with innovative ideas and technically skilled employees. Similarly, there must be a market demand for the innovated products in the form of an explicit customer demand or
provide their employees with cheap PCS which in turn drove demand of broadband and Internet
•Encourage employee share ownership (Proposal 15, page 76 •Establish Industry Growth Centres (Proposal 13, page 72
•The Government will improve the tax treatment of Employee Share Schemes (more detail under Ambition 4
and employees to negotiate individual flexibility arrangements is limited not unduly; reform rules governing union right of entry;
•The Government will improve the tax treatment of Employee Share Schemes from 1 july 2015, at a cost of $200 million over four years, with particular benefits for start-ups
traders and 85 per cent have fewer than five employees (Connolly et al, 2012. The need to
•removing the requirement for employers to re-offer choice to their employees when superannuation funds merge
arrangements for Employee Share Schemes TPO00007 An action plan for a stronger Australia Industry Innovation and C
excellence as well as improve employees†skills to retain good employees Initiatives to increase international competition and improve market
to deliver job ready employees declined 6 percentage points, to 78 per cent, between 2011 and 2013.
a job and provide employers the skilled employees they need to grow their business •training for Employment Scholarships:
of training once their employee completes their training •Youth employment Pathways: This will provide support for training 3,
•Improving workplace flexibility by enhancing the scope for employees to make individual flexibility arrangements that meet their genuine needs †Under the Fair Work Act
employees and employers should be able to achieve flexibility in the workplace through individual flexibility arrangements (IFAS.
This means that employees covered by an enterprise agreement may be denied the opportunity for more suitable workplace
also require employees and employers to consider productivity improvements when bargaining for an enterprise agreement
to eligible employees The Productivity Commission†s review is examining the contribution that affordable, quality child
employees to have recognised their skills and provide training for new jobs, while they are still
and assist automotive employees to secure new jobs; assist automotive supply chain firms capable of diversifying to enter new markets;
Improve taxation arrangements for Employee Share Schemes Job creation and productivity growth don†t just happen in a vacuum,
and international research suggests that companies in which employees have an ownership interest are more productive than those that do not
An employee share scheme Where an employer provides a financial interest in their company (usually through
shares or options) to their employee (s) in relation to their employment TPO00007 An action plan for a stronger Australia
Employee Share Schemes (ESS) are used in many countries to attract and retain high quality staff to innovative start-up companies by providing them with a financial share
if an employee is provided with shares or options through an ESS, any discount that the employee receives by acquiring the shares or
options, relative to the market price, is a benefit relating to employment and so would usually be considered income of the employee
Prior to 2009, employees could choose to have qualifying ESS shares or options taxed up-front or at a deferred taxing point (subject to certain conditions
In 2009, changes were made to how the ESS arrangements are taxed. Shares provided under an ESS are taxed currently up-front
(when provided to the employee) unless there is a risk that the employee will forfeit the shares, in
which case taxation is deferred until the shares †vest†(that is, are provided unconditionally to the employee.
Options provided under an ESS are taxed generally when they †vestâ€, rather than when the
employee decides to exercise the options to purchase shares in the company, as was previously the case.
it taxes employees before they have the opportunity to convert their options to shares and realise any actual gain by selling the underlying shares
The 2009 changes effectively ended the provision of ESS options to employees particularly by start-ups,
employee receives the options. This will defer the taxing point to a point at which most
employees can take some practical action to realise the benefits of the underlying share TPO00007
to offer ESS shares and options to their employees at a small discount, and have that
the employee for at least three years. Tax on the discount provided by the employer may be deferred or exempt depending on
whether the employee receives options or shares. Criteria will define eligibility for this concessional treatment,
provisions introduced in 2009 and the $1, 000 up-front tax concession for employees who earn less than $180,
making it easier for employees to have a stake in a business The owner of start-up XYZ Pty Ltd wants to give his six employees a stake in the future growth of the
business, so he offers them free options to buy shares in his company at a future date, at a set price
He wants to do this so the employees have a strong incentive to help the business grow.
