2 strategy and strategic organizational behavior

8/12/2019 2 Strategy and Strategic Organizational Behavior

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Strategy and Strategic

Organizational Behavior

MHR 3200Dr. Larry InksDepartment of Management and Human ResourcesFisher College of BusinessThe Ohio State University


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Organizational Behaviors RootsHuman Relations

Strategic Management

Strategic Human Resource Management

Case in Point: Cirque du Soleil

Current Strategic Issues Involving HRM

Human Resource Strategic Issues/Questions

Overview


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Increasing numbers of studies/writings from behavioralscientists focusing on the human factor- Mary Parker Follett (1920s)- Elton Mayo The Human Problems of an Industrial Civilization

(1933)

- Hawthorne Studies (1927-1932)

Collective bargaining legalized in 1935

Management looking for other ways to manage the workforce

McGregors The Human Side of the Enterprise and hisTheory Y (1960)

Human Relations Movement


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Theory X Assumptions

- People dislike work andavoid it whenever possible

- People need to be coercedto work

- People require closesupervision at all times

- Most people prefer to bedirected, have little ambitionand avoid responsibility

McGregors Theory Y (vs. Theory X)

Theory Y Assumptions

- Work is seen as a naturalactivity, like play or rest

- Given objectives, people canbe very self-directed

- People become committed toobjectives with some reward

- Most people are ambitiousand can accept (and seekout) responsibility


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Organizations can use their resources and competencies (e.g., humancapital) to create value for customers by lowering costs, providingsomething of unique value, or some combination of the two. This is astrong source of competitive advantage.

What Makes Human Capital a Source of Competitive Advantage?

Value Rareness Not easily imitated Not easily substituted or replaced Organization able to successfully utilize the resource

This is part of the Resource-Based View of the Firm

Human Capital As a Key Strategic Asset


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Individual Human Capital

- Visions and aspirations- Intellect, knowledge, etc.- Technical and social skills- Confidence/self-esteem

- Enthusiasm- Motivation and commitment- Honesty and integrity- Persistence- Initiative/entrepreneurship- Emotional maturity

- etc.

Individual Human Capital and Social Capital

Social Capital

- Shared visions/goals- Shared values and culture- Trust, mutual respect, etc.- Friendship and supportiveness

- Engagement- Cooperation/collaboration- Team effectiveness- Mentoring/role modeling- Functional vs. dysfunctional

conflict

- Organizational citizenship- etc.

But the human capital/social capital link is not a given


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Critical to an organizations success

Addresses the competitive challenges faced by the organization

A plan for integrating goals, tactics, policies and actions into a

meaningful whole

Has two primary elements- Strategy Formulation- Strategy Implementation

Corporate Social Responsibility and ethics continue to play anever-increasing role in strategic planning



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Elements in Strategy Formulation

SWOT Analysis is a commonly-used tool here

External

Analysis- Opportunities- Threats

Internal

Analysis- Strengths- Weaknesses

Mission GoalsStrategic

PlanVision


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Ideal Linkage Between HCM and Strategic Plan

HC Practices

Recruiting,Training,Performance management,

Labor relations,Employee relations,

Job analysisJob design,Selection,

Development,

Pay structure,Incentives,Benefits

FirmPerformanceProductivity,

Quality,Profitability

HumanCapital

ActionsBehaviors,Results

HumanCapital

Capability

Skills,Abilities,Knowledge

HumanCapital

NeedsSkillsBehaviorCulture

StrategicPlan

Everything needs to

be linked back to thestrategic objectives


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Corporate Social Responsibility is something that can beintegrated into an organizations strategic plan(s), namely by:

1) Making a profit consistent with expectations for internationalbusiness to fulfill economic responsibility

2) Obeying both host country and international law

3) Acting ethically by considering both host country and globalstandards

4) Being good corporate citizens and fulfilling the host countrysexpectations for philanthropic responsibility

Corporate Social Responsibility


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Actions that improve an organizations ethical climate include:

1) Demonstration of ethical behavior from leaders

2) Careful recruitment and selection of new employees

3) Developing a meaningful and real code of ethics

4) Training employees to better deal with ethical issues

5) Use operant conditioning to drive ethical behavior6) Incorporate structural mechanisms to deal with ethics issues

Improving the Ethical Climate


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Case in Point: Cirque du Soleil


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Cirque du Soleil Mission Statement

Invoke, provoke and evoke the imagination,

the senses and the emotions of people

around the world.


