Professional Documents
Culture Documents
The National Organization of Certified Public Accountants An association of institutional, professionals, and OFWs
Riyadh Chapter, Kingdom of Saudi Arabia Riyadh, Kingdom of Saudi Arabia
MODULE 2
HUMAN CAPITAL
MANAGEMENT
TALENT REALITIES
Business success is more people dependent
De-motivated staff
Decreased productivity
Etc…
ORGANIZATIONAL CHALLENGES
Hired But,
for Fired for
qualifications Behavior
ORGANIZATIONAL CHALLENGES
FIRING as a result of WRONG HIRING
Has major negative impact
FINANCIALLY
OPERATIONALLY
CORPORATE CULTURE
WHY PEOPLE FAIL?
With PEOPLE
DO ORGANIZATIONS HAVE
HUMAN CAPITAL STRATEGY
IN PLACE
HUMAN CAPITAL
RELATIONAL CAPITAL
INTELLECTUAL CAPITAL
(knowledge, skills, and talent) + (connections and relationships
with customers, peers, vendors,
and external associates)
=
ACHIEVEMENT OF
ORGANIZATION’S GOALS
TE
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EMPLOYEE
EN
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LIFE CYCLE
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RETENTION TI
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HUMAN CHARACTERISTICS
As organisms not mechanisms
(Idiosyncratic)
UNDERSTANDING
BETTER
MANAGEMENT OF
PEOPLE
MOTIVATION TO WORK
- MODERN PRINCIPLES vs REWARDS & THREATS
IMPORTANCE OF CULTURE
IN
PEOPLE MANAGEMENT
UNDERSTANDING CULTURE
THREE LAYERS
VALUES
BELIEFS
Strategies
Mission
PARADIGM
(Cultural Web)
Business Objectives
UNDERSTANDING CULTURE
CULTURAL WEB
SYMBOLS
• Looking Busy
• Untidy work area
STORIES • Prestigious offce POWER
STRUCTURES
• Fun place to work
• Leadership
• Salary Levels
• Power Distribution
• Working hard
PARADIGM
RITUAL/ ORGANIZATION
ROUTINES STRUCTURES
• Meetings • Mechanistic
• CommunicationsCONTROL • Organic
• Parties SYSTEMS • Formal/Informal
• Procedures
• Rewards
• Punishment
UNDERSTANDING CULTURE
DIMENSIONS OF CULTURE - (Hofstede)
UNCERTAINTY AVOIDANCE –
Extent of threat in unusual situations
INDIVIDUALISM – Individualistic
or collectivism
MASCULINITY –Masculine
characteristics
UNDERSTANDING CULTURE
CULTURAL VARIANCE & WORKPLACE BEHAVIOR
(Dutch Writer – Fons Trompenaars)
INDIVIDUALS/COLLECTIVISM
– Individualist/Family
EMOTIONAL SOCIETIES –
Display of emotions in workplace
UNDERSTANDING CULTURE
CULTURAL VARIANCE & WORKPLACE BEHAVIOR
(Trompenaars)
ACIEVEMENT BASED –
Accomplishments
ENVIRONMENTAL
DIFFERENCES – Impact of
environment to attitude
EMPOWERMENT
EMPOWERMENT
Energizing people to
achieve further
progress and success.
Power is a route to
power.
EMPOWERMENT - CHALLENGES
Habit
Fear of Anarchy
Personal Insecurity
Lack of Skills
Pragmatism
empowerment does not solve everything
EMPOWERMENT
ROLES OF MANAGERS
Counselor/Coach -
understand and manage situation
Vision Articulator
Encourage participation of employees
Goal Definer
Define goals and give feedback-Agree target, let team
decide how to meet them
Challenge Creator
Talent Developer
Develop employee’s talents-provide opportunities
Resource Obtainer
Availability of resources
EMPOWERMENT
ROLES OF MANAGERS
Leader
- Controlling Leader
select the right product
select the right employees
define processes, procedures, standards
set objectives and guidelines.
