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Chapter 10 Creating a fit-for-purpose future 375 This page intentionally left blank ABB 195 Acer 50 AC 3 ID framework 95–9 Action(s), organizational 25–7, 82, 83, 106–11 Age Concern North Tyneside 104–5 Ageing populations 6 Agilent Technologies 93, 111, 215 Agreeableness 101, 102, 103 Airlines, see British Airways; Southwest Airlines America, see USA Apple, as celebrity brand 22–3 Associations, as component of brand equity 53 AT&T, acquisition and re-branding of NCR Corporation 3–5 Autobiography, organizational 21, 65, 106 Awareness, as component of brand equity 53 BA (British Airways), changing identities 97–9 Balanced scorecard 43 ‘Banco (South)’ 192–4, 205–6, 213 Banking service-profit chain 28, 45–6 UK 299 see also Financial services industry Banks performance drivers 207 strategic activities 207 see also ‘Banco (South)’; Banking; HSBC; Royal Bank of Scotland Group Barney, Jay 41 Beckham, David 94 BenQ 49–50 Best Companies 274–5 Best practice(s) 229–30 borrowing and diffusion of 240 generic 204 human resource management (HRM) 162–3, 165–9, 174–8 Biography, organizational 21, 65, 258 Body Shop 12 Brand equity 52–3 components 52–3 definition 52 see also Employer brand equity Brand identity 55, 57–8 vs brand reputation 58 definition 57 Branding corporate, see Corporate branding developments in 46–7 employee branding 116, 281–5 employer branding 277–88 global vs local 338–41 interpretations of 53–8 mistakes 9 monolithic 19 research 53–60 roles of 54–6 Brands American 2 business success and 47–8 celebrity brands 22–3 definition 47 driving business success 8–11 house of brands 19, 62 as intangible assets 10–11 reputation 57–8, 74 social value of 50–2 super-brands 22, 74–5 top ten 11 value of 48–9 see also Brand equity; Brand identity; Branding Brandwashing 27 British Airways (BA), changing identities 97–9 British American Tobacco (BAT) 52 British Army, talent management in 287–8 Business partnering 183, 184, 344 Business success, reputation and brands driving 8–11 Index Business systems 240–8 critical turning points 246–7 historical development of 241–5 interlocking/enduring nature of 245–6 international comparisons 248 national 220–1, 240–1 new industries 245 Capital human, see Human capital reputational 11–13, 64–5 social 195, 330, 334 Capitalism, new 354 Cappelli, Peter 215–16 Change through communications 267–72, 361–2 conception stage 269, 270–1 embedding stage 269, 272 feedback stage 272 focus on 217–20 narrative for 264–5 receptive contexts for 268–70 sustainable, definition 267 transition stage 269, 271 Change conversations 267–8 Change programmes 220 Character, see Corporate character Chartered Institute of Personnel and Development (CIPD) 320–1 Chicness 102 China brand building 50 joint ventures 67, 172 shortage of graduates 273 Collectivist societies 237–8 Commitment 116, 144–6 affective 140, 144, 146 attitudinal 144 to career 201 continuance 145, 145–6 Global Employee Commitment Report 201–2 high commitment management 174–5 measuring and managing 135–6 normative 145 to the organization 144–6, 147, 201 Communication(s) change through 267–72, 361–2 corporate, see Corporate communications management communication 266 marketing communication 266 organizational 266 strategy as 265 Competence 101–2 Competitive advantage, sources of 203, 206–7 Confidence, as outcome of reputation 75 Conformance to standards of behaviour 8 Consumers classification 355–7 declining levels of confidence 8–9 purchasing decisions 13 Contract workers 183–4 Contracts, see Ideological contracts; Psychological contracts Cooperation, and initiative, balance between 1, 7 Core competency school of strategic advantage 306–7 Core internal competences 43–6 Core workforce differentiation 204–5 Corporate branding 6–7, 17, 18–20, 59–60, 60–4 essentials of 13 in multinational enterprises 229–30, 241 see also Branding; Brands Corporate character 69–70, 101 Age Concern North Tyneside 104–5 