employee development to encourage intrapreneurship

2.1 HRM – Training and Development

2.1.1 Purpose and Role of HRM

• Ensures that the right people are in the right jobs at the right time.
• Aligns people‑capacity with the organisation’s strategic objectives (productivity, cost‑effectiveness, market growth).
• Develops employee skills, motivation and well‑being to improve individual and organisational performance.
• Creates a culture that supports innovation and intrapreneurship.
• Provides a framework for recruitment, training, welfare, performance management and employee relations.

2.1.2 Workforce Planning

• Analyse the current workforce – head‑count, skill inventory, demographics, turnover rate and reasons for leaving.
• Forecast future demand – based on growth plans, new products, technology, and market trends.
• Identify gaps – e.g. shortage of creative‑thinking, project‑management or digital‑skills.
• Gap analysis – use the information to design training programmes that develop the required intrapreneurial competencies.
• Link to turnover – high turnover of high‑potential staff signals a need for better retention strategies and succession planning.

2.1.3 Recruitment and Selection

• Job description – outlines duties, responsibilities and reporting lines.
• Person specification – lists the knowledge, skills, abilities and personal traits required (e.g., creativity, risk‑taking, pro‑activity).
• Recruitment methods – internal promotion, external advertising, graduate schemes, head‑hunting, online job portals.
• Selection tools – application forms, structured interviews, psychometric tests, assessment centres, work‑sample tasks.
• Employment contracts – brief note on the main types (permanent, fixed‑term, zero‑hours) and key clauses (probation, notice period, confidentiality).
• Link to intrapreneurship – recruit for traits such as creativity, autonomy, and a willingness to experiment.

2.1.4 Redundancy and Dismissal

• Redundancy – job no longer required. Can be voluntary (voluntary exit scheme) or compulsory.
• Statutory redundancy pay – calculated on age, length of service and weekly pay (subject to a ceiling).
• Consultation – employer must consult individually (and collectively where applicable) a minimum of 30 days before compulsory redundancy.
• Dismissal – termination for performance or conduct reasons.
• Legal criteria for fair dismissal – valid reason, reasonable procedure, and the right to appeal.
• Mitigation through training – up‑skilling and redeploying staff reduces the risk of redundancy.

2.1.5 Morale, Welfare, Equality & Health & Safety

• Morale – enhanced by clear career paths, recognition, and development opportunities.
• Welfare considerations – work‑life balance, employee assistance programmes, flexible working.
• Equality legislation – Equality Act 2010 (UK) – prohibits discrimination on the basis of protected characteristics and requires inclusive policies.
• Diversity & inclusion – recruitment, training and promotion practices that reflect a diverse workforce.
• Health & safety – risk assessments, safe working environment, mental‑health support as part of employee well‑being.
• Retention impact – well‑designed welfare and equality policies increase job satisfaction and reduce turnover.

2.1.6 Training & Development (focus on Intrapreneurship)

Intrapreneurship is the practice of acting like an entrepreneur within an organisation – generating ideas, taking initiative and driving innovation. Effective training equips staff with the knowledge, skills and attitudes needed to become intrapreneurs.

Traditional Types of Training

1. Induction training – introduction to organisational policies, culture and basic role‑specific skills.
2. On‑the‑Job Training (OJT) – learning while performing the role (job‑shadowing, coaching, mentoring).
3. Off‑the‑Job Training – classroom teaching, seminars, workshops, external courses.
4. E‑Learning & Digital Platforms – self‑paced modules, webinars, MOOCs, virtual simulations.

Development Activities that Foster Intrapreneurship

• Mentoring and coaching programmes that pair aspiring intrapreneurs with senior innovators.
• Job rotation and cross‑functional projects to broaden perspective.
• Stretch assignments and innovation challenges (e.g., “30‑day idea sprint”).
• Design‑Thinking workshops and idea‑generation sessions.
• Leadership development focused on risk‑taking, decision‑making and influencing.

