OBHR-E100 Human Resource Management Before we begin: Chat room available during class tonight: Choose any login name On the.

OBHR-E100Human Resource Management

Before we begin:

Chat room available during class tonight:

http://mychat.dce.harvard.edu

Choose any login name

On the drop down menu, choose OBHRE100 and login

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Flash has a shorter delay – so it is recommended

OBHR-E100Human Resource Management

Before we begin:

People Express Case Analysis due next Tuesday, October 9, by 5:00 Eastern Standard Time.

Asahi Breweries is due tonight – if you are reading this and haven’t turned it in yet, it is too late!

OBHR-E100Human Resource Management

Leadership

and

Organizational Development

Human Resource Development

Career DevelopmentPrograms designed to assist

employees in advancing work lives and professional growth

Organizational DevelopmentProcess of facilitating unit or system-wide

changes in organizations to improve attitudes, values and productivity

TrainingPrograms designed to assist employees acquire better job

skills

Employee Development

Programs designed to optimize utilization of talent

HRD: Organizational Development

Definition: Maximizing organizational effectiveness through the best use of its resources

HR Responsibilities involve: Develop, implement, and assess change management programs and activities. Develop and run programs to meet specific needs of employee groups.

Possible drivers of organizational redesign and change: Productivity (efficiency/effectiveness) Employee satisfaction Organizational processes and outputs Legal compliance The ability of the organization to revitalize and renew itself over time

HRD: Leadership

Leadership = ability of one individual to influence a group or other person toward the achievement of a goal.

Stephen Covey (The 7 Habits of Highly Effective People) Providing vision and direction, values and purposes Inspiring and motivating people to work together with a

common vision and purpose

Management = Oversight and direction regarding day-to-day operations.

HRD: Leadership

Effective Leadership Trust your subordinates – the only way to maximize their efforts Develop a vision – know where you are going, show other the benefits Keep your cool – strong character under fire Encourage risk – failure cannot threaten subordinates careers Be an expert – leader must be a source of knowledge and model the way Encourage the heart – celebrate success Simplify – communicate in simple, direct, honest language

Situational leadership Adjust style to match the job and psychological maturity of employees Transactional leadership – have promise of reward or punishment Transformational leadership – charismatic, inspirational

HRD: Leadership

Management LeadershipPlanning and Budgeting Creating an agenda

Detailed steps and deadlines Creating a direction by deed

Organizing and Staffing Develops a long term view of

Creates structure & assigns roles the future

Controlling and Problem solving Motivating and Inspiring

Produces predictability and order Produces change, new products

Consistently produces key expected results Has potential to make useful change

HRD: Organizational Development

OD Initiatives Focus on changing an entire system in comparison to only one

or a few components The most strategic of HR functions Focus on helping organizations diagnose and solve their own

problems Are more adaptive and less rigid than a formal planning

process

HRD: Organizational Culture

Organizational Culture: defined The shared attitudes and perceptions of an organization. Made up of values and behaviors as well as environment and

organizational realities An informal and shared way of perceiving membership in an

organization, binding members together Influences how members think about themselves, colleagues and work

Organizational Culture: Fulfills 4 basic functions Gives members an organizational identity Facilitates collective commitment Promotes stability in processes and systems Shapes behavior by helping members create sense about their

environment (establishes norms)

HRD: Organizational Development Strategy – envisioning, designing and implementing plans of action that

bring together all functions to achieve the organization’s goals Vision Statement – guiding image of success. A vivid verbal picture of

what success would mean for the entire organization.Ex: Tom's of Maine will become the trusted partner in natural care among consumers with whom we share common values. (Tom’s calls this their Destiny)

Mission Statement – Specifies how an organization will achieve the vision.Ex: Vanguard's mission is to help clients reach their financial goals by being the world's highest-value provider of investment products and services.

Values – what is important to the organization. Guides decision making.Ex: Fidelity – Employee Respect; Quality & Excellence; Individual Responsibility & Teamwork; Private Ownership; Honesty & Integrity; Customer Focus; Change, Innovation, & Commitment to Technology; Civic Responsibility

HRD: Organizational Culture

G. Johnson (1988) described a cultural web, identifying a number of elements that can be used to describe or influence Organizational Culture:

The Paradigm: What the organization is about; what it does; its mission; its values.

Control Systems: The processes in place to monitor what is going on. Organizational Structures: Reporting lines, hierarchies, and the way

that work flows through the business. Power Structures: Who makes the decisions, how widely spread is

power, and on what is power based? Symbols: These include organizational logos and designs, but also

extend to symbols of power such as parking spaces and executive washrooms.