- Enabling Leader
encourage cross-training
appraise performance continuously
promote communication
build and nurture the team
encourage employees
coordinate direction
procure resources
represent the team when needed
LEADERSHIP
LEADERSHIP
LEADERSHIP
central to exercise of
management
MANAGER VS LEADER
How Things What Things
Get Done Meant to People
LEADERSHIP
“If climate drives business
results, what drives climate?
1.DIRECTION
2.ALIGNMENT
3.RELATIONSHIP
4.PERSONAL QUALITIES
5.OUTCOMES
MANAGEMENT VS. LEADERSHIP
DIRECTION
MANAGEMENT LEADERSHIP
Acting as coach,
facilitator
MANAGEMENT VS. LEADERSHIP
PERSONAL QUALITIES
MANAGEMENT LEADERSHIP
Talking Listening
Conformity Non-conformity
LEADERSHIP APPROACHES
TRAIT APPROACH
BEHAVIORAL
CHARISMATIC
TRANSFORMATIONAL
LEADERSHIP APPROACHES
TRAIT APPROACH
ARE
LEADERS
BORN OR MADE?
LEADERSHIP APPROACHES
TRAIT APPROACH
Intelligence
Height
Health
LEADERSHIP APPROACHES
TRAIT APPROACH
Effective Leaders
Supervisory Skills
Occupational achievement
Intelligence
Decisiveness
Self Assurance
Initiative
LEADERSHIP APPROACHES
BEHAVIORAL
Behavior
(learned phenomenon)
and not
traits (inherent attributes)
that determines the
effectiveness of a leader.
LEADERSHIP APPROACHES
BEHAVIORAL
Rensis Likert (University of Michigan)
CONTINUUM
LEADERSHIP APPROACHES
LEADERSHIP GRID – TASK VS. PEOPLE
HIGH
MIDDLE OF THE
ROAD STYLE
(5,5)
PEOPLE
LOW HIGH
TASK
LEADERSHIP APPROACHES
CHARISMATIC
CHARISMA – Gift of Favor
LEADER CENTERED
FOLLOWER CENTERED
INTERDEPENDENCY
LEADERSHIP APPROACHES
TRANSFORMATIONAL
Ability to change attitude/perception of
members; create vision that inspires people
COMPETENCIES AND STRATEGIES
Capacity to encourage/motivate others
LEADERSHIP CONTINUUM
Tannenbaum and Schmidt’s Leadership Continuum
(How to choose Leadership Pattern, Harvard Business Review)
MOTIVATION
MOTIVATION
CHALLENGES
- Every individual has different needs.
- Need to know the person in the hierarchy.
- Multiple needs satisfied at the same time.
MOTIVATION
RESEARCHES/STUDIES
DOUGLAS MCGREGOR X & Y THEORY
Assumption that one people have satisfied a
certain level of need, they will want to move to the
level above .
Theory X
- People need to be controlled and threatened.
- Human prefers to be directed.
- People need more than financial reward.
Theory Y
- Mental/physical effort = play/rest
- Control/punishment not only ways to work
- Job Satisfaction = Commitment
- Imagination/creativity solve work problems.
MOTIVATION
RESEARCHES/STUDIES
FREDERICK HERZBERG’S TWO FACTOR
THEORY
Hygiene – Organization & Work Environment
- Organization - Interpersonal relations
- Policies - Salary
- Supervision - Status
- Working Condition - Job Security
Job Motivators
- Achievement
- Recognition
- Growth/Advancement
- Interest in the Job
MOTIVATION
RESEARCHES/STUDIES
HAWTHORNE EXPERIMENT – ELTON MAYO
Work is a group activity.
MOTIVATION
RESEARCHES/STUDIES
EMPLOYEE IMMATURITY/MATURITY
THEORY – CHRIS ARGYRIS
Bureaucratic/Pyramidal System
Poor, shallow and mistrustful relationship.
