Achieving Meritocracy in the Workplace

Achieving Meritocracy in the Workplace Description

This is an MIT Sloan Management Review article. For their companies to remain competitive and successful, many executives strongly believe that they need to recruit and retain top talent. And to do so, they must foster meritocracies -hiring, rewarding, and promoting the best people, based on their merit. The most progressive companies have thus created formal systems for ensuring that job applicants and employees are judged solely by their efforts, skills, abilities, and performance, regardless of their gender, race, class, national origin, or sexual orientation.When managers believe their company is a meritocracy because formal evaluative and distributive mechanisms are in place, they are actually more likely to exhibit the very biases that those systems may seek to prevent. The very belief that an organization is meritocratic may open the door to biased, non-merit-based behavior when managers make key individual-level career decisions. The good news, the author reports, is that establishing a more meritocratic workplace doesn't require an inordinate amount of time or resources. It is a matter of establishing clear processes and criteria for hiring and evaluating employees. It is also a matter of monitoring and evaluating the outcomes of such company processes and bestowing an individual or group within the organization with the responsibility, ability, and authority to ensure that those formal processes are fair. The collection and analysis of data on people-related processes and outcomes -often referred to as "people analytics"-can enable companies to identify and correct workplace biases. The author conducted a longitudinal investigation of the translation of employee performance evaluations into compensation decisions at a large service organization in North America. He found that, over the long run, women and minorities received lower salary increases than white men with the same performance evaluation scores, even after controlling for job, work unit, and supervisor effects. The company's solution was to adopt a set of organizational procedures that incorporated both accountability and transparency into its performance reward system. The intervention consisted of introducing three key changes. First, a performance reward committee was appointed to monitor the fairness of pay decisions. Second, all senior managers had to follow a formalized process for assigning rewards based on employee evaluations. This process required the senior managers to briefly justify how much was awarded to each employee in their work unit. Third, the performance reward committee was granted the authority to modify pay decisions made by senior managers. After the new system was implemented, the author found significant reductions in the gender, race, and foreign nationality gaps for merit-based pay rewards. In fact, any remaining differences from such biases were negligible. Follow-up interviews with executives and managers at the company suggested that both the accountability and transparency mechanisms had been effective in reducing those pay gaps.

Case Description Achieving Meritocracy in the Workplace

Strategic Managment Tools Used in Case Study Analysis of Achieving Meritocracy in the Workplace

STEP 1. Problem Identification in Achieving Meritocracy in the Workplace case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of Achieving Meritocracy in the Workplace case study

STEP 3. Industry Specific / Porter Five Forces Analysis of Achieving Meritocracy in the Workplace case study

STEP 4. Evaluating Alternatives / SWOT Analysis of Achieving Meritocracy in the Workplace case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis Achieving Meritocracy in the Workplace case study

STEP 6. Recommendations Achieving Meritocracy in the Workplace case study

STEP 7. Basis of Recommendations for Achieving Meritocracy in the Workplace case study

Case Analysis of Achieving Meritocracy in the Workplace

Achieving Meritocracy in the Workplace is a Harvard Business (HBR) Case Study on Leadership & Managing People , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Achieving Meritocracy in the Workplace is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Achieving Meritocracy in the Workplace case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Achieving Meritocracy in the Workplace will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Achieving Meritocracy in the Workplace case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Leadership & Managing People, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Achieving Meritocracy in the Workplace, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Achieving Meritocracy in the Workplace case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Leadership & Managing People Solutions

In the Texas Business School, Achieving Meritocracy in the Workplace case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Achieving Meritocracy in the Workplace

Step 1 – Problem Identification of Achieving Meritocracy in the Workplace - Harvard Business School Case Study

The first step to solve HBR Achieving Meritocracy in the Workplace case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Merit Biases is facing right now. Even though the problem statement is essentially – “Leadership & Managing People” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Merit Biases, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Achieving Meritocracy in the Workplace.

The external environment analysis of Achieving Meritocracy in the Workplace will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Achieving Meritocracy in the Workplace case study. PESTEL analysis of " Achieving Meritocracy in the Workplace" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Achieving Meritocracy in the Workplace macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Achieving Meritocracy in the Workplace

To do comprehensive PESTEL analysis of case study – Achieving Meritocracy in the Workplace , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Achieving Meritocracy in the Workplace

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on Achieving Meritocracy in the Workplace

Government policies have significant impact on the business environment of any country. The firm in “ Achieving Meritocracy in the Workplace ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Merit Biases is operating, firms are required to store customer data within the premises of the country. Merit Biases needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Achieving Meritocracy in the Workplace has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Merit Biases in case study Achieving Meritocracy in the Workplace" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Merit Biases in case study “ Achieving Meritocracy in the Workplace ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Merit Biases in case study “ Achieving Meritocracy in the Workplace ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on Achieving Meritocracy in the Workplace

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Achieving Meritocracy in the Workplace ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Merit Biases can compete against other competitors.

Government Scheme & Subsidies Impact on Achieving Meritocracy in the Workplace

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Achieving Meritocracy in the Workplace case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on Achieving Meritocracy in the Workplace

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Merit Biases needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Achieving Meritocracy in the Workplace

Social Factors that Impact Achieving Meritocracy in the Workplace

Technological Factors that Impact Achieving Meritocracy in the Workplace

Environmental Factors that Impact Achieving Meritocracy in the Workplace

Legal Factors that Impact Achieving Meritocracy in the Workplace

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Achieving Meritocracy in the Workplace case study. PESTEL analysis of " Achieving Meritocracy in the Workplace" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: Achieving Meritocracy in the Workplace case study solution