dimensions of 101–4 Corporate Citizenship Programme, Diageo 330–4 Corporate communications 17 changing 263–6 description 265–6 failures in 257–8 importance of 257–62 re-branding Orange 259–62, 263–4, 268 ‘strategy-as-narrative’ 258 see also Communication(s) Corporate governance 296, 309–11 agency theory 312–14 approaches to 312–17 enlightened shareholder value model 316–17 irregularities 8–9, 65, 316 models of 296 stakeholder theory 312, 314–15 stewardship theory 312, 314–15 see also Governance Corporate identity 17 and corporate social responsibility 317–18 Corporate image 17, 20–3 Corporate interests, encroachment of 9–10 Corporate reputation(s) 6–7, 17, 64–5 definition 70–1 in times of crisis 64–5 Corporate social responsibility (CSR) 8, 12, 50–2, 296–7 business case for 319–21 case for 318–19 and corporate identity 317–18 criticisms of 322–9 GE 310–11 measurement 321–2, 328–9 triple bottom line (3BL) 321–2, 328 Corporate strategy inside-out perspective 302–5 outside-in approach 302, 309 378 Index Corporateness 1–7 definitions 7, 17–18 individuals’ values/attitudes affecting 5–6, 11, 19–20, 33 key concepts 17 modelling 14–16, 30 people management and 30–2 significance for human resource professionals 32–4 stages towards 60–4 strategic management and 40–2 Corporations, power of 10 Cost leadership 40 Craftsmanship 364–6 ‘Creative class’ management 139 Creative employees 181–2, 184 Creative industries, strategy in 305–6 CSR, see Corporate social responsibility ‘Cult’ of the customer 41 Culture culture-identity relationship 91–3 definition 237 dimensions of 237–9 image-culture gap 67–8 vs institutions 240 national 236–9 values 237–9 vision-culture gap 67 Customer(s) captivity 11 ‘cult’ of the 41 satisfaction 45–6 Davos culture 357 Decision-making, in multinational enterprises 231 Demographic changes 353–4 Diageo, Corporate Citizenship Programme 330–4 Differentiation 8, 40, 276–7 integration-differentiation balancing 7, 196, 228, 230, 231, 231–2, 233 Discourses, strategic 267–8 Discretionary behaviour 303, 305 Distributive bargaining 309 Division of labour 344, 346 Dow Jones Sustainability Index 322 Downsizing, effects of 216–17 Ecomagination 81–2 Economic imperialism 234 Education, e-learning 307–8 Elective affinity 346, 348 Embedded systems 220–3, 236–7 Employability 129 Employee advocate 347 Employee branding 116, 281–5 definition 283 Employee engagement 28, 116–17, 134–5, 146–50 definitions 149–50 measuring and mapping 150–5 in Standard Life Investments 153–5 see also Psychological contracts Employee-expressiveness quotient (EQ) 71–4 Employee identities, changing 116 Employee of choice 277 Employee surveys, international 201–2 Employee value propositions (EVPs) 209, 286–7 Employees ambassadors 201 ambivalents 201 career-orientated 201 commitment to career 201 commitment to the organization 144–6, 147, 201 company-orientated 201 Global Employee Commitment Report 201–2 keepers 212 lifestyles 196–203 live to work 200 misfits 212 mobility in multinational enterprises 231 orientations 202–3 performance 45 pleasure seekers 200 potential 365, 370 satisfaction, drivers of 103 solid citizens 212 superkeepers 212, 213 Tesco 198–200 want it all 199 work-life balancers 199 work to live 200 see also Human capital Employer brand equity 289–90 Employer branding 277–88 definition 278 integrated brand model 285, 286 Employer of choice 273–7 top UK companies 276 Employment relationships 27–9 framework 118 HR and talent management 162 individual 29–30, 115–18 promises in 122–4, 126–7 Engagement, see Employee engagement Enron (‘Paragon’) 317 HR management at 165–9 Enterprise 101–2, 103 Ethics 323 Index 379 Evangelical Protestantism 358 Evian, branding 48 Evidence-based practice 156, 163, 177 Expressiveness quotient (EQ) 71–4 External adaptation/internal integration problem 81, 89 Externalities 319 Faculty Club culture 357 Femininity 238 Financial performance, satisfaction and 103 Financial services industry, UK 297–302 changing nature