4.10. Critique of the structure of the business and
its support/constrain of entrepreneurship
By encouraging uniformity casualties, key managers discourage
innovation, creativity, and free thought. As economic uncertainties forced
companies to avoid risk rather than generate ideas. And by not having realised
the importance of innovation and its execution, the company being analysed
adopted a traditional management style which encouraged a word of mouth type of
marketing. The fact that key managers selected as their recruitment basis
candidates with brilliant qualifications and knowledges, that could be
implemented for their company's growth; had already put the organisation on an
entrepreneurial path grounded on daily innovative schemes, instead the
recruitment effectuated was merely based on HR consultants and for that reason
constrained the organisation to progress in an entrepreneurial manner.
Another factor reflecting the inappropriateness of the type of
management as a motivational factor contributing to corporate entrepreneurship
is the reality being that key managers only take responsibility of acquiring
new markets and new contracts. Therefore the rest of the workforce portrays
some sort of laidback behaviour assuming that they are not ones in charge of
clients hunting, and consequently illustrate a very much observed lack of
innovation.
Since innovation never happens randomly. The key managers need
to implement a culture that encourages it. Brewing an innovation culture will
simply be part of the innovation game. An innovation management system that
evaluates ideas, culls keepers and discards the balance is thus crucial.
4.11. Critique of the business control system
Kuratko, Montagno, and Hornsby (1990) defined slack as the
constraints obstructing entrepreneurial initiatives in the organizational plan
to engage into corporate entrepreneurial activity to obtain the required
resources needed. In this particular investigation, levels of slack resources
may affect the firm's decision to respond to various corporate entrepreneurial
initiatives. There is theoretical and empirical evidence that slack resources
may facilitate OWHC's managers to innovate by promoting experimentation with
new strategies, ideas, and projects that otherwise would not be approved. In
the OWHC's case «slacks» would be considered as factors such as the
lack of marketing related activities such as an organisational brainstorming
for the sake of the improvement of the client hunting performance is
handled.
4.12. Organisational rewards and evaluation of
employees
Since OWHC is a small company, consequently the type
remuneration prevailing does not comprise awards for outperforming employees.
Instead, individuals working as HR consultants and recruiters receive their
wages on a commission-based basis. Key managers stipulated that, the
commission-based salary model motivate employees to perform out of the ordinary
and the sustainability of the current clients. Key managers substantiated in
their own opinion that commission-based salary remuneration encourages
entrepreneurship in the workplace, as employees are entrepreneurial to certain
extent; since their rewards depend on it.
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