Analysis of HRM's Role in Corporate Entrepreneurship at Medpro

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This report provides a comprehensive analysis of the relationship between Human Resource Management (HRM) and entrepreneurship, specifically within the context of a hypothetical company, Medpro. The executive summary highlights the report's focus on Entrepreneurship Intensity (EI) and its influence on Medpro's success. Part 1 delves into a detailed analysis of EI theory, examining theoretical frameworks, including risk-taking, innovativeness, and pro-activeness. It also explores the assessment of EI through survey data, providing an overview of the methodology and the factors influencing EI scores. The report also includes an evaluation of the Corporate Entrepreneurship Climate Instrument (CECI), assessing management support, work discretion, reinforcement, time availability, and organizational boundaries. It also provides brief recommendations on how the HRM department could enhance the levels of corporate entrepreneurial activity in MedPro. The report concludes with a summary of key findings and recommendations for improving Medpro's entrepreneurial performance.
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Human Resource Management for
Entrepreneurship and Innovation
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EXECUTIVE SUMMARY
The report concise the concept of Entrepreneurship Intensity subject to analyse human
resource management for success in Medpro and measure the factors that the HRM function in a
hypothetical firm should consider when proposing a corporate entrepreneurship change program.
the current state of corporate entrepreneurship of a fictitious company for which the details and
data sheets provided. Brief recommendations of what the HRM department could do to enhance
the levels of corporate entrepreneurial activity in MedPro company.
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Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
Table of Contents.............................................................................................................................3
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Comprehensive analysis of EI theory..........................................................................................1
Theoretical frameworks for analysis of EI..................................................................................2
Theoretical frameworks for analysis of CECI.............................................................................4
PART B: RECOMMENDATIONS.................................................................................................7
CONCLUSION................................................................................................................................8
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INTRODUCTION
In the fast and dynamic environment, companies have mainly focus on innovation that
support in economic and social development and it make companies to constantly innovative to
gain huge success. Entrepreneurship is major part of business that have main role of improving
and increasing productivity or promoting overall success of company as well as economy.
Human resources management have an significant role such as encourage or prevent corporate
entrepreneurship (Baum, Frese and Baron, 2014). Worker confident of introduce new things,
taking risks are encourage by HRM and accompanied by reward systems so they better execute
plans. In this report, analyses and assess of current corporate entrepreneurship and brief
recommendations of what the HRM department could do to enhance the levels of corporate
entrepreneurial activity in this company are discussed.
PART 1
Comprehensive analysis of EI theory
In business scenario, the word Entrepreneurial intensity (EI) is defined as the perspective
of company on a ideal time frame that holds from extremely conservative to high entrepreneurial
(Ma Prieto and Pilar Pérez-Santana, 2014). It mainly focuses to capture the degree of an
organisation in respect to innovation, risk taking and pro activeness and amount of entrepreneur
material that support in growth. It is observed that degree of EI are mainly connected with the
total measure of organisation performance. The Human resources management are required to be
more focused in developing entrepreneurial intensity by engaging in various strategic business
postures that are defined as high, low or medium frequency. This help in overall growth and
development of small enterprises to better functioning of established companies. It is
phenomenal that connection among the performance and EI appears to be very much strong for
all those organisation that are operation business in rapidly changing environment. It is also
observed that entrepreneurial intensity can be anticipated to agree substantially among units,
department, division, geographical areas in the same company. Such as, in few department or
unit of an organisation the main role of manager is to figure out innovative business
opportunities like Business development unit and the other liable to implement the initiatives
such as HR unit of company can better work for improvement (Del Giudice and Della Peruta,
2016). Apart this, some geographical field can be located in developed market and other
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functional unit could be fixed in declining market. The three key dimensional behaviour of EI are
discussed below:
Innovativeness: It is defined as the proper and systematic approaches that are creative,
unusual or fresh solution the vast problems and needs of an organisation. With the emergent of
EI the manager are more focused to find out the problems that could reduce the overall
performance and business productivity, they also develop ways that reduces the major reason of
these problems.
