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Hewlett-Packard

Hewlett-Packard. The HP Way Shunned rigid hierarchy Big Bonuses First All-company profit sharing When HP went public (shares all employees) HP Trusts employees Not Coddling (fire unethical employees) Current situation. Pfeffer’s Seven People-Centered Practices. 1-1. Job security

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Hewlett-Packard

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  1. Hewlett-Packard • The HP Way • Shunned rigid hierarchy • Big Bonuses • First All-company profit sharing • When HP went public (shares all employees) • HP Trusts employees • Not Coddling (fire unethical employees) • Current situation

  2. Pfeffer’s Seven People-Centered Practices 1-1 • Job security • Careful hiring • Power to the people • Generous pay for performance • Lots of training • Less emphasis on status • Trust building 71% of U.S. workers consider themselves ‘disengaged’ clock-watchers who can’t wait to go home. © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

  3. What was your best job? • Why was it your best job?

  4. People (Skilled, motivated people who can handle change. Less stress.) Productivity (Less wasteful, more efficient use of all resources.) Products (Satisfied customers because of better quality goods/services. Job creation.) Processes (Faster, more flexible, leaner, and ethical organizational processes. Organizational learning.) The 4-P Cycle of Continuous Improvement 1-2 Figure 1-1 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

  5. Skills & Best Practices: The Effective Manager’s Skill Profile 1-3 • Clarifies goals and objectives for everyone involved. • Encourages participation, upward communication, and suggestions. • Plans and organizes for an orderly workflow • Has technical and administrative expertise to answer organization-related questions. • Facilitates work through team building, training, coaching, and support. © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

  6. Skills & Best Practices: The Effective Manager’s Skill Profile (Cont.) 1-4 • Provides feedback honestly and constructively. • Keeps things moving by relying on schedules, deadlines, and helpful reminders. • Controls details without being overbearing. • Applies reasonable pressure for goal accomplishment. • Empowers and delegates key duties to others while maintaining goal clarity and commitment. • Recognizes good performance with rewards and positive reinforcement. © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

  7. How has the managers job changed?

  8. Primary role Order giver, privileged elite, manipulator, controller Facilitator, team member, teacher, advocate, sponsor, coach, partner Learning and knowledge Periodic learning, narrow specialist Continuous life-long learning, generalist with multiple specialties Compensation criteria Time, effort, rank Skills, results Cultural orientation Monocultural, monolingual Multicultural, multilingual Evolution of 21st Century Managers 1-5 Table 1-1 Past Managers Future Managers © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

  9. Primary source of influence Formal authority Knowledge (technical and interpersonal) View of people Potential problem Primary resource Primary communication-pattern Vertical Multidirectional Decision-making style Limited input for individual decisions Broad-based input for joint decisions Evolution of 21st Century Managers (Cont.) 1-6 Table 1-1 Past Managers Future Managers © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

  10. Ethical considerations Afterthought Forethought Nature of interpersonal relationships Competitive (win-lose) Cooperative (win-win) Handling of power and key information Hoard and restrict access Share and broaden access Approach to change Resist Facilitate Evolution of 21st Century Managers (Cont.) 1-7 Table 1-1 Past Managers Future Managers © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

  11. McGregor’s Theory X and Theory Y 1-8 Theory X • Most people dislike work • Most people must be coerced and threatened before they will work • Most people actually prefer to be directed Theory Y • Work is a natural activity • People are capable of self-direction and self-control • Rewards cause people to be more committed to organizational goals • The typical employee can learn to accept and seek responsibility • People are imaginative, creative and have ingenuity © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

  12. What is TQM? 1-9 Total Quality Management: An organizational culture dedicated to training, continuous improvement, and customer satisfaction Principles of TQM • Do it right the first time to eliminate costly rework. • Listen to and learn from customers and employees. • Make continuous improvement an everyday matter. • Build teamwork, trust and mutual respect. © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

  13. 85-15 rule • System versus People • The power of stories • It depends (contingency approach)

  14. The Age of Human and Social Capital 1-10 Human Capital • The productive potential of one’s knowledge and actions Social capital • The productive potential of strong, trusting, and cooperative relationships © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

  15. The Strategic Importance and Dimensions of Human and Social Capital 1-11 Figure 1-2 Strategic Assumption Individual Human Capital Social Capital Organizational Learning © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

  16. Company Program or activity TDIndustries Dallas 1,393 employees “Education is foremost at this construction company, where all employees—called ‘partners’—are allowed 100% reimbursement of tuition, fees, and books at any state-supported college.” A.G. Edwards St. Louis 16,482 employees “The brokerage…spends $75,000 per worker on training, and just built AGEU, a 20,000 square foot education center for new financial consultants” Skills & Best Practices: How to Build Human and Social Capital 1-12 Building Human Capital © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill McGraw-Hill/Irwin

  17. Company Program or activity Microsoft Redmond, WA 36,665 employees “The software giant…matches charity donations up to $12,000.” American Express New York 43,477 employees “The 153-year-old travel and financial services firm…recently reinstated 12-week sabbaticals [so] staff can take time off to work at nonprofits.” Skills & Best Practices: How to Build Human and Social Capital (Cont.) 1-13 Building Social Capital © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill McGraw-Hill/Irwin

