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Chapter 22

Chapter 22. Using Stakeholder Information Systems Aaron and Roth. Problem. 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

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Chapter 22

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  1. Chapter 22 Using Stakeholder Information Systems Aaron and Roth

  2. Problem • 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

  3. 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

  4. 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?

  5. 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

  6. 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.

  7. 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

  8. 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.

  9. 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.

  10. In order to have Continuous Improvement, all four are needed. • Personal • Interpersonal • Managerial • Organizational

  11. 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.

  12. Completed Staff Work Chapter 23

  13. Delegating • You teach the principles. • They apply them. *In order to do that. You first must carefully select and trust your employees.

  14. 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.

  15. 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?

  16. Kissinger/Ohsone • What did they have in common. - Staff are independent and distant from them. - Give staff responsibility.

  17. Steps to Completed Staff Work • Make sure workers understand the task given. • Clarify how much control they get. • Constant check-ups • Give them time, resources, and access to open doors. So they can successfully complete their work. • Set a time and place to review the completed staff work.

  18. Bibliography • Covey, Stephen R. Principle Centered-Leadership. New York, NY: Simon & Schuster, 1991

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