Humanistic/Democratic Relationship
Trusting, authentic relationships will develop
among people - result in increased
interpersonal competence, inter-group
cooperation, flexibility, and the like and
should result in increases in organizational
effectiveness
MOTIVATION
RESEARCHES/STUDIES
MANAGEMENT SYSTEM AND STYLES –
RENSIS LIKERT
Consultative System
Leadership by superiors
Partial Trust in subordinates
Reward system
MOTIVATION
RESEARCHES/STUDIES
MANAGEMENT SYSTEM AND STYLES –
RENSIS LIKERT
MOTIVATION
RESEARCHES/STUDIES
ACHIEVEMENT MOTIVATION –
DAVID MCLELLAND
Intense need to achieve – distinct among
other needs.
TEAMWORK
TEAMWORK
PEOPLE WORKING
TOGETHER TO ACHIEVE
A COMMON GOAL
TEAMWORK
BUILDING BLOCKS TO EFFECTIVE
TEAMWORK
Balanced roles.
Clear objectives and agreed goals
Openness and confrontation.
Support and trust.
Cooperation and conflict.
Sound procedures.
Appropriate leadership.
Regular review
Individual development.
Sound inter-group relations.
Good communications.
WHAT IT TAKES TO
ATTRACT, RETAIN, AND ENGAGE
EMPLOYEES
TOP GLOBAL DRIVERS
Caliber of co-workers
Fair compensation
SKILLS EXPERIENCE
TRAITS
INTERESTS
VALUES
MOTIVATION
NO
BAD-GOOD JOB\ORG. FIT!
THE CHALLENGE
Interest Marriage
Thinking Capacity Bad Fit
PETER DRUCKER
“Revered as father of Modern Day
Management”
COMMON RECRUITMENT CHALLENGES
A Recent Study
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GOAL:
IMPROVED
PERFORMANCE
ENGAGEMENT
The degree to which employees
connect with their work and feel
committed to their organization
and its goals.
CHARACTERISTICS OF HIGHLY
ENGAGED EMPLOYEES
• Belgium • Italy
• Brazil • Japan
• Canada • Mexico
• China • Netherlands
• France • South Korea
• Germany • Spain
• India • United Kingdom
• Ireland • United States
31%
Open to Offers 59%
Intends to Stay
47%
Open to Offers
21%
Actively
Looking
39%
Open to Offers
SUMMARY
55%
Unengaged 26%
Engaged
Team Driven,
1966-1981 Self Reliant, willing to collaborative, “wisdom of
Generation X (26-41 Yrs Old) change rules, and tribal crowds”, peer-to-peer “
and community oriented connect me to people”
YOUR CHALLENGE
?
What predicts future
“superior” performance?
Job Match
Thinking Style
Behavioral Traits
Interests
…in predicting
“superior” performance
Interview 14%
0 10 20 30 40 50 60 70 80
With Without
Job Job
Match Match
Thinking Style
Learning Index 7
Verbal Skill 8
Job Match
Verbal Reasoning 8 Percentage
7
95%
Numerical Ability
Numeric Reasoning 8
Behavioral Traits
Energy Level 8
Assertiveness 7
7
Percentage
95%
Decisiveness 6
Accommodating 6 Distortion – 8
Independence 6
Objective Judgment 5 8
Thinking Style
Learning Index 8
Verbal Skill 8
Job Match
Verbal Reasoning 8 Percentage
86%
Numerical Ability 9
Numeric Reasoning 7
Behavioral Traits
Energy Level 2 8
Assertiveness 4 8
Accommodating 6 Distortion – 9
Independence 3 8
Objective Judgment 6
THINGS TO PONDER
WHICH KIND OF MANAGER AND LEADER ARE YOU?
OLD? NEW?
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CASE STUDY
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