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A CASE STUDY ON PIXAR’S INCREDIBLE
PRESENTED BY:eMBA HR
Ami Savla- 10010Ankita Sen- 10018
Dimple Laungani- 10040Mamta Chawla- 10075
Tanvi Kokate- 10164
1) INTRODUCTION TO PIXAR2) ACQUISITION OF PIXAR BY WALT DISNEY3) UNIQUE WORK CULTURE
4)ELEMENTS OF CULTURE5) PIXAR UNIVERSITY6) CRITISISM OF CULTURE7)MANAGEMENT OUTLOOK AFTER ACQUISITION
8) ANALYSING THE CASE-SHRM WAY9) CULTURAL FIT10) HIGH INVOLVEMENT MODEL
11) 5 P’S OF SHRM AT PIXAR12)PIXAR’S EDGE FOR DECISION MAKING13) HR CORE COMPETENCY AT PIXAR
14)HOW PIXAR FOSTERS COLLECTIVE CREATIVITY-HBR15) PIXAR’S OPERATING PRINCIPLES16) REASONS FOR SUCCESSFUL SHRM AT PIXAR
This case is about the unique organization culture at Pixar Animation Studio (Pixar).
Informal approach toward work and Human Resource (HR) policies that built a motivated and loyal employee base.
Company's hands-off management style coupled with a craftsman-like nurturing of the creative process
Cultural and HR management implications to Pixar after acquisition by The Walt Disney Company.
CRUX OF THE CASE
Understand the techniques adopted Pixar in creating and maintaining its unique organization culture
Understand the cultural and HR management implications to a company in the event of it being acquired by a larger entity
Headquarters: Emeryville, California
Founded in 1986 by Steve Jobs, Ed Catmull, and John Lasseter
Employee Strength- 850
14 Academy Awards, 7 Golden Globes and 3 Grammy Awards
Major feature films- Toy story, A Bugs Life, Toy Story 2, The Incredibles, Finding Nemo.
Competitors-Dream Works, Blue Sky
KEY PEOPLE AT DISNEY-PIXAR
Steve Jobs- Chairman & Chief Executive Officer- Pixar. Later member of Board of Directors- Disney (till 2011)
Dr. Ed Catmull- President- Pixar. Later Chief Creative officer- Disney and Pixar
John Lasseter- Executive Vice President- Disney and Pixar
PIXAR’S - JOURNEY
Founded in 1979 by Catmull and Smith, as Graphics group, of the computer division of Lucasfilm Ltd, that was running into losses.
1986- Pixar purchased by Apple and became Pixar Image Computer (PIC)
Poor sales forced Pixar to focus on animation business
1991- Smith Left Pixar
1997- Pixars Deal with Disney
2004- Pixar and Disney Parted ways
May 2006- Disney acquired Pixar
ACQUISITION OF PIXAR BY DISNEY
Disney announced on January 24, 2006 that it had agreed to buy Pixar for approximately $7.4 billion.
Pixar had a six-on-six record & analysts attributed its success to the culture of the organisation.
Main motive was to embrace Pixar’s unique culture that had fostered some of the most innovative films in history.
Pixar was acquired by Walt Disney on May 5th, 2006.
Both the companies stressed that Pixar’s would remain a separate entity & its culture would be protected
PIXAR’S WORKPLACE CULTURE
No Employment contracts
People centered business model
Culture of innovation
Hire people who are better then we are
No Hero culture
The organizational structure
Short films as training ground
Art as a teams sport
NO EMPLOYMENT CONTRACTS
Contract system- in vogue, builds loyalty
Pixar’s model was just the opposite
Employees-long term affiliation instead of one time contract
Creation of incredible workplace-Opportunies to learn and grow and most of all great coworkers
PEOPLE CENTERED BUSINESS MODEL
Departure from idea centered model of Hollywood
“if you have a great idea, and you give it to the wrong people they will screw it up, if you have the wrong idea and you give it to right people they will fix it”
Kept employees interested as well as motivated
CULTURE OF INNOVATION
Not to be complacent and had to always stay ahead of the curve
Intense self-scrutiny ensured, benifitting from all experiences
Employees were committed to quality of products
“HIRE PEOPLE WHO ARE BETTER THEN WE ARE”
Time constraints posed by tight productions schedules led to it.
People on the “growth-curve” in their careers were hired
Hiring based on potential rather than position with their existing employer.
