HR MGT Ch 16

High Performance Work System
right combination of people, technology, and organizational structure that makes full use of the organization’s resources and opportunities in achieving its goals.
Each of these elements must fit well with the others in a smoothly functioning whole.
5 elements of a high performance work system
Organizational structure
Task design
People (the selection, training, and development of employees)
Reward systems
Information systems
Organizational Structure
way organization groups its people into useful divisions, departments, and reporting relationships
Task design
: determines how details of the organization’s necessary activities will be grouped, whether into jobs or team responsibilities
well suited and well prepared for their jobs
Reward Systems
encourages people to strive for objectives that support organization’s overall goals
Info Systems
enables sharing information widely
Outcomes of a high-performance work system include:
higher productivity and efficiency that contribute to higher profits
high product quality
great customer satisfaction
low employee turnover
Outcomes of a high performance work system continued
Outcomes of each employee and work group contribute to the system’s overall high performance.
Organization’s individuals and groups work efficiently, provide high-quality goods and services, etc., and contribute to meeting the organization’s goals.
When the organization adds or changes goals, people are flexible and make changes to as needed to meet the new goals.
10 conditions that contribute to high performance
1.Teams perform work.
2.Employees participate in selection.
3.Employees receive formal performance feedback and are involved in performance improvement process.
4.Ongoing training is emphasized and rewarded.
5.Employees’ rewards and compensation relate to company’s financial performance.
6.Equipment, work processes and technology encourage maximum flexibility and interaction among employees
7.Employees participate in planning changes in equipment, layout, and work methods.
8.Work design allows employees to use variety of skills.
9.Employees understand how their jobs contribute to finished product or service.
10.Ethical behavior is encouraged.
Learning Organizations
an organization that supports lifelong learning by enabling all employees to acquire and share knowledge.
Employees 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.

5 key features:
continuous learning
knowledge is shared
critical, systematic thinking
learning culture
employees are valued

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, systematic 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
passion and occupational intimacy
Passionate people are fully engaged with something so that it becomes part of their sense of who they are.
Feeling this way about one’s work has been called occupational intimacy.
HR has a significant role in creating these conditions
Organizational systems can promote ethical behavior, including
a written code of ethics
performance measures that include ethical standards
swift discipline for misdeeds
channels for employees to seek help
training in ethical decision making
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
The organization:
identifies what each department must do to achieve the desired results
defines how individual employees should contribute to their department’s goals
Performance mgt
Guidelines to make the performance management system support organizational goals:
Define and measure performance in precise terms.
Link performance measures to meeting customer needs.
Measure and correct for the effect of situational constraints.
Transaction processing
Computations and calculations used to review and document HRM decisions and practices, including documenting employee relocation, payroll expenses, and training course enrollments.
decision support systems
Systems designed to help managers solve problems that usually include a “what if” feature
expert systems
Computer systems incorporating decision rules of people deemed to have expertise in a certain area
relational databases
Stores data in separate files that can be linked by common elements.
Improving HRM effectiveness through online technology.
Speed requirements of business force HRM managers to explore how to leverage technology for delivery of HRM activities.
With Internet technology, organizations use E-HRM to let all employees help themselves to HR information whenever needed.
E-HRM uses social media applications.
Cloud computing enables access to information that’s delivered on demand from any device 24/7
Measuring HRM Effectiveness
Customer-oriented approach to HRM
HRM audit
Analyzing the effect of HRM programs
HRM audit
a formal review of outcomes of HRM functions, based on identifying key HRM functions and measures of business performance.
-may look at any other measure associated with successful management of HR, e.g., legal compliance, safety, labor relations
Who are our customers?
Line managers
Strategic planners
What do our customers need?
Committed employees
Competent employees
how do we meet customer needs
Qualified staffing
Performance Management
Training and Development
Analyzing the Effect of HRM Programs
HR should be able to improve their performance through some combination of greater efficiency and greater effectiveness.
Greater efficiency – HR uses fewer and less-costly resources to perform its functions.
Greater effectiveness – what HR does has a more beneficial effect on employees and the organization’s performance.
HR analytics measure HRM efficiency and effectiveness.

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