Linking Training to Intrapreneurial Competencies

Intrapreneurial Competency	Relevant Training / Development Method	Desired Outcome
Creative Thinking	Design‑Thinking workshops, brainstorming sessions, off‑the‑job creativity courses	Generation of novel ideas and solutions
Opportunity Recognition	Market‑analysis simulations, case‑study analysis, e‑learning on trend spotting	Ability to identify gaps and emerging market trends
Risk Management	Scenario planning, risk‑assessment training, action‑learning projects	Balanced willingness to experiment while managing downside
Resource Mobilisation	Project‑management and budgeting workshops, financial‑literacy e‑modules	Effective use of internal resources for new initiatives
Leadership & Influence	Mentoring, transformational‑leadership programmes, communication skills training	Ability to rally support and drive projects forward

Designing an Intrapreneurial Development Programme

1. Conduct a skills‑gap analysis focused on the five intrapreneurial competencies.
2. Set clear, measurable learning objectives that support the organisation’s strategic goals.
3. Select a blend of training methods (induction, OJT, off‑the‑job, e‑learning, action learning).
4. Integrate real‑world projects that require employees to apply new skills (e.g., develop a prototype for a new service).
5. Provide ongoing coaching/mentoring and access to senior sponsors.
6. Establish incentives – recognition awards, “innovation time” (e.g., 10 % of weekly hours), seed funding for pilots.

Evaluating Training Effectiveness – Kirkpatrick Model

• Level 1 – Reaction: Participant satisfaction (post‑session surveys, Net Promoter Score).
• Level 2 – Learning: Knowledge/skill acquisition (pre‑ and post‑tests, competency checklists).
• Level 3 – Behaviour: Observable changes in work practice (number of ideas submitted, use of new tools, peer feedback).
• Level 4 – Results: Impact on organisational performance (revenue from new products, cost savings, patents filed, employee retention).

Benefits of Intrapreneurial Development

• Higher rate of successful new product/service launches.
• Improved employee engagement and lower turnover.
• Strengthened organisational learning culture.
• Enhanced ability to respond quickly to market changes.

Potential Challenges and Mitigation Strategies

• Resistance to change – use change‑management communication, involve senior leaders as champions.
• Resource constraints – allocate dedicated “innovation time” and a modest budget for pilot projects.
• Risk aversion – create a safe‑to‑fail environment with clear learning feedback loops.
• Measuring impact – combine quantitative metrics (patents, revenue) with qualitative indicators (employee confidence, cultural shift).

2.1.7 Management‑Workforce Relations

• Trade‑union involvement – collective bargaining agreements may contain training provisions and redundancy consultation clauses.
• Consultation with unions facilitates acceptance of new development programmes and reduces industrial tension.
• Open communication channels (e.g., suggestion portals, regular briefings) encourage employee participation in intrapreneurial initiatives.

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2.2 Motivation

Why Motivation Matters for Intrapreneurship

Intrapreneurs need intrinsic drive to generate ideas, take risks and persist through setbacks. Understanding motivation helps managers create conditions that encourage such behaviour.

Key Motivation Theories (Cambridge 9609)

Theory	Key Concepts	Implications for Intrapreneurship
Maslow’s Hierarchy of Needs	Physiological → Safety → Social → Esteem → Self‑actualisation	Provide opportunities for self‑actualisation through challenging projects, creative freedom and personal growth.
Herzberg’s Two‑Factor Theory	Hygiene factors (salary, conditions) vs. Motivators (achievement, recognition, responsibility)	Ensure hygiene factors are satisfactory; use motivators such as autonomy, public recognition of ideas, and career advancement.
McClelland’s Theory of Needs	Need for Achievement, Affiliation, Power	Target high‑achievement individuals for intrapreneurial roles; give them authority (power) and opportunities to lead teams.
Vroom’s Expectancy Theory	Expectancy × Instrumentality × Valence = Motivation	Clarify the link between effort (idea generation), performance (proposal acceptance), and reward (recognition, funding).
Equity Theory	Perceived fairness of inputs vs. outcomes	Ensure intrapreneurial rewards are perceived as fair compared with peers to maintain motivation.