and assuming there is no risk of forfeiting the options, if the employees accept the options then they will have to pay tax on the free options in the income year they are provided
This means the employees would have to pay tax before they have the ability to get a
This situation has discouraged the provision of options under employee share schemes, to the detriment of productivity growth and innovation
certain conditions, the employees of eligible small start-up businesses will not pay tax on any discount
For employees of businesses that are not eligible for the start-up concession, the tax can instead be
discount to employees †and that discount would be tax-free More details and examples are available in the Employee Share Schemes fact sheet attached to the
related joint press release TPO00007 An action plan for a stronger Australia Industry Innovation and C
conditions, the employee could choose between up-front and deferred taxation For options, a deferred taxation
point occurred when the employee exercised the options by converting the options into shares Default position is up-front taxation
the employee forfeiting the shares or options, and schemes provided through salary sacrifice (up to $5, 000, and subject to conditions
moved back to when the employee exercises the options Going forward -start-ups only Options and shares that are
(or employer†s holding company) and that the employee not hold more than a 5 per cent interest (or 5 per cent of voting rights) in the company
talented employees, and compliance burdens generally have a larger proportionate impact on small businesses. This is partly because small businesses have limited
arrangements for Employee Share Schemes The Department of the treasury will conduct stakeholder engagement to refine legislation prior to introduction
ESS Employee Share Schemes FWBC Fair Work Building and Construction GDP Gross domestic product IFA Individual Flexibility Arrangements
) Employee Share Schemes †Their Importance to the Economy. Employee ownership Australia and New zealand Farquhar, S. 2014, February 18.
government believes that it also concerns issues such as employees trust and participation as well as low wage dispersion.
focus on the employees, and consider new measures for promoting staff-driven innovation in collaboration with the norwegian Confederation of trade unions
experienced R&d experts but staff in SMES (managers, employees and trainees) who have to develop innovative products
employee disruption and service level degradation as possible. The Wright & Hunter recom -mendations for improvements in the physical plant were implemented and the probability of
own employees than asking for consultancy elsewhere ï it improves the mood and the relations between the employees of an organisation (for exam
-ple, creating a relaxed open to communication atmosphere, employers can discover potential problems of the organisation †no matter the level of their occurrence †before the situation
employees We have to make an important statement: the managing styles do not exist in a pure state.
it is a public company founded in 1930 with over 28,000 employees worldwide Context: the company fights its capacity to serve its clients,
We train our employees †but we don†t let them use their knowledge We learn mostly in projects â€
and the participation of each employee to the firm cognitive capital is also rec -ognized
In today†s very competitive work environment many employees don†t feel safe in their work position
mistakes or ask other employees if they don†t know something. People at work also shouldn†t be
Specific knowledge might exist in every employee due to his/her past experience, first degree, etc
and accurately communicated to employees Solution To help the company maintain and improve the quality of their working methods, Information Transfer
Lack of absorptive capacity in recipients Educate employees for flexibility, provide time for learning, hire for openness to ideas
ï They will not waste the innovative potential of their employees (practically the most valuable asset of a company
ï They will create among employees the sentiment of participation, the sentiment that their ideas are taken into account.
employees, which is in itself beneficial 4. 7. 1. Why and where is used it?..79
employees and a proper way to motivate them in terms of per -formance and com-New organizational culture
employee, teamwork, good communication, awareness of the innovation importance for the company†s performance excellent work relations
ï Nurturing an environment that encourage the creativity of employees (blue sky thinking that use toys to stimulate creativity are to be considered-see links
the creative potential of the employees. Details on that subject will be given later in the module Risk taking
feeling the employees get, that they are taken into account, that their opinion counts. When imple
/The method implies the creation of a number of boxes where the employees deposited ideas, sugges
Mexican cement company, regularly uses all its employees and its customers for ideas. These firms
-ency †management and employees may see, at a glance, for instance, what kind of innovations are
One has to mention that every employee has the right to participate to the program.