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Founded: June 1984

Number of employees: 5,000

Number of artists: Over 1,300

Average age of employees: 32

Number of nationalities: Over 50

Languages spoken: Over 25

Number of cities visited since 1984: Over 130

Number of spectators since 1984: More than 100 million

Cirque du Soleil Facts


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Touring Shows- Alegra (Germany, Austria, Serbia, France, Israel,Greece, Turkey, The Netherlands, Spain)

- Amaluna (Canada, USA)- Corteo (Belgium, Switzerland, Germany)- Dralion (USA)- Kooza (USA, UK)- Michael Jackson Tour (North America, UK,

Denmark, Sweden, Finland, Russia, Germany,Austria, Spain, Czech Republic)

- Ovo (Australia)- Quidam (Canada, USA)- Saltimbanco (Italy, Jordan, Qatar, China,

Singapore, Phillippines)- Totem (USA)- Varekai (Brazil, Argentina)- Zarkana(USA)

Resident Shows in Las Vegas- Criss Angel Believe- K- The Beatles LOVE- Mystre- O

- Viva ELVIS- Zumanity

Current Cirque du Soleil Shows (21)*

Other Resident Shows- La Nouba (Walt Disney World, FL)- Iris (Los Angeles, CA)

* As of July 2012


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Class Discussion

Circular structure, see eye to eye Hire people only if someone from that nationality

already there

If they forget the mission, go to a show

Ideas for new shows come from performers

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Mergers and Acquisitions- Cultural fit- Leadership team

Offshoring (done in different country) vs

outsourcing (paying someone else to do it); canbe both

Downsizing/rightsizing (pol correct way tosay it)

Business Process Outsourcing (BPO)

?



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HR Content Areas and

Strategic Issues/Questions- not tested on


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Levels of candidates (junior, middle, senior level)

Sources of candidates (internal, universities, othercompanies, professional associations, websites, etc.)

Who does recruiting (internal function, externalrecruiters, etc.)

Compensation issues (compensation, bonus, buyoutof options, etc.)

Elements of Recruitment


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Determining the tools, systems to use (interviewing,testing, etc.)

Criteria for assessment/selection (e.g., skills)

Identifying/managing the assessment team

Onboarding and orienting the new employee

Elements of Selection/Staffing


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Good understanding of whats required on the job(job description, success profile, etc.)

Ongoing, regular feedback (both positive and

constructive)

Comprehensive development discussion withsuggestions for improvement in the future

Annual (typically) performance review anddiscussion

Elements of Performance Management


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Awareness and acceptance of individual strengthsand weaknesses

Understanding of competencies, skills, etc. neededfor success

Variety of developmental actions/methods- Formal programs (e.g., training)- Working with others (e.g., mentoring, coaching)

- On the job/experiential development

Formal action planning and follow-up

Elements of Training and Development


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Identification of different pay elements (e.g., basecompensation, variable compensation, etc.)

Identification of other elements (e.g., stock-related)

Appropriate balance of these across levels and/orgroups within the organization

Benefits plans that are consistent with strategy

Decisions on consistency in these areas across theorganization (e.g., paid time off/vacation)

Elements of Compensation and Benefits


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Organizational Behaviors RootsHuman Relations


Strategic Human Resource Management


Human Resource Strategic Issues/Questions

Review


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What Questions Do You Have?

2 strategy and strategic organizational behavior

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