Risk-taking: It includes willingness to commit significant resources to all the
possibilities that are linked to failure. These kind of risk are mainly calculated and managed by
the internal department of companies (Nolan and Garavan, 2016).
Pro-activeness: It is defined as the actual implementation of methods that are necessary
to brought changes in the concept of entrepreneurial that mainly involves adaptability,
perseverance and desire to manage some obligations for failure.
In the MedPro, the manager are focused to implement the approach of EI that support in
success of the organisation and overall developing of each and every unit. In respective
organisation the entrepreneurial intensity survey data has been organised to figure out the overall
performance and find out problems in case of any situations (Dereli, 2015). The human resources
management are responsible to take the risk taking action in case of any major problem
determined at the time of survey. This would help in better functioning and making firm a bigger
unit so that business could be expanded at global level in specific time frame.
Theoretical frameworks for analysis of EI.
There are six responses are taken to evaluate entrepreneurial intensity. As EI remains
centralized around analysing frequency of Entrepreneurship of organization. The organizational
performance with various perspectives indicates towards the best scores by analysing the
intensity score. AS the EI evaluation is carried out subject to Australian high-tech medical
equipment manufacturer, MedPro Pty Ltd. It has been analysed that 250 employees in are
working at single location in Melbourne. The degree of company is categorized in following risk
taking degree, innovativeness and reactiveness (Etzkowitz and Zhou, 2017).
Risk taking
Question 3, 6, 7 and 12 are related to risk analysis and the evaluation as per average score
of the entire mentioned question. Average score of Q.3 regarding risk taking in seizing and
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exploring chancy growth opportunities were 1.8. Same as for Q.6 retains the average score of 2.3
regarding top management philosophy, Q.7 retains an average score of 3.2 regarding decision
making characterized and cautions and Q.12 shows an average responses results regarding steady
growth and stability as primary concerns determined in this report. An average of all of the risk
taking is calculated as {(R = Q3+Q6+Q7+Q12/4); (1.8+2.3+3.2+3.3)/4 = 2.65; R=2.65}
Innovativeness
Q.1, Q.2, Q.5 and Q.9 indicates towards innovativeness characteristics as per dataset of
MedPro. Q.1 is regarding innovation in new product or services introductions compared to
competitors with new features (Zhou, 2015). It retain an average score of 1.8, Q.2 retains an
average score of 2.8 that indicates towards improvements and innovations in product or service
delivery. Q.5 indicates towards enhancing unusual novel solutions by senior executives that has
an average score of 1.2 and Q.7 has an average score of 1.8 that indicates towards rapid growth
as dominant goal. An average score of overall characteristics covered in innovativeness are
calculated as {I = Q.1+Q.2+Q.5+Q.9/4; (1.8+2.8+2.2+1.8)/4; I = 2.15)
Pro-activeness
Q.4, Q.8, Q.10 and Q.11 are the characteristics covered in pro-activeness. An average
score of Q.4 is 1.7 that indicates towards live and let live and philosophy in dealing with
competitors. Q.8 indicates towards top decision-making in active search for big opportunities,
the average score is counted as 2.5, Q.10 indicates towards large bold decisions despite
uncertainties of the outcomes. An average outcome was recorded as 2.0. Q.11 indicates towards
Compromises among the conflicting demands of owners, government, management, customers,
employees, suppliers, etc. an average score is analyzed as 2.5. an overall average of pro-
activeness is calculated as { Q.4+Q.8+Q.10+Q.11+4; (1.7+2.5+2+2.5)/4; P = 2.2}.
