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ScottA.SnellCornellUniversity393IvesHallIthaca,NY14853(607)255-4112scott.snell@CompetingthroughKnowledge:TheHumanCapitalArchitectureScottA.SnellCompetingthroug1IBM“Youcangetcapitalanderectbuildings,butittakespeopletobuildabusiness.”
ThomasJ.Watson,IBMDidIBMforget?
$168billion(TobinsQ=2.1)Hardware,software,andservicesNobelprize-winningscientists3,768patents(1993-1995)IBM“Youcangetcapitalander2What’sHappeningToday?
IndustryChanges
GlobalizationInformationtechnologyNeedfor… OrganizationalagilitySpeedInnovationCost
Knowledge-basedstrategiesCorecompetenciesInnovationExternalpartnershipsLeadingto…NewBusinessEquationWhat’sHappeningToday?Indu3CoreCompetence……isabundleofskillsandtechnologiesthatenablesacompanytoprovideaparticularbenefittocustomers.
HamelandPrahalad,1994
SONY
Miniaturization PocketabilityFEDERALEXPRESS
Logistics On-timedeliveryHONDA Enginedesign/mfg. ReliableperformanceMOTOROLA
Wirelesstechnology Untetheredcomm.
Core BenefittoCompetence CustomerCoreCompetence……isabundleo4KnowledgeTechnologiesProcessesRelationshipsCRITERIAvaluableuniqueextendablelearning
BenefitsVALUE= Costs
UNIQUE=(socialcomplexity+causalambiguity)
LEARNING=(experiencexchallenge)CompetingThroughPeopleIdentify&developcoreskillsIntegratediverseactivitiesRespondwithagility&speedEmpoweractionInnovateCoreCompetence……isabundleofskillsandtechnologiesthatenablesacompanytoprovideaparticularbenefittocustomers. --HamelandPrahaladKnowledgeTechnologiesProcesses5
KNOWLEDGE-customer-technology-operations-managing
PROCESSES-customersegmentation-just-in-time(hrs)-masscustomization-buildtoorder(AIM)-ROICmetrics-experimentation
TECHNOLOGY-Premierpages-softwareinstallation-TPMtriggers(parts,service)-customerpurchasingsystems
RELATIONSHIPS-customerintimacy(Boeing)-Platinumcouncils-supplierpartnerships(Sony)-employeeinvolvement-thirdpartyservicemaintainers(TPMs)-distributionagreements(UPS,Airbourne)“VirtualIntegration”Leadingto…
ValueUniquenessLearning“Alow-valueproductcanbemadebyanyoneanywhere.Whenyouhaveknowledgenooneelsehasaccessto--that’sdynamite.Weguardourintellectualassetsevenmorecarefullythanourfinancialassets.” --RoyVagelos,formerCEOMerckKNOWLEDGEPROCESSESTECHNOLOG6
KNOWLEDGE-customer-technology-operations-managing
PROCESSES-customersegmentation-just-in-time(hrs)-masscustomization-buildtoorder(AIM)-ROICmetrics-experimentation
TECHNOLOGY-Premierpages-softwareinstallation-TPMtriggers(parts,service)-customerpurchasingsystems
RELATIONSHIPS-customerintimacy(Boeing)-Platinumcouncils-supplierpartnerships(Sony)-employeeinvolvement-thirdpartyservicemaintainers(TPMs)-distributionagreements(UPS,Airbourne)“PositivelyOutrageousService”SouthwestAirlinesKNOWLEDGEPROCESSESTECHNOLOG7
KNOWLEDGE-
microbiology-biochemistry-microbiology-imunodiagnostics(antibodies/conjugates)
PROCESSES-R&D/Mfg.-bioconjugation-antibodypurification-PCRamplification-DNAhybridization-TQM-commercialization
TECHNOLOGY-immunoassays-ELISA(serum/blood)-rapiddiagnostics-DNAbased
RELATIONSHIPS-CRC-DT,CDC-U.S.Army-WorldHealthOrg.-universities-distributionnetwork-employee(science/mkt)C2=“RapidLearning”Leadingto…Anorganizationatthefrontierofitsintellectualfieldismorelikelytostayatthefrontier.Itcanattractandchallengemoreandbetterintellectthanitscompetitors.Bysolvingmoreadvancedproblems,ithasmorecapacitytosolveothers.Andsoon.” JBQuinn
ValueUniquenessLearningBIOTECHINC.