New employees should also be trained in the process The Results During the implementation of RAPID, existing projects were mapped to the process and a number of
Many businesses often need to reveal some of their confidential information to new employees, inde -pendent contractors, venture capitalists or bankers.
employees to potential partners, every business needs a Non-Disclosure Agreement to protect itself Once you have your own Non-Disclosure Agreement at your disposal,
Current and former employees are responsible for most breaches of confidentiality. Employees are under an implied duty not to use trade secrets in a manner that will harm your business.
But it is best to get this in writing and to specify to the employee exactly what is confidential,
and to make provi -sions for when the employee leaves your business They can be used to
ï share intellectual property ï share commercial or trading information ï formalise a relationship, eg between an employer and employee
7. 3. 2. What are the main types of NDAS and where they are used A precedent confidentiality agreement is used for mergers and acquisitions.
from employees, principals or agents of theirs who will come into contact with the information 2) Second, there must be a recitation of confidential relationship between the disclosing party (the one
employees, clients and partners before any information is exchanged. He also ensures that all the company's documents have a confidential notice.
-ture created to promote self learning among employees of the car manufacturer. The first of its kind in
what constitutes the requirements for the qualification of the employees 209 10.1.2. Why: The role of human resources in the company†s ability for innovation...
high degree on their employees, their competence and knowledge The great importance of training, further training, learning, human resource development etc. should
the employees Changing market conditions such as ï Increasing internationalisation and globalisation of the markets, high competition pressure
qualification requirements of the employees ï Faster decline of the knowledge and the need for lifelong learning
of the employees ï communicative and language competence ï need for more responsibility and self-control etc
The qualification of the employees are, on the one hand, a prerequisite for innovation, because it is indispensable for the start and the permanent further development of innovation.
-tion changes in the qualification profile are taking place among the employees Lacking qualification can turn out to be a bottleneck in the innovation process in an enterprise
The CEO of Eloxal Heuberger (an anodising institution with 22 employees) has an interview with the
the enterprise and the employee from this training measure are made clear before the event After attending the seminar a follow-up interview takes place where the participants jointly find out how
-rectly, and which supporting measures the employees would need to apply them. In addition, a sum
If required, the company Winkelbauer (engineering enterprise with 46 employees) organises events under the title â€oeedp:
The Gosch Consulting company (Consulting enterprise with 30 employees) has compiled a database with the title â€oemarket place of experienceâ€oe.
by the employees. If there is a problem during their daily work they then can access the â€oemarket place
Employees are the basis of social organisations. For workers to comply with their tasks the
company has to plan the volume of need for employees and their qualification level and com
grants the employees labour market ability, and opens up new business fields for the enter -prise
-partments for preparing their employees for future requirements, professional human re -sources development is looked often vainly for in medium-sized and small enterprises.
because the employees of the different areas are the ones that will be involved in the training later on
-ing needs of your employees; we give you a few examples ï Introducing new technologies ï Entering a new market
ï Hiring employees from specific target groups (e g. immigrants or the mix of some of these factors
Employee Proposed Solution Solution De -tails Bad quality control Production Quality Control Production Quality 95%pro
employees Delivery wor -kers Defining and moni -toring of perform -ance indi -cators for delivery
employees about this new system Bad cash-flow management Budgeting Financial Existence of enough cash in
Once embraced by employees, innovation becomes a way of life. It ensures that all the human capital is in step
-ployees are motivated and confident enough to continually try new things Out to this end, employees would be equipped with the right types of knowledge,
shared values and practices of the company's employees This tool can help companies in creating a culture in
which every employee has the opportunity to learn and grow in order to improve themselves and their business.
