Real Organization & Organization Design Project
Starasr
PP_6Anderson.pptxOrganization Design: Creating Strategic and Agile Organizations
Donald L. Anderson
People
Chapter 6
Traditional Approaches to People Practices
1950s: Companies no longer brought in outside talent. Rapid growth demanded that organizations better identify skilled talent and quickly train employees.
1970s-1980s: Deregulation and greater global competition made it difficult for businesses to predict what skills would be needed.
1990s: Outside hiring increased as organizations looked externally for skilled talent
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Anderson, Organization Design
SAGE Publishing, 2019
Traditional Approaches to People Practices
By the 2000s, many organizations stopped talent planning and internal training programs
Structure-centric approach to people
Today’s HR practices are generic and interchangeable in most organizations
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Anderson, Organization Design
SAGE Publishing, 2019
Traditional Approaches to People Practices
Boudreau and Ramstead’s poor approaches to talent decisions:
Compliance
Follow fads and fashions
Focus on equality
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Anderson, Organization Design
SAGE Publishing, 2019
Compliance: Decisions based on threats of legal action or regulatory requirements
Follows fads and fashions: Decisions based on popular approaches and not what makes sense for the organization
Equality: Little difference between practices for high and low performers
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A Strategic Approach to People Practices
“Where does our strategy require that our talent and organization be better than our competitors’ to work”
“Where do our talent and organization systems need to be different from competitors’ and why?”
Where would an improvement in the quality of talent and organization make the biggest different in our strategic success?”
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Anderson, Organization Design
SAGE Publishing, 2019
A Strategic Approach to People Practices
“If we shifted our strategic goals, which of our employees or organizational structures would have to change the most?”
When the strategy changes, how should you change your talent and organization?”
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Anderson, Organization Design
SAGE Publishing, 2019
People strategy affects business strategy
Business strategy is determined by talent considerations
Talent considerations drive human capital management practices
Organizations with a strategic approach to talent perform better
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Anderson, Organization Design
SAGE Publishing, 2019
A Strategic Approach to People Practices
LO 6-1: Why the People point of the STAR must be customized to the business strategy
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Anderson, Organization Design
SAGE Publishing, 2019
A Strategic Approach to People Practices
LO 6-1: Why the People point of the STAR must be customized to the business strategy
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A Strategic Approach to People Practices
Four characteristics:
Driven by and fully integrated with business and talent strategies
Managed as a core business process
Planning cycle matches the business strategy and operational timelines
Engrained with a talent mindset throughout the organization
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Anderson, Organization Design
SAGE Publishing, 2019
A Strategic Approach to People Practices
Three actions taken by following a strategic talent approach:
Understanding key positions for differentiation
Identifying a talent pool of high potential employees
Creating an aligned architecture of HR programs
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Anderson, Organization Design
SAGE Publishing, 2019
Key Positions and the Differentiated Workforce
Beatty and Schneier (1997)
Operational excellence
Product leadership
Customer intimacy
Miles and Snow (1984): Building internal human resources, with emphasis on hiring at lower levels and providing substantial training and development
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Anderson, Organization Design
SAGE Publishing, 2019
Operational excellence: Employees should be selected for process competence
Product leadership: Performance measures should be on industry recognition, sales on new products, customer growth, etc.
Customer Intimacy: Employees should be active learners and able to network
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Key Positions and the Differentiated Workforce
Generic strategy is an option for organizations in the early stages of differentiating the workforce
Suggests that there are only a few HR strategies
All organizations pursuing a certain goal would have the same HR practices
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Anderson, Organization Design
SAGE Publishing, 2019
Key Positions and the Differentiated Workforce
Becker, Huselid, and Beatty (2009): “Differentiating the workforce strategy ultimately means investing disproportionately in certain employees and groups of employees, based on their strategic roles.”
