The Importance of Leadership (PDF)

Having a closer look on the global environment, there is a particular trend which can be identified, more and more companies follow globalization. [...] Due to this trend, the competition in the national but also in the international markets increases which forces companies to adapt to new strategies in order to stay competitive.
Companies can use different ways to stay competitive. Either they try to cut costs or they increase their efficiency for instance in their processes. In many cases the entities do not consider the human resources in their thoughts. By reason of the today's similarity of the different products and processes, employees can make an essential competitive difference in order to bring competitive advantages for the company. Innovation-potential and creativity are core competencies which can bring a unique selling proposition. If the employees have a great commitment, which means, if they identify with their employer, they tend to put more effort into the usage of all their energy to solve work related problems (Human Resources Management in the demographical change, page 76). Besides the commitment, they also need the right skills in order to solve those problems. Depending on the industry, many companies nowadays agree on the aspect that the human resources are one of the most important ones. For example in the consulting sector it is more relevant to command high skilled workers than in the mining sector. The process of hiring, introducing and training new people is related to high costs (How to motivate employees, page 14). By reason of that, it seems obvious that a company has a huge advantage when their employees are committed and less likely to leave the firm. To create this kind of psychological connection it is highly important that the management understands the needs of each individual (Human Resources Management, page 8). Thinking about a global company, the people within the organization become even more diverse, which leads to a greater challenge in meeting everyone's needs. [...] The content of this essay is do identify the main factors which lead to commitment and which instruments or tools a company can use to create this connection. It will present different strategies to develop the commitment of the human resources in order to survive within the business environment.