HR Management

MGM1 Task 1: Human Behavior in Organizations

PA GE 1

Keepsake Technology Case Study

A BIG CATCH: USING A NEW HOOK TO TRANSFORM PERSONAL LEGACY (the story of an entrepreneur’s

successful launch)

How did it begin?

Carlos Vasquez moved from Puerto Rico and spent 20 years in Silicon Valley while companies such as

IBM, Hewlett Packard, and Microsoft were growing. He enjoyed building computers, and refreshed his

skills every six months to keep up with the learning curve. It was an environment in which the mantra

might have been, “If you can dream it, you can do it.” Having that entrepreneurial spirit, he consistently

recorded big ideas into his computer and carried around more thoughts in his head that never entirely

made it to the screen.

In a recent conversation with his niece, Emily, about notes from Grandma and how precious they were

to Emily, he recognized a potential gap. How will the current generation of children house notes from

their grandmas? If grandparents connect on social media (e.g., Facebook, Instagram, etc.) in order to

flex to the communication methods used in the 21st century, is that data able to be captured? Or is it

only seen when an anniversary of the original post comes up on the phone’s screen? Will a

grandmother, who is less familiar with technology, bother to learn how to go through multiple steps to

save a memento, or will she throw up her hands in frustration? If we want to intentionally save a

message or text from a close friend, do we have a user-friendly way to do this?

Recognizing that important items like these might be lost, Vasquez thought to himself, “Could this be

offered in an app?” When someone needs to remember a fact or see a kind word they believed was

special, where do they keep that information? A potential new app could be a cross between a

scrapbook and a diary of sorts.

As a smile crossed Vasquez’s face, his background in graphic design was sparked. He grabbed the napkin

from across the table and scribbled a quick sketch of a fisherman’s handheld net alongside the word

“MemoryNet.” [See Attachment A for the sketch.]

His mind began to reel with the possibilities, and niece Emily chimed in.

The Main Idea for the Application

What could the app do?

●Act as a secure platform to share and save comments, tweets, kind words, and news to the

cloud

MGM1 Task 1: Human Behavior in Organizations Keepsake Technology Case Study

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●Scrapbook things you send to it from other apps such as Facebook and LinkedIn, allowing

categorization by topic or by person

●Allow the user to generate a collage of ideas and phrases by topic or person and send privately

to another user

●To connected apps, show a fish icon if the MemoryNet app believes the words indicate you

may want to “catch” that comment or memento (based on your previous usage and/or settings)

●Provide a recording feature for a 15-second “label” to anything you net (as you might caption a

photo in a scrapbook or on other social media platforms)

Carlos coined the name “Keepsake Technology” for the new company and began to assemble a small

team of like-minded architects and software developers. First, he reached out to Miguel Acosta with

whom he had worked previously. Almost daily, they discussed the parameters for the prototype,

hardware, software, and coding needs. Pieces or parts may have existed, but they had headroom for

growth and expansion. In conversation, he asked Miguel to suggest a couple of other people who were

respected in the industry and who might be interested in joining the organization. Miguel suggested

Samantha DeSanto and Aditya Patel, a previous IT manager and a former college roommate,

respectively. Both agreed to join the group. Once structural support and specifications were identified,

execution began.

When met with naysayers who told the team all these functionalities already exist, the team simply

replied with a few questions: Aren’t there several makers of cars? Don’t they have multiple models

available under each brand? If we bundle ideas in a new way and deliver value to our customers—

maybe new customers who haven’t seen the need before—then our efforts are well worth the

investment.

Speaking of investment, the group secured funding from a venture capitalist in the amount of $500,000.

Ultimately, approximately $5 million was needed for the initial launch in April.

Among the details they shared with potential investors were the following items:

Name of the App with tagline: MemoryNet…Catching life’s moments so you can keep them close.

Logo: small fishnet, with the word memory coming out of the top so that all letters can be seen; the

word “net” ends up on the handle; a heart is hanging into the net from the “M”.