striving to meet the needs of all employees Why and where creating a company culture for continuous innovation is applied
ï Use knowledge of employees and data to make decisions in a timely manner ï Tolerate mistakes of employees in pursuit of continuous improvement
ï Act with swift resolve to maintain the highest customer satisfaction ï Never rest with the customer†s status
about modified employee behavior, leading from the top. But once a company sets out on the innova
employees a set of rights, responsibilities and rewards that make them accountable for their own actions
2. Encourage Employee Innovations, and Reward Them Accordingly Companies are often fast to turn to outside help,
4. Challenge Employees to Compete When challenged by external (or sometimes internal) organisations, groups are kept on their
-ity to all employees, with rewards both for uncovering unsafe conditions, and for discovering new ways
A team of company employees decided that they could do the job themselves better and
The two employees are in charge of corporate strategy, network expan -sion and product development. Everything else, including product branding, product design, marketing
processes), played by good jazz musicians (employees), playing high quality instruments (technology in the right way, so that the audience (customer) enjoys the performance.
The employees ï are competent and confident in their jobs ï are aware of their strengths and weaknesses
ï Sufficient potential of highly qualified employees ï Attractive frame conditions for scientists and researchers from home and abroad
the company, employees sometimes arrive late or leave during the course due to work commitments â€oemrs Y, there is a phone call for you †â€.
A manufacturing company realised that they needed to develop the language skills of their employees
The employee can assess skill and needs him or herself. The results speak for themselves and help both the management and the employees
Key Capabilities Needs 1 Fully competent 1 Essential 2 Can get by 2 Useful 3 No knowledge 3 Irrelevant
Company employees: It is important to know the cultural characteristics of your employees, so if you
have a workforce comprising members of different cultural backgrounds, then it is important that you
prices for the payment of employers†social contributions for the employees The answer which was given was that international competition in a globalized market makes the im
what constitutes the requirements for the qualification of the employees 10.1.2. Why: The role of human resources in the company†s ability for innovation
employment to 70.9%of all employed persons in 2006 (Ifm, 2007b. In absolute terms German SMES provided employment and/or apprenticeship to 20.42 million people in 2006
As on 31.12.2006 large firms (with 250 employees or more) constituted a miniscule 0. 33%of all enterprises.
date an overwhelming 3, 204,519 were SMES (with less than 250 employees. 2 These data exemplarily demonstrate the key-role which SMES play in Germany†s economy.
employees were found to be suffering more from this scarcity (60%)than did large firms
Inc. cited troubles in obtaining work visas for its prospective employees as a reason to set
Furthermore, some employees in the R&d units at the headquarters tend to see the new
and should provide their employees involved in international activities with cross-cultural training. This sensitization to
senior management but also by other employees, especially in R&d departments, as well as a profound analysis of business environment conditions of the target offshore country
and encourage the employees to participate not only in innovation and learning activities but also be a part of
employees not exceeding 150 full time employees. The instrument of the study was based on the innovation (process
training their employees in this regard. The results indicate that on all accounts SMES surveyed were involved less in
R&d activities except for the training of employees V. CONCLUSION The present study was conducted to find out the role of
of their employees through various trainings. The results also suggest that the manufacturing companies are involved more
the US ratio between number of employees and self -employment, it is estimated that the self-employed women
2. For Canada, 50-299 employees instead of 50-249 and 300 or more instead of 250 or more.
with 100 or more employees. For The netherlands, 50-199 employees instead of 50-249. For Switzerland
5-49 employees instead of 10-49 and 5 or more employees instead of 10 or more.
For Mexico, Businesses with 21 or more employees, 21-100 employees instead of 10-49,101-250 instead of 50-249,151-1000 instead
of 250 or more 3. Internet and other computer-mediated networks Source: OECD, ICT database and Eurostat, Community Survey on ICT usage in enterprises 2002, May 2003
than 99 per cent of active firms (out of 4 million) have fewer than 250 employees (95
per cent have fewer than 10 employees, see Figure 2) . If there were a positive relationship between innovation activity †including R&d †and firm size, the size
employees were included, whereas smaller firms were selected using a sampling design stratified by geographical area, industry, and firm size.
