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Chapter 22 Using Stakeholder Information Systems Aaron and Roth
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A high percentage of middle managers where leaving a banking organization. They didn’t know why Only conducted exit interviews Not a good idea due to the high emotional content Assumed it was their compensation system Problem
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Covey’s Findings They were attracting entrepreneurial people. Asked them to “crunch numbers” The employees lacked: Intrinsic Satisfaction Challenge Excitement Restructure the organization around entrepreneurial talent and use systems that reward new ideas
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Accounting for People The information system must deal with the entire workplace environment in order to understand what’s going on. Organizations need an information system that deals with social problems and challenges. Most companies use information systems for finances Why not people?
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Making Sense of What’s Happening Human Resource Accounting: Helps monitor all employees Uses personal and organizational profiling surveys and other diagnostics Shines the light on what is happening with all the stakeholders in organizations: The people Their perceptions, motivations, values, habits, and skills The formal organization Physical environment, technology, strategy, policies, and procedures The informal organization or culture Values and norms from the interaction of people combined with the organization’s physical environment
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Conflicts Rise when the norms of the informal organization conflict with the standards of the formal organization “Us and Them” Management wants to control and direct behavior rather than “letting it flow”. What can we do??? We can gradually create a “win-win” culture. With sincerity! Follow these integrated principles: Fairness Human relations Human resources Meaning All of this takes time Although the process may be painful, but in the long run it’s much better than operating in the dark.
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Human Resource Accounting Begins and ends with gathering data We must think through alternatives Make decisions Implement them Do an assessment or survey Use the data to make decisions If problem solving is not done around feedback, people will feel disillusioned. Company culture will never take surveys seriously
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How do we Assess Company Culture? It’s subjective We must somehow give ratings It’s hard to rate by using words Numbers will always win Numbers add legitimacy Think of beauty pageants How to predict performance: Conduct pre-test and post-test assessments For people who go through Covey’s training, the external locus of control shifts internally. His training also creates the halo effect. If you measure and record it, people tend to do better.
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Start Assessing the Customer Start a customer information system Customers are in constant contact with employees. Long-term returns are higher if there’s “harmony” among everyone. Management, ownership, AND employees Employees are often seen as a means to an end They represent the company to the customer People get their security from within In order to improve, you must expose your weaknesses.
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Personal Interpersonal Managerial Organizational In order to have Continuous Improvement, all four are needed. all four are needed.
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Put it to work! Meaningful one-on-one visits Continue using surveys Empathic listening Suggestion systems Open-door policies Must receive high marks from the higher- ups and peers.
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Completed Staff Work Chapter 23
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Delegating You teach the principles. They apply them. *In order to do that. You first must carefully select and trust your employees.
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The Principle: No Cop-Out Meaning: Don’t back out of a responsibility or commitment. You’re close to being 100% (not really...but close) independent from your boss.
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Kissinger/Ohsone What did they do: Kozo Ohsone, a manager for Sony Corporation, made a block of wood that was 5 inches square and put it front of his engineers to design a portable audio player. Henry Kissinger (56th Secretary of State) Asked an important question to his staff: Is this the very best you can do?
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Kissinger/Ohsone What did they have in common. - Staff are independent and distant from them. - Staff are independent and distant from them. - Give staff responsibility. - Give staff responsibility.
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Steps to Completed Staff Work 1. Make sure workers understand the task given. 2. Clarify how much control they get. 3. Constant check-ups 4. Give them time, resources, and access to open doors. So they can successfully complete their work. 5. Set a time and place to review the completed staff work.
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Bibliography Covey, Stephen R. Principle Centered- Leadership. New York, NY: Simon & Schuster, 1991
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