Ch 13 Strategy and people

Leadership
HR management
Competency framework

Leadership
1. Trait Theories
2. Style theories
3. Contingency theories

Trait theories
Pertain to qualities of leader
● Visionary
● Interpersonal skill
● Motivation
● Attires
● Communication skills

Style /behavioral theories

● Leadership and influencing style of manager will affect the motivation
● Ashridge theories Tell, sell, consult join
● Likert theory
o Exploitative autocratic
Imposes decisions, never delegates, power culture, motivate by threats, do not encourage
teamwork
o Benevolent authoritative.
Imposes decision, never delegates, motivate by rewards, some time involve in problem solving.

o Consultative.
Incomplete confidence in subordinates, listen to them but control decision making, motivate by
reward and level of involvement and use ideas of subordinates.
o participative
democratic leader, complete confidence in subordinates, motivation by achieving goals, sharing
of ideas etc.
3 and 4 are more successful.

Contingency theory
● No right way to leading
 ● Leadership styles varies with situation
● Fiedler theory (PDM and PCM)

Modern approaches to leadership

Bennis theory

Transformational leader
Transactional leader
Transactional leader Transformational leader

Clarify goals and objectives Long term vision

Focus on control Climate of trust and empowerment

Solving problems Change the current situation

Plan organize and control Train coach and counsel

Defend existing culture Change the culture

Human Resource Management

● HR planning
● Job design
● Recruitment and selection
● Staff development
● Performance management and appraisal
● Reward management
● Motivation
● Team effectiveness
● Succession planning
● Legal and ethical issues regarding HR

Goals of HRM
● commitment (requires good motivation and leadership)
● competence (requires good recruitment, assessment, training and staff
development)
● congruence (requires good job design)
● cost effectiveness (this normally comes from the achievement of the others).

Job Designing
JD means
Job Description-all task person is supposed to and his career path
person specification- cover qualification and experience required by the person.
Approaches to Job Design
Scientific management By FW Tyalor
● Highly repetitive specialized task
● Workforce focus on one single task
● Junior or worker positions
● Good motivation.
● Scientific job roles
● Strict controls
● High target high rewards
Job enrichment
● Less repetitive specialized
● Mostly managerial or senior management involving decision making
● Options includes rob rotation and job enlargement
● Self planning involved.
● Adding task to control employees and adding responsibilities.
● Performance is improved due to increased responsibilities
● Self planning involved.
● High motivation
Japanese Management
● TQM
● JIT
● Workforce flexibility

Business Process Re-engineering

● Employee as asset rather cost
● Degree of autonomy
● Extensive use of IT
Factors to consider when choosing job design
● Organizational goals
● Need for staff motivation
● Need for control over staff
● Ethical issues
● Legal issues

Staff Development
● Increased knowledge and skill through training and skill
● Training cost as investment
● Independence of employee
Employer Employee

Increased productivity Knowledge and skill

Quality Promotion and career planning

 Motivated workforce

Succession planning

Disadvantages
Employer Employee

Time and cost Extra time and efforts

Person may not be willing to learn Routine work piles up

Might leave after training

Succession planning and career management

Succession planning: planning to ensure continuity in organization leadership by identifying and
development employees at all level of management.
Done through career management

Career management
Planning of employees promotion within the organization based on need and person capabilities

Benefits of succession planning

● Continuity of future leadership
● Identification and development of high potential managers
● Increased motivation and production
● Structured training can be planned and performance measured

Human resource development

Systematic approach Integrated approaches

Old approach New approaches

Focus on need Create learning culture

Often off the Job Happen within the organization

Formal Uses coaches and mentoring

Can be employee driven Uses competency framework

Need a practicable environment HRM is closely related with other activates

Competency Framework
● Competency: ability to perform work upto a certain acceptable standard.
● Competency framework. A benchmark to judge whether you are professionally fit and able
(competent)
● Competencies required from accountant
o Intellectual skills
o Technical skills
o Personal skills
o Communication skills
o Business knowledge/management skills
● Advantages of competency framework
o Clear standard are defined
o Actual competency level can be measured
o Education and training is given according to the gaps
o Add value to overall business
o Grooming and growth
● Process for competencies
1. Ability required by the job holder to do the job
2. Establish performance criteria
3. Actual performance
4. Measure actual performance
5. Take corrective action for deviations

Organizational learning
● Learning organization: culture of continuous challenges and searching for improvement through
knowledge management and HR development.
● e-learning- Use of interactive software.

Knowledge management
● KM is about how to acquire, share retain and use information, knowledge and experience
● How to use it and build it
● It may be explicit-formal
● It may be implicit- informal

Knowledge work
It is not conventional work about production etc but about intangible assets.
Solving complex problems
Competitive advantage

Role of knowledge worker

Ability of access corporate data
Roving across departmental boundaries
Project based role
Massive depth expertise

The end