Wk5: Ch4: Structure, Process and People

Question 1

How does structure change as an organisation grows?

Answer 1

• When it starts, organisation has informal structure (Highly creative and flexible, founders responsible for many different functions)
• As organisation grows, its structure needs to change, becoming more formal, and departmentalised
• This constant change often stifles creativity and innovation because of desire to control things

Question 2

How should organisation structure look and what should it enable for entrepreneurship?

Answer 2

• It should be an organic structure
• Flat hierarchical structure
• Local flexibility enabling autonomous decisionmaking
• Must also enable: creative thinking, collaboration, empowerment, flexibility in time/resources, tolerance of failure, good communication

Question 3

What is the dilemma of a growing organisation?

Answer 3

As businesses grow, they need to introduce more formal structure to reduce the liability of newness and role ambiguity. But as formal structure is introduced, the hierarchy/bureaucracy tends to increase which stifles creativity. Structure is fluid and a balancing act.

Question 4

HR practices for recruiting and rewarding entrepreneurial behaviors?

Answer 4

• Job planning/design- what are employees expecte to do, & how can we give them room to show initiative?
• Appraisals- How do we guide and reinforce employees to identify with entrepreneurial performance?
• Rewards- how do we incentivise employees to be entrepreneurial, take ownership and stay with the company?
• Recruitment and selection- who and how do we hire to be entrepreneurial?
• Training & Development- How do we help employees recognise their entrepreneurial potential and develop the skills to capitalise on that potential?

Question 5

What are the 4 dimensions/processes to create an environment that supports entrepreneurial activity?

Answer 5

• Scanning intensity (Tracking market trends, looking for opportunities/threats, can be source of competitive advantage through superior information gathering)
• Planning Flexibility (Able to quickly adjust strategic plans and competitive landscape based on new information/trends, requires effective coomunication)
• Locus of planning (How involved are employees in strategic decisions/planning? Deep LOP=employees very involved, responsibility delegated; Shallow LOP=hierarchical, top-level planning, no input from lower levels
• Strategic controls- base performance on relevant criteria, reward creativity and pursuit of opportunities

Question 6

What are the important things to consider when thinking about People in the organisation?

Answer 6

• People are most valuable and important resource in a company
• Must consider how to recruit people for entrepreneurship
• Must consider how to reward people for desired entrepreneurial behaviours to stimulate more

Question 7

How do you recruit the right people for entrepreneurship?

Answer 7

• Recruiting process should look for skills necessary to realise entrepreneurial goals
• Look for people who will enhance and maintain company vision, mission and culture
• Diversity is important to stimulate creativity

Question 8

What must be considered when rewarding individuals for entrepreneurial behaviour?

Answer 8

• Appropriate use of rewards: reward system should spur entrepreneurial activity, consider goals, feedback, can be motivational rewards but must signal what entrepreneurial bahaviour is desired
• Management support: Management leads by example, by championing, providing resources and support (Institutionalise entrepreneurship)
• Resource availability: Time must be made available for risk-taking/pursuing opportunities and employees must perceive this available time to encourage risk taking
• Supportive administrative structure: processes to evaluate, choose and implement ideas successfully, demonstrating that ideas can be successfully implemented
• Risk-tolerance: encourage risk-taking, tolerate failure, emphasise learning from failures, negative outcomes should not be punished