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Description
Flashcards by Christian Weibel, updated more than 1 year ago
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Created by Christian Weibel
over 6 years ago
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| Question | Answer |
| Entrepreneurial Behavior | All actions by firm members that relate to the discovery, evaluation, and exploitation of entrepreneurial opportunities. - Creation of entrepreneurial atmosphere - Support of subordinates - Generation of own ideas |
| Types of entrepreneurs | 1. The founder - Typical entrepreneur, creates a new firm from scratch 2. Serial entrepreneur - Creates one firm after another, M&A 3. Portfolio entrepreneur - Same as 2, but keeps them normaly 4. Corporate entrepreneur - Thinks and acts like an entrepreneur in an existing firm |
| Corporate Entrepreneur | Combines manager and entrepreneur. Likes moderate risk, self motivated, access to corporate resources, learns from mistakes |
| What corporate entrepreneurs do | - Not necessarily inventors - Turn ideas or prototypes into profitable realities - Team builders with a commitment |
| Characteristics of entrepreneurial employees | - Entrepreneurial attitude - Problem solving - Center of network, bring people together |
| Key players for corporate entrepreneurship | - Initiator: Triggers new entrepreneurial event - Sponsor: Pushing for initiative's acceptance - Champion: Takes the lead - Supporter: Augments the team - Reactor: Intelligence and insight about weaknesses |
| What does HRM? | Relationship between organization and employees. Aquiring, training, developing, motivating, organizing, maintaining. Strategic role in developing core competencies, achieve sustainable competitive advantage, foster entrepreneurship |
| Key HRM CE challenge | Create a work environment that supports entrepreneurial employees |
| HRM Expectancy model - Motivation determined by | 1. Expected relationship between effort and positive appraisal 2. Expected relationship between positive appraisal and achievement of rewards 3. Assessment wether rewards are desirable and fair |
| 5 key elements of HRM | 1. Job planning and design 2. Recruitement and selection 3. Training and development 4. Performance appraisals 5. Compensation and rewards |
| 1. Planning and job design | - Long term orientation - Broad scope - Flexibility - Employee involvement - Results orientation |
| 2. Recruitment and selection | - Innovative approaches for hiring - Reliance on external and internal candidates - Broad career paths - Multiple career ladders - Create diversity |
| 3. Training and development | - Long term oriented training - Individualized - High employee participation - Emphasis on entrepreneurial skills - Continuous training |
| 4. Performance Appraisals | - Balanced individual-group orientation - Effectiveness over efficiency - Emphasis on long term performance - Tolerance of failure - Involve employees in criteria definition |
| 5. Compensation and Rewards | - Emphasis on long term performance - Tailored to individuals - Merit-based - Customized at divisions |
| How to align interests of Principal & Agent? | - Stock ownership plans - Financial incentive systems - Psychological ownership |
| Stock ownership plan | - Employee has the opportunity to acquire shares with a discount - Agents become real principals - Behavioral and attitudinal changes expected |
| Advantages of Stock Ownership Plans | - Alignment of interests possible - Real ownership with voting rights and dividends - Tax advantage - Incentive tied to company performance |
| Disadvantages of Stock Ownership Plan | - Valuation - worth of share - Administration - Costs (dividends, share benefits) - Dilution of ownership and control rights - Effects unclear! |
| Financial Incentive System | - No stock ownership, but financial incentives - Performance based salary - Variable salary - Boni But: keep it hybrid - Cash, Shares, Share options etc. |
| Advantages of Financial Incentive System | - No dilution of ownership - Share of company success - Incentive tied to company performance - Long term oriented - Individualization possible - Quick adaption possible |
| Disadvantages of Financial Incentive System | - Selection of the right criteria difficult - Focus on extrinstic motivation - Downside risk for employees - Cost for the firm - Effects unclear! |
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