Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 17-1 Managing Human Resources Managing Human Resources Bohlander  Snell  Sherman Chapter 17 Creating High-Performance Work Systems Chapter 17 Creating High-Performance Work Systems

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 17-2 Learning Objectives  Discuss the underlying principles of high- performance work systems.  Identify the components that make up a high- performance work system.  Describe how the components fit together and support strategy.  Recommend processes for implementing high- performance work systems.

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 17-3 Learning Objectives, cont.  Discuss the outcomes for both employees and the organization.  Explain how the principles of high-performance work systems apply to small and medium-sized, as well as large, organizations.

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 17-4 High-Performance Work System (HPWS) A specific combination of HR practices, work structures, and processes that maximizes employee knowledge, skill, commitment, and flexibility

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 17-5 System Design Work-flow HRM practices Support technology System Design Work-flow HRM practices Support technology Principles of High Involvement Principles of High Involvement Linkages to Strategy Linkages to Strategy The Implementation Process The Implementation Process OUTCOMES Organizational Employee Presentation Slide 17-1 Developing High-Performance Work Systems

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 17-6 Presentations Slide 17-2 Four Principles of High-Performance Systems Shared Information Performance- Reward Linkage Knowledge Development Egalitarianism

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 17-7 Workflow Self managed teams Empowerment Staffing Selective recruiting Team decision Training Broad skills Cross-training Problem-solving Team training Compensation Incentives Gainsharing Profit sharing Skill-based pay Leadership Few layers Coach/facilitate Technologies HRIS Communications Shared Information Knowledge Development Perf-Reward Linkage Egalitarian Environment Anatomy of High-Performance Work Systems

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 17-8 Cross-Training Training of employees in jobs in areas closely related to their own

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 17-9 Strategy HORIZONTAL FIT HORIZONTAL FIT Workflow Design Workflow Design HR Practices HR Practices Leadership Technologies Company Values Company Values Competitive Challenges Competitive Challenges Workflow Design Workflow Design VERTICAL FIT Achieving Strategic Fit Vertical Horizontal Presentation Slide 17-3 Achieving Strategic Fit

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Horizontal Fit Situation in which all the internal elements of the work system complement and reinforce one another

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Vertical Fit Situation in which the work system supports the organization’s goals and strategies

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Navigate transition Navigate transition Build a case for change Build a case for change Communicate Involve union Involve union Navigate transition Navigate transition Evaluation Presentation Slide 17-4 Implementing High Performance Work Systems Navigate transition Navigate transition Navigate transition Navigate transition

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Critical Steps for Success Build Case for Change Establish Communications Plan Involve Union Cultivate Mutual Gain Establish Formal Commitment Foster Constituent Support Adhere to Procedures Critical Success Factors Critical Success Factors

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Process Audit Determining whether the high-performance work system has been implemented as designed

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Competencies for Competitive Advantage Combining Core Competencies through People to Create Competitive Advantage Combining Core Competencies through People to Create Competitive Advantage VALUE RARE ORGANIZED DIFFICULT TO IMITATE

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Some additional acetates from the author follow….

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Anatomy of High-Performance Systems Structures, HR, and Management Principles of High Performance Work Design Staffing Training/Development Rewards Leadership Technologies Shared Information Knowledge Devel- opment Linkage Egal- itarianism

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Ensuring Fit Strategy Organ- izational Values Employee Concerns Competitive Challenges Vertical Fit Horizontal Fit Leadership Practices HRM Practices Supporting Technology Workflow Design

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Shared Information Perf.-Reward Linkage Knowledge Development Egalitarian Environment Underlying Principles of High Performance Work Systems HPWS