High Performance Work SystemsGroup 1-1

HPWS, Defined

High-performance work systems (HPWS) are an “organizational architecture that brings together work, people, technology, and information in a manner that optimizes the

congruence or ‘fit’ among them in order to produce high performance in terms of the

effective response to customer requirements and other environmental demands and

opportunities.” (Gallos p. 737)

THE HISTORY OF HPWS CAN BE TRACED BACK TO TWO THEORISTS,

F.W. TAYLOR AND MAX WEBER, BOTH OPERATING ROUGHLY 100 YEARS

AGO.

THESE TWO MEN PROVIDED INSIGHTS INTO ORGANIZATION

THAT INCREASED PRODUCTIVITY AND WORKER PERFORMANCE.

The History of High Performance Work Systems

Industrial RevolutionDeveloped a “scientific”

model of organization.He believed in finding the

right job for the worker, and then paying them fittingly.

He believed unions were unnecessary if workers were paid for individual worth, rather than just for the job.

F.W. Taylor, American

Born April 21, 1864 Happy Birthday!

He is considered the father of modern sociology.

He published three books and one set of essays in relation to religion and sociology:

The Protestant Ethic and the Spirit of Capitalism (1904-1905) (essays)The Religion of China (1916), The Religion of India (1916) Ancient Judaism (1917-1918)

Max Weber, German

Weber’s Bureaucracy

Organizations should be built around a clear system of hierarchical relationships, with greater discretion in decision making as one moves up the hierarchy and with an established chain of command as the primary mechanism for coordination.

Organizations should be governed by a clear and consistent set of written rules and procedures covering all positions, both operational and managerial.

Job holders should be qualified to perform their assignments; therefore, technical competence should be the basis for filling jobs and for promotion.

(GALLOS, P. 732)

WHICH AMERICAN THEORIST FELT THAT UNIONS WOULD BE UNNECESSARY IF WORKERS WERE PAID APPROPRIATELY FOR THEIR WORK, RATHER THAN

BASED ON THE JOB TITLE ITSELF?

A. R AY M O N D M I L E S

B. F. W. TAY L O R

C. M A X W E B E R

D. A B R A H A M M A S L O W

Question Time

Characteristics and Design

What Are High Performance Work Systems?

Utilize a bottom-up design process, beginning with the work and external requirements

Emphasize optimal fit between and among people, process, technology, and communication to achieve organizational goals—solutions are unique to each organization

Utilize specific design principles reflecting a variably defined set of values about people and work

Utilize a series of generic steps to apply design principles

Employ a variety of specific features such as independent/autonomous work teams, flat hierarchical structures, enriched jobs

Information Work

TechnologyPeople

Customer, Environmenta

l, and Strategic

Requirements

Organizational Architecture

FIT

Continued…

They are often confused for one or more of the components—they are more than the individual parts:

Self-managed, cross functional teams may not be effective without the correct supporting systems such as appropriate technology

Employee involvement is insufficient without appropriate systems such as access to company information

Total quality management is not synonymous because it typically does not require self-managed work teams or changes in HR practices

Successful quality initiative isn’t enough without proper understanding of external forces

CHOOSE THE BEST DEFINITION FOR A HIGH PERFORMING WORK SYSTEM

1. LEAN THINKING2. EMPLOYEES WHO AGREE WITH EVERYTHING

MANAGEMENT COMMUNICATES3. EMPLOY A VARIETY OF SPECIFIC FEATURES SUCH

AS INDEPENDENT/AUTONOMOUS WORK TEAMS, FLAT HIERARCHICAL STRUCTURES, ENRICHED

JOBS4. IS A MANAGERS PREFERRED WAY OF WORKING

Question Time

Ten Key Design Principles

1. Begin with an external/outward focus on customer requirements and work back to the internal organizational processes.

2. Design the work around empowered, self-managed teams who complete whole pieces of work (e.g., complete products, processes, or services).

3. Work must be informed and guided by clear direction and goals to design and manage the work structure and processes.

4. Errors are detected and controlled at the source (rather than inspection of errors after the fact).

5. Integration of social and technical systems.

6. Ensure continuous information flow throughout the system.

7. Enriched and shared jobs increase internal motivation and provide greater flexibility in reconfiguring and problem solving.

8. Human resource practices must complement and strengthen team and individual empowerment (local selection, skill-based pay, peer feedback, team bonuses, flattening of hierarchy, profit sharing).

