...Development, Emeritus Copyright © President & Fellows of Harvard College Align employees to the strategy: Four HR processes 1. Create Strategic Awareness Communicate Communicate Communicate 2. Align Personal Goals Personal Scorecard Make Strategy Everyone’s Job 3. Provide Necessary Skills Strategic Job Families Strategic Readiness 4. Align Personal Incentives Variable pay Team based You need a formal process to improve workforce readiness. Strategy should be linked to existing HR programs for performance management. How do we align employees to the strategy? 1. Create Strategic Awareness Communicate Communicate Communicate 2. Align Personal Goals Personal Scorecard Make Strategy Everyone’s Job 3. Provide Necessary Skills Strategic Job Families Strategic Readiness 4. Align Personal Incentives Variable pay Team based Communicate “seven times seven different ways” to make strategy everyone’s job Personal relevance brings the strategy to life Sustained communication uses different channels to get the message across • Leadership meetings • CEO random visits to employees • Dear Colleague Quarterly Letter in Mellon News • Learning lunches & informal discussions • Intranet • Working groups facilitated by HR • Staff briefings Source: Presented by Jack Klinck, Vice Chairman, Mellon Europe at BSCol European Summit, June 2005 4 VW do Brasil CEO demonstrates commitment to using the strategy map and scorecard...
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...Personal Values According to the article written by Dennis Jaffe, & Cynthia Scott, CEO Robert Haas noted his philosophy in an interview in Harvard Business Review: "We've learned...that the soft stuff and the hard stuff are becoming increasingly intertwined. A company's values-what it stands for, what its people believe in-are crucial to its competitive success. Indeed, values drive the business"(1). “Managers' attitudes and behaviors are built upon their personal value systems (PVS), Knowledge about the structure of management's PVS assists in understanding the attributes of corporate decision making”(2). In the past managers use to tell employees what to do and stand over them to make sure they did what they were told. Today managers are in a position in which they have to guide, train, and support, motivate, and couch employees (3). Because of this role managers have, their values play an important part in leading the team to accomplish the values expected from the company and their customers. In this paper the author will identify her values as determined by the Williams Institute Ethics Awareness Inventory self-assessment, how these values align with the values of Kudler Fine Foods, and how this would affect her performance as the manager of this organization. My Values According to Williams Institute Ethics Awareness Inventory self-assessment, this authors Ethical Profile is most closely aligned with obligation and least closely aligned with results. This...
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...organizations, it's hard to remember a time when non-managerial employees were kept in the dark about strategy. We're often reminded about the corporate mission statement, we have strategy meetings where the "big picture" is revealed to us, and we're even invited to participate in some business decisions. We're also kept aware of how our day-to-day activities contribute to corporate goals. This type of managing hasn't been around forever. It's an approach called Management by Objectives (MBO), a system that seeks to align employees' objectives with the organization's goals. In this article, we'll look at how you can use MBO to motivate and engage your team. About the Tool Peter Drucker developed MBO, and published it in his 1954 book, "The Practice of Management." It received a great deal of attention, and it was widely adopted until the 1990s, when it seemed to fade into obscurity. The idea may have become a victim of its own success; it became such an integral part of modern business practice that it may no longer have seemed worthy of comment. Today, it has evolved into the Balanced Scorecard, which provides a more sophisticated framework for essentially the same process. Advantages and Disadvantages Using Management by Objectives with your team offers several benefits. First, MBO ensures that team members are clear about their work and how it benefits the whole organization. It's easy to see why this type of managing makes sense: when the individual parts of an organization...
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...Value Alignment BUS/475 Value Alignment Intro – still need Personal and workplace values Xerox Fuji started out as a small and focused company that a vision that would not die. Looking back from when the company began in 1962 it was clear Xerox Fuji knew the future would consist of hard work and continual forward movement. Xerox Fuji started as a joint venture in Japan and envisioned the company expanding globally. Today Xerox Fuji products are global because of the company’s hard work and dedication. Xerox Fuji is always reaching to improve their product lines every day. This forward thinking shows deference in today’s world. To stay in business, companies should have the flexibility and ability to keep up with changes. The values of respect, hard work, dedication and commitment can be applied to an individual and company with a successful outcome. Individual alignment Values drive and motivate behaviors and actions. Each individual has a set of core values, which could be as common as punctuality, self-reliance, dedicated hard worker, loyalty, and harmony, to name a few. For example, one of values is honesty, which motivates me to be straightforward in my personal and professional lives. Through my actions I choose not to cheat, lie, steal, or deceive. It is important my actions and behaviors show that I have a strong and trusting character. In analyzing the alignment between...
