high performance work systems (hpws). hr alignment planning and job design recruiting and selection...
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HR Alignment
Planning and Job Design
Compensation
EmployeeRelations
Recruiting and Selection
Training and Development
Performance Management
HR Alignment
Planning and Job Design
Compensation
EmployeeRelations
Recruiting and Selection
Training and Development
Performance Management
INTERNAL FIT
HR Alignment
Planning and Job Design
Compensation
EmployeeRelations
Recruiting and Selection
Training and Development
Performance Management
INTERNAL FIT
High-Performance Work System
A specific combination of HR practices, work structures, and processes that maximizes employee knowledge, skill, commitment, and flexibility.
Systems composed of many interrelated parts that complement one another to reach the goals of an organization, large or small.
Developing High-Performance Work Systems
Underlying Principles
EgalitarianismEgalitarianismEgalitarianismEgalitarianism
Shared Shared InformationInformation
Shared Shared InformationInformation
Performance-Performance-Reward Reward LinkageLinkage
Performance-Performance-Reward Reward LinkageLinkage
Knowledge Knowledge DevelopmentDevelopment
Knowledge Knowledge DevelopmentDevelopment
HPWS
HPWS
HPWS
HPWS
Underlying Principles
EgalitarianismEgalitarianism““Decision Power”Decision Power”
EgalitarianismEgalitarianism““Decision Power”Decision Power”
Shared Shared InformationInformation““InformatioInformatio
n”n”
Shared Shared InformationInformation““InformatioInformatio
n”n”
Performance-Performance-Reward Reward LinkageLinkage
““Rewards”Rewards”
Performance-Performance-Reward Reward LinkageLinkage
““Rewards”Rewards”
Knowledge Knowledge DevelopmentDevelopment““Knowledge”Knowledge”
Knowledge Knowledge DevelopmentDevelopment““Knowledge”Knowledge”
HPWS
HPWS
HPWS
HPWS
Principles of HPWS
Egalitarianism and Engagement Egalitarian work environments eliminate status and
power differences and, in the process, increase collaboration and teamwork.
When this happens, productivity can improve if people who once worked in isolation from (or opposition to) one another begin to work together.
Principles of HPWS (cont’d)
Shared Information A shift away from the mentality of command and
control toward one more focused on employee commitment.
Creating a culture of information sharing where employees are more willing (and able) to work toward the goals for the organization.
Principles of HPWS (cont’d)
Knowledge Development Employees in high-performance work systems need
to learn in “real time,” on the job, using innovative new approaches to solve novel problems
The number of jobs requiring little knowledge and skill is declining while the number of jobs requiring greater knowledge and skill is growing rapidly.
Principles of HPWS (cont’d)
Performance-Reward Linkage It is important to align employee and organizational
goals. When rewards are connected to performance, employees will naturally pursue outcomes that are mutually beneficial to themselves and the organization.
Anatomy of High-Performance Work Systems
Complementary Practices
StaffingStaffingStaffingStaffing
Training and Training and DevelopmentDevelopment
Training and Training and DevelopmentDevelopment
CompensationCompensationCompensationCompensation
Ensuring Fit
Internal fit The situation in which all the internal elements of the
work system complement and reinforce one another.
External fit The situation in which the work system supports the
organization’s goals and strategies.
Assessing Strategic Alignment:Fitting It All Together The HR Scorecard
Assessing Internal fit Do all internal elements of the HR system complement
and reinforce one another? Assessing HR Practices
Do HR practices significantly enable key workforce deliverables such as employment stability and teamwork?
Assessing External Fit Are workforce deliverables connected with key strategic
performance drivers?
Implementing the System
Necessary Actions for a Successful HPWS: Ensure that change is owned by senior and line
managers. Allocate sufficient resources and support for the
change effort. Ensure early and broad communication. Ensure that teams are implemented in a systemic
context. Establish methods for measuring the results of
change. Ensure continuity of leadership and champions of the
initiative.
Implementing High-Performance Work Systems
Benefits of HPWS
Employee Benefits Have more involvement in the organization. Experience growth and satisfaction, and become
more valuable as contributors. Organizational Benefits
High productivity Quality Flexibility Customer satisfaction
Build a Transition Structure
Implement High-performance Work
Incorporate the HR Function as a Valuable Partner
Navigating the Transition to High-Performance Work Systems
Evaluating the Success of the System Process audit
Determining whether a high-performance work system has been implemented as designed: Are employees actually working together, or is the term
“team” just a label? Are employees getting the information they need to
make empowered decisions? Are training programs developing the knowledge and
skills employees need? Are employees being rewarded for good performance
and useful suggestions? Are employees treated fairly so that power differences
are minimal?
Evaluating the Success of the System (cont’d) To determine if a HPWS program is reaching its
goals: Are desired behaviors being exhibited on the job? Are quality, productivity, flexibility, and customer
service objectives being met? Are quality-of-life goals being achieved for
employees? Is the organization more competitive than in the
past?
Outcomes of High-Performance Work Systems Employee Outcomes and Quality of Work Life
More involved in work
More satisfied and find that needs for growth are more fully met
More informed and empowered, feel that they have a fuller role to play in the organization and that their opinions and expertise are valued more
Have a greater commitment that comes from higher skills and greater potential for contribution
Outcomes of High-Performance Work Systems (cont’d) Organizational Outcomes and Competitive
Advantages Higher productivity Lower costs Better responsiveness to customers Greater flexibility Higher profitability
Employee Involvement Power
Authority to change job processes? Self-managed teams
Information Is business information shared? Does the job involve performance feedback?
Knowledge Does the employee have proper training for the job?
Rewards Are rewards contingent on individual performance?
Employee Involvement
Locating work decisions at the lowest level possible.PowerInformationRewardsKnowledge and skills
EI in the Fortune 1000150 Companies1999 Survey
Low EI
Med EI
High EI
ROA 9.3 9.7 11.2
ROI 14.2 15.7 17.1
ROE 23.4 20.7 26.6
Market Return -.7 2.8 11.9
Market/ Book .7 1.3 1.8
Lawler, Mohrman & Benson, 2000