3 Discussions and 2 weekly summary
Shrikaa
Snell_17e_PPT_Instructor_Ch16.pptChapter 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
