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

Producing sustainable Producing sustainable competitive advantage through competitive advantage through

the effective management of the effective management of peoplepeople

James B. Avey PhD

About the AuthorAbout the Author

Jeffrey Pfeffer

Thomas D. Dee II professor of Organizational Behavior.

More than 90 articles, Managing with Power, Organizations and Organization Theory…

Five fundamental forcesFive fundamental forces

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


1. Employment Security Obvious fact

2. Selective in Recruiting Commitment of both side- Trust and social exchange theory

3. High Wages Involvement, responsibility

4.Incentive pay Contribute to training

5. Employee Ownership Sacrifices:

6.Information sharing - worker: no strike, no complain

7.Participation & Empowerment - company: recruiting

8. Self-manage Team







1. Employment Security The right people in the right way

2. Selective in Recruiting Screening

3. High Wages Expectations:

4.Incentive pay - work in dynamic environment

5. Employee Ownership - eager to learn & develop

6.Information sharing - need less supervision

7.Participation & Empowerment Skill might be substitute by (2)

8. Self-manage Team “elite”

9. Training & Skill development Success: The message sent





13 Practices for Managing People1. Employment Security Advantages 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



8. Self-manage Team







1. Employment Security Incentive = positive motivational influence

2. Selective in Recruiting

3. High Wages

4.Incentive pay




8. Self-manage Team







1. Employment Security Draw interests

2. Selective in Recruiting Less conflict

3. High Wages Long-term view, strategy, investments

4.Incentive pay Employees think and act like owners




8. Self-manage Team







1. Employment Security No share, no fair (related to psychological ownership)

2. Selective in Recruiting Disclosure of sensitive information

3. High Wages Broader participation & empowerment

4. Incentive pay


6. Information sharing

7. Participation & Empowerment

8. Self-manage Team







1. Employment Security Giving people a say

2. Selective in Recruiting Providing a context for self-motivation

3. High Wages Generating creativity

4.Incentive pay




8. Self-manage Team







1. Employment Security One for all – all for one.

2. Selective in Recruiting With empowerment comes…?

3. High Wages With trust comes…?

4.Incentive pay




8. Self-manage Team







1. Employment Security Employees feel invested in

2. Selective in Recruiting Employees have more skills to apply

3. High Wages Employees do not become “out of date”

4.Incentive pay




8. Self-manage Team







1. Employment Security More people are more useful

2. Selective in Recruiting Individuals more able to think systemically about the work

3. High Wages Firm not too highly dependent on one person

4.Incentive pay




8. Self-manage Team







1. Employment Security Weaken discrimination

2. Selective in Recruiting Close social distance

3. High Wages Reduce classifications

4.Incentive pay Hard to achieve as existing traditions and expectation




8. Self-manage Team







1. Employment Security Differs from incentive pay

2. Selective in Recruiting Prevent experience leaving

3. High Wages Not a bonus

4.Incentive pay




8. Self-manage Team







1. Employment Security Creates 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




8. Self-manage Team






Contingencies Contingencies

These practices do not guarantee success

Depending on the industry and work, some of the 13 may be more important than others.

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

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