9. HPWS design must be embraced and supported throughout management structure, culture and processes.

10. The work unit must have the capacity to reconfigure to meet changing conditions.

WHICH OF THE FOLLOWING IS NOT A DESIGN PRINCIPLE FOR HPWS?

1. DESI GN THE WOR K AR OU N D EMPOWER ED, SELF-MAN AGED TEAM S WHO COM PLETE WHOLE P I ECES OF WOR K

(COMP LETE P R ODU CTS, PR OCESSES, OR SERVI CES)

2. I N TEGR ATI ON OF SOCI AL AN D TECHN I CAL SYSTEM S.

3. I N TEGR ATI ON FR OM THE BEST FORTU N E 500 COM PAN I ES

4. HU M AN R ESOU R CE PR ACTI CES M U ST COM PLEM EN T AN D STR EN GTHEN TEAM AN D I N DI VI DUAL EMP OWER MEN T

(LOCAL SELECTI ON, SKI LL -BASED PAY, PEER FEEDBACK, TEAM B ON U SES, FLATTENI N G OF HI ER AR CHY, P R OFI T

SHAR I N G) .

Question Time

The Design Process: Steps

1. Analysis of requirements: customer, environmental and strategic.

2. Analysis of work process: flow of work, elements of technical systems, current organizational structures and processes.

3. Analysis of social system: patterns of communication, emergent group structures, values, informal leadership patterns, norms, etc.

4. Design the new organization: application of 10 design principles

5. Develop a transition plan.6. Execute the transition plan.7. Continuous evaluation and

improvement.

HPWS Design Process

Data Collection & Diagnosis

(steps 1–3)

Design (step 4)

Implementation

(steps 5–6)

Continuous Improvement

(step 7)

CRITICAL, SYSTEMIC THINKING IS WIDESPREAD AND OCCURS WHEN EMPLOYEES ARE ENCOURAGED TO SEE RELATIONSHIPS AMONG IDEAS AND THINK

IN NEW WAYS.

A. TrueB. False

Question Time

Strategic Alignment Motivation and Commitment

Business Objective

i. Mission

ii. Vision

iii.Values

iv. Goals

Monitoring

v. Incentives

vi.Appraisals (monitoring)

1. Policies

Competitive Advantage

Participative

Communicative

Support

i. Building a transition model

Positive disposition

What Conditions Must Exist to Support HPWS?

More conditions…

Human Capital Skill

a. KSA’s necessary to be a successful contributor

Supportive Systems

b. IT

c. Face to Face Meetings

Internal Fit

d. Internal Changes (domino effect)

e. Horizontal Fit

i. Internal policies, procedures, work designs that compliment each other

External Fit

a. Internal fit enhances External Fit

b. Ensuring Company’s goals and strategies are met

c. Profitability

i. Internal enhancements directly correlate

When Would You Implement HPWS?

Most easily implemented in a new “greenfield” organization

Can be implemented in a redesign of an existing organization; however there are notable issues related to problems of change management

Fairly natural fit in the manufacturing and service sectors, but more difficult to implement in the knowledge sector (finance, health care).

The term greenfield was originally used in construction and development to reference land that has never been used (e.g. green or new), where there was no need to demolish or rebuild any existing structures.  Today, the term greenfield project is used in many industries, where it means to start a project without the need to consider any prior work.

Employee Benefits Organizational Benefits

Have more involvement in the organization.

Experience growth and satisfaction, and become more valuable as contributors.

High productivityQualityFlexibilityCustomer

satisfaction

Benefits Of HPWS

Learning Organizations

Learning organization is an organization in which the culture values and supports lifelong learning by enabling all employees to continually 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.

Features of a Learning Organizations

Continuous learning – each employee’s and each group’s ongoing efforts to gather information and apply the information to their decisions.

Knowledge is shared – one challenge is to shift the focus of training away from teaching skills and toward a broader focus on generating and sharing knowledge.

Critical, systemic thinking – is widespread and occurs when employees are encouraged to see relationships among ideas and think in new ways.

Learning culture – a culture in which learning is rewarded, promoted, and supported by managers and organizational objectives.

Employees are valued – the organization recognizes that employees are the source of its knowledge. It therefore focuses on ensuring the development and well-being of each employee.

SAM IS A MANAGER OVERSEEING THE WORK OF A TEAM. WHICH OF THE FOLLOWING BEHAVIORS

WOULD EMPOWER THE TEAM THE LEAST?

A. Opening lines of communication between the team and other groups within the organization.

B. Directing the team and monitoring their day-to-day activities. C. Ensure the team has the resources they need.D. Keep the team informed as new, relevant information

becomes available.

Question Time