of consumers 300 service-profit chain 43 Flexible firm 202, 215 Focus 40 Foreign direct investment 357 Foreignness, liability of 228–9 Functional expert 347 GE 81–2 corporate social responsibility 310–11 Germany attitude to education 244 economic organization 242 industry after WW2 243–4 managerial beliefs 244 Glass Ceiling 184–6 Global Employee Commitment Report 201–2 Globalization 230–1, 357–9 encroachment of 9–10 meanings of 230 see also Multinational enterprises Glocalization 205 Goal-setting 217–18 Google, as celebrity brand 22–3 Governance 25–7, 106–12 volunteer governance 26 see also Corporate governance Great Place to Work Institute 274, 275 Hewlett Packard (HP) 93 High performance work practices (HPWPs), in UK 176–7 House of brands 19, 62 HR see Human resource entries HSBC 20, 62 Human capital 28, 117, 180–4, 303 ancillary/contract workers 183–4 compulsory traditional 182, 184 core knowledge/creative employees 181–2, 184 idiosyncratic/alliance of business partners 183, 184 value 184 Human capital developer 347 Human resource (HR) architecture, develop- ments in 195–6 Human resource (HR) function centres of excellence 344 division of labour 344, 346 future of (report) 344–5 future challenges for 353–62 history 342–4 lack of ‘well-roundedness’ 351–3 limitations 349–53 low impact of 349–50 poor training and education 350–1 professionalization 350–2 roles of 346–7 shared services 344 strategic partners 343–4, 346, 347 Human resource (HR) leaders 347 calculating 369–70 corporate value proposition 362–4 craftsmanship 364–6 heroic 370–1 narcissistic 370 styles 367–71 tedious 370 well-rounded 364–71 Human resource management (HRM) architectural approach 180–4 as an art 368 best fit 178–80 best practice approach 162–3, 165–9, 174–8 as a craft 368 at different levels 366–71 European values and different meanings 172 high commitment management 174–5 high involvement management 175 high performance management/work systems 175 mutuality model 4 as a science 367 segmentation approaches 180–6, 194–208 Sino-foreign joint ventures 67, 172 strategic 173–86 Human resource (HR) strategy 29–30 and best practice 165–9 cooperative mode 196 design perspective 170, 171 embedded systems approach 170, 171 entrepreneurial mode 196 explanations of 169–73 market/evolutionary view 170, 172–3 process and change perspective 170, 173 unitary/pluralistic outcomes 171, 173–4 Humans, resourceful 218 Hurricanes in the USA 106–8, 110–11 Hybridization 358 380 Index IBM 307 Identification 116 as effect 83–4 vs identity 83–4 individual 83 measuring and managing 135–6 organizational 83–4, 147 social 137–8, 141 Identity brands as 55 as cause 83–4 corporate 17, 317–18 vs identification 83–4 identity-image relationship 92, 95–7, 99–101, 103–4 individual 83, 109, 136–8 multiple 24–5, 95–9 mutable 24 organizational, see Organizational identity personal 136–7 self-disclosure 138–9 self-identity 140, 142 social 137, 140 Ideological contracts 128, 129–30 Image brands as 55 construed 21 corporate 17, 20–3 identity-image relationship 92, 95–7, 99–101, 103–4 organizational 82, 83 received 21 transmitted 21 Image-culture gap 67–8 Image-vision gap 68 Improvisation 218–19 Incrementalism 219 Individual identification 83 Individual identities 109, 136–8 vs organizational identity 83, 136 Individualism 237–8 Informality 102, 102–3, 103 Information, importance of 8 Information and communications technologies (ICT), impact of 84 Information technology (IT), manufacturing in Taiwan 49–50 Initiative, and cooperation, balance between 1, 7 Institutions in society 236–7 vs national culture 240 Insurance, see Financial services industry Intangible assets, brands as 10–11 Integration-differentiation balancing 7, 196, 228, 230, 231, 231–2, 233 Integrative bargaining 309 Internalization 116, 140–1, 147 measuring and managing 135–6 International management approaches 231–4 ethnocentric 232, 233–4 geocentric 233, 234–6, 248–50, 254 polycentric 232–3, 234 regiocentric 233 