presentation 111206155917 phpapp01

8/12/2019 Presentation 111206155917 Phpapp01

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CHAPTER 16:

CREATING HIGH-PERFORMANCE

WORK SYSTEMS

Kirsti Kompus

Richard Stefan

Omar Sagor


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Topics:

PRINCIPLES OF HIGH-PERFORMANCE WORKSYSTEMS

COMPONENTS OF A HIGH-PERFORMANCE WORK

SYSTEMHOW COMPONENTS FIT TOGETHER AND SUPPORT

STRATEGY

PROCESSES FOR IMPLEMENTING HIGH-

PERFORMANCE WORK SYSTEMS

OUTCOMES FOR EMPLOYEES AND THEORGANIZATION


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PRINCIPLES OF HIGH-PERFORMANCE WORK SYSTEMS

A high performance work system can be defined as a specific combinationof HR practices, work structures, and processes that maximizes theknowledge, skills, commitment, flexibility, and resilience of employees.

4 Simple but powerful principals:

- Egalitarianism and engagement

- Shared Information

- Knowledge development

- Performance-reward linkage


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Egalitarianism and engagement

- Sense of being members, not just workers, in an organization

- Egalitarian work environments eliminate status and power differences

- Increase collaboration and teamwork

- Productivity improves through working together

- Employee engagement: Involving employees in decision-making andgiving them the power

- Engaged employees: performing at high levels, are enthusiastic aboutwhat they do, and look for better, more efficient ways of doing things


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Shared Information

- The principal of shared information is critical to the success of

employee empowerment and involvement initiatives in organizations- In the past employees traditionally were not given and did not ask

information about the organizations

- Information helps employees make good suggestions for improving the

business and to cooperate in major organizational changes- The principal of shared information typifies a shift in the relationship

between employer and employee in organizations


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Knowledge development

- Knowledge development: the twin sister of information sharing

- The only thing you get when you empower dummies, is bad decisionsfaster.

- The number of jobs requiring little knowledge and skill is declining

- The number of jobs requiring greater knowledge and skill is growing

- High-performance work systems depend on the shift from touch labor toknowledge work

- Employees today need a broad range of skills

- Knowledge and skill requirements must also change rapidly


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Performance-reward linkage

- People may intentionally or unintentionally pursue outcomes that are

beneficial to them but not necessarily to the organization as a whole- When companies reward their employees based on their performance,

workers naturally pursue outcomes that are mutually beneficial tothemselves and the organization


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COMPONENTS OF A HIGH-PERFORMANCE WORK SYSTEM

Work-flow design and teamwork

By redesigning the work-flow around key business processes, companiescan:

- Establish a work environment that facilitates teamwork- Takes advantage of employee skills and knowledge

- Empowers employees to make decisions

- Provides employees with more meaningful work


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Staffing

Companies can improve their staffing practices by selecting one of thefollowing:

- Potential job applicants that are drawn from a pool of individuals whohave been trained at the state's expense and who seem best suited towork in high performance teams

- Team members select their teammates


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Training and development:

- Training focuses on ensuring that employees have the skills needed toassume greater responsibility in a high-performance work environment.Companies can develop training by the following points:

- Provide pre-hire training program of instruction and testing in subjectbased on companies specific business needs.

- Apprenticeship program that focuses on key areas based on companiesspecific business needs.

- Training certification process; the teams have to certify their abilities tofunction effectively by demonstrating knowledge.

- "Cross-cultural sensitivity and team building"


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Compensation

- Many companies are experimenting with alternative compensation plansin order to link pay and performance, high-performance work systemsoften include some type of employee incentives.

- Incorporating skill-based pay plans (based on the number of differentjob skills)

- "Intracapital" method: a pool of money an employee can spend oncapital improvements if the company meets profitability goals

- Egalitarianism: implementing an all-salaried workforce

- ''Pay-for-performance'' philosophy: high performance organizationalculture that translates into better business results and companyprofitability


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Management processes and leadership:

- Maximizes staff engagement, development, and performance

- Is consistent across units to enhance full development and utilization of

talent- Remains flexible, efficient, measurable, fair, and transparent

- Provides better alignment of staff roles and goals with the universitysmission

- Promotes on-going and proactive succession management.