Benefits= CostsKNOWLEDGEPROCESSESTECHNOLOG8Combinationofpeopleandsystemsleadsto...HumanCapitalSocialCapitalOrganizationalCapitalBioTech,Inc.:IntellectualcapitalPeopleSystems
KNOWLEDGE-microbiology-biochemistry-bioconjugation-imunodiagnostics
PROCESSES-R&D/Mfg.-bioconjugation-antibodypurification-PCRamplification-DNAhybridization-TQM-commercialization
TECHNOLOGIES-immunoassays-ELISA(serum/blood)-rapiddiagnostics-DNAbaseddetection
RELATIONSHIPS-CRC-DT,CDC-U.S.Army-WorldHealthOrg.-universities-distributionnetwork-employee(science/mkt)C2=“RapidLearning”PEOPLESYSTEMSCoreCompetenceHumanSocialOrganizationalBio9
Howdoeshumancapital
contributetothecorecompetence?ValueUniqueResourcesneedtobe:
BenefitsVALUE= CostsDrivesinnovationRespondstocustomerdemandsProvidesexcellentcustomerserviceAchieveshighestqualityInstrumentalinprocessimprovementsDevelopsnewbusinessopportunitiesDirectlyaffectsefficiencyandproductivityMinimizescostsofproduction,service,deliveryNotwidelyavailableinthemarketCannotbeboughtorappropriatedDifficulttoimitateorduplicateSpecializedKSAsDifficulttoreplaceCustomizedtoourfirmDevelopedthroughon-the-jobexperiencesDistinguishesusfromourcompetitors
Howdoeshumancapital
contr10R&DManufacturing/Operations
DistributionSalesSalesTMTCustServHRR&DRapidsFinCustomerServiceMfgR&DR&DPartnersCoreKnowledgeLowVALUEhighLowUNIQUEhighBIOTECH,INC:MappingHumanCapitalKEY
FinanceHRTMTMISMfg/OperationsMarket/SalesR&DQualityBiologicalsCust.ServiceRapidDiag.Legal/Reg.DistributionRapidsScottA.Snell,CornellUniversityC2=RapidLearningHRLegalMISBiologicalsFinQualityTMTCompulsoryKnowledgeIdiosyncraticKnowledgeAncillaryKnowledgeR&DManufacturing/Distribution11HighValueLowValueGenericCoreIdiosyncraticAncillaryCompulsoryUniqueHumanCapitalArchitectureHumanCapitaluniquevalue
HRMSystem
EmployModeHighValueLowValueGenericCore12
CoreHumanCapitalHighValue:DirectlinktocorecompetenceHighUniqueness:Firm-specificknowledgeandskillsEmploymentMode:knowledgeworkEmploymentRelationship:organization-focusedExamples:
softwaredevelopers(Microsoft) drugresearchers(Merck) fundmanagers(Fidelity) “gold-collar”workersHighValueHighValueLowValueLowValueUniqueGenericGenericIdiosyncraticIdiosyncraticAncillaryAncillaryCompulsoryCompulsoryHumanCapitalArchitectureCore CoreHumanCapitalEmploy13HighValueHighValueLowValueLowValueUniqueGenericGenericCoreCoreIdiosyncraticIdiosyncraticAncillaryAncillaryHumanCapitalArchitectureHumanCapitalArchitectureCompulsoryEmploymentMode:traditionaljobEmploymentRelationship:job-focusedExamples:
staffaccountants(Andersen) salespeople(Sears) truckdrivers(UPS)HighValue:DirectlinktostrategyHighUniqueness:Genericknowledgeandskills
CompulsoryHumanCapitalHighValue:DirectlinktocorecompetenceLowUniqueness:GenericknowledgeandskillsHighValueHighValueLowValueL14EmploymentMode:contractworkEmploymentRelationship:transactionalExamples:
assemblers(Nike) clericalworkers(Halliburton) payroll(Continental) catering(ARAMARK)HighValueHighValueLowValueLowValueUniqueGenericGenericCoreCoreIdiosyncraticIdiosyncraticCompulsoryCompulsoryHumanCapitalArchitectureHumanCapitalArchitectureAncillaryAncillary
