Human Resource Management_3

Entrepreneurs

Reward System - Doing what they like.Independence.
Activity - Direct involvement.
Risk - Moderate risk taker.
Status - Not concerned about status symbols.
Mistakes - Deals and learns from them..
Relationships - Deal-making and reciprocity.
Time orientation - 5 - 10 years.

Managers

Reward System - Corporate rewards. Promotion, staff, office, money.
Activity - Delegates and supervises.
Risk - Avoids risk.
Status - Concerned about status symbols.
Mistakes - Avoids or shifts blame.
Relationships - Hierarchy.
Time orientation - Short- term.

What makes an an entrepreneur?

take risks
spot opportunities
perseverance
social skills

In-tra-pre-neur:
A person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk-taking and innovation.
[ intra(corporate) + (ENTRE)PRENEUR.]


The intrapreneur has entrepreneurial skills blended with managerial skills, but operates within the confines of an organisation.

An intrapreneur demonstrates certain skills …
- understands the organisation’s environment
- has an ability to adopt a multidisciplinary approach
- encourages open discussion
- challenges the system
- builds a coalition of supporters


Intrapreneurship leadership characteristics

Understands the environment
Visionary and flexible
Creates management options
Encourage teamwork
Encourage open discussion
Builds a coalition of supporters


Creating The Appropriate Culture

Large organizations: layers of hierarchy, inflexible structures, low level of employee participation, high level of political activity
Intrapreneurship –
- Based on the need to build and foster innovation and creativity à to keep up with competition
- Tries to model the entrepreneurial environment by encouraging flexibility, independence, and risk-taking
- Is developed through the organization structure (how the firm is structured to coordinate its efforts), the types of the behaviors that are rewarded, and the types of career development & reward systems that are utilized


Creating The Appropriate Culture

1) Promoting Intrapreneurial Behavior:
Behavior that is rewarded will be repeated
-Risk taking: encouraging the development of new ideas is essential -- must be willing to accept failure, success does not come without failure (e.g. HP )
-Innovation is a prime ingredient in market success (especially in industries driven by rapid technological change)
-Encouraging this environment includes, accepting a trial and error approach, and using brainstorming sessions to generate new ideas
-Empowerment: giving employees the freedom to make decisions increases the flexibility of the firm, improves customer response time, and increases product innovation

2) Career Development & Reward Systems:

-The development of Intrapreneurship must include a career development program and reward system
-The goal is to reward employees for their efforts and to make them feel as an integral part of the organization
-Equity, stock options, cash gifts, bonuses
-Promotions, free time, recognition, access to funds and resources


Skill Of Intraprenuership

-See opportunities that others have not seen
-Initiative
-Co-operate with other expert such as Marketing , R&D , External Suppliers , Service Provider , Customers
-Self-confidence to initiate or lead change the process
-Acceptance of risk
-Understanding the individual strengths in innovation process
-Understanding corporate politics & culture.


Case Study

Xerox has done something unique in trying to ensure that its creative employees do not leave like Steve Jobs did to form Apple Computer, Inc. In 1989, Xerox set up Xerox Technology Ventures (XTV) for the purpose of generating profits by investing in the promising technology of the company, many of which would have otherwise been overlooked. Xerox hopes to avoid mistakes of the past by having” a system to prevent technology from leaking out of the company,” according to Robert V. Adams, president of XTV

What Xerox recognized is what hundreds of executives are also becoming aware of in their organization: It is important to keep, or instill, the entrepreneurial spirit in an organization in order to innovate and grow. This realization promises to revolutionize American management thinking. In a large organization, problem often occur that thwart creativity and innovation, particularly in activities not directly related to the organization’s main mission. The growth and diversification that can result from flexibility an creativity are particularly in critical since large, vertically integrated, diversified corporations are often more efficient in a competitive market than smaller firms. Internally administered coordination in a large corporation can often be more effective than the coordination achieved via market mechanisms The resistance against flexibility, growth, and diversification can, in part, be overcome by developing a spirit of entrepreneurship within the existing organization, called intrapreneurship

The $30 million fund has supported a dozen start-ups thus far, only two of which have failed. XTV is run as a classic venture-capital operation, providing seed capital and finding outside investors when needed. The story of the 12 companies is much like that of Quad Mark, the brainchild of Dennis Stemmle, a Xerox employee of 25 years. Stemmle’s idea was to make a battery-operated, plain paper copier that would fit in a briefcase along with a laptop computer. For 10 years, the idea was not approved by Xerox’s operating committee. The idea was funded by XTV and Taiwan’s Advanced Scientific Corporation, which now controls 20 % of Quad Mark for its$3.5 million investment. As is the case with all the companies funded by XTV, 20% of each company is owned by the founder and key employees. This provides an incentive for employees like Dennis Stemmle to take the risk, leave Xerox, and form a technology-based venture.

The conclusion:
Identifying an entrepreneur is of little value in the practical world
but, entrepreneurial traits and behaviours are evident in intrapreneurs
there are clear benefits to the organization in identifying intrapreneurs identifying an inventor is of little value in the practical worldinnovation underpins all three categories
there are clear benefits to the organization in identifying individuals who have high innovative potential.