human capital management article presentation 2
TRANSCRIPT
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HUMAN CAPITAL
MANAGEMENT
LECTURER:
DR. ANGELINE TAY
TUESDAY MORNING CLASS
SECOND PRESENTATION GROUP-2
DATE: MARCH 04, 2008
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TEAM MEMBERS
1- Muhammad Zia Aslam (CGA-070040)
2- Mohammad Shahid (CGA-070092)
3- Maryam Sedghshakeriasli (CGA-070090)
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Relational Archetypes,
Organizational Learning, and Value
Creation: Extending the Human
Resource ArchitectureBy
Sung-Choon Kang
Shad S. Morris
Scott A. Snell
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Contents:
Purpose Statement
Basic Idea
Key words/concepts
Introduction
Org. Learning Process
HR role
Concluding Remarks
knowledge sharing
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PURPOSE STATEMENT
THE PURPOSE OF THIS PAPER IS TO UNCOVER A
PROCESS OF VALUE CREATION THAT LINKS
ORGANIZATIONAL LEARNING, SOCIAL RELATIONS,
AND HRM, FOCUSSING ON KNOWLEDGE FLOWS
ACROSS DIFFERENT EMPLOYEE GEOUPS IN THE
HR ARCHITECTURE
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BASIC IDEA
ORGANIZATIONALLEARNING VALUECREATION
SOCIALRELATIONS
SHRM
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KEY WORDS/CONCEPTS
Knowledge Based Competition
Explore and Exploit knowledge
Value Creation
Relational archetype
(Entrepreneurial & Cooperative)
Dimensions of Social Relations
(Structural, Affective, & Cognitive)
HRM perspective
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INTRODUCTION
The focus of Strategic Management is shiftingtoward resource and knowledge-based competitiveadvantage and value creation
Knowledge is the most distinctive resourceavailable to effectively transform organizational
goals into reality
People (Human Capital) are the most importantknowledge base of organizations to employ,
manipulate, and transform organizational resources,
as it is very rightly said that its people not buildings
or machines who make the difference
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INTRODUCTION
Knowledge can be viewed in two dimensions Knowledge-Stocks: firms accumulated skills, expertise, and
wisdom
Knowledge-Flows: new knowledge that can be obtained,transferred, and integrated
Knowledge-Stocks provide core competencies to the firm,whereas knowledge-flows facilitate organizationallearning by expanding, refining, and modifying its currentknowledge
It is important for HRM to equally manage knowledge-flows while managing knowledge-stocks
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INTRODUCTION
Sharing and combination of knowledge
require to identify the relationships that
facilitate knowledge flows i.e.
organizational learning
Here comes the pivotal role of HRM to
effectively manage the link between socialrelations and the process of value creation
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ORGANIZATIONAL LEARNING
PROC
ESS
Types of Organizational Learning: Exploratory learning (pursuit of knowledge that does not exist)
Exploitative learning (refining and deepening existingknowledge)
Dimensions of Social Relations: Structural (density of connections and interactions)
Affective (motives, expectations and norms)
Cognitive (shared representation, understanding, and systems of
meaning)
Relational Archetypes: Entrepreneurial (weak ties, dyadic trust)
Cooperative (strong ties, generalized trust)
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ORGANIZATIONAL LEARNING AND
VALUE CREATION
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LEPAK & SNELLS HR ARCHITECTURE
Lepak & Snell (1999, 2002) first gave a conceptualmodel of HR Architecture
They said that human capital (stock of knowledge) is thesource of firm value creation
HR practices, employment modes and relationshipsbase on the value and uniqueness of the human capital
The model (figure 2) explains the human capitalcontribution toward competitive advantage but does notaddress knowledge flows
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LEPAK & SNELLS IMPROVED MODEL
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HR CONFIGURATION FOR MANAGING
RELATIONAL ARCHITYPES
Targeted HR practices toward managing social relations arenecessary, apart from managing human capital
HR practices dont expand to all employees involved but focus onhelping core employees build relationships with others
