Human Resource
Strategy &
Implementation
HRM 450
Fostering Corporate Entrepreneurship through
Human Resource Practices
Hamda 11049
Dr. Amabelle D. Pacana
5/14/2019
Corporate entrepreneurship
In the business industry, most companies are met with two important issues;
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They face external challenges from the constant changes and developments that take
place in the markets, technology, and globalization as well as competitors.
They also face internal challenges from the internals systems of the administrative
structures and processes inside the organization, which can lead to slow decision making
and an inability to adapt easily to new situations.
Nurturing entrepreneurial activities throughout the operations of an organization to face these
challenges will help to continue competing successfully.
Corporate entrepreneurship is organization wide; it is the innovative culture that is encouraged
within an organization. This helps with renewing companies, enhance their competitive
advantage, spur growth, create new employment opportunities, and generate wealth. Corporate
entrepreneurship implies that employees must act and think in ways not normally done in the
traditional ways of a rigid corporations.
Human Resource Practices and Corporate Entrepreneurship
Human resources can influence corporate entrepreneurship through the creation of an
entrepreneurial culture, an organization that promotes entrepreneurship with rewards, delegation
of responsibility and avoiding overly rigid control.
Three HRM functions that influence employee performance with fostering entrepreneurial
thinking;
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Staff selection
Training and development
Compensation and benefits
Staff selection
A successful innovation process needs qualified and talented people to be involved. In order to
foster corporate innovative growth, the goals of staff selection are to employ such type of human
capital to spread entrepreneurial activities in the organizations. During the selection process,
companies can find those with problem solving skills and those who process a sense of
teamwork attitudes and behaviors of future employees. The hiring process is an important to
when it comes to influencing the corporate entrepreneurial level in a company. Employing staff
with experience and expertise and who possess entrepreneurial abilities, such as creativity, can
help with when unexpected opportunities or changes occur.
Training and development
After ensuring employees entrepreneurial abilities through staff selection, their abilities can be
enhanced more thorough training and development. Training and development are very
important for the performance and competitive advantage of any company. Furthermore, training
can overcome the factors that decrease an employee’s job performance and job satisfaction.
Staff development helps increase employees qualifications and performance. Training and
development can help encourage entrepreneurial behavior within the company in a way that they
can use it in a range of job situations, as well as encourage employee participation. The changes
in technologies and changes in job requirements leads to a need for training that is always
ongoing, that is less regulated, and focuses on individual knowledge requirements and skills.
Such approaches leads employees to respond in new and special ways to new challenges, adapt
to unstable environmental conditions. It also helps stimulate creativity by making employees to
gain numerous experiences.
To further encourage corporate entrepreneurship through training and development;
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Corporate entrepreneurship can be fostered through training that increases interpersonal
skills and teamwork.
It will also help to focus on training that stimulates creativity and self-renewal
Staff compensation and benefits
Compensation and benefits help employees with motivation and their attitudes regarding the job.
It can help with encouraging and increasing their positive attitude toward the company, this will
help with the company’s growth and performance. When it comes to corporate entrepreneurship,
incentives can increase the employees with taking risks and help motivate them towards a more
innovative thinking.
Dubai Holdings
The company takes the initiative to create a work environment that encourages continuous
innovation and creativity amongst their employees. The company holds a competition that
encourages their employees towards entrepreneurial thinking and a more innovative culture. The
competition is companywide and includes all employees who wish to participate, the
entrepreneurs Challenge. In the challenge every employee at every level is invited to share their
ideas toward any industry Dubai holding operates in. their ideas are evaluated and judges by a
panel of external judges based on their creativity, relevance and potential of implementation. The
top three ideas are selected and rewarded AED 12,000.