1. Producing sustainable competitive advantage through the effective management of people James B. Avey PhD

2. About the Author Jeffrey Pfeffer Thomas D. Dee II professor of Organizational Behavior. More than 90 articles, Managing with Power, Organizations and Organization Theory…

3. Five fundamental forces Entry of new competitors Rivalry among existing competitors Bargaining power of buyers Threat of substitutes Bargaining power of suppliers

4. 13 Practices for Managing People 1. Employment Security 2. Selective in Recruiting 3. High Wages 4.Incentive pay 5. Employee Ownership 6.Information sharing 7.Participation & Empowerment 8. Self-manage Team 9. Training & Skill development 10. Cross-utilization & cross-training 11. Symbolic Egalitarianism 12. Wage Compression 13. Promotion from Within

5. 13 Practices for Managing People 1. Employment SecurityObvious fact 2. Selective in RecruitingCommitment of both side- Trust and social exchange theory 3. High WagesInvolvement, responsibility 4.Incentive payContribute to training 5. Employee Ownership Sacrifices: 6.Information sharing - worker: no strike, no complain 7.Participation & Empowerment- company: recruiting 8. Self-manage Team 9. Training & Skill development 10. Cross-utilization & cross-training 11. Symbolic Egalitarianism 12. Wage Compression 13. Promotion from Within

6. 13 Practices for Managing People 1. Employment SecurityThe right people in the right way 2. Selective in RecruitingScreening 3. High WagesExpectations: 4.Incentive pay - work in dynamic environment 5. Employee Ownership - eager to learn & develop 6.Information sharing - need less supervision 7.Participation & EmpowermentSkill might be substitute by (2) 8. Self-manage Team“elite” 9. Training & Skill developmentSuccess: The message sent 10. Cross-utilization & cross-training 11. Symbolic Egalitarianism 12. Wage Compression 13. Promotion from Within

7. 13 Practices for Managing People 1. Employment SecurityAdvantages for company: 2. Selective in Recruiting - more applicants = more selection 3. High Wages - #2 4.Incentive pay - message sent: we value you 5. Employee Ownership - workers give best 6.Information sharing 7.Participation & Empowerment 8. Self-manage Team 9. Training & Skill development 10. Cross-utilization & cross-training 11. Symbolic Egalitarianism 12. Wage Compression 13. Promotion from Within

8. 13 Practices for Managing People 1. Employment SecurityIncentive = positive motivational influence 2. Selective in Recruiting 3. High Wages 4.Incentive pay 5. Employee Ownership 6.Information sharing 7.Participation & Empowerment 8. Self-manage Team 9. Training & Skill development 10. Cross-utilization & cross-training 11. Symbolic Egalitarianism 12. Wage Compression 13. Promotion from Within

9. 13 Practices for Managing People 1. Employment SecurityDraw interests 2. Selective in RecruitingLess conflict 3. High WagesLong-term view, strategy, investments 4.Incentive payEmployees think and act like owners 5. Employee Ownership 6.Information sharing 7.Participation & Empowerment 8. Self-manage Team 9. Training & Skill development 10. Cross-utilization & cross-training 11. Symbolic Egalitarianism 12. Wage Compression 13. Promotion from Within

10. 13 Practices for Managing People 1. Employment SecurityNo share, no fair (related to psychological ownership) 2. Selective in RecruitingDisclosure of sensitive information 3. High WagesBroader participation & empowerment 4. Incentive pay 5. Employee Ownership 6. Information sharing 7. Participation & Empowerment 8. Self-manage Team 9. Training & Skill development 10. Cross-utilization & cross-training 11. Symbolic Egalitarianism 12. Wage Compression 13. Promotion from Within

11. 13 Practices for Managing People 1. Employment SecurityGiving people a say 2. Selective in RecruitingProviding a context for self-motivation 3. High WagesGenerating creativity 4.Incentive pay 5. Employee Ownership 6.Information sharing 7.Participation & Empowerment 8. Self-manage Team 9. Training & Skill development 10. Cross-utilization & cross-training 11. Symbolic Egalitarianism 12. Wage Compression 13. Promotion from Within

12. 13 Practices for Managing People 1. Employment SecurityOne for all – all for one. 2. Selective in RecruitingWith empowerment comes…? 3. High WagesWith trust comes…? 4.Incentive pay 5. Employee Ownership 6.Information sharing 7.Participation & Empowerment 8. Self-manage Team 9. Training & Skill development 10. Cross-utilization & cross-training 11. Symbolic Egalitarianism 12. Wage Compression 13. Promotion from Within

13. 13 Practices for Managing People 1. Employment SecurityEmployees feel invested in 2. Selective in RecruitingEmployees have more skills to apply 3. High WagesEmployees do not become “out of date” 4.Incentive pay 5. Employee Ownership 6.Information sharing 7.Participation & Empowerment 8. Self-manage Team 9. Training & Skill development 10. Cross-utilization & cross-training 11. Symbolic Egalitarianism 12. Wage Compression 13. Promotion from Within

14. 13 Practices for Managing People 1. Employment SecurityMore people are more useful 2. Selective in RecruitingIndividuals more able to think systemically about the work 3. High WagesFirm not too highly dependent on one person 4.Incentive pay 5. Employee Ownership 6.Information sharing 7.Participation & Empowerment 8. Self-manage Team 9. Training & Skill development 10. Cross-utilization & cross-training 11. Symbolic Egalitarianism 12. Wage Compression 13. Promotion from Within

15. 13 Practices for Managing People 1. Employment SecurityWeaken discrimination 2. Selective in RecruitingClose social distance 3. High WagesReduce classifications 4.Incentive payHard to achieve as existing traditions and expectation 5. Employee Ownership 6.Information sharing 7.Participation & Empowerment 8. Self-manage Team 9. Training & Skill development 10. Cross-utilization & cross-training 11. Symbolic Egalitarianism 12. Wage Compression 13. Promotion from Within

16. 13 Practices for Managing People 1. Employment SecurityDiffers from incentive pay 2. Selective in RecruitingPrevent experience leaving 3. High WagesNot a bonus 4.Incentive pay 5. Employee Ownership 6.Information sharing 7.Participation & Empowerment 8. Self-manage Team 9. Training & Skill development 10. Cross-utilization & cross-training 11. Symbolic Egalitarianism 12. Wage Compression 13. Promotion from Within

17. 13 Practices for Managing People 1. Employment SecurityCreates bonds 2. Selective in Recruiting - outsider to be supervisor 3. High Wages - outsiders: lack of knowing internal things 4.Incentive pay- Enhances the idea of mutual investment 5. Employee Ownership 6.Information sharing 7.Participation & Empowerment 8. Self-manage Team 9. Training & Skill development 10. Cross-utilization & cross-training 11. Symbolic Egalitarianism 12. Wage Compression 13. Promotion from Within

18. Contingencies These practices do not guarantee success Depending on the industry and work, some of the 13 may be more important than others.