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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
Strategic Management
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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)
?
Current Strategic Issues Involving HRM
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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 Management
Strategic Human Resource Management
Current Strategic Issues Involving HRM
Human Resource Strategic Issues/Questions
Review
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What Questions Do You Have?