miller, 1993 opinion, system factors are the only constraining influences that restrict individual ability and motivation, and result in lowered performance.
Performance management involves enabling people to perform their work to the best ...