Marc Weinstein
Case Western Reserve University
Weatherhead School of Management
Managing Human Resources in Entrepreneurial Firms
LHRP 425
TENTATIVE, SUBJECT TO CHANGE PRIOR TO FIRST CLASS
Dr. Paul D. Tolchinsky
(440) 349-1990 (o)
(440) 349-0410 (f)
pdt6@cwru.edu
Office Hours for LHRP 425 Students Thursday 5:00-7:00pm
General Office Hours: Thursday 1:00-5:00 pm
Course Overview
In the last decade, rapid technological advancements and increased global competition have created new opportunities for firms and individuals. Companies that have been able to formulate new value chains, rather than simply refine existing value chains, have been the best positioned to take advantage of these new opportunities. This course examines how these entrepreneurial firms can develop human resource practices and strategies to sustain their vision, grow their businesses, and create value for customers, shareholders, and employees. Finally, special attention is given to the human resources practices that create and sustain organization cultures.
The first half of the course will be devoted to exploring the distinctive challenges entrepreneurial firms encounter in aligning organizational and human resource strategy and practices. Among those practices to be studied in the first half of the course are staffing, recruitment and selection, compensation, and employee motivation. The second half of the course will explore these issues further in the context of key organizational phases from firm founding, the transition from entrepreneurial to professional management, the development of “intrepreneurship” in existing organizations, and the spin-off of these new corporate ventures.
Because there are wide variety of approaches that can be used to examine human resource issues in entrepreneurial firms, it worth clarifying the a few points about the approach used in this course:
1. This course will examine personnel and human resource management issues and challenges from the perspective of general managers, including that of principals in entrepreneurail firms. In most medium-sized and large organizations, personnel or human resource management is a staff function. The efficient and ethical employment of human resource policies and practices, however, is a general management responsibility. In smaller organizations, there may be no human resources staff available and thus every employee is expected to develop and implement policies and practices that relate to managing the human assets in the firm. This issue is particularly relevant for firms that are small or undergoing a transition from entrepreneurial to professional management. These firms frequently have to grapple simultaneously with the challenge of acquiring human resources, fostering creative problem solving, and building a professional human resource staff.
2. This course will approach the management of human assets from a strategic perspective. For entrepreneurial firms, acquiring and managing human assets are both a challenge and an opportunity. The challenge is attracting and retaining human assets in the face of enormous competition for this talent. The opportunity is the ability to craft a human resource strategy at the same time the firm is forging a new organizational culture.
3. Finally, an underlying assumption of this course is that there are intrinsic conflicts of interests as well as points of mutual interest in organizations. This is true of established publicly traded firms as well as newly established companies. Effective human resource management enables organizations to minimize and manage such conflict in a way that respects the interests of all stakeholders.
Course Requirements
• Case Analysis (3) 60 percent of final grade
• Group case analysis and presentation 20 percent of final grade
• Class Participation 10 percent of final grade
Case Analysis – During the course of the term, students will be required to analyze three of the nine case studies discussed during the term. Students are free to choose which of the three cases they wish to analyze. Questions to guide the analysis are provided in the text of the syllabus below. In some instances, supplemental questions for the cases will be provided in the week prior to the classroom discussion of the case. Each case analysis should be between three and five single-spaced pages.
Group Presentation and Case Analysis – Three class sessions will be devoted to group presentations on topics of particular interest to groups of students. The syllabus contains the dates for group presentations and recommended topics. In addition to the presentation, the groups will be required to submit a five to seven-page memo detailing their analysis. Memos may be submitted one week after the group presentation.
Class Participation – Case analyses constitute the core of the course, and, as such, the active participation of students is an essential element of the class. After each class, I will note your participation. Additionally, students will be asked to send me links to articles found on electronic databases and the Internet of particular relevance to the class. I, in turn, will post these links on Blackboard 5.0, which will contain a variety of course documents.
The Use of Cyberspace
Given the over-representation of technology companies among entrepreneurial firms, the high reliance on the Internet for many of the transactions in which these firms engage, and the need to use the Internet to remain abreast of human resource trends in entrepreneurial organizations, this course will require your extensive use of the Internet. This syllabus, lecture notes, course announcements, links to websites of relevance to the class, and links to selected articles will be posted on Blackboard. I also will use e-mail to communication to entire class and individual students on as-needed basis. I recognize that computers and telecommunications do not always work as they should. Nonetheless, I will rely heavily on the information technology during the course of the term..