Mission: to strengthen and preserve bonds by saving important mementos for individuals and as part of

their legacy to loved ones.

Values: integrity, innovation, balance, diversity, service [See Attachment B for more detail about the

values.]

MGM1 Task 1: Human Behavior in Organizations Keepsake Technology Case Study

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Target Market: people with young children (ages 18 to 45); middle generation, those contemplating

downsizing, retirement, or legacy (ages 46 to 65); older generations, those who are wanting to pass

along stories, notes of care, concern, and love that will live beyond their years (66 and beyond).

Casting a Net for the Best Talent

To approach funders, Carlos hired a banker to assist with relationship building and raising funds. Along

with the funding goals, one of the most essential staffing goals was to hire a technical recruiter and

software developers. [See Attachment C: brief job descriptions.]

As Carlos discussed the job descriptions and minimum qualifications with Miguel, they considered not

only education but that a segment of IT technicians and even coders may have gained knowledge or

skills through experience. Some may have abilities that were self-taught. Certainly, certifications would

be important considerations once the hardware and software decisions for the app were made. They

realized that the qualifications they established in the job descriptions aided in proper selection and

would relate directly to the pay that candidates might expect.

After Carlos worked with a human resources (HR) consultant on forecasting staffing for year one, a

recruiting plan was developed. They were in clear agreement that professionals interested in IT roles

and technical recruiting would be most likely to frequent Dice.com, Monster.com, and Indeed.com, as

well as LinkedIn and Facebook. These websites constituted the main methods of outreach to find

qualified applicants. Recruiting messages at Dice.com resulted in twice as many highly technically

qualified applicants than found on Monster.com or Indeed.com, directly impacting the return on our

recruiting dollars. With low awareness of the Keepsake name and modest starting compensation, it was

difficult to predict the results of their efforts. Marketing messages needed to stress the unique benefits,

the opportunity for growth, and the dynamic nature of the company. The interest generated by

Facebook and LinkedIn was evident by checking analytics (views and clicks). However, few formal

applications were received as an outcome.

Carlos had maintained a close relationship with his alma mater and decided to approach them about an

internship program through which both IT and marketing students could gain experience. The company

benefited from short-term bursts of fresh ideas and low-cost talent. Board members agreed to approach

several additional colleges in the area about similar possibilities and to network with known associates

for connections to their universities. Within three months, Carlos secured four interns: two in IT, one

pursuing a Marketing degree, and an HR student who expressed interest in helping him create the

employee handbook for the company as part of her requirements for one of her courses.

As Keepsake progressed to year three and as labor demand grew, an HR director, April Smith, was hired.

Since Google had utilized college job fairs successfully, April established a series of job fairs as a pilot

measure. It was not unusual for the team to see more than 100 students and provide screening

interviews for twenty people per day. As a result, April was able to generate not only sufficient leads to

fill current positions but also to establish a talent community. Through the community, candidates got to

know the Keepsake mission and culture. They submitted data about their interests and qualifications.

The resulting database was used to generate candidates for internships and other opportunities.

Quarterly in-services were created to keep Keepsake at the top of the mind for these interested parties

MGM1 Task 1: Human Behavior in Organizations Keepsake Technology Case Study

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and to provide an opportunity for interaction with company employees and management. If the app

was meant to build family relationships and legacy, the talent community mirrored that relationship-

building within Keepsake.

Adapting to Changing Tides, Year 3 and Beyond

When thinking about employees, both current and prospective, April realized they would have a variety

of needs and preferences. Total rewards needed to include options that catered to a younger, tech-

savvy pool of applicants who focused on monetary and non-monetary compensation (perks). Two

options resulted: one that offered benefits and one that offered straight pay. The first option was a

traditional base pay plus benefits (ten paid vacation days, three sick days, a 401k, and incentives). The

second option was non-traditional: 25% greater base pay with only three sick days.