AncillaryHumanCapitalLowStrategicValue:OperationalroleLowUniqueness:GenericknowledgeandskillsEmploymentMode:contractwork15EmploymentMode:partnershipEmploymentRelationship:collaborativeExamples:
“wildducks”(IBM) designengineers(w/Boeing) trainers(Merck/Forum) authors(McGraw-Hill)
HighValueHighValueLowValueLowValueUniqueGenericGenericCoreCoreIdiosyncraticIdiosyncraticAncillaryAncillaryCompulsoryCompulsoryHumanCapitalArchitectureHumanCapitalArchitecture
IdiosyncraticHumanCapitalLowStrategicValue:IntermittentlinktocompetenceHighUniqueness:SpecializedknowledgeandskillsEmploymentMode:partnershipHi16TRADITIONALJOB-BASEDEMPLOYMENTALLIANCE/PARTNERCONTRACTWORKKNOWLEDGEWORKS-specificjobT&D-short-termT&D-currentjobT&D-external$-internalequityS-immediateperform$-groupJob-narrow/simple$-short-termPA-qualityJob-customized$-bonus$-performance$-industryexperienceS-strategycontribute$-salaryJob-rotationS-solveproblemsS-bestJob-security$-highJob-empowerPA-strategycontributeT&D-investmentPA-workw/othersT&D-OJTT&D-teamT&D-continuousS-potentialS-promotew/inPA-developJob-dynamicJob-standardized$-hourlyKEY
JobdesignStaffingTrainingAppraisalCompensationLowVALUEhighLowUNIQUEhighPlottingHRPracticesSTUDY:152multi-productfirms>200employeesCEO,VPHR,lineexecsLepak&Snell,2001TRADITIONALJOB-BASEDEMPLOYME17RewardsAppraisalDevelopmentStaffingJobDesign
enriched&empoweredcustomized
aptitude(abletolearn)promotefromwithin
continuouson-the-jobfirm-specific
focusonstrategiccontributiondevelopmental
externalequity(highwages)payforknowledge,experience,seniorityownershipandperksCOMMITMENT-BASEDHRMSYSTEMHighValueHighValueLowValueLowValueUniqueGenericGenericIdiosyncraticIdiosyncraticAncillaryAncillaryCompulsoryCompulsoryHumanCapitalArchitectureCoreCoreHumanCapitalEmploymentMode:knowledgeworkEmploymentRelationship:organization-focusedRewardsAppraisalDevelopmentSta18RewardsAppraisalDevelopmentStaffingJobDesign
clearlydefinedmoderatelyempowered
externalrecruitmentachievement
limitedtofirm-specificshort-termfocus
developmentalfocusonperformance
externalequity(marketrate)payforperformanceHighValueHighValueLowValueLowValueUniqueGenericGenericCoreCoreIdiosyncraticIdiosyncraticAncillaryAncillaryHumanCapitalArchitectureHumanCapitalArchitectureCompulsoryPRODUCTIVTY-BASEDHRMSYSTEMEmploymentMode:traditionaljobEmploymentRelationship:jobfocusedCompulsoryHumanCapitalRewardsAppraisalDevelopmentSta19RewardsAppraisalDevelopmentStaffingJobDesign
well-definedlimitedscope
outsourced(perhaps)contractforaspecifictask
limitedtorules&procedures
administrative
hourlyorcontract-contingentHighValueHighValueLowValueLowValueUniqueGenericGenericCoreCoreIdiosyncraticIdiosyncraticCompulsoryCompulsoryHumanCapitalArchitectureHumanCapitalArchitectureAncillaryAncillaryCOMPLIANCE-BASEDHRMSYSTEMEmploymentMode:contractworkEmploymentRelationship:transactionalAncillaryHumanCapitalRewardsAppraisalDevelopmentSta20RewardsAppraisalDevelopmentStaffingJobDesign
team-basedenriched&autonomous
abilitytocollaborateachievement
continuouson-the-jobfirm-specific
team-orientedgoalaccomplishment