transnational 235 Internationalization 357–9 Investors in People (IIP) 192 Johnson & Johnson 64 Joint ventures in China 67, 172 Knowledge application 306 creation 306 organizational 365–6 transmission 306 Knowledge-based industries, strategy in 305–6 Knowledge environments 305 Knowledge flows 194, 195–6 encouraging 197 Knowledge transfer, in global companies 228 Knowledge workers 216, 305–6 attachment to organizations 85 Leadership 25–7, 106–12, 296, 297, 309–11 as source of success/failure 168–9 styles 26–7 Learning exploitive 196 exploratory 196 Legitimacy, organizational 8 Leveraged school of strategic advantage 306, 307, 309–10 Liability of foreignness 228–9 Liquid modernity 341–2, 354, 364–5 Local enterprise councils (LECs) 86–9 Logos 54 London, average earnings 300–1 Loyalty as component of brand equity 53 to organization 140 McDonalds 51–2 Machismo 102, 102–3 McKinsey report 359–60 McWorld culture 358 Management communication 266 Managers British 243 expatriate 249–50 gifted amateurs 243 Marketing communication 266 Index 381 Markets focus on 214–17 processual approaches 217–20 Mars Corporation, evolution of 250–4 Masculinity 238 Media, creating ‘celebrities’ 93–4 Merck 65 Mobilix, re-branding 259–62 Modernity, liquid 341–2, 354, 364–5 Mortgage market, UK 299 Multinational enterprises (MNEs) 227–30 control over subsidiaries 249–50 corporate branding 229–30, 241 de-bureaucratization in 348 decision-making in 231 employees’ mobility in 231 evolution 248–54 expatriate managers 249–50 influence of national business systems and cul- ture 220–1 key characteristics 231 liability of foreignness (costs) 228–9 reputation management 229–30 statistics 230 transnational companies 230, 235 see also International management approaches National business systems 220–1 definition 240–1 National culture, see Culture NCR Corporation, re-branding 3–5 Network integrators 308 Networked (virtual) organizations, strategy in 306–9 New capitalism 354 New Orleans, Hurricane Katrina 106–8, 110–11 Nike 51 OECD standards 316 Oil industry, North Sea, psychological contracts 118–22 Orange, corporate communications in re-branding 259–62, 263–4, 268 Organization(s) democratic enterprises 198 personality of 70, 90 as social actor 90 Organizational action(s) 25–7, 82, 83, 106–11 Organizational agency 91 Organizational autobiography/biography 21, 65, 106 Organizational commitment 144–6, 147, 201 types of 144–5 Organizational communication 266 Organizational identification 83–4, 147 Organizational identity 17, 24–5, 82, 90–1 actual 95, 96, 97 communicated 95, 96, 97 conceived 95, 96, 97 covenanted 95, 96 culture-identity relationship 91–3 desired 95, 96 ideal 95, 96 identity-image relationship 92, 95–7, 99–101, 103–4 vs individual identity 33, 136 measuring and managing 83–4 multiple identities 24–5, 95–9 negative 97 principles of 24, 91–2 weak/strong versions 90 see also Identity Organizational image 82, 83 Organizational knowledge 365–6 Orientation, long-term vs short-term 238–9 Original design manufacturing (ODM) 50 Original equipment manufacturing (OEM) 50 Outsourcing 49 ‘Paragon’ (Enron), human resource manage- ment at 165–9 People management 303–4, 338–42 corporateness and 30–2 Perceived quality, as component of brand equity 53 Personal identity 136–7 Personality, of organization 70 Pfeffer, Jeffrey 175–6 Populations, ageing 6 Porter, Michael 40, 41 Power distance 237 Processualism 217–20 Procter and Gamble, branding 18–19 Promises 122–4, 126–7 Protestantism, evangelical 358 Psychological contracts 116, 122, 274 breach and violation of 125–7 content of 130–1 corporate communications associated with outcomes 290–1 defining and forming 122–4 employee lifestyles and 196–203 key aspects 123–4 key factors 130 measuring and managing 133–4 nature of 130–2 outcomes 130, 291 psychological contract gap 133–4 and trust 132–3 types of 127–30 in UK offshore drilling industry 118–22 see also Employee engagement 382 Index Psychological ownership 116, 