Strategic Business Plan Report

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MONASH BUSINESS SCHOOL

MGBF3684 Business Strategy

Equal opportunity?

Dr Sarah Lindsay

MONASH BUSINESS SCHOOL

Human resources is a crucial point of intersection between

the broader society and business

(Cappelli & Yang 2010)

Assumptions of Superiority

• Assumption that human progress has been linear

– Assumption that a culture can be labelled “primitive” meaning  “backward” because it has roots in its historical past; or

– Assumption that new technologies, for example, represent cultural as well  as technological “progress”

• Assumptions of Universality

– Myth of projected cognitive similarity

– Does not accept that worldviews are different

– Assuming that “everyone is the same”

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Societal Culture  …  Workplace Culture 

Recognize the difference between

workplace culture and societal culture:

– Societal culture is relatively constant in the short‐term:  varies dependent on homogeneity

– Workplace culture is relatively moldable: ‘cultural  incubators’ (Caprar, 2011) 

Diversity challenges

• How do we define  diversity?

• How does it fit with our  industry / market?

• Why are we concerned  about diversity? – Problem?

– Performance?

– Equity and fairness?

 How do we implement diversity management?

 Diversity enlargement  Increasing the representation

of groups

 Diversity sensitivity through training

 Cultural audits

 Advisory panels

 How do we demonstrate and evaluate diversity?

Demographic change in organisations: ‘From’ Diversity ‘to’ Inclusion

Growing awareness of diversity

Building community of change agents

Systems and processes for integration

Diversity becomes (is?) mainstream = Inclusion

Society is diverse. Workplaces draw from society. Solution: Social inclusion at work

(Oswick & Noone,2014; Theodorakopoulos & Budhwar 2015)

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DU Press Millennial survey 2015 More than 7,800 Millennials in 29 global emerging and developed markets 

contributed their views to Deloitte’s fourth annual Millennial Survey. 

Millennials, in general, express little loyalty to their current  employers and many are planning near‐term exits,  according to Deloitte Touche Tohmatsu Limited’s fifth  annual Millennial Survey. 

• 44% of Millennials say, if given the choice, they would like to leave their current employers  in the next two years

• Millennials still want businesses to focus more on people (employees, customers, and  society), products, and purpose—and less on profits:

• 73 percent of Millennials surveyed believe that businesses are having a positive  impact. This was especially true in the emerging markets of Indonesia (98 percent),  Philippines (91 percent), India (90 percent), China (89 percent), and Mexico (89  percent).

• However, the highest number of respondents reporting a negative business impact  on society came from developed markets: Germany (66 percent), Belgium (59  percent), France (56 percent), Japan (55 percent), and Italy (44 percent)

Millenials

Gender equality  removing the barriers to entry for half the population

• Recruitment, selection,  development, retention

• Pay gap – Graduate salary

– experienced managers

• Quotas – Vic government strategy: 

compliance approach

http://www.mckinsey.com/global‐themes/leadership/a‐ceos‐guide‐to‐gender‐equality  http://www.theage.com.au/sport/appoint‐women‐or‐lose‐funding‐state‐crackdown‐on‐sports‐bodies‐20151224‐glupfa.html Read more: http://www.drive.com.au/video‐business/video‐businessday/myer‐ceo‐aims‐for‐diversity‐in‐leadership‐20151209‐47kvt.html#ixzz48IXKiVKy

MONASH BUSINESS SCHOOL

People

in groups

at work

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MONASH BUSINESS SCHOOL

The social aspect of employee behaviour:  connecting and comparing

• Feeling connected ‐ belonging ‐ contributes to self esteem

• Helps to answer “Who am I?” by comparing ourselves to  others – ingroups and outgroups

• ‘Others’ likely see us differently to the way we see  ourselves

• People want to be both included and distinctive

For example:  I want to belong to my team but not to the extent

that my individuality does’t matter.

MONASH BUSINESS SCHOOL

Social identity theory (SIT) (Tajfel 1974, Tajfel & Turner, 1979)

Definition of key terms:

• Social identity: An individual’s self concept in part derives from  collective identification:

a) perceived membership of social groups; and

b) the importance and emotional significance attached to the  membership (Hogg, 2001)

• Group: the perception by individuals that they are joined in  common category membership (Turner, 1982)

MONASH BUSINESS SCHOOL

Self categorisation theory

• Social categorisations: cognitive tools that  order and segment the social world  (stereotypes)

• Categorisations create mental models or  ‘hats’ of ingroups and outgroups that vary  in strength – social identities

• People have many different social  identities (hats).  We change hats according  to the situation we’re in

