Discussion Topic #3 Prompts

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Prompt #1:  What did you learn about organizations, and/or the behavior of individuals within an organization?  How do the ideas presented in Part Three (the Human Resource Frame) of the B&D textbook enrich your understanding of the ways in which organizations and the people working in them function?

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In this week’s reading, I learned that there are typically two sets of interests that apply to organizations: self-interests specific only to the needs of the organization and employee interests that apply to the needs of the individuals doing the work. In an ideal scenario, there would be a strong balance between these two. As it is stated in our text, “People and organizations need each other. Organizations need ideas, energy, and talent; people need careers, salaries and opportunities.” (B&D, pg. 122) Learning about the human resource frame meant learning about the competing demands that guide business decisions and the impact of those choices on organizational employees. It can be a complicated relationship. 

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Prompt #2:  How can you apply the concepts that you have learned about in the readings to your personal or organizational life?  Be specific.

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In my current position as a manager for Starbucks Coffee, the value of the human resource frame is evident on a daily basis. By understanding that employees are a valuable resource and not just tools used to achieve a goal, we are capable of accomplishing greater feats in more efficient and beneficial ways. As stated in our text, “people’s skills, attitudes, energy, and commitment are vital resources that can make or break an enterprise.” (B&D, pg. 122) When I communicate goals to my team, I work to present them in ways that deliver purpose and value to my workers. For example, when challenged to drive increases in sales, instead of framing it in terms of organizational value (more money), I work to let people know that by challenging our past performance we challenge ourselves to perform at a higher level than we have before. In so doing, we all gain knowledge, experience, and efficiency that aids our development while the increase in sales is simply an indicator of our successful growth as a team.

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Prompt #3:  List the reasons cited in the text (Chapter 7) as why managers persist in pursuing less effective strategies than those obtained through high involvement, high performance or high commitment management practices.  How have you experienced these organizational pressures in your own work life (please elaborate)?

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In Chapter 7 of our text, we learn about Theory X assumptions, the influence of financial decision making, and the challenge with investing. Theory X assumptions are based upon the notion that “subordinates are passive and lazy, have little ambition, prefer to be led, and resist change.” (B&D, pg. 125) I am sad to say that, over the years, I have seen this theory applied in force. In fact, I recall meetings from my earliest days in management that seemed to focus on Theory X assumptions as a hard reality. The challenge being that, if you really believe them, these assumptions seem to support themselves. My managers at the time believed strongly that employees could not be trusted to lead themselves. In a frighteningly real way, this made them feel more valuable as a leader because their presence was critical to operations. The more they diminished the perceived ability of their workers, the more it seemed necessary for them to dictate every step of the process of getting work done. It was incredibly frustrating.

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The influence of financial decision making also drives less than effective leadership choices. While it is necessary for businesses to operate with an awareness of financial performance, paying singular attention to financial impact when leading teams can often lead to poor long-term performance. Just because a decision leads to a reduction in operational cost, does not mean that those savings will translate to organizational value. In one of my past jobs, our day to day operations had to be managed with a focus on labor cost percentages. That is to say, the company had a goal of spending no more than 16% of their daily sales revenue on the cost of staffing for that day. In an effort to reward managers who maintained this goal, monetary incentives were offered in correlation with the labor cost savings. In essence, he less labor you spent, the bigger the bonus for the manager. As a result, managers would significantly understaff their stores in order to capture these incentive payments. Unfortunately, understaffing lead to employee burnout, high turnover, and poor customer experiences. In the long run, sales declined and store performance suffered.

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One of the other challenges that ineffective managers face is the fact that they are unwilling to invest in the development of their employees. Building a high-functioning team is not something that can be done overnight. It is necessary for leaders to take the time to understand the strengths and weaknesses of their team and each member thereof. Often, it seems too daunting of a task to make this investment, and leaders will simply adopt a high turnover approach to staffing – hoping that they will eventually find members that can perform to an acceptable level.

 

Prompt #4: As outlined by Bolman and Deal (Chapter 7), although every organization with productive people managementhas its own unique approach, most of their strategies can be captured in six general strategies.  What are these six basic human resource strategies?  How have you experienced these general strategies in your own work life (please elaborate)?

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According to our text, the six basic human resource strategies are as follows: build and implement an HR strategy, hire the right people, keep them, invest in them, empower them and promote diversity. (B&D, pg. 142) I am fortunate enough to say that I currently work for a company that executes these strategies well. In terms of hiring the right people, the company designs interviews that identify candidates who have a strong cultural fit with the organization. While many companies staff jobs based on skills and experience, Starbucks seems to focus on finding people who share common values and have the potential to perform well when properly supported. Once hired, keeping these people becomes a straightforward task. Because candidates are chosen with a focus on their values, Starbucks works hard to deliver an employment experience that aligns with those values. The company invests in ongoing training, self-driven development plans, and external development opportunities (much like the College Achievement Plan with ASU).  The company understands that the largest element of value that they have resides in the people who work for them. The company empowers individuals to act with some degree of autonomy – trusting that our shared values will lead to positive decisions. And, in regard to diversity, Starbucks operates all over the world – recruiting individuals with passion regardless of age, gender, race, ethnicity, etc. Great people are great people – period.