Course Schedule
| | |
|I. August 29 |Course Introduction |
| | |
| |Course overview |
| |Discussion of course requirements |
| |Initial formation of teams |
| | |
|II. September 5 |Understanding the Potential Contribution of Human Resources to Entrepreneurial Firms |
| | |
| |Readings: |
| | |
| |Baron, J., Burton, M., and Hannan, M. “The road taken: Origins and evolution of employment systems in |
| |emerging companies.” Industrial and Corporate Change, 239-275, 1996. (To be distributed in class on |
| |January 16, 2001. |
| | |
| |Schuler, Randall, “Fostering and Facilitating Entrepreneurship in Organizations: Implications for |
| |Organization Structure and Human Resource Management Practices, Human Resource Management, vol. 25, no. |
| |4, Winter, 1986. |
| | |
| | |
| |Discussion Questions: |
| | |
| |To what extent do you think that Schuler’s 1986 observations were prescient? In what ways do you think he|
| |provides a conservative assessment given the findings of Baron, Burton, and Hannan? |
| |Given the findings of Baron, Burton, and Hannan, what innate advantages do you believe new organizations |
| |have in fostering a synergistic relationship between human resources and the need for creativity in |
| |entrepreneurial organizations? How might established organizations learn from existing organizations in |
| |the area of human resource management? |
| |Aligning Human Resource Practices with the Entrepreneurial Organization |
|III. | |
|September 12 |Readings: |
| | |
| |Schuler, R. and Jackson, S. (1987). “Linking competitive strategies with human resource management |
| |practices,” Academy of Management Executive, 1(3), pp. 207-219. |
| | |
| |Burton, M. Diane, “Score! Educational Centers (A-D), Harvard Business School Case #9-499-056, 1999. |
| | |
| |Discussion Questions: |
| | |
| |What is Score!’s business strategy? |
| |In what ways might Score! build a complementary HR strategy? |
| |To what extent has Score!’s founder achieved this aim? |
| |What are the short and long-term human resource constraints that Score! may encounter? |
| |How might the potential threats from this constraints be addressed without distracting from Score!’s |
| |mission? |
| | |
|IV. September 19 |Building the Culture of an Entrepreneurial Organization |
| | |
| |Readings: |
| | |
| |Austin, Robert, “Trilogy Software, Inc. (A),” Harvard Business School Case, #9-699-034. |
| | |
| |One reading to be distributed. |
| | |
| |Guest Speaker: Stewart Gill, Vice President, Human Resources, Palm Computing Corporation |
| | |
| |Discussion Questions: |
| | |
| |In what ways does the corporate culture at Trilogy reflect the company’s founding and Joe Liemandt’s |
| |personality? |
| |How important is Trilogy’s corporate culture for its continued success? |
| |To what extent do HR practices at Trilogy reinforce and support Trilogy’s culture and software |
| |development strategy? |
| |What threats are posed by building Trilogy’s culture and its continued cultivation of star coders? |
| |Innovations in Compensation Designed to Promote Entrepreneurial Behavior |
|V. September 26 | |
| |Readings: |
| | |
| |Pfeffer, J. (1998). "Six dangerous myths about pay," Harvard Business Review, May-June, pp. 109-119. |
| | |
| |Friedman, Raymond, Au Bon Pain: The Partner/Manager,” Harvard Business School Case #9-687-063. |
| | |
| |Guest Speaker: Richard Polak, President, Polak and Associates International, specialist in Global |
| |Compensation Programs |
| | |
| |Discussion Questions: |
| | |
| |Has ABP’s Partner/Manager program been successful in fostering entrepreneurial behavior? |
| |To what extent is the experience at ABP counter to the Pfeffer’s position on pay? |
| |To what extent is the trial program, a valid test of the Partner/Manager program? |
| |What problems might ABP have in rolling out this program throughout the organization? |
| | |
|VI. October 3 |Student-led Session #1: Aligning Employee and Company Interests with Equity |
| | |
| |Groups presenting this day should recommend readings by the fourth class session. |
|VII. October 10 |Selecting Job Candidates for Young Entrepreneurial Companies |
| | |
| |Readings: |
| | |
| |Roberts, Michael, “Bitstream,” Harvard Business School Case #9-393-055, 1998. |
| |Bowen, D., and Ledford, G., Jr., and Nathan, B. (1991). "Hiring for the organization, not the job," |
| |Academy of Management Executive, 5(4), pp. 35-51. |
| | |
| |Discussion Questions: |
| | |
| |What criteria should Bitstream use when selecting an appropriate candidate? |
| |What are the advantages and disadvantages to using a search service for filling this position? |