Applying Motivation to Intrapreneurial Development

1. Set clear, challenging goals – align individual objectives with organisational innovation targets.
2. Provide autonomy – allow employees to choose projects, methods and timelines.
3. Offer meaningful recognition – awards, public acknowledgment, profit‑share or “innovation bonuses”.
4. Ensure adequate resources – time, budget, mentorship, access to tools.
5. Maintain fairness – transparent criteria for idea evaluation and reward distribution.

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2.3 Leadership and Management

Link Between Leadership, Management and Intrapreneurship

Leaders create the vision and culture that encourage innovation, while managers organise resources and processes to turn ideas into reality.

Management Functions (POSDCORB)

• Planning – set strategic objectives that include innovation targets.
• Organising – design structures (e.g., cross‑functional innovation teams, “skunk‑works” units) that facilitate idea flow.
• Staffing – recruit and develop intrapreneurial talent; use person specifications that highlight creativity and risk‑taking.
• Directing – provide guidance, delegate authority, and motivate teams.
• Co‑ordinating – ensure collaboration between departments and avoid silos.
• Reporting – monitor progress of innovation projects through dashboards and stage‑gate reviews.
• Budgeting – allocate funds for research, prototyping, pilot schemes and “innovation time”.

Leadership Styles and Their Effect on Intrapreneurship

Style	Key Characteristics	Impact on Intrapreneurial Behaviour
Autocratic	Centralised decision‑making, tight control	May stifle creativity; useful only in crisis situations where rapid decisions are needed.
Democratic / Participative	Consultation, shared decision‑making	Encourages idea‑sharing and ownership – supportive of intrapreneurship.
Laissez‑faire	High autonomy, minimal direction	Can boost creativity if employees are self‑motivated; risk of lack of focus and accountability.
Transformational	Inspires vision, encourages innovation, develops individuals	Ideal for fostering a culture of intrapreneurship and sustained change.
Transactional	Clear structures, rewards & penalties	Effective for managing routine tasks; should be combined with transformational elements to drive innovation.

Key Leadership Behaviours that Promote Intrapreneurship

• Communicating a clear innovation vision and linking it to organisational strategy.
• Modelling risk‑taking and openly sharing lessons from failure.
• Providing coaching, mentorship and constructive feedback.
• Empowering teams with decision‑making authority and resources.
• Recognising and rewarding innovative contributions promptly.

Communication and Delegation

• Effective communication – regular briefings, open idea portals, feedback loops, and transparent reporting on innovation outcomes.
• Delegation – assign responsibility for specific innovation projects, set clear objectives, monitor progress without micromanaging.

Controlling and Monitoring Intrapreneurial Projects

1. Define measurable KPIs (e.g., number of ideas generated, prototype completion time, revenue from new products).
2. Use a stage‑gate process to review progress at defined milestones (idea, concept, prototype, pilot, launch).
3. Provide timely feedback, re‑allocate resources and remove barriers to keep projects on track.

Leadership Development for Intrapreneurship

• Action‑learning programmes that place managers in cross‑functional innovation teams.
• Coaching focused on transformational behaviours (vision‑casting, inspirational motivation).
• Workshops on managing uncertainty, creative problem‑solving, stakeholder engagement and financial justification of new ideas.

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Summary

For Cambridge 9609, HRM is a holistic system that includes workforce planning, recruitment, training, welfare, and management‑workforce relations. By integrating these elements with motivation theories and appropriate leadership styles, organisations can design development programmes that nurture intrapreneurial talent. The result is a motivated, skilled workforce capable of generating innovative ideas, turning them into commercial successes, and sustaining long‑term competitive advantage.