The HR practices (design of work, the incentive structure, anddevelopment programs) should be focused on opportunity,motivation and ability
HR practices reinforce and complement each other as a coherentsystem to improve organizational performance (figure 4)
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CONCLUDING REMARKS
No doubt innovation and learning are vital for firm valuecreation
To acquire, transfer, and integrate new knowledge is thekey for success in turbulent time
Managing social relations is instrumental fororganizational learning process
When we talk about knowledge, social relations and
value creation, it refers toward an effective role of HRM
However, it is easy to formulate a theoretical frameworkin this context but really difficult to practice in thisdiversified world of business
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BEFORE THANKING OUR VALUEDAUDIENCE, WE WOULD LIKE TO
SHARE SOME FACTS AND EXAMPLESFROM INDIA
AS WE ALL KNOW THE INCREASINGIMPORTANCE OF INDIAN ECONOMY INBUSINESS WORLD, LETS HAVE ALOOK OF CHANGING BUSINESS
ENVIRONMENT & HUMAN RESOURSEPRACTICES FROM INDIANPERSPECTIVE
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Parts
PartsParts
Assembly
Advertising Design
SalesSales
Parts
Sales
A Global Web
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KEEPCROSS CULTURAL ISSUES IN MIND
WHILE MANAGING PEOPLE
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IndianPerspective
Critical issues in shifts from Capital to Knowledge Economy
Characteristics of GlobalizationChaotic Competition
Radical change
Opportunities
Strategic alliances
Complexity/UncertaintyFlexibility
Customer focus
Saliency of People Mgt Issues
In India these
Developments
Impact all sectors
including
Manufacturing
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Hanging on for dear life : Survival in the face of turbulent change
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Indian businessesaretakinggiantsteps
Every journey to corporate
transformation requires takinga strategic step in the desired
direction
A journey of 100 miles begins
with a single step
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CHALLENGES FOR HR IN INDIA
The problems India
Faces in
Achieving Global
Standards:
Challenges forHR
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CHALLENGES FOR HR IN INDIA
Acceptance of how things
are, which inhibits growth
toward world class
professional vision
Hierarchical mindset
No frame of reference for
creating customer WOW
Slow acceptance of change
Slow internalization of Work
ethic
Lack of proper infrastructure
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SOME HRM EXAMPLES FROM INDIA
Classic Strips (Mfg.): Come Out of Control Mindset
y 214 workers including contract workers - Most are blue-collar
growth from 4 workers 25 years ago
y Main motto dignity at work.
Believes in: valuing every individual, giving people their due, freedom, respect, opportunitybacked by lots of training.
y Employee spends 2 hrs every month on training (kaizen)
has a library with trade journals, magazines and books
Most employees are with the Company for the last 15-20 yrsWomen make 1/3rd of the workforce
It includes handicapped people--Proactive diversity policy
The Company shares with employees a %age of its annual profits
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SOME HRM EXAMPLES FROM INDIA
Mahindra & Mahindra:
Focus on HR
Hired a Yale University-educated president of HR
He was earlier a CEO for2 Tata Group companies
Heads 150 HR managers
Is partner in building Company Strategy
Responsibilities include employee well-being
Business Strategy aimed to give competitive advantage:
Talent managementCreating synergy
Creating a culture of integration
Succession planning
Developing a global mind-set
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SOME HRM EXAMPLES FROM INDIA
Susken Communication TechnologiesBanglore
Pride: Work culture that exemplifies Values
Inspiring vision: unleashing Indias creativity.
It is a situation of complete trust and equality:
No-monitoring policy leads to transparency & freedom from fear
No attendance system and No limit on sick leave that an employee can avail
Complete freedom to employees to come & go
Freedom to think and innovate
Same rules for all
Same hotels when on travel
CEO as all others fly economy class
CEO sits in similar cubicles as all others
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THANK YOU VERY MUCH