human capital management article presentation 2

8/8/2019 Human Capital Management Article Presentation 2

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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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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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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

human capital management article presentation 2

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