90 per cent of the whole sample, imposing a threshold of 250 employees, in line with
for both groups of firms, with an average of around 50 and 53 employees respectively
We require that sales per employee be between 2000 and 10 million euros, growth rates of employment and sales of old and new products between-150 per cent and 150 per cent, and R&d
and excluding firms with fewer than 20 employees, for comparability the samples used by Griffith et al (2006) for France, Germany, Spain and
for the year 2000 belong to the smaller class size (20-49 employees), a figure much
R&d per employee than small firms (the 11-20 size class), and this is particularly true
where yi is labor productivity (sales per employee, in logs), ki is investment intensity our proxy for physical capital, PRODI and PROCI are knowledge inputs, proxied by
fewer than 20 employees and included firms with more than 250 employees. 13 Using this sample, we are able to compare our results to those for France, Germany, Spain
per employee than firms in other countries. Although the firms in our sample, like Italian industry as a whole, exhibit a negative labor productivity growth during the
Number of employees: mean/median 49.45/32 53.48/36 Group (in%)20.07 16.25 *Units are logs of euros (2000) per employee
24 Table 2 †Descriptive statistics, high tech and low tech industries Period: 1995-2003 High tech firms Low tech firms
Number of employees: mean/median 54.17/35 47.46/30 Group (in%)25.26 17.89 *Units are logs of euros (2000) per employee
25 Table 3 †R&d intensity (STEP 1: OLS model. Dependent variable R&d intensity R&d Expenditure per employee All firms High tech Low Tech
in logarithms D (Large firm competitors) 0. 062 0. 197-0. 028 0. 073)( 0. 109)( 0. 098
Investment per employee 0. 125***0. 050 0. 120***0. 047 0. 129***0. 051
sales per employee in logs)( 1)( 1a)( 2)( 2a)( 3)( 3a Predicted probability of 2. 624***0. 193 2. 742***0. 664 2. 797***0. 063
Investment per employee 0. 099***0. 073***0. 109 ***in logs)( 0. 010)( 0. 015)( 0. 015
†Units are logs of euros (2000) per employee. This table is based on tables in Griffith et al. 2006.
Figure 1 †Value added per employee. Percentage change, annual rate (1995-2000 and 2000-2005.
more than 10 employees 31 Appendix Variable Definitions R&d engagement: dummy variable that takes value 1
R&d expenditures per employee, in real terms and in logs Process innovation: dummy variable that takes value 1
real sales per employee, in logs Investment intensity: investment in machinery per employee, in logs
Public support: dummy variable that takes value 1 if the firm has received a subsidy during the three years of the survey
Employees: number of employees, headcount Age: firm†s age (in years Size classes: 11-20,21-50,51-250 employees
Age classes:<<15,15-25,25 years Industry dummies: a set of indicators for a 2-digits industry classification
Time dummies: a set of indicators for the year of the survey 32 Wave dummies:
R&d per employee (for R&d-doers, mean) †6. 9 5. 2 4. 3 3. 6 2. 9 2. 4
Investment per employee (mean) †6. 0 8. 3 8. 3 6. 3 8. 0 7. 9
†Units are logs of euros (2000) per employee 34 Table A2 †A nonparametric selectivity test
Dependent variable Prob (R&d>0) R&d expend. per employee D (Large firms) 0. 150***0. 305
***per employee (0. 011)( 0. 013)( 0. 011)( 0. 013 Log capital stock†0. 098***0. 041
***per employee (0. 013)( 0. 014 Step 2-Product Innovation Predicted R&d intensity 0. 652***0. 656***0. 655***0. 658***0. 661
per employee (0. 011)( 0. 017)( 0. 015 Log capital stock†0. 108***0. 111***0. 101
***per employee (0. 016)( 0. 007)( 0. 010 Log likelihood-27,119. 9-27,110. 0-26,979. 0-26,908. 5-26,901. 3
SMES have fewer employees, each with multiple roles (Yap et al. 2005), but they may be able to
Employees of SMES interact more often with their counterparts and may have shared or swapped tasks with them.
employee-owned company in Pennsylvania, now operates transfer lines for customers such as Caterpillar, SKF and Siemens that previously owned these lines (Anonymous, 2006.