  18. Company Program or activity Timberland Stratham, NH 2,116 employees “The maker of rugged footwear gives employees up to 40 hours a year of paid time off for community service.” Skills & Best Practices: How to Build Human and Social Capital (Cont.) 1-14 Building Social Capital © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill McGraw-Hill/Irwin

  19. Positive Organizational Behavior 1-15 • Positive Organizational Behavior (POB) the study and improvement of employees’ positive attributes and capabilities © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill McGraw-Hill/Irwin

  20. Good Job! People Need Praise L1-1 • Negative employees can scare off customers—for good. • Increasing positive emotions could lengthen life span by 10 years. • Praise is a powerful leadership strategy. • 65% of people said they received no recognition for good work. • The number 1 reason most Americans leave their jobs is that they don’t feel appreciated. © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill McGraw-Hill-Irwin

  21. Those Who Give and Get Praise: L1-2 • Increase their individual productivity. • Increase engagement among their colleagues. • Are more likely to stay with their current organization. • Receive higher loyalty and satisfaction scores from customers. • Have better safety records and fewer accidents on the job. © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill McGraw-Hill-Irwin

  22. Organizational Culture, Socialization, and Mentoring Learning Objectives • Discuss the layers and functions of organizational culture. • Describe the three general types of organizational culture and their associated normative beliefs. • Summarize the methods used by organizations to embed their cultures. • Describe the three phases in Feldman’s model of organizational socialization. • Discuss the various socialization tactics used to socialize employees. • Explain the four types of developmental networks derived from a developmental network model of mentoring Chapter Two

  23. Costco • Markups only 14% • Hourly employees $40,000 after 4 years • Generous return policy • “Costco continues to be a company that is better at serving the club member and employee than the shareholder” • Axioms • 1. Obey the law • 2. Take care of your customers • 3. Take care of your employees • 4. Practice the intelligent loss of sales (SKUs

  24. Organizational Culture 2-1 • Organizational cultureshared values and beliefs that underlie a company’s identity. © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill McGraw-Hill/Irwin

  25. A Conceptual Framework for Understanding Organizational Culture © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill McGraw-Hill/Irwin

  26. Observable Artifacts Espoused Values Basic Underlying Assumptions Layers of Organizational Culture 2-3 Source: Adapted from E H Schein, Organizational Culture and Leadership, 2nd ed (San Francisco: Jossey-Bass, 1992), p 17. © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill McGraw-Hill/Irwin

  27. Organizational identity Collective commitment Sense-making device Organizational culture Social system stability Four Functions of Organizational Culture 2-4 Figure 2-2 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill McGraw-Hill/Irwin

  28. General Types of Culture Normative Beliefs Organizational Characteristics Constructive Achievement Goal and achievement oriented Constructive Self-actualizing Value self-development and creativity Constructive Humanistic-encouraging Participative, employee-centered, and supportive Constructive Affiliative High priority on constructive interpersonal relationships, and focus on work group satisfaction Types of Organizational Culture 2-5 Table 2-1 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill McGraw-Hill/Irwin

  29. General Types of Culture Normative Beliefs Organizational Characteristics Passive-defensive Approval Avoid conflict, strive to be liked by others and approval oriented Passive-defensive Conventional Conservative, bureaucratic and people follow the rules Passive-defensive Dependent Nonparticipative, centralized decision-making, and employees do what they’re told Passive-defensive Avoidance Negative reward system and avoid accountability Types of Organizational Culture (Cont.) 2-6 Table 2-1 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill McGraw-Hill/Irwin

  30. General Types of Culture Normative Beliefs Organizational Characteristics Aggressive-defensive Oppositional Confrontation and negativism awarded Aggressive-defensive Power Nonparticipative, take charge of subordinates and responsive to superiors Aggressive-defensive Competitive Winning is valued and a win-lose approach is used Aggressive-defensive Perfectionistic Perfectionistic, persistent and hard-working Types of Organizational Culture (Cont.) 2-7 Table 2-1 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill McGraw-Hill/Irwin

  31. What researchers have learned • Constructive culture is positively related with employee behavior and attitude (DUHHHH) • People felt more comfortable in companies whose culture matched their personal value systems (Double Duhhhh) • No correlation between company culture and financial performance (Whatttt?) • Flexible cultures more likely to yield higher financial performance (Interesting) • 7 of 10 mergers and acquisitions fail to meet their financial promise (can culture be an issue? HP/Compaq)

  32. Embedding Organizational Culture 2-8 • Formal statements of organizational philosophy, mission, vision, values, and materials used for recruiting, selection and socialization • The design of physical space, work environments, and buildings • Slogans, language, acronyms, and sayings • Deliberate role modeling, training programs, teaching and coaching by managers and supervisors • Explicit rewards, status symbols (e.g., titles),and promotion criteria • Stories, legends, and myths about key people and events © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill McGraw-Hill/Irwin