A departure from the general tendency of managers to hire down due to threat.
Employees enjoy long & productive career
Programs for employees general well beings
Doctors & masseuses
NO HERO CULTURE
Everyone as a team would get bonus
Artistic & technical side both were equally important
THE ORGANIZATIONAL STRUCTURE
3 parallel groups- technology department- creative department- production department
Group talk with each other
SHORT FILMS AS TRAINING GROUND
Produced for training purposes
If success then used in movies
If failed then people can be wiser with the experiment
ART AS A TEAMS SPORT
Helped retain talent
All are a part of the process
Started in 1997 & Headed by Nelson
Continuing program of lectures, workshops, courses and events that went on every day at the Pixar facility.
PU offered more than 110 courses, including a complete filmmaking curriculum, classes on painting, drawing, sculpting, and creative writing...
CRITICISMS ABOUT THE CULTURE
Pixar was a self-contained organization without links to external perspectives
This could encourage homogeneous values and an insular view of the world
Pixar’s policy of retaining the same team over and over again could lead to stagnation of ideas.
Relied too much on the same core group of people
MANAGEMENT OUTLOOK AFTER ACQUISITION
After acquisition, Disney wanted to embrace Pixar’s culture.
Steering committee was formed
The difference between the cultures was palpable and difficult to bridge
Cultural adaptation under new owner-biggest challenge for Pixar
23 ANALYZING PIXAR THE S-HRM WAY
WHY DOES PIXAR REQUIRE SUCH A CULTURE?
If we aren't always at least a little scared, we're not doing our job
A business whose customers want to see something new every time they go to the theater
Innovation entails risk, and companies that don't innovate soon find their customer base dwindling
Trying to bring in cataclysmic changes in an organization culture can be indigestible
Best fit Approach- “HR strategies are appropriate to the circumstances of the organization, including its culture, operational processes and external environment”
Pixar’s use of best fit approach
HIGH INVOLVEMENT MODEL OF SHRM
• No- Hero culture• Open communication and
parallel groups• Art as a team sport• Flexibility• Whacky culture
• Lowest turnover rate• Creative brain trust• Retention during poor financial
conditions• Transition from High
Involvement to High Commitment in the long run
5 P’s MODEL OF SHRM AT PIXAR
Philosophies•Going from Suck to Non-suck
Policies •No Employment contracts•Hire people who are better then we are•No Hero culture
Practices •Accept every offer•Make you partner look good•Look for what’s wrong, not just what’s right
Processes •Unique Recruitment Process
PIXAR’S EDGE FOR DECISION MAKING
Its managers give its directors a lot of autonomy
Even though directors have autonomy, they get feedback from others
Pixar uses a process for "postmortems" on the major aspects of movies after they're completed
Pixar admits mistakes in other ways
Pixar has an extensive education program at Pixar University, with more than 110 different courses
HR AREA OF CORE COMPETENCY- INNOVATION
HR AREA OF CORE COMPETENCY
Hiring people with
Parallel groups &
-By Dr. Ed CatmullHarward Business Review
HOW PIXAR FOSTERS COLLECTIVE CREATIVITY?
WHAT IS CREATIVITY?
Involves a large number of people from different disciplines working effectively together to solve a great many problems.
Must be present at every level of every artistic and technical part of the organization.
Constructing an environment that nurtures trusting and respectful relationships and unleashes everyone’s creativity
ROOTS OF PIXAR’S CULTURE
At the root of Pixar’s culture are its smart, talented and creative people.
Pixar believes in primacy of people over ideas.
Power to the Creative's - Incubation Teams
Peer Culture - Brain Trust- Dailies´ or daily reviews
ADVANTAGES OF DAILIES
Once people get over the embarrassment of showing work still in progress, they become more creative.
The director or creative leads guiding the review process can communicate important points to the entire crew at the same time.
People learn from and inspire each other; a highly creative piece of animation will spark others to raise their game.
PIXAR’S OPERATING PRINCIPLES
Everyone must have the freedom to communicate with anyone.
It must be safe for everyone to offer ideas.
We must stay close to innovations happening in the academic community.
PIXAR : PRACTICING S-HRM
Fulfills the aim of S-HRM by:
Building a long term and major impact on the behavior and success of the organization
Ensuring the organization has skilled, committed and well motivated employees
Achieve sustained competitive advantage