Often, where customers and employees are in relatively constant contact interpersonal experiences are critical to the delivery of service products (Tidd and Hull
employees and/or physical resources or goods and/or systems of the service provider which are provided as solutions to customer problems.
Finally, training, employee attitudes, and perception of management support also moderate the effectiveness of adoption of
service ideas come from a close interaction between customers and employees. Thus, although product and service innovation are thought often of as â€oethe sameâ€,
individual employees and the quality of service can vary greatly depending on the training and experience of employees.
As a result, it is critical that personnel training is conducted properly regardless of whether the solution is a product,
achieved by affinity diagrams (a sorting process conducted by the firm†s employees), or customer sort (ask customers to sort the needs.
, employees, lead users), groups (e g.,, brainstorming), external search (e g.,, patent search, new use of existing products/services, competitors, upstream and/or
service-centered business requires a transition strategy as well as management of employee motivation and supporting organizational structure and culture
all employees, and provide the resources to assure that the path is taken. In addition, each part of
establish a separate reward structure that rewards employees for culture-supportive behavior Employees in this unit will need to be motivated to relate to customers differently than those in
manufacturing units. Dialogue is essential for success. These employees may need to be trained to relate to customers
or selected according to certain criteria. Similarly, it is probable that there will be conflicts between product and service departments,
important that employees understand their function within the company and how it relates to the
Values, norms and beliefs shape the firm and drive employee behavior Some companies will have a tougher time with the transition to a service-centered culture
shows that unrealistic and unattainable goals result in unmotivated and cynical employees Gebauer et al. 2005).
) When employees can see that their task contributes to the overall strategy and goals of the firm,
satisfaction, employee satisfaction and business success (Gebauer et al. 2005). ) In a product -centered firm, customer satisfaction is based on the product,
based on service delivery, employee friendliness, value-added, flexibility, customization, etc Thus, customer satisfaction may be more difficult to achieve in service firms.
management must motivate the employees to reach their goals and be rewarded. Employee motivation can be described in terms of
employee-push and-pull (Gebauer et al. 2005). ) Employee-push refers to management†s desire to motivate employees to engage in the service business.
On the other hand, employee-pull refers to employees†enthusiasm and self-motivation to commit to the new service initiative
resulting from understanding the benefits and results of pursuing services. Although employee -push might be sufficient initially,
the goal in service firms is to stimulate employee-pull in order 45 Attribute Definition le Statements
Alignment The degree to which the interests and actions of each employee support the clearly stated and
communicated key goals of the organization â€oewe have clear aims and objectives which everyone understands;
we build consensus around key objectives; we recognize and reward loyalty†Communication The degree to which there is planned
and random interaction between functions and divisions at all levels of the organization â€oei am kept in the picture on how we are
Empowerment The degree to which each employee feels empowered by managers and the organization â€oeas a manager,
Honesty The degree to which each employee has total confidence in the integrity ability and good character of other
employees and the organization regardless of their role â€oei trust the people I work with;
organization, employees and managers take risk â€oei am encouraged to experiment; we take calculated risks; we encourage trial and errorâ€
to get employees involved. Internal marketing is one way that firms â€oesell†the service concept to
their employees in order to get them to â€oebuy-in†to the new initiative Management should provide excess human resources
underway so that employees are free to engage in service exploration. Once the change process takes off and employee-pull is set in motion,
employees will become the driver of new ideas During shifts from product-focus to service-focus there are often conflicts between departments
because of perceived status, either increased or decreased. For instance, production personnel may feel downgraded because of the new interest in service sales.
