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As a result, businesses around the world are finding ways to sustain competitive advantage. Instead of just focusing on financial, strategic, and technological capabilities, emphasis shifts now to a company's ability to effectively manage people through "organizational capabilities," which relates to hiring and retaining competent employees and developing those competencies through effective human resource practices. (Dreher & Dougherty, 2001) More and more organizations and senior executives are saying human-capital management is critical and Human Resources should play a major role in improving it...
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