3 Discussions and 2 weekly summary

Shrikaa
Snell_17e_PPT_Instructor_Ch16.ppt

Chapter 16 Implementing HR Strategy: High-Performance Work Systems

Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Learning Outcomes

Discuss how a firm’s strategy can be achieved with a high-performance work system and what its fundamental principles are

Describe how a high-performance work system is designed, and explain how the components of it must align horizontally and vertically to support one another and a firm’s strategy

Recommend processes for implementing and evaluating a high-performance work system

Discuss a high-performance work system’s potential outcomes for both employees and the organization

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High-Performance Work Systems (HPWS)

Specific combination of HR practices, work structures, and processes that maximizes employee’s:

Knowledge

Skill

Commitment

Flexibility

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Figure 16.1 - Implementing HR Strategy: High Performance Work Systems

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Figure 16.2 - Underlying Principles of High-Performance Work Systems

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Egalitarianism and Engagement

Egalitarian work environments

Reduce status and power differences

Increase collaboration and teamwork, which increases productivity

Employee engagement can be increased by:

Involving them in decision making

Giving them power to act

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Shared Information and Trust

Critical to the success of employee empowerment and involvement initiatives in organizations

Employees are better acquainted with work and can devise solutions to problems

Employees can make good suggestions for improving business and cooperate in major organizational changes

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Knowledge Development

HPWS depends on the shift from touch labor to knowledge work

Employees need to learn in real time, on the job, using innovative new approaches to solve novel problems

Better informed employees, work better

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Performance-Reward Linkage

Aligned interests of an organization and its employees make things go smoothly

Performance-based rewards ensure:

Employees share in the gains that result from performance improvement

Fairness and tends to focus employees on the organization

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Figure 16.3 - Design Aspects of High-Performance Work Systems

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Strategic Alignment

Horizontal fit: Situation in which all the internal elements of the work system complement and reinforce one another

Changes in one component affect all the other components

Vertical fit: Situation in which the work system supports the organization’s goals and strategies

High-performance work systems are designed to link employee initiatives to firm’s strategies

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Figure 16.4 - Achieving Strategic Alignment

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HR Scorecard

Diagnoses horizontal fit and vertical fit in a straightforward way

Managers diagnose horizontal fit by assessing whether particular HR practices reinforce one another or work at cross purposes

Managers assess whether the HR practices significantly enable key workforce deliverables

Degree of vertical fit is evaluated by assessing the degree to which the workforce deliverables are connected with key strategic performance drivers

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Implementing the System

Necessary actions for a successful HPWS

Make a compelling case for change linked to the company’s business strategy

Ensure that change is owned by senior and line managers

Allocate sufficient resources and support for the change effort

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Implementing the System

Ensure early and broad communication

Ensure that teams are implemented in a systemic way

Establish methods for measuring the results of change

Ensure continuity of leadership and appoint champions of the initiative

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Figure 16.5 - Implementing High-Performance Work Systems

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Figure 16.6 - Building Cooperation With Stakeholders

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Establishing a Communications Plan

Senior management need to establish the context for change and communicate the vision more broadly to the organization

Commitment from the top is essential to establish mutual trust between employees and managers

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Establishing a Communications Plan

Two-way communication:

Results in better decisions

Helps to diminish the fears and concerns of employees when facing changes

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Navigating the Transition to High-Performance Work Systems

Factors that determine the success of established implementation plan

Timetable and process for mapping key business processes

Redesigning the work flow

Training employees

HR managers help employees in transition to handle change

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Evaluating and Sustaining the Success of the System

Process audit: Determining whether the high-performance work ­system has been implemented as designed

Evaluation process needs to focus on the goals of high-performance work systems

Building and fostering high-performance work systems is an ongoing activity

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Evaluating and Sustaining the Success of the System

Develop strategies to retain and motivate employees to deal with the problem of employee poaching

Periodically re-evaluate high-performance work systems in terms of new organizational priorities and initiatives

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Outcomes of High-Performance Work Systems

Employee outcomes and quality of work life

Benefits of proper implementation of high-performance work systems

New products, services, and markets

Employee satisfaction and increased job security

Outcome of improper implementation

Performance of an organization suffers

Employees develop poor work attitudes and habits

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Organizational Outcomes and Competitive Advantages

Innovation

Greater flexibility

Higher productivity

Lower costs

Better responsiveness to customers

Higher profitability

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Criteria for Success of High-Performance Work Systems

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Valuable

HPWS increases value by establishing ways to increase innovation and efficiency, decrease costs, improve processes, and provide something unique to customers

Rare

HPWS help organizations develop and harness skills, knowledge, and abilities that are not equally available to all organizations

Difficult to imitate

HPWS are designed around team processes and capabilities that cannot be transported, duplicated, or copied by rival firms

Organized

HPWS combine the talents of employees and rapidly deploy them in new assignments with maximum flexibility