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Anderson, Organization Design
SAGE Publishing, 2019
Key Positions and the Differentiated Workforce
Different choices are made for those in strategic roles
Employee selection
Rewards
Performance management
Employee development
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Anderson, Organization Design
SAGE Publishing, 2019
“A” Positions and Pivot Roles
Topgrading: The practice of hiring and retaining only A players – the people in the top 10 percent of talent available”
Significant resources are required to recruit, compensate, and develop top performers
Place best employees in strategic positions, good performers in support positions
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Anderson, Organization Design
SAGE Publishing, 2019
LO 6-2: How to create differentiated workforce plans and unique people strategies by understanding “A positions” and pivot roles
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“A” Positions and Pivot Roles
A Positions: Strategic
High strategic impact and performance is easy to observe
B Positions: Support
Do not make a direct strategic contribution but may assist A positions
C Positions: Surplues
No strategic importance, but are necessary for organization
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Anderson, Organization Design
SAGE Publishing, 2019
“A” Positions and Pivot Roles
“A” position are also known as “Pivot Roles”:
Important to a company’s ability to execute on its strategy
High degree of performance variability
High level of expertise
Less than 15% of workforce
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Anderson, Organization Design
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Talent Identification and Planning
Talent Identification:
Job Competencies
Personality inventories
Assessment of past performance and potential
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Anderson, Organization Design
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LO 6-3: How to design strategic talent practices such as career development, learning and development, and performance management to support the organization design
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Talent Identification and Planning
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Anderson, Organization Design
SAGE Publishing, 2019
LO 6-3: How to design strategic talent practices such as career development, learning and development, and performance management to support the organization design
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Talent Identification and Planning
Definition of high potential:
Role: Potential to move into top or senior management roles
Level: Ability to move and perform two positions or levels above current role
Breadth: Capability to take on broader scope and a leadership role and develop long-term potential
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Anderson, Organization Design
SAGE Publishing, 2019
Talent Identification and Planning
Characteristics of people with high potential:
Motivation
Curiosity
Insight
Engagement
Determination
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Anderson, Organization Design
SAGE Publishing, 2019
Talent Planning, Pipelines, and Talent Pools
Four recommendations for talent pipeline:
Make and buy to manage risk
Adapt to the uncertainty in talent demand
Improve the return on investment in developing employees
Preserve the investment by balancing employee-employer interest
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Anderson, Organization Design
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Career Development
Classic View: Stages of the Career
Growth, fantasy, exploration
Entry into world of work
Basic training
Full membership in early career
Full membership, mid career
Midcareer crisis
Late career
Decline and Disengagement
Retirement
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Anderson, Organization Design
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The Contemporary View: Boundaryless Careers
Boundaryless career: Transcends any individual job, occupational function, profession, and organization
Career lattice: Employees can develop by gaining a diversity of experience
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Anderson, Organization Design
SAGE Publishing, 2019
The Contemporary View: Boundaryless Careers
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Anderson, Organization Design
SAGE Publishing, 2019
The Contemporary View: Boundaryless Careers
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Anderson, Organization Design
SAGE Publishing, 2019
Talent Development and Learning Programs
New Forms of Learning:
eLearning
Informal learning
Social learning
Development through experiences
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Anderson, Organization Design
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Performance Management
Four goals:
Defines and produces agreement on what type of performance is needed
Guides the development of individuals
Motivates individuals to perform effectively
Provides data to the organization’s human capital information system
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Anderson, Organization Design
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Performance Management
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Anderson, Organization Design
SAGE Publishing, 2019
Performance Management
Principles of designing effective performance management process:
Get the right people involved
View performance appraisal as part of a complex system
Learn from implementation
Remain flexible
Be patient
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Anderson, Organization Design
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Strategic Analysis and Designing the People Point
A tool to help organization the designer’s priorities
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Anderson, Organization Design
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Global Considerations
Organizations must manage a globally diverse talent pool
Balancing local needs with global consistency
Approach to global talent management is defined but an organization’s corporate strategy and structure
Different cultures approach talent differently
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