group-basedincentivescontract,salary,pay-for-knowledgeHighValueHighValueLowValueLowValueUniqueGenericGenericCoreCoreIdiosyncraticIdiosyncraticAncillaryAncillaryCompulsoryCompulsoryHumanCapitalArchitectureHumanCapitalArchitectureCOLLABORATIVEHRMSYSTEMEmploymentMode:partnershipEmploymentRelationship:collaborativeIdiosyncraticHumanCapitalRewardsAppraisalDevelopmentSta21HumanCapitalArchitecturelow Uniqueness highlow StrategicValue high
HumanCapitaluniquevalue
HRMSystem
EmployModeRelationalExchangeTransactionalInternalizationExternalizationIdiosyncraticHCMode:PartnershipHR:Collaborative-selectonpastexperience-developtherelationship-evolvingscope-rewardsforideasCoreHCMode:KnowledgeworkHR:Commitment-based-staffbasedonpotential-develop(firm-specific)-extensivepay&benefits-autonomy/self-direction-mistakesareimportantCompulsoryHCMode:TraditionaljobHR:Productivity-based-staffbasedoncurrentskill-lessdevelopment-marketwage-focusonSTperformance-mistakesabovethewaterlineAncillaryHCMode:ContractworkHR:Compliance-based-standardize/simple(outsource)-focusonrules&procedures-narrowscope-erroravoiding-hourlypaylow Uniqueness 22Oneflawinknowledgemanagementisthatitoftenneglectstoaskwhatknowledgetomanageandtowardwhatend.
Knowledgeshouldbemanagedwithinthecontextwherevalueiscreated. --TomStewart…LinkBackToCoreCompetence.Oneflawinknowledgemanageme23LowVALUEhighLowUNIQUEhighBIOTECHINC:MappingSocialCapitalTMTRapids&Ext.PartnerR&D&GovernmentQualityTeamProduction&TMTMarketing&SalesFOCUSON:
GovernanceTMTCultureValueChainTaskEnvironmentStakeholdersRemoteEnvironmentProduction&RawMatSupR&D&SuppliersR&D&ProductionTechSupport&CustomerR&D&CustomerR&D&QualityTMT/R&D&U.S.RegulatoryCust.Service&CustomerCulture(TMT)TMT&U.S.R&D*TMT&U.S.R&D*TMT/R&D&U.S.Mfg.TMT&U.S.R&DTMT&CustomerR&D&ExternalR&DGovernanceMarketing&CustomerR&DTeamProduction&SalesMIS&R&DProductionTeamProduction&QualityR&D&SalesSales/TMT&DistributorsScottA.Snell,CornellUniversityPATTERNS:
ExplicitTacitTransactionalRelationalEffectivenessEfficiencyLowVALUE24LowVALUEhighLowUNIQUEhighMappingOrganizationalCapitalFOCUSON:
DatabasesPatentsProcessesSystemsManualsLN:FeelingsLN:Sexions(Suggestions)LN:GenNewsLN:ContactDatabaseLN:ResearchDatabases(20+)R&DProcessProductionPlateCoatingLN:NewProductsProductImprovementLN:CustomerIndustryNewsProductionProcessesQualityShippingCustomerServiceManagementInfo.SystemPatentsScottA.Snell,CornellUniversityBiotech,Inc.COREENABLINGSUPPORTINGLINKINGLowVALUE25
SummaryPointsMappinghumancapitalhelpsstructuretheconversation.Differenttypesofhumancapitalare(shouldbe)managedindifferentways.InadditiontoHC,therearesocialandorganizationaldimensionsofIC.Thearchitectureoftheseknoweldge-basedassetsunderliesafirm’scorecompetence.CheckpointSummaryPointsChe26DynamiqueYachtsKnowledgeIntegrationHumanCapitalSocialCapitalOrganizationCapitalCoreCompetence...abundleofskillsandtechnologiesthatenablesacompanytoprovideaparticularbenefittocustomers.Itrepresentsthesumoflearningacrosstheseresources.(Hamel&Prahalad)HumanResourceManagementPracticesStaffing,training,workdesign,participation,rewards,appraisal,etc.SystemsKnowledgeCreationIntellectualCapitalDynamicCapabilityPeopleKnowledgeTransferLearningandInnovationFlowStockChangeProcessestointegrate,reconfigure,gain,andreleaseresources—tomatchandevencreatemarketchange.
