High. Performance. Working (HPW) Improving Organisational. Performance SENIOR LECTURER WORK BASED LEARNING LORD ASHCROFT INTERNATIONAL BUSINESS SCHOOL

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1 Improving Organisational Performance High Performance Working (HPW) PREPARED BY: JILL BALDWIN MA, MCIPD, FHEA, PGCE SENIOR LECTURER WORK BASED LEARNING LORD ASHCROFT INTERNATIONAL BUSINESS SCHOOL

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. 2

3 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 People are part of the process New Thinking People design and improve processes 4 Process requires external control Workers who run the process control it Managers have to control what people do 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 5

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 6

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 7

8 HIGH-PERFORMANCE WORK SYSTEM (HPWS) DEFINITION: A specific combination of HR practices, work structures, and processes that maximizes employee knowledge, skill, commitment, and flexibility

9 Developing High-Performance Work Systems Principles of High Involvement Linkages to Strategy System Design Work-flow HRM practices Support technology OUTCOMES Organizational Employee 17-9 The Implementation Process

10 PRESENTATIONS SLIDE 17-2 FOUR PRINCIPLES OF HIGH- PERFORMANCE SYSTEMS Shared Information Knowledge Development Performance- Reward Linkage Egalitarianism

11 Anatomy of High-Performance Work Systems Shared Information 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 Knowledge Development Perf-Reward Linkage Egalitarian Environment

12 Company Values Competitive Challenges Achieving Strategic Fit Strategy Workflow Design VERTICAL FIT Workflow Design HR Practices Achieving Strategic Fit Vertical Horizontal Technologies HORIZONTAL FIT Leadership

13 HORIZONTAL FIT Situation in which all the internal elements of the work system complement and reinforce one another 17-13

14 VERTICAL FIT Situation in which the work system supports the organisation s goals and strategies 17-14

15 ENSURING FIT Competitive Challenges Organizational Values Strategy Employee Concerns Vertical Fit Supporting Technology Workflow Design Horizontal Fit Leadership Practices HRM Practices

16 HIGH PERFORMANCE WORK SYSTEMS Work and Job Design Health and safety Suggestion systems Training and Education Flexibility Innovation Knowledge and skill sharing Organizational alignment Customer focus Rapid response Teamwork and Cooperation Compensation and recognition Empowerment Employee Involvement 16

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 17

18 HACKMAN/OLDHAM MODEL Core job characteristics Critical psychological states Outcomes Skill variety Task identity Task significance Experienced meaningfulness of work High motivation High satisfaction 18 Autonomy Feedback from job Experienced responsibility Knowledge of actual results Moderators High work effectiveness

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 19

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 20

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. 21 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 22

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 23

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 24

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 25

26 MANAGING HR IN A TQ ENVIRONMENT Recruitment and Career Development 26 Motivation Performance Appraisal Measuring Employee Satisfaction and HRM Effectiveness

27 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