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Which of the following statements about developing organizational competencies and capabilities is false?

A. Core competencies or capabilities are most often bundles of skills and know-how that grow out of the combined efforts of cross-functional work groups and departments performing complementary activities at different locations in a firm's value chain
B. Evolving changes in customer needs and competitive conditions often require tweaking and adjusting a company's portfolio of competencies and intellectual capital to keep its capabilities freshly honed and on the cutting edge
C. Normally core competencies and competitive capabilities emerge incrementally as a company (1) acts to bolster skills that contributed to earlier successes or (2) acts to respond to customer problems, new technological or market opportunities and the competitive maneuvers of rivals
D. Building organizational capabilities is best and most cost-effectively accomplished by hiring a cadre of people with the right talent and expertise, putting them together in a single work group and then teaming the work group with key strategic allies/partners to mesh the skills, expertise and competencies needed to perform the desired capabilities with some proficiency
E. The key to leveraging a core competence into a distinctive competence (or transforming a capability into a competitively superior capability) is concentrating more effort and talent than rivals on deepening and strengthening the competence or capability so as to achieve the dominance needed for competitive advantage

1 Answer

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Final answer:

The false statement is D, which oversimplifies the process of building organizational capabilities by focusing solely on assembling talent. In reality, developing core competencies involves a dynamic and incremental process of learning, adaptation, and cross-functional collaboration.

Step-by-step explanation:

The statement about developing organizational competencies and capabilities that is false is D: "Building organizational capabilities is best and most cost-effectively accomplished by hiring a cadre of people with the right talent and expertise, putting them together in a single work group, and then teaming the work group with key strategic allies/partners to mesh the skills, expertise and competencies needed to perform the desired capabilities with some proficiency."

Organizational capabilities are often developed through a combination of internal skill-building, cross-functional teamwork, and strategic alignment with external partners. However, stating that this process is best and most cost-effective accomplished by simply hiring the right talent and forming a single work group overlooks the complexities and incremental nature of capability development. In fact, core competencies evolve through the combined efforts of various departments, learning from successes and failures, and adapting to changing market conditions and customer needs.

Businesses that focus on refining their core competency can become more successful by creating a competitive advantage that is difficult for others to replicate. Organizations must continuously fine-tune these competencies to maintain their edge, which is an ongoing and dynamic process influenced not only by talent acquisition but also by fostering continuous learning and innovative practices within the organization.

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