Human Resource Management (HRM)

Week 5: OB & HRM - Human Resource Management

• Human resource management attracts, develops, and retains employees, enabling them to meet organizational goals.
• There are three main objectives of HRM:
  • Providing qualified, well-trained employees
  • Maximizing employee effectiveness
  • Satisfying individual employee needs (compensation, benefits, advancement, job satisfaction)
• Key decision areas of HR comprise of:
  • Recruiting and Staffing
  • Training and Development
  • Performance Management
  • Compensation and Benefits
  • Safety and Compliance
  • Talent Management
  • Labour Relations

Role of the CHRO

• CHROs drive business results

• A CHRO acts as a board's leader of human capital by planning and supporting CEO succession

• A CHRO can build shareholder-supported executive compensation and respond to external trends

• CHROs create the talent strategy by ensuring critical role staffing and designing talent management programs

• CHROs function as enterprise change leaders; they challenge the status quo and plan strategic enterprise changes

• They manage stakeholders and advocate for employees

• CHROs drive culture and purpose by linking purpose to culture and measure and communicate culture

• CHROs hold leadership accountable for cultural adherence

• CHROs act as trusted advisors and coaches, advising the CEO and maximizing senior team effectiveness

• CHROs coach and develop key enterprise talent

• CHROs develop Business Strategy by shaping and influencing business strategy and partner with executive peers

Organizational Structure

• Organizational structure is a visual diagram describing what employees do, to whom they report, and how decisions are made
• Chain of command specifies who reports to whom
• Departmentalization is a system of grouping teams/employees by similar roles
• Span of control defines who reports to whom and aligns tasks
• Centralization specifies where the decisions are ultimately made

Organizational Culture

• Culture is the tacit social order of an organization
• Strategy offers logic for company goals and orients people, culture expresses these goals through shared values, beliefs, and norms.
• Levers for evolving a culture:
  • Articulate the aspiration
  • Select and develop leaders who align with the target culture
  • Utilize organizational conversations to underscore the importance of change
  • Reinforce the desired change

Leadership Styles

• Pacesetting - "Do it my way"
• Commanding - "Do it because I say so"
• Visionary - "Let's remind ourselves of the larger purpose"
• Affiliative - "People first, task second"
• Democratic - "Let's work it out together"
• Coaching - "Let me help you develop"

Week 7: Operations Management & Digital Strategy - Operations Key Terms

• Supply Chain Management (SCM) plans and manages activities like sourcing, procurement, conversion, and logistics
• Logistics manages acquiring, storing, and transporting resources to their final destination
• Quality Management System (QMS) formalizes processes, procedures, and responsibilities to achieve quality policies and objectives

Operations Big Ideas

• Total Quality Management (TQM) is continually detecting, reducing or/and eliminating errors, streamlining supply chain management, improving customer experience, and ensuring employees are up to speed with training
• Six Sigma employs statistical and data-driven processes for identifying and correcting defects
• Lean management practices improve efficiency by eliminating waste

Porter’s Value Chain

• A visual framework to assess a product

Digital - Key Terms

• Big Data is a discipline studying data storage, analytics/AI, data processing, and business decision-making.
• Data arrival occurs in real-time via clickstreams, transactions, social media, and sensors
• Analytics uses math and stats to cluster, segment, score, and predict scenarios
  • Descriptive answers - What happened?
  • Diagnostic answers - Why did it happen?
  • Predictive answers - What is likely to happen?
  • Prescriptive answers - How can a particular outcome be made more likely?
  • Cognitive answers - What is the best action to take?

Digital - Big Ideas

• Artificial Intelligence (AI) applies advanced analysis and logic to interpret events, support decisions, and automate actions.

  • Natural language processing, Machine Learning, Computer Vision, and Robotics are AI capabilities

• Machine Learning is an algorithm that learns a model to make predictions

• AI analyzes records, makes assumptions, tests, and retests data autonomously.

• Predictive analytics, a subset of AI, uses human interaction to query data, identify trends, and test assumptions

Digital Business Strategy

• Optimization uses digital capabilities to reimagine current products and processes
• Transformation uses digital capabilities to develop new products and business models

Summary / Key Takeaways

• SCM is the planning and management of sourcing, procurement, conversion, and logistics activities that require coordination
• TQM focuses on continuous improvements and error reduction primarily in manufacturing and operations.
• SERVQUAL: evaluates quality in service delivery with tangibles, reliability, responsiveness, assurance, and empathy
• Porter's Value Chain breaks down how value is created and identifies opportunities for competitive advantage.
• AI, Analytics, and Big Data are essential for supporting competitive advantages

Week 8 - Marketing - Market Segmentation

• B2C
  • Behavioral segmentation is based on actual behavior or product usage
  • Demographic segmentation is based on factors like gender, age, income, and level of education
  • Psychographic segementation is based on state-of-mind issues
  • Geographic Segmentation is based on location
• B2B
  • Type of organization
  • Organizational Characteristics
  • Benefits sought
  • Buying Processes
  • Personal and Psychological
  • Relationship Intensity

Marketing

• Target Market Segmentation Criteria includes:
  • Size
  • Growth rate
  • Profit margins
  • Competition
  • Channel access
  • Continuity
  • "Fit"
• Positining Process includes:
  • Identifying a target market
  • Determine needs, wants, preferences & benefits
  • Examine competitors' characteristics & positioning
  • Compare product offerings with competitors
  • Identify a unique position
  • Develop a marketing program
  • Continually reassess

Marketing Continued...