RenewalValuableRareInimitableOrganizedModelofStrategicHRMUniqueDynamiqueYachtsKnowledgeHuma27ScottA.SnellCornellUniversity393IvesHallIthaca,NY14853(607)255-4112scott.snell@CompetingthroughKnowledge:TheHumanCapitalArchitectureScottA.SnellCompetingthroug28IBM“Youcangetcapitalanderectbuildings,butittakespeopletobuildabusiness.”
ThomasJ.Watson,IBMDidIBMforget?
$168billion(TobinsQ=2.1)Hardware,software,andservicesNobelprize-winningscientists3,768patents(1993-1995)IBM“Youcangetcapitalander29What’sHappeningToday?
IndustryChanges
GlobalizationInformationtechnologyNeedfor… OrganizationalagilitySpeedInnovationCost
Knowledge-basedstrategiesCorecompetenciesInnovationExternalpartnershipsLeadingto…NewBusinessEquationWhat’sHappeningToday?Indu30CoreCompetence……isabundleofskillsandtechnologiesthatenablesacompanytoprovideaparticularbenefittocustomers.
HamelandPrahalad,1994
SONY
Miniaturization PocketabilityFEDERALEXPRESS
Logistics On-timedeliveryHONDA Enginedesign/mfg. ReliableperformanceMOTOROLA
Wirelesstechnology Untetheredcomm.
Core BenefittoCompetence CustomerCoreCompetence……isabundleo31KnowledgeTechnologiesProcessesRelationshipsCRITERIAvaluableuniqueextendablelearning
BenefitsVALUE= Costs
UNIQUE=(socialcomplexity+causalambiguity)
LEARNING=(experiencexchallenge)CompetingThroughPeopleIdentify&developcoreskillsIntegratediverseactivitiesRespondwithagility&speedEmpoweractionInnovateCoreCompetence……isabundleofskillsandtechnologiesthatenablesacompanytoprovideaparticularbenefittocustomers. --HamelandPrahaladKnowledgeTechnologiesProcesses32
KNOWLEDGE-customer-technology-operations-managing
PROCESSES-customersegmentation-just-in-time(hrs)-masscustomization-buildtoorder(AIM)-ROICmetrics-experimentation
TECHNOLOGY-Premierpages-softwareinstallation-TPMtriggers(parts,service)-customerpurchasingsystems
RELATIONSHIPS-customerintimacy(Boeing)-Platinumcouncils-supplierpartnerships(Sony)-employeeinvolvement-thirdpartyservicemaintainers(TPMs)-distributionagreements(UPS,Airbourne)“VirtualIntegration”Leadingto…
ValueUniquenessLearning“Alow-valueproductcanbemadebyanyoneanywhere.Whenyouhaveknowledgenooneelsehasaccessto--that’sdynamite.Weguardourintellectualassetsevenmorecarefullythanourfinancialassets.” --RoyVagelos,formerCEOMerckKNOWLEDGEPROCESSESTECHNOLOG33
KNOWLEDGE-customer-technology-operations-managing
PROCESSES-customersegmentation-just-in-time(hrs)-masscustomization-buildtoorder(AIM)-ROICmetrics-experimentation
TECHNOLOGY-Premierpages-softwareinstallation-TPMtriggers(parts,service)-customerpurchasingsystems
RELATIONSHIPS-customerintimacy(Boeing)-Platinumcouncils-supplierpartnerships(Sony)-employeeinvolvement-thirdpartyservicemaintainers(TPMs)-distributionagreements(UPS,Airbourne)“PositivelyOutrageousService”SouthwestAirlinesKNOWLEDGEPROCESSESTECHNOLOG34
