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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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