How to Hire Top Talent to Create a Purpose-Driven Business

Editor's Notes

1. In one sentence, please write down why you get up to go to work everyday (not for the paycheck)? – provide a few minutes- Was this difficult, and was this the first time you’ve truly thought about this question?Does your purpose drive you every single day?Do you think this same purpose drives the majority of your employees every day? Do you know why your employees come to work each day?
2. Industrial Revolution (1760 – 1840)Started in Britain and spread to western Europe and USBoth adults and children workedHiring blue-collar workers relied on employee referrals, specifically through family networks On-the-job training rather than reliance on educationWhite-collar firms worked differently - they relied on high-school education rather than on on-the-job training, getting trained workers at zero costScientific ManagementIn 1909, Frederick Taylor published “The Principles of Scientific Management” in which he proposed that by optimizing and simplifying jobs, productivity would increaseTaylor's four principles:Replace working by "rule of thumb," or simple habit and common sense, and instead use the scientific method to study work and determine the most efficient way to perform specific tasks.Rather than simply assign workers to just any job, match workers to their jobs based on capability and motivation, and train them to work at maximum efficiency.Monitor worker performance, and provide instructions and supervision to ensure that they're using the most efficient ways of working.Allocate the work between managers and workers so that the managers spend their time planning and training, allowing the workers to perform their tasks efficiently.Bureaucratic and Administrative ManagementMax Weber (1864-1920) was a German sociologist who approached management by focusing on organizational structure, dividing organizations into hierarchies with clear lines of authority and controlWork specialization and division of laborAbstract rules and regulationsImpersonality of managersHierarchy of organization structureMax Weber (1864-1920) was a German sociologist who approached management by focusing on organizational structure, dividing organizations into hierarchies with clear lines of authority and control. This meant that managers were given “legal authority” based on their position in the organizational structure, to enforce rules and policy.Weber’s bureaucratic system helped large organizations to function in a more stable, organized and systematic manner. However, by doing away with personality based or charismatic leadership, individuality and creativity is often sacrificed. Bureaucratic leaders and workers are required to obey rules and do only what they are told. The result is that these leaders seldom think “outside the box” and therefore find it very difficult to adapt to changing environments and new challenges.Human Relations ManagementElton Mayo (1880-1949), a Harvard professor who proposed that managers should become more “people-orientated”“Logical factors were far less important than emotional factors in determining productive efficiency”Use social groups and “group pressure” as opposed to organizational structuresRevolutionized the role of managersElton Mayo (1880-1949) was a Harvard professor who proposed that managers should become more “people-orientated” (Smit & Cronjé, 2002, p43). Conducting experiments on conditions in the workplace and incorporating the well-published findings of the Hawthorne Studies, Mayo declared that “logical factors were far less important than emotional factors in determining productive efficiency” (George, 1968, p129). He concluded that participation in social groups and “group pressure”, as opposed to organizational structures or demands from management, had the strongest impact on worker productivity (Smit & Cronjé, 2002, p43).Mayo’s findings once again revolutionized the role of managers in organizations. The work performed by individuals has to satisfy their “personal, subjective” social needs as well as the company’s productive requirements. He and other proponents of this movement therefore called for managers to “accept a new role” in their relationship with workers; develop a new concept of authority; and help foster a new social order in the workplace (George, 1968). In practice managers were encouraged to consult workers about change, take note of their views, and to show concern for their physical and mental health (Wren, 2005, p. 293).NEO CLASSICAL THEORY — HUMAN RELATIONS APPROACH
This school of thought developed between 1920s to 1950s felt that employees simply do not respond rationally to rules, chains of authority and economic incentives alone but are also guided by social needs, drives and attitudes. Hawthorne Studies at GEC etc., were conducted then. It was quite natural that in the early phases of the industrial revolution, the emphasis was on development of techniques and technology. The attention to the human factor was the salient aspect of this school of thought. This attention was to serve as a precursor to the development of behavioural sciences.Operations Management / Management ScienceApplication of statistics, optimization models, information models and computer simulations to achieve organizational effectiveness.Three main branches:Management Science (It stresses the use of mathematical models and statistical methods for decision-making.) SIX SIGMAOperations Management (It deals with the effective management of the production process and the timely delivery of an organization’s products and services. LEANManagement Information Systems. (Management information systems focuses on designing and implementing computer-based information systems for business organizations.)http://www.strategicleadershipinstitute.net/news/the-historical-evolution-of-management-theory-from-1900-to-present-the-changing-role-of-leaders-in-organizations-/
3. TRANSITION:Many of usdon’t trust our managerorthecompanyweworkfor. Ourworkenvironmentdoesnotengageus, letalonestimulateourcreativethinking.And thiscarriesoverdirectlytothe performance and success of ourselves, and thecompanyweworkfor.So whatismissing? Wethinkitis PURPOSE. Letustellyouwhy.
4. Pleasure, engagement, and meaning are alluniquepredictors of individuals’ well-being. Weexploredtherelationshipbetweenthepursuit of each of thesepathways and well-being. Participants (N = 13,565) visited a website and completed a measureabouttheirorientationtowardpleasure, engagement, and meaning as a pathwaytohappiness as well as measures of subjective and objectivewell-being (OWB). Allthreepathwayscorrelatedwithhigherlevels of subjectivewell-being (SWB). Pursuingengagement and meaning, however, were more stronglyrelatedto SWB thanpursuingpleasure. Objectiveindicators of well-being, includingmeasures of occupational and educationalattainment, displayed a similar pattern, withengagement and meaningpositivelyrelated, whereaspleasurewasnegativelyrelated. Althoughtheseresults are merelycorrelational, itsuggeststhatengaging and meaningfulactivitiesmayhavestrongerinfluencesonwell-beingthanpursuingpleasure.
5. This is based on a Gallup Poll, asking Americans to think of the best leader they’ve had in their lives, and why they have followed that leader (open-ended question). The responses fell into these four main buckets: Stability (=predictability, knowing what is expected, no change in programs every week)Trust (=doing what you say you’ll do, transparent, real)Compassion (=caring, respectful)Hope (=purpose, values, pursuing the greater good)
6. TRANSITION: strong and purposeful cultures do not only drive and engage employees. The data (revenue growth, higher stock returns) also suggests purpose works better in the (external) marketplace. This study shows the consumers’ preference for sustainable products over an equal product for just a lower price.
7. What is YOUR purpose? What are YOU passionate about? (start with yourself)Fulfillment comes from serving, from givingWhat will you do with what has been given to you (your income, influence, talents) (Rick Warren)What difference am I making to people around me (who am I helping)? (Clay Christianson: How will I measure my life?)2. Employees Instill discussions about purpose and passion – start with your managersAs HR, you are the casting directors – get close to people so you can help get the right person in the right roleThis INCLUDES taking people out that don’t fit the purpose or values and needs of the companies2.New HiresThe values and purpose of a person are not visible on LinkedIn or the resume. Need to incorporate this into your interviews or hire Yscouts to help you with your search.3. Strengths – see next slide. Remember the Engagement Pathway to Well Being (Seligman)
8. From interviewing companies that pursue Purpose we learned:I. Discovery – It can take and evolve over a several years before it’s “born”