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Prompt #5:  Throughout your progression in the Organizational Leadership program, you have had a number of courses that include content complementary to the human resource frame – perhaps more connections here than with any other frame (in your various leadership courses – and courses like OGL 220 Behavioral Dynamics in Organizations, or BIS 343 Social Processes).  Please highlight what you would consider to be two of the most important things (ideas, concepts, theories, models, processes, skills, etc.) that you have learned in previous coursework that you can relate to the Human Resource frame.  Briefly discuss each key learning, the course where you learned it, and its connection with the Human Resource frame.

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It is true that the concepts of the Human Resource frame seem to surface in many of our leadership courses. Perhaps this is because the essence of leadership is often seen as a person’s ability to successfully interact with others while inspiring achievement of shared goals. Both of these things require a focus on people whether it is in the identification of purpose or the actual implementation of strategies.

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In BIS 343, I learned a lot about the concepts of team dynamics. There was a focus on developing a group identity, effective communication, conflict management, and the realization of shared goals. These elements link very closely with the concepts of the Human Resource frame as leaders work to establish effective teams by hiring the right people ( establishing group identity), communicating shared goals, meeting individual needs (reducing conflict), and achieving results through the efforts of the team.

In BIS 360 (Reinventing Organizations) I learned about the evolution of organizational structure. Beginning with leadership based on fear and a constant exercise of power, organizations evolved strategies based structures of hierarchal command, management by objectives, or cultural empowerment. Now, in an effort to define the most effective approach to leadership, organizations look to the human element. Leaders emerging in these new organizations shift away from decisions based on external demands, and instead begin to focus on internal decision making. Leadership focuses on the questions of personal identity and group integration, shared efforts for shared results, and the impact or value of decisions as they relate to the well-being of a greater society. Each of these considerations work to support Maslow’s concept of self-actualization. This hierarchy is a guiding element of human relations and BIS 360 worked to demonstrate the possibilities of a human focused leadership strategy.

 

Prompt #6:  How do the Human Resource aspects discussed work in an organization with which you are (or have been) affiliated?  What sorts of personnel policies and management strategies are espoused theories versus those in use?   (This is about the concept/frame not an HR department.)

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In regard to the empowering of people, the Human Resource frame suggests that leaders “encourage autonomy and participation” (B&D, pg. 142) Currently, my job at Starbucks does a great job of implementing strategies in support of this suggestion. Currently, managers are expected to host quarterly supervisor meetings – working to identify opportunities for operational growth as perceived by various members of the team. Individual stores are then empowered to create unique action plans based on the recommendations of the team. While steps on this process must align with organizational values, there is a great deal of autonomy when it comes to problem solving and goal achievement.

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In relation to being able to keep great employees, Starbucks offers a wide variety of benefits designed to reward employees for their efforts. Free beverages while working, a weekly coffee allowance, health benefits, matched retirement account contributions, and college tuition reimbursement are all ways in which employees are shown they are valued. Beyond that, employees of Starbucks (known as partners) share the wealth of success through annual stock grants which actually give them ownership of the company. This truly is a wonderful way to reward past efforts and encourage positive efforts in the future.

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Prompt #7:  How does morale or other human resource issues affect outcomes in your place of employment (for customers, employees, stockholders, surrounding community and/or any other stake-holders).  Describe enough of a situation concretely to provide context and use concepts from the readings in your response.   If you don’t think there are healthy or unhealthy aspects in your organization relating to the human resource perspective going on, think again more carefully and perhaps revisit the readings to broaden your definition and understanding.

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When thinking about morale at my current job, I am immediately reminded of a situation from a few years ago. I have been an employee for Starbucks for over eight years, and I can happily report that, in general, morale has trended on the side of positivity. However, in 2009, our company launched a new product known as VIA. VIA is the Starbucks equivalent of instant coffee and, at its time of launch, represented introduction to a huge new sector of the coffee consumer market. It was critical to the company that the product launch was successful and, as a result, there was a tremendous amount of pressure put on stores to successfully sell the product. The intensity of this expectation was unfamiliar to many partners and many established leaders began to engage in less than effective leadership behaviors. Partners were often threatened with corrective actions and whole teams were shamed in view of their peers for low sales performance. In an effort to avoid negative consequence, some partners began to report false numbers or inaccurately ring transactions in order move product. Team stress levels were high, partner satisfaction was low, and product costs were wildly out of line. At the conclusion of the product launch, though, Starbucks reflected on the overall partner experience and customer experience impact. Realizing that this intense approach to product sales was out of character for the organization, the company established new expectations for future launches – expectations aimed at protecting the most important element of company success – the people.