• The image depicts the 4 P's of Marketing which are:
  • Product
  • Price
  • Place
  • Promotion
• It also details the product life cycle including, the phases:
  • Growth
  • Maturity
  • Decline
• It also details the diffusion of innovation
  • Innovators
  • Early Adopters
  • Early Majority
  • Late Majority
  • Laggards

Marketing Strategies

• The matrix details the pricing strategies:

  • Skimming - Premium
  • Economy - Penetration

• The image details the distribution channels diagram which includes:

  • Direct Channel System
  • Mixed Channel System
  • Indirect Channel System
  • Channel Intermediaries
  • Target Market Participants

Marketing Summary & Key Takeaways

• Marketing is more than advertising.
• Markets need to be segmented, and target markets must be selected.
• The Marketing Mix (4 Ps) is a framework to support businesses to consider the 4 elements of their offering.
• Branding (the identity of a company) & Positioning (how a brand wants to be perceived) influence consumers and must be considered.
• The Marketing Funnel represents the customer's journey.
• Marketing Services differs from Goods for several reasons.
• The same product can be marketed in different ways
• Pricing, promotion, and distribution must align with customer needs.
• A strong marketing funnel moves customers from awareness to purchase.
• Creativity and adaptability are key in marketing strategies!

Week 9: Innovation & Entrepreneurship - Entrepreneurship

• A way of thinking, reasoning, and acting that is opportunity obsessed, holistic in approach, and leadership balanced for value creation.
• The Entrepreneurial Process,
  • Idea Generation
  • Opportunity Evaluation
  • Planning
  • Company Formation/Launch
  • Growth

Opportunity Analysis

• Basic Questions:
  • Is there a sufficiently attractive market opportunity?
  • Is the proposed solution feasible from a market and technology perspective?
  • Can the organization compete and is there a sustainable competitive advantage?
  • Does the organization have a team that can capitalize it?
  • Does the risk/reward profile justify the time/money investment?
• Key Questions:
  • Can the concept be translated into a profitable venture?
  • How long to get there? (How to make money?)
• Critical Tests
  • Does the model meet the narrative test? (does the story make sense?)
  • Does the model meet the numbers test? (do the P&Ls work?)

Design Thinking

• The processes are:
  • Empathize
  • Define
  • Ideate
  • Prototype
  • Test
• The desired outcome includes viability (business), Innovation and feasibility (technical)

Lean Start-Ups

• Lean Start-ups include experimentation, customer feedback, iterative design, and big design upfront
• With Strategy, business models are hypothesis-driven rather than implementation-driven business plans
• New Product Processes include customer development that tests hypothesis rather than linear planning
• Metrics involve monitoring customer acquisition costs, customers lifetime value, viralness etc
• Failure is expected and pivoted rather than an anomaly that leads to excutive being fired

Agile vs. Waterfall

• Agile maintains a focus on the customer and uses constant feedback to complete improvements.
• The Agile process is iterative sprints with cross-functional participation
• Waterfall is a planned project

Business Plan

• An Executive Summary
• Industry, Company and Products
• Market Research & Analysis
• Economics of the Business
• Marketing Plan

Week 9 Key Takeaways

• Entrepreneurship is a way of thinking and acting with opportunity, evaluated by understanding the narrative and numbers
• Entrepreneurial Process: includes idea generation, opportunity evaluation, planning company formation/launch and growth
• Design and Lean Thinking is a systematic/ experimental/iterative approach towards innovation, creativity, and perfection
• Business Plans are lengthy

Week 10: Global Business & Citizenship - key Concepts

• Ages of Globalization (Jeffrey Sachs)
  • Paleolithic, Neolithic, Equestrian, Classical, Ocean, Industrial, Digital Age -Massive shifts have occurred recently not overall.
  • Current Challenges in the Digital Age include: -Inequality -Environmental crisis -Fragile peace.
• Solution can be made with an era of global cooperation and sustainable development.

Global Opportunity Assessment

• CAGE Framework analysis:
  • cultural: languages, ethnicities, religion, lack of connective social networks
  • administrative/ political: shared monetary, political associations, political hostilities, legal institutions
  • geographic: common boarders, bodies of water, remoteness, climates
  • economic: consumer incomes, costs and quality of financial/ human resources and knowlege

Global Strategy

• Sprinkler strategy
• Waterfall strategy
• Born Global strategy

Global Strategy: The Integration-Responsiveness Framework

• GLOBAL, One Size Fits All
• TRANSNATIONAL, Think global, Act local
• INTERNATIONAL, Home market focus, limited adaptation
• MULTIDOMESTIC, Every market is unique

Modes of Entry

• Direct & Indirect Exporting - creating & selling
• Licensing & Franchising - granting rights to products and processes
• Joint Ventures & Alliances - working collaboratively toward a common interest
• Wholly-Owned Subsidiaries (FDI) - investing in a new jurisdiction
• Each mode represents an increasing degree of risk

Cultural Awareness in Global Business

• culture: shared values, beliefs, customs, behaviors
• Tools to help analyzing culture
  • Hofstede's 6D model
  • Meyer's Culture Map

Cultural Effectiveness and Global Citizenship

• The communication earns respect and trust.
• Must be an adaptation of professional skills.
• Must retain personal comfort in a new culture
• Must support activism, humanitarianism, and global engagement.