When it came to employee benefits, April wanted to make sure the company could supply not only

standard options but also compete with other start-up tech companies in the area, by adding

excitement to the mix for those employees who chose the “traditional” benefits option. On their first

day, employees’ medical and dental coverage started, and they began accruing vacation and sick

days. The 401k plan was offered to each new employee from his first day of employment for those

who did not select a “straight compensation” plan. The plan provided a 3% company matching

component for the first 6% the employee contributed and multiple levels of risk from which to

choose. The vesting schedule was set to 100% at three years. When the target candidate market

and current employees were examined, it seemed that most of them were not only tech-savvy but

socially conscious as well. For this reason, April included benefits like “election duty leave” and “paid

volunteer work,” among other options.

In discussion with Carlos, April commented, “Our prospective employees are characteristically creative,

so we got creative with the incentive offerings as well. While we have to be mindful of our budget, we

know our employees need options that fit their personal preferences. We identified a unique set of

incentives that employees with the traditional compensation package are able to choose, some free and

others at a discounted rate through payroll deduction.” Below are some of the unique offerings

Keepsake provided.

*Food Truck Fridays: Monthly, the company invited a variety of food trucks to the parking lot.

Employees were provided a “meal ticket” worth $15. The food truck vendors collected the tickets,

submitting them back to Keepsake for reimbursement. When weather permitted, the company set up

tables and chairs for a casual atmosphere and gathering.

*Date Night: Quarterly, the company brought childcare professionals into the office on a Friday evening

to cover babysitting for two hours, so employees had the opportunity to take a friend or significant

other out for the night, free of babysitting fees.

*Onsite health clinics: Employees could see a doctor or nurse practitioner for standard health

appointments, such as flu shots, general health check-ups, etc. Since the appointments were onsite,

they often occurred during an employee break or lunchtime.

MGM1 Task 1: Human Behavior in Organizations Keepsake Technology Case Study

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*Tuition Reimbursement: Keepsake offered tuition reimbursement for employees seeking an education

(degree or certification) that was relevant to their jobs. The employees had to earn a B or higher for

reimbursement. Further, the employees were required to pay back the reimbursement if they left the

organization before a designated length of time had passed.

*Chore Help: This benefit included discounted laundry and cleaning services (contracted with other

businesses in the building), allowing employees to rest or redirect additional time to family or hobbies.

More than anything, Keepsake desired to create a culture of care that offered not only work-life

balance, but meaningful work-life balance.

Angling to Make Exceptional Choices

Speaking of a culture of care, the interview process would be based on Keepsake’s values as the guide to

craft situational and behavioral interview questions. In this way, only individuals who fit the desired

environment were hired. For example, one of the interview questions for a technical recruiter was,

“What you would do if a friend who runs a recruiting agency asks for preferential treatment?” For

software developer, on the other hand, one of the questions used was, “Tell me about a time when you

solved a problem in a unique or clever way.” Using these questions, a panel of interviewers—which

included the hiring manager, HR representative, and a team member—assessed candidates. The results

were calibrated, and a consensus decision was made. Any material disagreements required discussion

until the group reached a decision in order to create team buy-in and a positive work environment.

Within a year, Keepsake Technology had 50 employees and beat its projected launch timeline. It

operated somewhat loosely, with a free flow of ideas. This was both exciting and at times frustrating

when details hadn’t been captured on paper. Just as with most start-ups, specific controls and

parameters were secondary considerations. Collaboration was second nature for some of the team,

whereas others were highly competitive and, at times, secretive. Although Carlos operated with a

servant leadership style, a couple of the other leaders could be “pushy,” regarded results as more

important than relationships, and needed some coaching to create change through vision and

inspiration rather than compliance. As the company grew, consistent leadership would be critical.

