Academic Lecture: Leadership, HRM & Innovation in SMEs. Dr. Jol Stoffers MBA Zuyd University of Applied Sciences The Netherlands

Transcription

1 Academic Lecture: Leadership, HRM & Innovation in SMEs Dr. Jol Stoffers MBA Zuyd University of Applied Sciences The Netherlands Dr. Jol Stoffers MBA (1969) is professor of Employability (lector) at Zuyd University of Applied Sciences (Faculty of Management & Law) in the Netherlands. He leads the Research Centre of Employability, and his research focuses on Employability (HRM), Leadership and Innovative Work Behavior. Next to that he is academic program manager of the master of Personal Leadership in Innovation and Change. Jol Stoffers holds a PhD in Management Science from the Radboud University (Institute for Management Research), and an executive MBA (Master of Business Administration) of Maastricht University. More than fifteen years he worked as a manager and senior HRM consultant in the insurance (Loyalis) and recruiting industry (Polec Consultancy). 1

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3 Overview of this Lecture Small and Medium-sized Enterprises (SMEs) Aim and Statement of this Lecture Relationship between Leadership, HRM and Innovative Behavior Introduction to Leadership at the Organizational Level Difference between Transactional and Transformational Leadership Innovation and Innovative Work Behavior Explore your own Innovative Work Behavior Small and Medium-sized Enterprises (SMEs) Small and Medium-sized Enterprises (SMEs) represent the majority of all enterprises and contribute significant to the economy (added value) and employment. SMEs have an enormous potential for innovation. When employees are innovative, SMEs are better able to meet the changing demands of their customers. Financial resources in SMEs are limited and SMEs do not often employ professional experts to manage Human Resource issues. SME supervisors frequently develop their own models of what is good HRM practice. 3

4 SME supervisors are really successful in establishing close relationships and meaningful exchanges with their employees (more open and shorter lines of communication, faster decisions, shorter reaction times). A solid working relation marks the relationship between supervisors and employees in SMEs. An enormous advantage SMEs have compared with large companies. Employees with advanced skills, knowledge and competences are an essential starting point for innovation in SMEs. Innovative work behavior depends on knowledge, skills, and expertise, hence representing employees employability (Stoffers and Van der Heijden, 2009; 2014). Aim and Statement: Employees are the most valuable asset we have in organizations, by leading them well we can enlarge their skills, knowledge and competences (representing employees employability). So we can use the best of employees talents to enhance innovation. Employees have to show innovative work behavior, especially in SMEs. Proper leadership and good HRM practices will increase this kind of behavior. 4

5 Conceptual Framework* HRM practices in SMEs Leadership + Skills, Knowledge, Competences Employability + Innovative Work Behavior * Stoffers, J.M.M., Van der Heijden, B.I.J.M., & Notelaers, G.L.A. (2014). Towards a moderated mediation model of innovative work behaviour enhancement Journal of Organisational Change Management, 27(4), So what s your opinion about this conceptual framework? Do you agree, and why? Do you disagree, and why? 5

6 Conceptual Framework* HRM practices in SMEs Leadership + Skills, Knowledge, Competences Employability + Innovative Work Behavior * Stoffers, J.M.M., Van der Heijden, B.I.J.M., & Notelaers, G.L.A. (2014). Towards a moderated mediation model of innovative work behaviour enhancement Journal of Organisational Change Management, 27(4), Measuring Leadership - Do you know where you stand with your leader?; - I have enough confidence in my leader so that I would defend and justify his/her decision; - How would you characterize your working relationship with your leader? (Graen et al. s, 1982) The LMX instrument was measured using 7 items, with all items scored on a five-point Likert scale ranging from 1 (not at all) to 5 (extremely). 6

7 Measuring Employability - I apply my newly acquired knowledge and skills; - I adapt to developments within my organization; - I share my experience and knowledge with others; (Van der Heijde and Van der Heijden, 2006) The construct was measured using 47 items, with all items scored on a six-point Likert scale ranging from 1 (never) to 6 (very often). 7

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12 Supervisors or leaders can have different leadership styles. Transactional Leadership: the leader tells the subordinate what to do, and the subordinate does this because they have been promised a reward (at minimum their salary) for doing so. Transactional Leadership focuses on planning, organizing and coordinating. Supervisors or leaders can have different leadership styles. Transformational Leadership: Leaders with a stronger charisma attract people to their cause. The employees receive transformational benefits, not just extrinsic rewards (like money or status) but things like engagement, motivation and commitment, better self perception. Malala Yousafza (1997-) is a Nobel Peace Prize winner. One child, one teacher, one book, one pen can change the world. Transformational Leadership focuses on inspiring and motivating. 12

13 The transactional oriented leader: The transformational oriented leader: administers; maintains; focuses on systems and structures; relies on control; has a short-range view; asks how and when; imitates; accepts the status quo; does things right; innovates; develops; focuses on people; inspires trust; has a long-range perspective; asks why and what; originates; challenges the status quo; does the right things; Transactional Leadership and Transformational Leadership must go hand in hand. They are not the same thing. But they are necessarily linked, and complementary. These attributes, roles and behaviors combined in one person is the best (depending on the situation) Toni Morrison (1931-) is a Nobel Prize winning American author, editor, and professor. A role-model for Afro-American young people. 13

14 Vijay Govindarajan, is Professor of International Business at the Tuck School of Business in Dartmouth. He is an author of the management book: Ten Rules for Strategic Innovators: From Idea to Execution. Creating an Innovation Mindset. Harvard Business Publishing: Summarized Vijay Govindarajan, Creating an Innovation Mindset (1) Fundamental issues for Managers leading ongoing innovation: Our world is changing rapidly, recognize that only reengineering current business is not enough. Innovation is a necessity; Innovation is not just a technical issue, it is about changing minds (more an organizational/hrm issue which involves employees). 14

15 Harvard Business Publishing: Summarized Vijay Govindarajan, Creating an Innovation Mindset (2) Innovation requires change, how overcome resistance: 1. Change the performance measurement system, employee s respond how they are measured and rewarded; 2. Invest and focus in the willingness to collaborate, although creativity is an individual issue, innovation requires collaboration; 3. Create a tolerance for failure culture, since you cannot succeed 100% of the time in innovation. So please explain in your own words: the connection between Innovation, HRM and Leadership. 15