- Cornells Performance Management Philosophy.


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Management processes and leadership (cont)

- Addresses the relationship of employees to the institution, from the timethey are recruited, through their growth and development, to the timethey depart

- Engages and develops employees throughout the year

- Establishes goals and measures performance to those goals

- Depends on the supervisor giving clear, developmental feedback

- Includes a review of past performance and goals and focuses on futuredevelopment opportunities that are aligned to individual, unit, anduniversity goals


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Supportive information technologies

- Technologies of various kinds create an infrastructure forcommunicating and sharing information vital to business performance

- But IT need not always be so high-tech

- The richest communication occurs face to face

- The important point is that high-performance work system cannotsucceed timely and accurate communication


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HOW COMPONENTS FIT TOGETHERAND SUPPORT STRATEGY

The pieces of the system are important only in terms of how they help theentire system function. When all the pieces support and complementone another, high-performance work systems achieve internal fit.When the system is aligned with the competitive priorities of theorganization as a whole, it achieves external fit as well.

Internal fit

- Occurs when all the internal elements of the work system complementand reinforce one another

- Changes in one component affect all the other components

- Horizontal fit: testing to make certain that all of the HR practices, workdesigns, management processes, and technologies complement oneanother


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HOW COMPONENTS FIT TOGETHERAND SUPPORT STRATEGY

Assessing Strategic Alignment: The HRScoreboard

Uses

- Is used to diagnose internal fit and external fit in a relativelystraightforward way

- Is used to engage a broader set of managers and employees in thediscussion of how to best implement the system

ProcedureConsists of analyzing and comparing internal and external fit, key

strategic performance drivers, HR practices, employment,stability and teamwork


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IMPLEMENTING HIGH-PERFORMANCE WORK SYSTEMS

Actions necessary for success

- Making a compelling case for change linked to the company's businessstrategy

- Ensuring that change is owned by senior and line managers- Allocating sufficient resources and support for the change effort

- Ensuring early and broad communication

- Ensuring that teams are implemented in a systemic context

- Establishing methods for measuring the results of change

- Ensuring continuity of leadership and champion of the initiative


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Implementing High-Performance Work Systems

Building a Business Case for Change

- Managers have to build a case that changes are needed for the success of

the organization- Top managers spending time to communicate with employees about the

reasons and approaches of change

- Major transformations should not be be left only to middle managers.CEO and senior management team need to establish the context forchange and communicate the vision tot he entire organization


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Processes for Implementing High-PerformanceWork Systems

Establishing a Communications Plan

- Two-way communication: diminishing fears and concerns of employees

- Two-way communication: open discussions, sharing information

Unions

- Cultivating Mutual Gains: creating win-win situations and building trust

- Formalizing Commitment: sign of managers' commitment andinstitutionalizing the initiative


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Evaluating the Success and Sustaining it

- Process audit: determine whether the system has beenimplemented as it was designed and principles of high-performance work systems being reinforced

- Sustaining: motivating and retaining the workforce to avoid burnoutand employee poaching by other companies

- Evaluations: high-performance work systems should be periodicallyevaluated in terms of new organizational priorities and initiatives


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OUTCOMES FOR EMPLOYEES ANDTHE ORGANIZATION

Progressive organizations of all sizes have successfully implementedhigh-performance work systems. When implemented effectively, high-performance work systems benefit both employees and theirorganizations.

Employee Outcomes and Quality of Work Life

- In high-performing workplaces, employees have greater latitude todecide how to achieve their goals. Employees become more engagedand empowered to make decisions, experience greater career growth

and satisfaction, and become more valuable contributors to their firms.

-When employees are underutilized, the performance of an organizationsuffers, and employees develop poor work attitudes and habits.


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OUTCOMES FOR EMPLOYEES ANDTHE ORGANIZATION

Organizational Outcomes and CompetitiveAdvantage

Organizations benefit from higher productivity, quality, flexibility, andcustomer satisfaction. These features together can provide a company

with sustainable competitive advantage

Competitive advantage by developing competencies in employees:

1) Valuable: High-performance work systems increase value byestablishing ways to increase efficiency, decrease costs, improveprocesses, and provide something unique to customers.


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