PREPARED BY: JILL BALDWIN MA, MCIPD, FHEA, PGCE

SENIOR LECTURER WORK BASED LEARNING

LORD ASHCROFT INTERNATIONAL BUSINESS SCHOOL

High Performance

Working (HPW)

Improving Organisational

Performance

2

TOYOTA

“We’ve got nothing, technology-wise, that

anyone else can’t have. There’s no secret

Toyota Quality Machine out there. The

quality machine is the workforce -- the team

members on the paint line, the suppliers,

the engineers -- everybody who has a hand

in production here takes the attitude that

we’re making world-class vehicles.”

LEARNING OUTCOMES

By the end of the lecture you should be able

to:

Discuss the activities of HRM in

supporting High Performance Working

Define the principles/components of High

Performance Work Systems

4

HUMAN RESOURCE PARADIGMS

Old Thinking New Thinking

People are part of the

process

Process requires

external control

Managers have to

control what

people do

People design and

improve processes

Workers who run the

process control it

Managers must obtain

commitment of workers

5

KEY ACTIVITIES IN HRM

Determine organization’s HR needs to build a high-performance workplace

Assist in design of work systems

Recruit, select, train & develop, counsel, motivate, and reward employees

Act as liaison with unions & government

Handle other matters of employee well-being

6

LEADING PRACTICES (1 OF 2)

Integrate HR plans with overall strategic

objectives and action plans

Design work and jobs to promote

organizational learning, innovation, and

flexibility

Develop effective performance

management systems, compensation, and

reward and recognition approaches

Promote cooperation and collaboration

through teamwork

7

LEADING PRACTICES (2 OF 2)

Empower individuals and teams to make

decisions that affect quality and customer

satisfaction

Make extensive investments in training and

education

Maintain a work environment conducive to

the well-being and growth of all employees

Monitor extent and effectiveness of HR

practices and measure employee satisfaction

HIGH-PERFORMANCE WORK SYSTEM

(HPWS) DEFINITION:

A specific combination of HR

practices,

work structures, and processes that

maximizes employee knowledge,

skill,

commitment, and flexibility

17-9

System Design • Work-flow

• HRM practices • Support technology

Principles of High

Involvement

Linkages to Strategy

The

Implementation Process

OUTCOMES •Organizational

•Employee

Developing High-Performance

Work Systems

PRESENTATIONS SLIDE 17-2

FOUR PRINCIPLES OF HIGH-PERFORMANCE SYSTEMS

Shared Information

Performance- Reward Linkage

Knowledge Development

Egalitarianism

Workflow • Self managed teams • Empowerment

Staffing • Selective recruiting • Team decision

Training • Broad skills • Cross-training • Problem-solving • Team training

Compensation • Incentives • Gainsharing • Profit sharing • Skill-based pay

Leadership • Few layers • Coach/facilitate

Technologies • HRIS • Communications

Shared Information

Knowledge Development

Perf-Reward Linkage

Egalitarian Environment

Anatomy of High-Performance Work Systems

Strategy

HORIZONTAL FIT

Workflow Design

HR Practices

Leadership

Technologies

Company Values

Competitive Challenges

Workflow Design

VERTICAL FIT

Achieving Strategic Fit • Vertical

• Horizontal

Achieving Strategic Fit

17-

13

HORIZONTAL FIT

Situation in which all the internal

elements

of the work system complement

and

reinforce one another

17-

14

VERTICAL FIT

Situation in which the work

system supports

the organisation’s goals and

strategies

ENSURING FIT

Strategy

Organ- izational Values

Employee Concerns

Competitive Challenges

Vertical Fit

Horizontal Fit Leadership Practices

HRM Practices

Supporting Technology

Workflow Design

16

HIGH PERFORMANCE WORK SYSTEMS

Work and Job

Design

Employee

Involvement

Suggestion

systems

Empowerment

Training and

Education

Teamwork and Cooperation

Compensation

and

recognition

Health and safety

Flexibility

Innovation

Knowledge and skill

sharing

Organizational

alignment

Customer focus

Rapid response

17

DESIGNING HIGH PERFORMANCE

WORK SYSTEMS

Work design - how employees are

organized in formal and informal units

(departments, teams, etc.)

Job design - responsibilities and tasks

assigned to individuals

18

HACKMAN/OLDHAM MODEL

Core job

characteristics

Critical

psychological

states Outcomes

Skill variety

Task identity

Task significance

Experienced

meaningfulness

of work

Autonomy

Feedback

from job

Experienced

responsibility

Knowledge of

actual results

High motivation

High satisfaction

High work

effectiveness

Moderators

19

EMPLOYEE INVOLVEMENT

Employee Involvement - any activity by which

employees participate in work-related

decisions and improvement activities, with

the objectives of tapping the creative

energies of all employees and improving

their motivation

20

ADVANTAGES OF EI

Replaces adversarial

mentality with trust

and cooperation

Develops skills and

leadership abilities

Increases morale and

commitment

Fosters creativity and

innovation

Helps people understand quality principles and instilling them into the organization’s culture

Allows employees to solve problems at the source

Improves quality and productivity

21

EMPOWERMENT

Giving people authority to make decisions based on

what they feel is right, to have control over their

work, to take risks and learn from mistakes, and to

promote change.

“A sincere belief and trust in people.”

22

SUCCESSFUL EMPOWERMENT

Provide education, resources, and encouragement

Remove restrictive policies/procedures

Foster an atmosphere of trust

Share information freely

Make work valuable

Train managers in “hands-off” leadership

Train employees in allowed latitude

23

TRAINING AND EDUCATION

Quality awareness

Leadership

Project management

Communications

Teamwork

Problem solving

Interpreting and using

data

Meeting customer

requirements

Process analysis

Process simplification

Waste reduction

Cycle time reduction

Error proofing

24

SELF-MANAGED TEAMS

Empowered

Plan, control, improve

work processes

Set own goals and

inspect own work

Schedule & review

performance

Prepare budgets &

coordinate work

Order materials, keep

inventory, & deal with

suppliers

Acquire any needed

training

Hire replacements or

discipline members

Take responsibility for

quality

25

EFFECTIVE RECOGNITION

AND REWARD STRATEGIES

Give both individual and team awards

Involve everyone

Tie rewards to quality

Allow peers and customers to nominate

and recognize superior performance

Publicize extensively

Make recognition fun

26

MANAGING HR

IN A TQ ENVIRONMENT

Recruitment and Career

Development

Motivation

Performance Appraisal

Measuring Employee

Satisfaction and HRM

Effectiveness

5 DIMENSIONS OR COMPONENTS OF HPW

(KIRKMAN & BRADLEY)

1. SELF-MANAGING WORK TEAMS

2. EMPLOYEE INVOLVEMENT,

PARTICIPATION & EMPOWERMENT

3. TOTAL QUALITY MANAGEMENT

4. INTEGRATED PRODUCTION

TECHNOLOGIES

5. LEARNING ORGANISATION