Rituals and Routines: Management meetings, board reports and so on may become more habitual than necessary.

Stories and Myths: build up about people and events, and convey a message about what is valued within the organization.

HRD: Organizational Culture

Edgar Shein from MIT’s Sloan School of Management: Organizational Culture and Leadership (2005)

Defined organizational culture as the residue of success. Most difficult organizational attribute to change, outlasts changes to products, services, leadership, etc.

Suggests three cognitive levels of organizational culture from the standpoint of the observer:

Level 1: . What is seen felt and heard by someone new. Buildings, furnishings, awards, dress code, how people interact with each other and with outsiders.

Level 2: What is professed by the company. Slogans, missions statements, creeds, and local and personal values that are widely expressed within the organization.

Level 3: Tacit Assumptions, which are the deepest and most fondly held, and hardest to discern or uncover. Unspoken rules often without the conscious knowledge of the membership. Those who are in the know, often won’t speak about it.

Change Management Transforming Organizations: Why Firms Fail

Error #1: Allowing too much complacency Error #2: Failing to build a sufficiently powerful guiding

coalition Error #3: Underestimating the power of vision Error #4: Failing to communicate the vision by a factor of

10, 100, 1,000 Error #5: Permitting obstacles to block the new vision Error #6: Failing to create short-term wins Error #7: Declaring victory too soon Error #8: Neglecting to anchor changes firmly in the

organization

John Kotter, Leading Change

HRD: Organizational Development

Goals of Organizational Development To improve the functioning of individuals, teams, and the

total organization, and To impart the necessary skills and knowledge that will

enable organization members to continuously improve functioning on their own.

Examples: Strategic business re-design A new plant manager – change initiatives Productivity improvements through group problem

solving Competitive advantage through self-directed teams

HRD: Organizational Development

Resistance to Change

Human nature Fear of the unknown Resist if it is imposed rather than collaborative May lose something in the shift Disrupts stable working relationships

HRD: Organizational Development

Examples of OD Interventions

Team building Group intervention engaging team in activities to examine how they function

Diversity programs Creating respect for a diverse culture

Work/family balance programs acknowledging pressures that can affect an individual’s ability to cope with

change Quality standards

Quantitative methods for determining quality. Ex: Malcolm Baldridge Award est by the US Commerce Dept.

Total quality initiatives Integrated system for achieving customer satisfaction that uses quantitative

methods to continuously improve an org’s performance

HRD: Organizational Development

Total Quality Management (TQM)Defined by the International Organization for Standardization (ISO): "TQM is a management approach for an organization, centered on quality, based

on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society."

In Japan, TQM comprises four process steps, namely: Kaizen – Focuses on Continuous Process Improvement, to make processes

visible, repeatable and measurable. Atarimae Hinshitsu – The idea that things will work as they are supposed to (e.g. a

pen will write.). Kansei – Examining the way the user applies the product leads to improvement in

the product itself. Miryokuteki Hinshitsu – The idea that things should have an aesthetic quality (e.g.

a pen will write in a way that is pleasing to the writer.)

Case Discussion

Asahi Breweries, LTD Case Discussion

Case Discussion

1997 Asahi Kirin

Market Share 39.1% 41.5%

Operating Profit (BY) 76.5 40.5

2001

Asahi has higher market share than Kirin – HOW?

Case Discussion

Time Line1949 Split of Sapparo and Asahi – Kirin (Sapparo product) advances in the

market

1970’s Downward spiral Asahi

1980 McKinsey report (not read by anyone, apparently!)

1981 Early retirement program

1982 Murai steps in as CEO and President

1984 TQC and Corporate Identity teams formed

1985 Fall – Asahi Draft introduced – share slides downward again

1986 Spring – Higuchi arrives – recall on non-compliant (old labels) draft beer

1987 Introduce SuperDry – invest $70B to expand production capacity by 50%

1988 Dry wars begin – Ashahi oversold (could only fill 70% of orders)

1988 Fall – Sapparo’s Winter Tale introduced – Asahi predicts personnel shortage of 3,200 to 4,00 over next 3 years

MediocreImage

SlowSales

SlowInventoryTurnover

TasteDeterioration

Even Worse Image

EvenSlowerSales

HumanPerformance

OperatingPerformance

FinancialPerformance

“What ignites the passion of our people?”

“At what can we be ‘the best in the world’?”

“How do we make money?”

MarketPerformance

“What delights our customers?”