  33. Embedding Organizational Culture (Cont.) 2-9 • The organizational activities, processes, or outcomes that leaders pay attention to, measure, and control • Leader reactions to critical incidents and organizational crises • The workflow and organizational structure • Organizational systems and procedures • Organizational goals and the associated criteria used for recruitment, selection, development, promotion, layoffs, and retirement of people © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill McGraw-Hill/Irwin

  34. Culture HR Embeds Organizational Culture L2-1 HR is the keeper of: • Selection • Socialization • Training and Development • Evaluation Systems Culture © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill McGraw-Hill-Irwin

  35. Embedding a Culture Based on a Founder’s Personality L2-2 HR Benefits when: • The founder’s personality is charismatic, vibrant, honest and ethical • Leonard Gentine of Sargento Foods: after his death, the family keeps his spirit alive through his image and presenting a Founder’s Ring to employees best displaying Sargento culture • Charles Schwab believed that employees should follow the company’s values or be fired: his own son was fired after giving investment advice: a no-no in Schwab culture © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill McGraw-Hill-Irwin

  36. HR is challenged when: The founder is involved in scandal or engages in questionable public activity Henry Ford stepped down from the company and got involved in politics and anti-Semitism Martha Stewart carefully crafted her brand based on her image as a wholesome homemaker only to be convicted of securities fraud Embedding a Culture Based on a Founder’s Personality L2-3 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill McGraw-Hill-Irwin

  37. Our Culture HR and Employee Ownership L2-4 HR builds employee ownership of culture: • Peg employee recognition to the corporate culture. • Connect culture to the bottom line. • Emphasize the company’s history. • Communicate constantly with all levels of employees. © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill McGraw-Hill-Irwin

  38. Application of Primary Embedding Mechanisms at Enron L2-5 Embedding Mechanism: What leaders pay attention to, measure and control on a regular basis Application at Enron: • Wanted employees to focus on the bottom line • A former employee said Jeffrey Skilling was a leader driven by money • “Skilling would say all that matters is money. You buy loyalty with money” © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill McGraw-Hill-Irwin

  39. Application of Primary Embedding Mechanisms at Enron (Cont.) L2-6 Embedding Mechanism: How leaders react to critical incidents and organizational crises Application at Enron: • Defended a culture that valued profitability, at the expense of everything else • Shifted the blame and pointed fingers • Fired those it could not lay blame on • Covered up any evidence of problems or wrongdoing © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill McGraw-Hill-Irwin

  40. A Model of Organizational Socialization 2-10 Figure 2-3 Perceptual and Social Processes Phases • Anticipating realities about the organization and the new job • Anticipating organization’s needs for one’s skills and abilities • Anticipating organization’s sensitivity to one’s needs and values • Anticipatory Socialization • Learning that occurs prior to joining the organization © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill McGraw-Hill/Irwin

  41. A Model of Organizational Socialization (Cont.) 2-11 Figure 2-3 Perception and Social Processes Phases 2. Encounter Values, skills and attitudes start to shift as new recruit discovers what theorganization is trulylike • Managing lifestyle- versus-work conflicts • Managing intergroup role conflicts • Seeking role definition and clarity • Becoming familiar with task and group dynamics © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill McGraw-Hill/Irwin

  42. A Model of Organizational Socialization (Cont.) 2-12 Figure 2-3 Perception and Social Processes Phases 3. Change and acquisition Recruit masters skills and roles and adjusts to workgroup’s values and norms • Competing role demands are resolved • Critical tasks are mastered • Group norms and values are internalized © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill McGraw-Hill/Irwin

  43. Examples of Socialization • Good • Bad

  44. Tactic Description Collective vs. Individual Collective: consists of grouping newcomers and exposing them to a common set of experiences; Individual: exposing each individually to a set of unique experiences Formal vs. Informal Formal: Segregating newcomer from regular organization members; Informal: not distinguishing between newcomer and experienced members Sequential vs. Random Sequential: fixed progression of steps that culminate in the new role; Random: ambiguous or dynamic progression Socialization Tactics 2-14 Table 2-2 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill McGraw-Hill/Irwin

  45. Tactic Description Fixed vs. Variable Fixed: provides a timetable for the assumption of the role; Variable: does not provide timetable Serial vs. Disjunctive Serial: newcomer is socialized by an experienced member; Disjunctive: does not use a role model Investiture vs. Divestiture Investiture: affirmation of newcomer’s incoming global and specific role identities and attributes; Divestiture: denial and stripping away of the newcomer’s existing sense of self to rebuild in the organization’s image Socialization Tactics (Cont.) 2-15 Table 2-2 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill McGraw-Hill/Irwin

  46. Mentoring and Functions of Mentoring 2-16 • Mentoring is the process of forming and maintaining developmental relationships between a mentor and a junior person Functions of Mentoring • Career Functions- Sponsorship- Exposure-and-visibility- Coaching- Protection- Challenging assignments • Psychosocial Functions- Role modeling- Acceptance-and-confirmation- Counseling- Friendship © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill McGraw-Hill/Irwin

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