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Mutually Strategic

Mutually Strategic. Linking Member and HR Strategy in Mutual Organisations: Lessons from Credit Unions Leanne Cutcher Work and Organisational Studies Faculty of Economics and Business University of Sydney. The Balanced Scorecard . Member perspective – the ‘value proposition’

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Mutually Strategic

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  1. Mutually Strategic Linking Member and HR Strategy in Mutual Organisations: Lessons from Credit Unions Leanne Cutcher Work and Organisational Studies Faculty of Economics and Business University of Sydney

  2. The Balanced Scorecard • Member perspective – the ‘value proposition’ • Financial perspective • Internal perspective – how to improve operations • Learning and growth perspective (Kaplan and Norton 2001)

  3. Learning and Growth Perspective • Strategic competencies • Strategic technologies • Climate for action (Kaplan and Norton 2001)

  4. Member Service Strategy A sense of place and and organisational identity Training CSR NSW Teachers Credit Union Holiday Coast Credit Union Envision (BC, Canada) VanCity (BC, Canada) Strategic Issues and Initiatives

  5. Discourse of enterprise (du Gay 1996) Organisational Climate (Schneider, et al 2005, Schwartz and Davis 1981) Shifting the psychological contract (Rousseau 1995, 1998) See Cutcher 2008a NSW Teachers Credit Union No! No! we don’t say the ‘C’ word. That gets knocked out of people very early on. In orientation we will get people in and they have worked in banks and other service organisations and so they refer to customers but I would say by the time they leave orientation they know it is members (Human Resource Manager, NSW Teachers Credit Union). Member and Staff Equality Serving not selling

  6. Honouring the Contract: Increased OCB High job performance (Sturges, et al 2005) Development of a strong service climate Extra service role behaviours (Schneider et al 2005) Breaching the Contract: Turnover (Sturges, et al 2005) Diminished OCB (Coyle-Shapiro & Kessler 2000) Increased mistrust (Macquire 2002) Reduced job satisfaction (Deery, et al 2006). Psychological Contract

  7. Place as Locale = Geographical bonds Most people still live their lives locally their consciousness is formed in a distinct geographical place (Massey 1984 117). “They are aware they know us. We were born and bred here and they know us. They know that they can trust us” (MSO) • See Cutcher (2008b)

  8. Outside-in linkages(Porter and Kramer 2006) Three approaches: Generic social issues Value chain social impacts Social dimensions of competitive context Integrated, affirmative approach Vancity $1,000,000 award yearly We’re looking at all of our granting and saying, we’re like sowing seeds out there and all that’s good but can we be more strategic, should we be more strategic, how should we do this, should we leverage money in a different way than we have in the past (Chair, Vancity, November 2007). Strategic CSR

  9. Training • A possible model of engagement • HRD Dimensions: • Intensity • Form • Sponsorship mix (Niehoff and Bunch 1992) • University and Co-operative partnerships

  10. References • Bettencourt LA and Brown SW (1997) “Contact Employees: Relationships Among Workplace Fairness, Job Satisfaction and Prosocial Service Behaviours”, Journal of Retailing, 73(1): pp. 39-61. • Buono AF, Bodwitch JL and Lewis JW (1985) “When cultures collide: The Anatomy of a Merger”, Human Relations, 38(5): 477-500. • Coyle-Shapiro J and Kessler L (2000) “Consequences of the Psychological Contract for the Employment Relationship: A Large Scale Survey”, Journal of Management Studies, 37(7), November: 903-930. • Cutcher L (2008a) 'Service Sells: Exploring connections between customer service strategy and the psychological contract', Journal of Management and Organisation, vol.14:4. • Cutcher L (2008b) 'Financing Communities: The Role of Community Banks and Credit Unions in Re-establishing Branches in Australia', Accounting, Business Finance History, Vol.3. • Deery S, Iverson R D and Walsh J T (2006) “Toward a Better Understanding of Psychological Contract Breach: A Study of Customer Service Employees”, Journal of Applied Psychology, 91(1): 166-175. • du Gay P (1996): Consumption and Identity at Work, Sage Publications, London. • Kaplan, R and Norton, D (2001) The Strategy Focused Organization, Boston MA: Harvard Business School. • Maquire H (2002) “Psychological contracts: are they still relevant?” Career Development International 7(3): 167-180. • Neihoff, B.P. and Bunch, J. (1992) “Factors that Influence the content needs and sponsorship of management training and development activities: a theoretical perspective”, Paper presented at the annual meetings of the National Academy of Management, Las Vegas, NV. • Porter, M E and Kramer, M R (2006) “Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility, Harvard Business Review, December, pp. 78-92. • Rousseau DM (1998) “The ‘Problem’ of the Psychological Contract Considered”, Journal of Organisational Behaviour, 19: 665-671. • Rousseau DM (1995) Psychological contracts in organisations, Thousand Oaks, CA: Sage. • Schneider B, Ehrhart M G, Mayer DM, Saltz J and Niles-Jolly K (2005) “Understanding Organisation-Customer Links in Service Settings”, Academy of Management Journal, 48(6): 1017-1032. • Schwartz H and Davis SM (1981) “Matching Corporate Culture and Business Strategy”, Organisational Dynamics, Summer: 30-48. • Sturges J, Conway N, Guest D and Liefooghe A (2005) “Managing the Career Deal: The psychological contract as a framework for understanding career management, organisational commitment and work behavior”, Journal of Organisational Behavior, 26: 821-838. • http://www.triodos.co.uk/uk/who_we_finance/, accessed on 9 April 2008.

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