KNOWLEDGE-
microbiology-biochemistry-microbiology-imunodiagnostics(antibodies/conjugates)
PROCESSES-R&D/Mfg.-bioconjugation-antibodypurification-PCRamplification-DNAhybridization-TQM-commercialization
TECHNOLOGY-immunoassays-ELISA(serum/blood)-rapiddiagnostics-DNAbased
RELATIONSHIPS-CRC-DT,CDC-U.S.Army-WorldHealthOrg.-universities-distributionnetwork-employee(science/mkt)C2=“RapidLearning”Leadingto…Anorganizationatthefrontierofitsintellectualfieldismorelikelytostayatthefrontier.Itcanattractandchallengemoreandbetterintellectthanitscompetitors.Bysolvingmoreadvancedproblems,ithasmorecapacitytosolveothers.Andsoon.” JBQuinn
ValueUniquenessLearningBIOTECHINC.
Benefits= CostsKNOWLEDGEPROCESSESTECHNOLOG35Combinationofpeopleandsystemsleadsto...HumanCapitalSocialCapitalOrganizationalCapitalBioTech,Inc.:IntellectualcapitalPeopleSystems
KNOWLEDGE-microbiology-biochemistry-bioconjugation-imunodiagnostics
PROCESSES-R&D/Mfg.-bioconjugation-antibodypurification-PCRamplification-DNAhybridization-TQM-commercialization
TECHNOLOGIES-immunoassays-ELISA(serum/blood)-rapiddiagnostics-DNAbaseddetection
RELATIONSHIPS-CRC-DT,CDC-U.S.Army-WorldHealthOrg.-universities-distributionnetwork-employee(science/mkt)C2=“RapidLearning”PEOPLESYSTEMSCoreCompetenceHumanSocialOrganizationalBio36
Howdoeshumancapital
contributetothecorecompetence?ValueUniqueResourcesneedtobe:
BenefitsVALUE= CostsDrivesinnovationRespondstocustomerdemandsProvidesexcellentcustomerserviceAchieveshighestqualityInstrumentalinprocessimprovementsDevelopsnewbusinessopportunitiesDirectlyaffectsefficiencyandproductivityMinimizescostsofproduction,service,deliveryNotwidelyavailableinthemarketCannotbeboughtorappropriatedDifficulttoimitateorduplicateSpecializedKSAsDifficulttoreplaceCustomizedtoourfirmDevelopedthroughon-the-jobexperiencesDistinguishesusfromourcompetitors
Howdoeshumancapital
contr37R&DManufacturing/Operations
DistributionSalesSalesTMTCustServHRR&DRapidsFinCustomerServiceMfgR&DR&DPartnersCoreKnowledgeLowVALUEhighLowUNIQUEhighBIOTECH,INC:MappingHumanCapitalKEY
FinanceHRTMTMISMfg/OperationsMarket/SalesR&DQualityBiologicalsCust.ServiceRapidDiag.Legal/Reg.DistributionRapidsScottA.Snell,CornellUniversityC2=RapidLearningHRLegalMISBiologicalsFinQualityTMTCompulsoryKnowledgeIdiosyncraticKnowledgeAncillaryKnowledgeR&DManufacturing/Distribution38HighValueLowValueGenericCoreIdiosyncraticAncillaryCompulsoryUniqueHumanCapitalArchitectureHumanCapitaluniquevalue
HRMSystem
EmployModeHighValueLowValueGenericCore39
CoreHumanCapitalHighValue:DirectlinktocorecompetenceHighUniqueness:Firm-specificknowledgeandskillsEmploymentMode:knowledgeworkEmploymentRelationship:organization-focusedExamples:
softwaredevelopers(Microsoft) drugresearchers(Merck) fundmanagers(Fidelity) “gold-collar”workersHighValueHighValueLowValueLowValueUniqueGenericGenericIdiosyncraticIdiosyncraticAncillaryAncillaryCompulsoryCompulsoryHumanCapitalArchitectureCore CoreHumanCapitalEmploy40HighValueHighValueLowValueLowValueUniqueGenericGenericCoreCoreIdiosyncraticIdiosyncraticAncillaryAncillaryHumanCapitalArchitectureHumanCapitalArchitectureCompulsoryEmploymentMode:traditionaljobEmploymentRelationship:job-focusedExamples:
staffaccountants(Andersen) salespeople(Sears) truckdrivers(UPS)HighValue:DirectlinktostrategyHighUniqueness:Genericknowledgeandskills
CompulsoryHumanCapitalHighValue:DirectlinktocorecompetenceLowUniqueness:GenericknowledgeandskillsHighValueHighValueLowValueL41EmploymentMode:contractworkEmploymentRelationship:transactionalExamples:
assemblers(Nike) clericalworkers(Halliburton) payroll(Continental) catering(ARAMARK)HighValueHighValueLowValueLowValueUniqueGenericGenericCoreCoreIdiosyncraticIdiosyncraticCompulsoryCompulsoryHumanCapitalArchitectureHumanCapitalArchitectureAncillaryAncillary
AncillaryHumanCapitalLowStrategicValue:OperationalroleLowUniqueness:GenericknowledgeandskillsEmploymentMode:contractwork42EmploymentMode:partnershipEmploymentRelationship:collaborativeExamples:
“wildducks”(IBM) designengineers(w/Boeing) trainers(Merck/Forum) authors(McGraw-Hill)
HighValueHighValueLowValueLowValueUniqueGenericGenericCoreCoreIdiosyncraticIdiosyncraticAncillaryAncillaryCompulsoryCompulsoryHumanCapitalArchitectureHumanCapitalArchitecture
IdiosyncraticHumanCapitalLowStrategicValue:IntermittentlinktocompetenceHighUniqueness:SpecializedknowledgeandskillsEmploymentMode:partnershipHi43TRADITIONALJOB-BASEDEMPLOYMENTALLIANCE/PARTNERCONTRACTWORKKNOWLEDGEWORKS-specificjobT&D-short-termT&D-currentjobT&D-external$-internalequityS-immediateperform$-groupJob-narrow/simple$-short-termPA-qualityJob-customized$-bonus$-performance$-industryexperienceS-strategycontribute$-salaryJob-rotationS-solveproblemsS-bestJob-security$-highJob-empowerPA-strategycontributeT&D-investmentPA-workw/othersT&D-OJTT&D-teamT&D-continuousS-potentialS-promotew/inPA-developJob-dynamicJob-standardized$-hourlyKEY
JobdesignStaffingTrainingAppraisalCompensationLowVALUEhighLowUNIQUEhighPlottingHRPracticesSTUDY:152multi-productfirms>200employeesCEO,VPHR,lineexecsLepak&Snell,2001TRADITIONALJOB-BASEDEMPLOYME44RewardsAppraisalDevelopmentStaffingJobDesign
enriched&empoweredcustomized
aptitude(abletolearn)promotefromwithin
continuouson-the-jobfirm-specific
focusonstrategiccontributiondevelopmental
externalequity(highwages)payforknowledge,experience,seniorityownershipandperksCOMMITMENT-BASEDHRMSYSTEMHighValueHighValueLowValueLowValueUnique
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