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...Explain why it is important for a company to define its values explicitly. Mission statements, a formal summary of the vision, objectives and values of a company, have become increasingly popular around the world. With the correct formulation and implementation, a mission statement can create clear vision of a company's main objectives. This can facilitate strategic direction of how a company moves from its present situation to its desired position. (Mirvis, Googins & Kinnicutt, 2010) Effective mission statements also have the ability to engage employees, and evoke an emotional response. With the right leaders, this response can be used as a tool to guide the behaviour of employees. (Campbell, 1997) "Vision without action is a daydream. Action without vision is a nightmare", as this Japanese proverb suggests, mission statements can only be seen as a beneficial tool if the actions of a business complement its vision. Whilst mission statements are prominent in the corporate world, there is much debate about the process involved, and what one is to entail specifically. Collis and Rukstad (2008)(as cited in Khalifa, 2011) define the mission statement as "the underlying motivation for being in business in the first place." Based on this definition, the purpose of a mission statement is to identify the core values of why the business exists. However, the mission statement goes beyond that of just identifying company values. Identification (the why) is just the first process of...
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...Building a Vision-Guided, Values-Driven Organization By Richard Barrett PART I: WHY VALUES ARE IMPORTANT Organizational values are more important today than at any other time in history because the personal and societal context within which business operates is changing. Who you are as an organization, and what you stand for, are becoming just as important as what you sell. The values that an organization lives by are important to a variety of stakeholders: • Society: Organizational values need to meet society’s expectations with regard to environmental stewardship and social responsibility. Failure to support society’s values can have a very significant impact on financial performance.1 Shareholders: Organizational values need to meet the needs of the new breed of shareholders that are only investing in companies that: (a) meet socially responsible investment criteria; and (b) compete to be the best companies to work for, or other quality awards. Potential employees: To attract the best people, the organizational values need to meet the needs of potential new employees who are choosing to work in organizational cultures that align with their personal values. Existing employees: To retain the best people, the organizational values also need to meet the needs of existing employees and support them in finding personal fulfillment at work. • • • Employee Fulfillment Whilst attention to all stakeholders needs are important, the most critical are: (a) How existing employees...
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...Values and Ethical Decision Making MGT/521 September 10, 2012 Value Systems and Ethical Decision Making Ethical systems combine different values, morals, and principals. Values are character traits that define individual behavior. Morals are the ideals that separate right from wrong. Principals are ideals that put values and morals into action. Together each of these components influences decisions on a business and personal level. Companies use codes of ethics to dictate employee behavior when dealing with customers, vendors, investors, and coworkers. Codes of ethics incorporate characteristics of individual value systems, including honesty, integrity, trust, and fairness. The four-step process that governs ethical behavior includes character, obligation, results, and equity; these four traits also known as CORE. The Williams Institute Ethics Awareness Inventory provides insight into individual value systems. An analysis of each individual value system provides confirmation that personal values are often the foundation for establishing organizational values. A clear understanding of these values makes ethical reasoning more effective. During the hiring process personal perspectives and preferences often go unchecked. A balanced approach is necessary when seeking to fill a vacant position. Although an individual’s ethical perspective weighs heavily to one of the four traits, evaluation of the remaining three perspectives is mandatory when making a decision...