April, the HR director, was aware that the company size impacted more than just costs and leadership. It

now increased the chances of conflicting ideas, potential power struggles, and more. At her

recommendation, onboarding was bolstered with three new training modules, as follows:

*Respecting differences (diversity and inclusion; anti-harassment policies, practices, and grievance

procedure)

*Professional workplace behavior—a cut above (ethics; values-driven culture)

*Social emotional learning: balanced decision-making in a complex world (self-management; self-

awareness; social awareness; relationship skills; and responsible decision-making).

April recounted to the Keepsake leaders, “Research shows that workplace cultures that generate good

feelings also result in higher employee performance, more creativity, and improved physical and mental

MGM1 Task 1: Human Behavior in Organizations Keepsake Technology Case Study

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health. If we get this part of things right, we save money, make money, and have engaged employees.”

It was expected that managers at Keepsake could utilize these important concepts to create a

competitive advantage over less creative or less culturally savvy companies to secure and retain

employees. [See Attachment D for additional details that April recorded in her work journal regarding

emotional intelligence.]

Setting and Adjusting Course--Managing Performance

Carlos knew that it was one thing to aspire to create a company and another thing to sustain success

over time. High performance as Keepsake grew would be critical. Drawing on his previous experience,

Carlos implemented a performance management system for all employees. Performance management

feedback was provided twice a year. During this process, managers rated their direct reports on meeting

established goals, using a five-point scale, from a “5 role model” to a “0 missed.” During each review

period, a specified percentage of each department’s employees was required to be assigned to each

rating. Afterward, a calibration meeting was held, where higher-level management modified the

employee scores up or down. Compensation and even employment depended on these scores.

In Carlos’s view, this process had paid off. He stated, “Our performance management process

encourages friendly competition, which fuels creativity and a feeling of ownership. This is critical to

ensure our continuous success. Differentiation is not something to be feared, but rather needs to be

understood. Harsh? No—just the opposite. With its honesty and transparency, our process provides

dignity and creates a winning company.”

The performance management process wasn’t perfect, according to April. The calibration process was

full of personal bias. April pointed to a manager’s comment during calibration that one individual should

be rated lower because, “He just annoys me.” April had concerns that manipulation of the rating system

permitted employment decisions, including terminations, to be made on the basis of stereotyping. This

was especially true when some employees in a team needed to be given poor reviews to match the

rating method. April believed that many employees were not fans of the existing performance appraisal

process, which defeated the purpose. In her experience, dissatisfaction with, and perceived unfairness

about, the appraisal system could have serious implications on employee morale, engagement, and

turnover.

Widening the Net--Plans for the Near Future

As senior leadership considered additional target markets for the future, the team held a brainstorming

session about what companies may have an adjacent service or product. Would a greeting card

company want to collaborate so that people could take a memento from the Memorynet app and

import it to their designs (to make a card for someone)? Is there a point in the business lifecycle where a

merger opportunity might present itself? Carlos also pondered if, within the next 15 years, he would

groom another leader to take over Keepsake leadership, at which point he would join the board of

directors to continue to serve the company.

One way or the other, Carlos had a heart for helping people who needed a “leg up” not a “hand out”. His

vision included being able to expose younger generations to strong work ethics and the exciting world of

MGM1 Task 1: Human Behavior in Organizations Keepsake Technology Case Study

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IT. To this end, he and his team planned to submit grant applications for funding such a program. The

initial proposal was to serve ten Hispanic males, between the ages of 17 and 28. If successful, Keepsake

would pursue additional funding, research populations in need, and create a 501c3 non-profit side to

the business. This long-term plan not only supported the Keepsake company’s values but acknowledged

that, in some way, we are all swimming in one large pond: as individuals, but together.

MGM1 Task 1: Human Behavior in Organizations Keepsake Technology Case Study

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ATTACHMENT A

Picture of napkin, logo of original idea, February 27

MGM1 Task 1: Human Behavior in Organizations Keepsake Technology Case Study

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ATTACHMENT B

Additional Detail on Company Values

Value Base definition

Integrity Displays honesty and operates with strong ethics

Innovation Able to generate unique or clever ideas about a given topic or situation;

creativity in problem-solving

Balance Able to appropriately distribute time, talents, and weight to achieve

goals (work/life balance; lead and follow; listen and speak; use of

competition and collaboration, assertiveness, utilizes emotional

intelligence (feelings/thought), etc.