Once employees are motivated and united to achieve service-centered goals, they will need to be equipped with training that will help them meet their objectives.
increase the creative and problem-solving capacities of employees. In product-centered firms sales people view products as the main source of revenue and services as add-ons that are
chooses to hire new employees it is critical that the new hires fit with the new service-centered
It is imperative that employees believe the internal marketing before they can get involved in
employees to sell services. External marketing is about portraying the firm†s image to customers, but before employees can make that portrayal they must be sure of its existence, a
47 belief that relates back to the firm†s internal marketing. Once the employees are assured that
the internal marketing is credible (i e.,, the firm will be able to keep the promises it makes), they
the transition, it is likely that its customer/employee interaction includes advertising, sales promotions and publicity.
Front-line employees, the ones who commonly work the most closely with customers, need to be in-tune with customer needs,
These employees also need to be committed and able to come up with possible ideas and solutions for customer problems.
which entails engaging the customer in serious dialogue where the employee listens intently and asks questions to make sure he
Exceptionally creative employees can listen to customer problems, generate their own ideas and solutions, and share them with others to stimulate maximum problem-solving ability.
ideas with employees, stimulate communication within the organization, and provide leadership to motivate employees (Johne and Storey, 1998.
All too often service firms view their people simply in terms of an approach to deliver the product, i e.,
of the inseparable nature of services, front-line employees shape the quality of a customer relationship. de Brentani (2001) concludes that having a highly trained workforce that has an
Often, new service initiatives do not sufficiently involve input from front-line employees. In this case, the employees who should play a critical role in the process are uninformed and
underutilized and will build resentment to the new initiative. As a result, co-workers can be the
employee involvement, and ensuring communication among the different functional areas (e g 48 production, process design, IT, service delivery and marketing) to drive service innovation (de
information sharing among employees should be encouraged so as to generate more ideas to satisfy unmet customer needs (de Jong and Vermeulen, 2003.
having employees cross-trained and able to perform other company tasks) also helps to broaden
Thus, if an employee took the initiative to generate ideas for solving a customer problem and failed,
as long as the employee (and the firm) learns from the mistakes. An open culture should value experimentation and should
) Employees should understand that learning from failures is often a key to success Susman et al.
Flat structures allow employees to see â€oethe big picture†and minimize distortion by reducing the levels through
structures also encourage an â€oeopen door policy†where employees have easy access to top management.
This helps employees to be able to contact people in other functions directly without going through and/or clogging other channels.
Employees should be permitted to seek advice from those who have authority based on knowledge as well as position.
Information should also be shared with employees at all levels e g.,, service, production, financial, marketing) by publishing newsletters or using other
minimize symbols or signals of status differences so that some employees don†t feel less valued
it is important that employees feel equal with their peers 5. 2 Phase II: Services Provided to the Installed Base
The skills of the firm†s employees now must extend beyond accurate diagnosis and speedy repairs,
include employees creating a friendly and helpful atmosphere for the customer. In addition regular contact with customers via opportunities such as newsletters, users†clubs, chat rooms
Firms should encourage employees who are in regular contact with customers to share ideas with other employees concerning optimal use of the product, and
observe points of pain and frustration that customers experience in using the product. These ideas and observations,
In this phase, employees should be immersed in their customer†s business. Employees should be able to see the points of pain (Gustafsson and Johnson, 2003),
or frustrations that customers have with existing offerings, and generate ideas for new solutions. Since the employees are very close
to the customer, the solutions generated from this type of encounter are often very valuable to the
Discusses the advantages to having employees understand their function in the company and how it relates to the rest of the company.
Employees that understand their part in the firm are more likely to engage in behaviors that support the firm's strategy
percent of R&d and R&d employees per sale. They also had fewer patents than large
Discusses the effect of managerial influence on employees'willingness to adopt innovation Lindman, M. T. 2002."
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