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...Solutions to Chapter 1 The Firm and the Financial Manager 1. real executive airplanes brand names financial stock investment capital budgeting financing 2. A firm might cut its labor force dramatically which could reduce immediate expenses and increase profits in the short term. Over the long term, however, the firm might not be able to serve its customers properly or it might alienate its remaining workers; if so, future profits will decrease, and the stock price will decrease in anticipation of these problems. Similarly, a firm can boost profits over the short term by using less costly materials even if this reduces the quality of the product. Once customers catch on, sales will decrease and profits will fall in the future. The stock price will fall. The moral of these examples is that, because stock prices reflect present and future profitability, the firm should not necessarily sacrifice future prospects for short-term gains. 3. The key advantage of separating ownership and management in a large corporation is that it gives the corporation permanence. The corporation continues to exist if managers are replaced or if stockholders sell their ownership interests to other investors. The corporation’s permanence is an essential characteristic in allowing corporations to obtain the large amounts of financing required by many business entities. 4. A sole proprietorship is easy to set up with a minimum of legal work. The business...
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...proprietorship is not distinct from the individual who operates the business. Therefore, the sole proprietor (i.e., the individual) directly owns the business assets, manages the business, and is personally responsible for the debts of the sole proprietorship. 2. What do we mean when we say that corporate income is subject o double taxation? Double taxation means that a corporation’s income is taxed first at the corporate tax rate, and then, when the income is distributed to shareholders as dividends, the income is taxed again at each shareholder’s personal tax rate. 3. Explain why each of the following may not be appropriate corporate goals. a. Increase market share b. Minimize costs c. Underprice any competitors d. Expand profits Increased market share can be an inappropriate goal if it requires reducing prices to such an extent that the firm is harmed financially. Increasing market share can be part of a well-reasoned strategy, but one should always remember that market share is not a goal in itself. The owners of the firm want managers to maximize the value of their investment in the firm. Minimizing costs can also conflict with the goal of value maximization. For example, suppose a...
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...Value Alignment Introduction British Petroleum (BP) is an oil company founded in 1909. They merged with Amoco Corporation in 1998 and became one of the largest oil companies in the world ("Encyclopedia Britannica", n.d.). Working in the oil industry for so long, BP has encountered many issues that have tested the organizations values. Analyzing those values and comparing them to personal values can lead to a better understanding of the organizations actions. Personal and Workplace Values Values are beliefs rooted deep in our subconscious that influence peoples actions and decisions (Gibb, 2010). During childhood, a beginning set of values are derived from interaction with parents, teachers, coaches, and other influential figures. As one matures, critical thinking, and life experiences may change some of these values. However, many of the values learned as a child stay in the subconscious and serve as the basis for many decisions as an adult. Many adults tend to live their lives according to their set of values. Decisions are made according to what feels right or whether it is “the right thing to do.” Some may think their values are universal, but it is important to understand the diversity in values and not become outraged or angry when values held sacred are challenged or violated. Companies establish a set of values or ethics to help ensure the company operates properly and is profitable. These values or ethics are guiding principles that help employees make important...
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...Value Alignment paper James Lee, Rekima Malvo, Brent Davis, Ruby Afamasaga BUS/475 February 24, 2014 William Stevenson Value alignment is the idea of making sure that everyone in the organization from senior management down to hourly employees is operating on the same page. Because different people have different values it can create weaknesses in an organization by damaging group dynamics and creating unhealthy conflicts which can escalate over time (Green, 2006). PepsiCo is a company that is committed to delivering sustained growth through empowered people, acting responsibly, and building trust among its employees and customers. This paper will take PepsiCo and analyze the origin and subsequent evolution of personal and workplace values. It will explain how individual values drive actions and behaviors and analyze the degree of alignment between Pepsi’s stated values and its actual plans and actions. Finally, we will analyze the degree of alignment between personal and organizational values as reflected by PepsiCo’s plans and actions. Personal and Workplace Values Our personal values derive from our experiences, personal aspirations, culture, society, and some values are learned and passed down through the generations. Our values, in a sense, drive our actions which result in if and how we accomplish things. Values are important for not only individuals, but organizations as well. Organizational values should be directly connected with personal values. Organizations...