Diversity Acts with respect and appreciation for, and in consideration of,

differences among people (thinking style, personality, socio-economic

status, education, race, color, national origin, sex, religion, gender

identity, gender preference, disability, veteran status, age, etc.)

Service Actively looks for ways to assist others (team, department, company,

community and globally)

MGM1 Task 1: Human Behavior in Organizations Keepsake Technology Case Study

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ATTACHMENT C

Excerpts of Job Descriptions

Software Developer

General tasks: Develop, create, and modify general computer applications. Design or customize software

according to user needs, efficiency, and ability to interface with other platforms. Work individually and

collaboratively with systems analysts, programmers, and others to identify design and define project limitations

and capabilities.

Minimum Qualifications

Education: Bachelor’s degree in Computer Science or Software Engineering; OR 7+ years of experience in doing

development in software and hardware

Knowledge Groups: Computers and electronics, engineering and technology, English language, mathematics,

design.

Skills: Programming, systems analysis and evaluation, judgment and decision-making, complex problem solving.

Abilities: Deductive and inductive reasoning, problem sensitivity, oral expression and comprehension, information

ordering.

Work Styles and Context

Integrity-job requires being honest and ethical

Working well within group or team

Face-to-face discussions to receive and provide information

*************************************************************************************

***********************

Technical Recruiter

General tasks: Work with hiring managers and internal recruiters to identify staffing needs and establish effective

strategies to find, select, and retain global talent. Balance practical and creative sourcing through high engagement

and passion for product and people. Build and share knowledge with managers. Utilize HRIS to track candidate

pipeline and internal human capital. Ensure compliance with applicable law, ethics, and social-emotional learning.

Minimum Qualifications

MGM1 Task 1: Human Behavior in Organizations Keepsake Technology Case Study

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Education: Bachelor’s degree in Human Resources, Business or similar field; OR 2+ years of experience with

recruiting (either in-house or agency)

Knowledge Groups: Personnel and human resources, clerical, administration and management, English language,

customer and personal service.

Skills: Excellent communication (speaking, listening, documentation), critical thinking, service orientation, social

perceptiveness, judgment, and decision-making.

Abilities: Oral comprehension and expression, deductive reasoning, problem sensitivity, speech clarity and

recognition, inductive reasoning.

Work Styles and Context

Relationship building and maintenance

Updated knowledge of legal and regulatory environments

Face-to-face discussions to receive and provide information

MGM1 Task 1: Human Behavior in Organizations Keepsake Technology Case Study

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ATTACHMENT D

April’s notes about emotional intelligence

Whenever you encounter a situation that triggers strong feelings…

Understand your Feelings

How do I feel about this situation?

Where does that feeling coming from?

Have I experienced this feeling in this situation before?

Understand the Feelings of Others

Based on the other person’s actions and comments and other clues (facial expression, tone of voice),

what are they feeling?

Have I noticed them feeling this way previously, perhaps in a similar situation?

What might be causing them to feel this way?

Manage your Feelings

Accept your feelings: they are yours and they are valid.

Process your feelings: feel them and then deal with the situation.

What can I do to help me process my feelings? What steps can I take?

Give yourself permission to feel better, more positively, and optimistically about the situation.

Work with the Feelings of Others

Accept their feelings. They are theirs and they are valid. Other people’s feelings are not “wrong” or

“inappropriate”; they are just feelings.

What can I do to help the other person process their feelings? What steps can I take?

Take some time to help them work through their feelings before dealing with the situation.

MGM1 Task 1: Human Behavior in Organizations Keepsake Technology Case Study

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