| |What recommendations do you have for best managing the use of a search service? |
| |Which candidate should Bitstream hire? |
| | |
|VIII. October 17 |Attracting Scarce Labor in Entrepreneurial Organizations: Stock Options and Other Incentives |
| | |
| |Readings: |
| | |
| |O’Reily, Charles,”Cisco Systems: The acquisition of technology is the acquisition of people," |
| |Stanford University Case #HR10, 1998. |
| | |
| |One reading to be distributed. This session will focus on the use of Stock Options and other |
| |financial rewards to acquire talent. |
| | |
| |Guest Speaker: Peter Rome, Partner, Ulmer and Companies, Attorneys-at-Law |
| | |
| |Discussion Questions: |
| | |
| |What are the advantages and risks to the Stock Option approach to acquiring human resource assets? |
| |Cisco claims it tries to match the acquisition of companies to its culture. Is there strong evidence |
| |that this is the case? |
| |In what ways is Cisco’s approach to acquiring star performers comparable to Trilogy’s approach? |
| |Transitioning from Entrepreneurial to Professional Management |
|IX. October 24 | |
| |Readings: |
| | |
| |Burton, M. Diane, “Score! Educational Centers (D), Harvard Business School Case #9-499-056, 1999. |
| | |
| |Fortune Small Business Article…… |
| |One reading to be distributed. |
| | |
| |Discussion Questions: |
| | |
| |What are Rob Waldron’s greatest human resource challenges as he takes over the leadership of Score!? |
| |What role if any should Alan Tripp play at Score!? |
| |Can Score! maintain its original mission after the transfer of ownership? |
| | |
|X. October 31 |Transforming a Bureaucratic Organization |
| | |
| |Readings: |
| | |
| |Kao, John, “Oticon (A),” Harvard Business School Case, #9-393-144, 1995. |
| | |
| |Leveraging Culture for Innovation and Competitive Advantage, in Winning through Innovation, A |
| |Practical Guide to Leading Organizational Change and Renewal, Tushman, M.L., and O’Reilly, C.A., HBS |
| |Press, 2002, pp. 99-120. |
| | |
| |Change: Reshaping Cultures, in Corporate Cultures, The Rites and Rituals of Corporate Life, Deal, |
| |T.E., and Kennedy, A.A., Perseus Publishing, Cambridge Massachusetts, 2000, pp. 157-176 |
| | |
| |Guest Speaker: Joe Millington, Vice President, Human Resources, Acterna Corporation, Germantown |
| |Maryland |
| | |
| |Discussion Questions: |
| |What was Lars Kolind’s greatest contribution to Oticon? |
| |What key elements were crucial to permit Kolind to embark upon his transformation program at Oticon? |
| |Was his transformation of Oticon successful? If so, why? If not, why not? |
| |Student-led Session #2 – Case Studies of Innovative Programs to Transform Bureaucratic |
|XI. November 7 | |
| |Groups presenting this day should recommend readings by eighth class meeting. |
| | |
|XII. November 14 |Promoting Entrepreneurship in Existing Organizations: The Institutionalization of Intrepreneurship |
| | |
| |Readings: |
| | |
| |DeSimone, L.D. et al., “Perspectives: How Can Big Companies Keep the Entrepreneurial Spirit Alive?,” |
| |Harvard Business Review, November-December, 1995, reprint #95609. |
| |Bartlett, Christopher, “3M Optical Systems: Managing Corporate Entrepreneurship,” Case #9-395-017, |
| |1998. |
| | |
| |Guest Speaker: Barry Gable, Vice President, Promotions, Clear Channel Communications, formerly |
| |Belkin Productions, Cleveland Ohio |
| | |
| |Discussion Questions: |
| | |
| |How has 3M institutionalized entrepreneurship? |
| |Should 3M fund the privacy screen? |
| |What additional HR programs might be introduced to reinforce 3M’s culture of entrepreneurship? |
| |What human resource issues may arise if the privacy screen is not funded? |
| | |
|XIII. |Reinvigorating Existing Organizations |
|November 21 | |
| |Readings: |
| | |
| |Whitney, Dean, “Corporate New Ventures at Proctor & Gamble,” Harvard Business School Case, |
| |#9-897-088, 1997. |
| | |
| |Guest Speaker: Moira Nangle, Vice President, Human Resources, Virgin Atlantic Airways, London England|
| | |
| |Discussion Questions: |
| | |
| |Why was it necessary to establish the CNV group at P&G? |
| |How would you assess the success of the program to date? |
| |How might the lessons from the CNV group be transferred to other parts of the organization? |
| |Are there dangers to separating CNV from the rest of the organization? |
| |What additional HR programs might be introduced to reinforce entrepreneurship at P&G? |
| | |
|XIV. December 5 |Third Student-led Session – Open Topics |
| | |
| |Groups presenting this day should recommend readings by twelfth class meeting. |
| | |
|XV. December 12 |TBD |
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