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...Organisations that build strong value driven cultures frequently achieve continuous high performance. To what extent is your decision making recognisably based on your organisational core values? Core values provide a cultural norm, that informs the essence of a value driven organisation, connecting the individual to the corporate soul. Successful organisations have an implicit strength in taking advantage of the goodwill that cultural values engender. Learning to tap the improvement potential by making core values work for your company contributes significantly to the sustainable long tail. Building a Vision-Guided, Values-Driven Organization Richard Barrett is the Managing Partner of Richard Barrett and Associates and creator of the Corporate Transformation Tools®. He has written a powerful article on values driven companies. Barrett believes that organizational values are more important today than at any other time in history because the personal and societal context within which business operates is changing. Who you are as an organization, and what you stand for, is just as important as what you sell. The values that an organization lives by are important to a variety of stakeholders: Societal: Organizational values need to meet society’s expectations with regard to environmental stewardship and social responsibility. Failure to support society’s values can have a very significant impact on financial performance. Shareholders: Organizational values need to meet the needs...
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...Executive Summary After being founded in 1969 in France, Sephora was expanded internationally and opened its first store in Toronto, Canada in 2004. Sephora is a leader in providing customers with a variety of high-quality beauty and wellness products and well-known brands. Sephora has a human relations managerial strategy that focuses on teamwork and company loyalty. Using a combination of base pay, indirect pay and team-based performance pay, Sephora’s compensation strategy aligns well with its chosen managerial strategy. Sephora also has a clear understanding of the different structural and contextual variables and how they must align with their managerial strategy. They take care to ensure that these variables are linked with their human relations strategy. By doing so, Sephora is also able to understand its own needs as well as what behaviours, and mix of compensation to generate these behaviours, is required to achieve its goals. In order to produce the behaviour that is necessary to achieve an organization’s goals, the company needs to be aware of the rewards they are offering their employees and whether the employees find these rewards motivational. Sephora, a leader in compensation in their industry, understands what type of rewards encourages their cast members to produce results, and ensures that these rewards are communicated and visible to the workers. While having a successful team-based reward program, Sephora needs to look at improving its individual rewards...
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...Personal Values When one thinks of values the first thing that probably comes to mind is something of great importance held with high regard. In Merriam-Webster Online Dictionary (2010) values are defined as “individual or culture beliefs”, and something of “relative worth or importance.” There are various types of values such as “ethical/moral, social, and aesthetic values” that play apart in how each individual conducts them self. However, it is one’s personal values that direct an individual in making decisions, especially those in regard to right and wrong. In the corporate world peoples personal values play an essential role in the choice’s they make. Using the Williams Institute Ethics Awareness Inventory Assessment results the author seeks to determine what conclusions can be in matters such as personal values, how they align with the values of Kudler Fine Foods, and how these values would affect an individuals work performance. The Williams Institute Ethics Awareness Inventory Assessment (2010), concluded that the author’s values are “most closely aligned with obligation.” Obligation is described as “an individual’s duty to do what is morally right” (Williams Institute, 2006). The author is morally bound to do the right thing. When given a task the author accepts it as a personal responsibility to complete correctly, within a given time frame, and with the companies best interest in mind. If assigning a task the author would expect others to proceed in a manner...
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...business and a brand that is guided by strong values.” Marriott International, Inc. (1996 – 2014). Now almost 90 years later, Marriott is a leading hotel chain operating in 70 countries, with over 4000 properties. Strategic planning, community involvement, responsible business principles, and environmental awareness are the characteristics that have made Marriott successful. Analyzing our personal and workplace values will help explain how these coincide with our actions and behaviors. This will also help to analyze the alignment between our values in comparison to the values and behaviors of Marriott. Last this process will help show if the values and behaviors of Marriott are expressed in the plans and actions of the organization. The values learned from my parents are solely responsible for my current personal values; but not completely. Values are absorbed by the core consciousness of a person, and are modified by the physical environment these influences include school, friends, society’s beliefs, but the core remains the same spiritual self. I have been provided with a Christian influence that I thank god for daily. Through sports I learned team work as well as individual responsibility, while my brother taught me the fun of competition. Over the last three decades I have not observed a difference between my personal and workplace values. I have listed those values that I share with J.W. Marriott. Family, Honesty, Personal development, Ethical practice, and Self-Respect...
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