142–4, 147 definition 142 measuring and managing 135–6 Public relations, failures in 257–8 Quality, perceived, as component of brand equity 53 RBS, see Royal Bank of Scotland Group RBV (resource-based view) of strategy 41–2, 91, 296, 302, 304 Realism, in a sustainable corporate story 266 Relational contracts 127–9 Relevance, in a sustainable corporate story 266 Reputation(s) 8, 21–2 American 3 brand reputation 57–8, 74 corporate, see Corporate reputation(s) definitions 58, 70 driving business success 8–11 gaps in 69–70 outcomes of 75 plural nature of 74–7 Reputation chain 100–1 Reputation Institute 23 Reputation management 65–6, 83 in multinational enterprises 229–30 stakeholder theory and 315 Reputation quotient (RQ) 13, 70–4, 77 Reputational capital 11–13, 64–5 definition 12 Resource-based view (RBV) of strategy 41–2, 91, 296, 302, 304 Responsiveness, in a sustainable corporate story 266 Retailing, service-profit chain 20, 28, 43–4 Royal Bank of Scotland Group (RBS) 62, 63–4 employee data 201 Ruthlessness 101, 102, 103 Sabotage 143–4 Sarbanes-Oxley Act 315, 317 Satisfaction customers’ 45–6 employees’ 103 Scandals, corporate 8–9, 65, 316 Scotland Army recruitment in 288 influence of 241–2 Scottish & Newcastle (S&N) 338–41 Scottish Enterprise (SE) 86–9 Segmentation approaches 180–6, 194–208 workforce segmentation 203–8 Self-categorization 116, 136, 137 Self-concept 137, 138 changing 116 Self-disclosure 138–9 Self-esteem 137 Self-identity 140, 142 Self-reference 91 Service-profit chain 20, 28, 43–4, 45–6 Shareholder interest 359–61 Social capital 195, 330, 334 Social change 353–5 Social identification 137–8, 141 Social identity 137, 140 Social identity theory (SIT) 136–8 Social responsibility, see Corporate social responsibility Social value, of brands 50–2 Southwest Airlines 283–5 Standard Life Investments 153–5, 308–9 Strategic advantage theories 306–7 Strategic discourses 267–8 Strategic management 40–2 resource-based view (RBV) 41–2, 91, 296, 302, 304 Strategic partners 343–4, 346, 347 Strategic stars 66–9 Strategy as communications 265 as narrative 258 as a perspective 265, 296, 309 resource-based view (RBV) of 41–2, 91, 296, 302, 304 Subsidiaries, multinational enterprises’ control over 249–50 Super-brands 22, 74–5 Support, as outcome of reputation 75 Sustainability Dow Jones Sustainability Index 322 in a sustainable corporate story 266 Sustainable change, definition 267 Sustainable corporate story (SCS) 266, 267, 273 Sustainable development 319–20 SWOT (strengths, weaknesses, opportunities, threats) framework 40 Taiwan, re-branding 49–50 Talent definition 209 market value 212 shortages 6 Talent management 30, 94, 162, 208–13, 273 in the British Army 287–8 elements of approach 209–11 individual, over-emphasis on 213 Talent mindset 209, 210 Talent value chain 212 Tesco, employee lifestyles 198–200 Theory of the business 43 Trade unionism in the UK 242–3, 247 Index 383 [...]... 306–9 Vision image-vision gap 68 vision-culture gap 67 Wal-Mart, in Germany 222–3 Women, in top management 184–6 Workforce strategy core workforce differentiation 204–5 customization of 205 segmentation 203–8 segmentation, role of HR 207–8 World Business Council for Sustainable Development 320 Yahoo!, brand building 59–60 Yum! 62 ... Index Transactional contracts 128–9 Transnational companies 230, 235 Triple bottom line (3BL) 321–2, 328 Trust declining levels of 8–9 dynamic 308–9 as outcome of reputation 75 psychological contracts and 132–3 Turning points, in business systems 246–7 UBS, geocentric HR practices 234 Uncertainty avoidance 238 Unilever Polska, geocentric HR practices 235–6 Universitas 21 Global 307–8 University education . brand equity Brand identity 55, 57–8 vs brand reputation 58 definition 57 Branding corporate, see Corporate branding developments in 46–7 employee branding. Brewster, C. and Harris, H. (2004) Globalizing human resource management. London: Routledge. 374 Corporate Reputations, Branding and People Management