Degree of entrepreneurship
An association's inside work environment is investigated to understand the factors
speaking to the dimension of spearheading power the firm has at a point in time (Fernández-
Mesa and Alegre, 2015). Third, the audit reveals to firms the kind of work to complete to help
agents structure an ambitious frame of mind as the wellspring of and support for the inventive
lead they need to appear for the picked CES to be successfully realized. To evaluate the degree
of entrepreneurship is calculated as taking average of three Average of risk taking, innovation
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and pro-activeness. Intensity of entrepreneurial is calculated as follows {EI = (R + I + P)/ 3;
(2.65 + 2.15 + 2.175) / 3; EI = 2.325}
Frequency of Entrepreneurship
It remain centralised around analysing two main factors as products and services.
Frequency of entrepreneurship by considering both product and services = {Q.16 + Q.17 + Q.18
+ Q.19 + Q.20 + Q.21 / 6 ; (2.3+1.8+1.5+1.5+1.5+1.5) / 6 = 1.68333}
Entrepreneurship grid
As the Degree of entrepreneurship is calculated as 2.325 and Frequency of
entrepreneurship is calculated as 1.775. the grid is prepared is as follows:
Degree of entrepreneurship 2.325
Frequency of
entreprenurship 1.775
Theoretical frameworks for analysis of CECI.
The precise description of corporate entrepreneurship is a systematic route that support in
increasing level of complete organisational performance (Turró, Urbano and Peris-Ortiz, 2014).
The scope of corporate entrepreneurship has increased as organizations not traditionally accepted
as being entrepreneurial now are required to become oriented towards CE in order to survive for
long in competitive environment. Large companies are more develop and focus on main
principals and standard to view the complete efforts that can be accumulated in achieving the
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supreme consequence from a established success element such as a new product or service. The
Corporate Entrepreneurship Climate is a crucial instrument that is used
to measure, assess and manage the internal work environment of a company in different ways
which assist
entrepreneurial behaviour and implement the corporate entrepreneurship strategy. When using
the CECI to a company current situation that are relevant to entrepreneurship, determine parts of
the company constitution, control systems,
HRM systems and cultural that support to aid
entrepreneurial behaviour that are successful to implementing a CE (Renz, 2016). From the
survey data for Medpro Pvt Ltd there are various finding that shows that CECI was established
around major five elements which are antecedents to corporate entrepreneurship that are:
Management support for CE: This is related to the desire of upper level managers to
assist and
promote or advance entrepreneurial behaviour that basically involves the developing of
advanced ideas and
provide the origin to responsible people so that behave entrepreneurially in the betterment of
company performance (Jackson, Schuler and Jiang, 2014).
Work discretion/autonomy: It is related to managers commitment to support failure,
provide decision-making methods and exemption from excessive direction and the main crucial
to assign
authority and responsibility to the other manager of company those are working at different
level (Sahut and Peris-Ortiz, 2014).
Reinforcement: It mainly includes development of new methods and use of systems that
strengthen the entrepreneurial behaviour within organisation, focus on particular and
important achievements and encourage movement of
challenging work so that profitability can be improved in specific period of time.
Time availability: It simply means evaluating of work scores to make sure that
individuals and different team member have the time required to develop and introduce
various ways to complete a allotted task or jobs in a certain structured that
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is beneficial for company to accomplish long and short term organizational goals with time
frame appointed by the manager of Medpro Ptv Ltd (Julien, 2018).
Organizational boundaries: There are precise statement of actual result that are
expected to be generated from
organizational work and improvement of performance for evaluating, selecting and using
innovations which are support to increase the total profitability and performance of company at
national level and expand business in different part of world.