• An outgroup does not equate to conflict,  although it can result in conflict.  We need  outgroups to have ingroups

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MONASH BUSINESS SCHOOL

• Salience: which aspect of an individual’s identity is  activated in a situation (Brewer & Brown, 1998), ie,  which hat we wear.  Typically:

RACE  GENDER ETHNICITY  AGE

• Categorisations can result in being employees being  treated as belonging to groups that they don’t  themselves identify with.  This can lead to  discrimination

Categorisations can lead to discriminatory behaviour. Study  of British HCNs.  Examined factors that impact the decision  by a HCN to offer role information and social support to an  expatriate.  Participants were:

• most likely to offer role‐related information to  expatriate subordinates, then peers.  They were least  likely to offer role information to an expatriate   supervisor

• more likely to offer social support to American  supervisors than Indian supervisors

Varma, et al, 2011

HCNs and expatriates of different levels

Intersectionality (Van Buren III)

Gender

Sexuality

Religion

• Categorisations can also overlap and be inclusive: social identity complexity

• (Roccas & Brewer 2002)

• Example- Women matter: An Asian Perspective, Harnessing female talent to raise corporate performance

(McKinsey & Company 2013)

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• Considers a person’s relationship to an organisation

• A specific form of social identification (Ashforth & Mael, 1989

• When a person’s OID is strong, the deindividuate and act as a group member, not as an individual

• A person has multiple OIDs e.g., at the team, departmental, and/or organisational levels. Technical or professional identities are other examples

• Over identification (Vadera & Pratt 2013)

Social identities at work: Organisational Identification (OID)

Research into OID and employee engagement

OID can be a measure for employee engagement, which is  concerned with how connected employees feel to their workplace

Consequences of OID: . Increased knowledge sharing behaviour &

. Decreased intentions to leave

Antecedents of

OID: Skill- & social-based

perceptions of the supervisor

For employees to engage, they need to feel included

… and is directly related to the profitability of an organisation

Youtube clips from the blue eyes exercise run in Australia 2001:

https://www.youtube.com/watch?v=YnICq2uUu1o https://www.youtube.com/watch?v=ZmJy8jCAStY

Still relevant?

Audio from Radio National, 2010 http://www.abc.net.au/radionational/programs/lifematters/brown-eyes- blue-eyes-jane-elliott-on-racism/3044790

http://www.abc.net.au/news/2014-07-29/beyondblue-launches- campaign-against-subtle-racism/5631186

Jane Elliott’s approach to diversity training ‐ a ‘lived’ experience of racial discrimination

Originated in the USA in the 1960s.  It is powerful and confronting. It centres on behaviour based on categorising people into blue eyes and brown eyes.

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MONASH BUSINESS SCHOOL

Skills of the Global Manager

• Enables strategic opportunities

• Manages decentralized organisations

• Aware of global issues

• Sensitive to issues of diversity

• Competent in interpersonal relations

• Builds communities and networks

Why a Global Manager? Seeking Competitive Advantage

Multinationals have many sources of competitive advantage

– Economies of scale

– Larger talent pool

– Financial resources

– Larger markets

– Organizational innovations

– Global brand

• Global-scale efficiency and competitiveness

• National-level responsiveness and flexibility

• Cross-market capacity to leverage learning

… Sounds terrific.Very hard to do well ….

Strategic Capabilities (Theory v. Practice)

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Three Types of International HRM Issues

• Domestic ‐> international

• Multinational firms ‐> the host country  (subsidiary or affiliate)

• Domestic firms <‐ multinational firms

• Talent acquisition

• Recruiting challenges

HIRING MANAGEMENT

• Project division

• Relations with headquarters

GOVERNMENT CULTURE

• Local laws • Government relationships

• Organisational culture

• Tapping into local culture/s

International Human Resource Management

International HRM: a distinct environment

Managing across cultures

 Attracting talent

 Setting the right incentive structures

 New ways of organizing work

 Increasing employee autonomy

 Encouraging employees to be imaginative and  creative

 Facilitating learning on the job

 Crossing national boundaries

 Crossing cultures within national contexts

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Decision Making

Identify the  Problem or  Opportunity

Analyse Develop 

Alternative  Solutions

Select the BEST Solution

Translate the  BEST Solution Into Actions

Follow  up the  Action/s Taken

Critical Thinking Creative Thinking

Dealing with  Uncertainty

Critical & Creative  Thinking

Leadership Responsibility Sense

Negotiation Style

Critical Thinking

Who ?

How?

Making an Ethical Decision

(Santa Clara University, 2009)