Week 6: Chapter 9,10 & 12 Fostering Corporate Entrepreneurship

HRM is a set of tasks associated with

1. Acquiring 2. Training 3. Developing 4. Motivating 5. Organizing 6. Maintaining

Culture as "Core Ideology"

Core ideology includes core values, or what the company stands for, as well as core purpose, or the reason the company exists: mission!

Compensation and rewards

Offering the "right" incentives

Organizational diversity

- set of organizational values and norms that encourage and tolerate differences, and recognize and reward individuals' different viewpoints, skills and knowledge

Balancing Ambidextrous Organizational Culture

-Balancing Exploration and exploitation -Organizational Diversity -Shared Vision

Encourage transparency

-Creating Trust -Participative decision making and transparent communication

Leadership

• (Entrepreneurial) leadership and its challenges • Types and styles of leadership that foster entrepreneurship

Key elements in HR System to create an entrepreneurial environment

1. Recruitment and Selection- who to do we hire and how? 2. Compensation and Rewards- how do we incentivize? 3. Performance appraisal- how do we guide, reinforce and help employees 4. Job planning and design- what are employees asked to do and how give them room? 5. Training and Development- How do we help employees recognize their entrepreneurial potential?

Key elements of entrepreneurial culture covered today

1.Focus on people and empowerment (Individualism - collectivism) 2.Value creation through innovation and change (Ambidexterity, diversity) 3.Rewards for innovation 4.Learning from failure (Voice, Marshmallow challenge) 5.Collaboration and teamwork 6.Freedom to grow and to fail 7.Commitment and personal responsibility (Transperancy, communication) 8.Emphasis on the future and a sense of urgency (leadership)

Embrace the idea of failing to try

Accept and encourage people to... • Procrastinate (quick to start - slow to finish) • Feel doubt and fear • Have many bad ideas NOT in spite, but because of these qualities they will successfully • Take the initiative to doubt the default and look for better option • boost their own creativity

Create the right environment for the right people

Build teams • Make people like the work • Foster serendipitous connections • Identify the people whose impact are the greatest • Allow them to can thrive and excel (personal development) • Foster creativity through abrasion (challenging ideas) • Give feedback and act accordingly (Voice)

Marshmallow challenge

Prototype --> Redefine ---> prototype ---> redefine

Individualism - collectivism

The ability to achieve sustained entrepreneurship in a company is dependent upon a balance between for individualism and collectivism -inverted U

Collective Orientation (Collectivism)

The subordination of personal interests to the gals of the larger work group

How can you create and sustain an entrepreneurial work environment?

Through Culture, HR, Leadership, and Training

Culture as "Envisioned Future"

Vision: setting clear and compelling goals that the company commits to achieve over the next 10 or 20 years. • Goals motivate people and evoke passion and conviction

Recruitment and selection

Who? • Intrapreneurs - those who dream (Pinchot) • Entrepreneurial personality (innovative, proactive, risk taker) • Smart creative (Google How? • Cultural fit vs. cultural contribution "Choose candidates who could make a positive contribution to the future of our culture, even if they don't feel like today's mainstream employee" (Diego Rodriguez, Partner at IDEO) • Staffing procedures designed around multiple career paths and extensive socialization and orientation of new employees

Training and Development

Why? • Instilling entrepreneurial mindset into the organizational culture • Developing new knowledge and innovative competencies • Changing attitudes and behavior which involves entrepreneurial thinking and acting • Increase creativity, 10-15% increase in successful new ventures What? • Include high employee participation and active trainee involvement; • Group oriented (!); • Assume a longer-term or career perspective; • Systematic and planned; and • Continuous or ongoing

Individualism

a self-orientation, an emphasis on self-sufficiency and control, the pursuit of individual goals that may or may not be consistent with those of the employee's colleagues.

Strategic Human Resource Management

develop core competencies and achieving sustainable competitive advantage through people realizing the firm's strategy (long term focus

So how can organizations develop and foster entrepreneurial leadership?

learn to lead like the great conductor • It's about people - involving people from all levels • It's an ongoing process → focused chaos (IDEO) • It's about unleashing individuals' creativity • Inspiring others • Doing things with intention • Empathy for people - understand what is meaningful for people

Shared vision

the set of organizational values and norms that promote the overall active involvement of organizational members in the development, communication, dissemination and implementation of organizational goals

To construct value, entrepreneurial leader should involve;

• Creating a vision • Mobilizing the resources • Gaining the commitment of supporters • Inspiring followers to enact that vision

Team-oriented leadership theories

• Emphasize the ability of leaders to elicit heightened levels of group participation and involvement by team members

Shared Vision Values

• Employees are seen as partners in charting the direction of this business • Clear communication of the future direction of the business • Awareness of the long-term plans and direction • Strong sense of where the business is going.

Develop entrepreneurial competencies\roles

• Innovating: opportunity recognition, creativity, value assessment • Brokering: accessing, combining, transferring new information and knowledge • Championing: creating a vision, providing support • Sponsoring: gaining resources, legitimacy

Entrepreneurial leadership - Key takeaways

• It's about people - involving people from all levels • It's an ongoing process → focused chaos (IDEO) • It's about unleashing individuals' creativity • Inspiring others • Doing things with intention • Empathy

Value-based leadership

• Leaders are ideological visioneers, high self-confidence, and set a personal example of involvement in and commitment to the mission

What are the key elements in designing a training program?

• Objectives\goals • Instruction method (s) • Target group - who should be involved (managers, functions) • Duration

Culture

• Organizational culture • Culture, mission & vision • Entrepreneurial Culture

Organizational diversity Values

• Respecting everyone's different viewpoints. • Value people from diverse backgrounds with diverse experiences and skills. • Encouraging all employees to generate as many alternative solutions to problems as possible.

HRM

• Strategic HRM • HRM practices for entrepreneurial firm (Recruitment & Selection, Training & Development, Compensation & Rewards

Culture

• Substance refers to shared systems of values, beliefs, and norms. • Forms are the concrete ways in which the substance is manifested in the organization. Artifacts & Creations--> Visible Values--> greater level of awareness Basic Assumptions --> taken for granted, invisible, preconscious

transformational leadership

• Transcendence of self-interested behavior • Focused on followers' needs for self-actualization, personal values, and implicit motivations

• Middle-level and direct supervisors are key players

• Within the process at employee and the operating level • Boundary-spanning behavior (e.g., Glaser 2013) • They are role models • Employees may reciprocate favorable relationships by showing entrepreneurial behaviors that benefit the team or the organization