From the data sheet of Corporate entrepreneurship climate instrument, it has been
analysed that there are fifteen respondent from which number of question have been asked
relevant to each section in order to figure the authentic result (Schaper, 2016). There are different
section such as:
Section 1: Management support for corporate entrepreneurship
Section 2: Work discretion
Section 3: Rewards/ reinforcement
Section 4: Time availability
Section 5: Organisational Boundaries
Section 6: Specific climate variance
From each section there are number of question are asked from each respondent to make
out the possible outcome and measure the performance to make future changes (Klingebiel and
Rammer, 2014). In section 1 various question such as organisation is quick to use improved
work methods, if these methods are developed by worker, if new ideas are encouraged for the
improvement of company, Upper management is aware and very receptive to my ideas and
suggestions, promotion usually follows from the development of new and innovative ideas,
employee with a good idea is often given free time to develop that idea, organisation supports
many small and experimental projects, realising that some will undoubtedly fail, People are often
encouraged to take calculated risks with ideas around here etc. are some major question. There
were total 19 question that are asked from 15 respondent in section 1 and average of these
answer were 1.5, 1.0, 1.7, 1.6, 1.0, 2.7, 1.5 etc. The total average of section 1 from these finding
were 1.558 (approx) (Sheehan, 2014). In section 2, there were 9 question that were asked from
15 individuals some of these question were I feel I am my own boss and do not have to double
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check all of my decisions with someone else, Harsh criticism and punishment seldom result from
mistakes made on the job, almost always get to decide what I do on my job, I seldom have to
follow the same work methods or steps for doing my major tasks from day to day and many
more (Kuratko and Hornsby, 2017). The average of these question in respect to each respondent
were 2.1, 2.5, 3.4, 1.8, 2.1, 1.7 etc. and the total average from this section was 2.47 approx. In
section 3 that is about reward and reinforcement 15 individuals were asked different 6 question
that are supportable in order to figure out the best efforts and make possible changes. The
average of these question were 4.2, 1.9, 4.1, 4.5, etc. and the total average of this entire section is
3.93 (approx). The section 4 was about the time availability that help the worker to complete the
allotted work on time. There were few question that were asked from above mention respondent
so that better improvement can be made by the Human resource manager. The average of each
question were 2.2, 1.4, 1.3 etc. and the total average of overall section was 2.678 that is better
and manager of Medpro Pvt Ltd must look to other sections (Sheehan, Garavan and Carbery,
2014).
From the above table, the section 5 was about organisation boundaries, for which 7
question were asked such as In the past three months, I have not always followed standard
operating procedures or practices to do my major tasks, There are not many written rules and
procedures that exist for doing my major tasks etc. (Kuratko, Hornsby and Hayton, 2015). The
average of these each question were 2.1, 1.0, 3.3, 3.8 etc. as result shows that member have
shown the greater responses to these question. The total average of section 5 was 3.19 that is the
greatest from all other section which means that company ensure that other section are working
equally or there are some reason for decrease performance. The last section was about specific
climatic variables and number of questions were asked from these 15 respondent. Some of the
major question were, Jobs in this company tend to be broadly defined with considerable
discretion in how tasks are performed, We have too many levels of management in this
company, Red tape and slow approval cycles are problems in this company, Senior management
focuses on eliminating any slack within budgets etc. The average from these question and
responses form individuals were 1.1, 2.8, 1.3, 5.0, 4.2, 4.9 etc. and the total average from these
section were 3.172 (approx).
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PART B: RECOMMENDATIONS
Based on the calculations carried out in Part A of this report, it is observed that the data
collected for degree of entrepreneurship Entrepreneurial Intensity Survey for MedPro Pty Ltd.
can be mainly classified into three main categories which are Innovativeness, Risk-taking and
Pro-activeness. The current state of corporate entrepreneurship for MedPro has a high degree of
proactivity which comes to 2.175 on an average. It is recommended that MedPro needs to
enhance its innovativeness Characteristics. It should amend its product and service introductions
evaluated to competitors with considering the improvements. Delivery services also required to
improve by adopting new dimensions of delivery goods and services. critical evaluation.
Dominant goal is one of the concern required to evaluate properly so that considering the
changes accordingly.
CONCLUSION
In progressively changing and needy environments, developed company essential to
evolve entrepreneurial behaviour such as corporate venturing, invention and strategic renewal
that support in entire growth and value creation for both company as well as economic system.
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REFERENCES
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