Human Resource Management Unit VIII Q3
Malkta
unitviii_chapter16presentation.pdf
16-1 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.
fundamentals of
Human Resource Management 4th edition by R.A. Noe, J.R. Hollenbeck, B. Gerhart, and P.M. Wright
CHAPTER 16
Creating and Maintaining High- Performance Organizations
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Figure 16.1: Elements of a High-Performance Work System
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Figure 16.2: Outcomes of a High-Performance Work System
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Learning Organizations
• Learning organization – an organization that supports lifelong learning by enabling all employees to acquire and share knowledge.
• The people in a learning organization have resources for training, and they are encouraged to share their knowledge with colleagues.
• Managers take an active role in identifying training needs and encouraging the sharing of ideas.
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Table 16.1: HRM Practices that Can Help Organizations Achieve High Performance
• HRM practices match organization’s goals
• Individuals and groups share knowledge
• Work is performed by teams
• Organization encourages continuous learning
• Work design permits flexibility in where and when tasks are performed
• Selection system is job related and legal
• Performance management system measures customer satisfaction and quality
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Table 16.1: HRM Practices that Can Help Organizations Achieve High Performance(continued)
• Organization monitors employees’ satisfaction
• Discipline system is progressive
• Pay system rewards skills and accomplishments
• Skills and values of a diverse workforce are valued and used
• Technology reduces time and costs of tasks while preserving quality
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Performance Management
• Each aspect of performance management should be related to the organization’s goals.
• Business goals should influence the: – kinds of employees selected and their training
– requirements of each job
– measures used for evaluating results
• This means the organization: – identifies what each department must do to achieve the
desired results
– defines how individual employees should contribute to their department’s goals
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Figure 16.3: Employee Performance as a Process
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Performance Management (continued)
Guidelines to make the performance management system support organizational goals:
1. Define and measure performance in precise terms.
2. Link performance measures to meeting customer needs.
3. Measure and correct for the effect of situational constraints.
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Measuring the Effectiveness of Human Resource Management
Customer-oriented approach to HRM
Human resource management audit
Analyzing the effect of HRM programs
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Customer-Oriented Perspective of Human Resource Management
Who Are Our Customers?
• Line managers
• Strategic planners
• Employees
What Do Our Customers Need?
• Committed employees
• Competent employees
How Do We Meet Customer Needs?
• Qualified staffing
• Performance Management
• Rewards
• Training and Development
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Human Resource Management Audits
• HRM audit – a formal review of the outcomes of HRM functions, based on identifying key HRM functions and measures of business performance.
• The audit may also look at any other measure associated with successful management of human resources.
– e.g., legal compliance, safety, labor relations
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Analyzing the Effect of HRM Programs
• This analysis can measure a program’s success in terms of whether it:
– achieved its objectives
– delivered value in an economic sense
• The analysis can measure the dollar value of the program’s costs and benefits.
• Successful programs should deliver value that is greater than the program’s costs.
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Analyzing the Effect of HRM Programs (continued)
• HR departments should be able to improve their performance through some combination of greater efficiency and greater effectiveness.
• Greater efficiency – means the HR department uses fewer and less-costly resources to perform its functions.
• Greater effectiveness – means that what the HR department does has a more beneficial effect on employees and the organization’s performance.
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Summary
• A high-performance work system is the right combination of people, technology, and organizational structure that makes full use of the organization’s resources and opportunities in achieving its goals.
• A high-performance work system achieves the organization’s goals, typically including growth, productivity, and high profits.
