1. High Performance Workforce Management
Chapter 6
High Performance Workforce Management

2. Toyota Georgetown
“We’ve got nothing, technology-wise, that anyone else can’t have. There’s no secret Toyota Quality Machine out there. The quality machine is the workforce -- the team members on the paint line, the suppliers, the engineers -- everybody who has a hand in production here takes the attitude that we’re making world-class vehicles.”

3. Key Idea
Organizations are learning that to satisfy customers, they must first satisfy employees.

4. Key Workforce-Focused Practices for Performance Excellence (1 of 2)
Understand the key factors that drive workforce engagement, satisfaction, and motivation.
Design and manage work and jobs to promote effective communication, cooperation, skill sharing, empowerment, innovation, and the ability to benefit from diverse ideas and thinking of employees and develop an organizational culture conducive to high performance and motivation.
Create an environment that ensures and improves workplace health, safety, and security, and supports the workforce via policies, services, and benefits.
Develop a performance management system based on compensation, recognition, reward, and incentives that supports high performance work and workforce engagement.

5. Key Workforce-Focused Practices for Performance Excellence (2 of 2)
Assess workforce engagement and satisfaction and use results for improvement.
Assess workforce capability and capacity needs and use the results to capitalize on core competencies, address strategic challenges, recruit and retain skilled and competent people, and accomplish the work of the organization.
Make appropriate investments in development and learning, both for the workforce and the organization’s leaders.
Manage career progression for the entire workforce and succession planning for management and leadership positions.

6. Evolution of Workforce Management
Taylor system and scientific management
Improved productivity
Changed manufacturing work into series of mundane and mindless tasks
Promulgated adversarial relationships between labor and management
Failed to exploit the knowledge and creativity of the workforce

7. Workforce Management
Workforce management (which has also been widely known as human resource management, or HRM) consists of those activities designed to provide for and coordinate the people of an organization.
determining the organization’s workforce needs;
assisting in the design of work systems;
recruiting, selecting, training and developing, counseling, motivating, and rewarding employees;
acting as a liaison with unions and government organizations; and
handling other matters of employee well-being.

8. Key Idea The objectives of an effective workforce
management system are to build a high-performance workplace and maintain an environment for quality excellence to
enable employees and the organization
to achieve strategic objectives
and adapt to change.

9. Workforce Engagement and Motivation
A survey of 55,000 workers by the Gallup Organization found that four key employee attitudes, taken together, correlate strongly with higher profits:
Workers feel they are given the opportunity to do what they do best every day.
They believe their opinions count.
They sense their fellow workers are committed to quality.
They’ve made a direct connection between their work and the company’s mission.

10. Workforce Engagement
The extent of workforce commitment, both emotional and intellectual, to accomplishing the work, mission, and vision of the organization. Engaged workers
find personal meaning and motivation in their work,
have a strong emotional bond to their organization, are actively involved in and committed to their work,
feel that their jobs are important, know that their opinions and ideas have value, and
often go beyond their immediate job responsibilities for the good of the organization.

11. Key Idea Organizations with high levels of
workforce engagement are often
characterized by high-performing
work environments in which people
are motivated to do their utmost for
the benefit of their customers and
for the success of the organization.

12. Advantages of Workforce Engagement
Replaces the adversarial mentality with trust and cooperation
Develops the skills and leadership capability of individuals, creating a sense of mission and fostering trust
Increases employee morale and commitment to the organization
Fosters creativity and innovation, the source of competitive advantage
Helps people understand quality principles and instills these principles into the corporate culture
Allows employees to solve problems at the source immediately
Improves quality and productivity

13. Employee Involvement (EI)
Any activity by which employees participate in work-related decisions and improvement activities, with the objectives of tapping the creative energies of all employees and improving their motivation.

14. Key Idea
EI approaches can range from simple sharing of information or providing input on work-related issues and making suggestions to self-directed responsibilities such as setting goals, making business decisions, and solving problems, often in cross-functional teams.

15. Motivation Motivation - an individual’s response to a felt need
Theories
Content Theories (Maslow; MacGregor; Herzberg)
Process Theories (Vroom; Porter & Lawler)
Environmentally-based Theories (Skinner; Adams; Bandura, Snyder, & Williams)

16. Key Idea
There is no such thing as an unmotivated employee, but the system within which people work can either seriously impede motivation or enhance it.

17. Designing High-Performance Work Systems
High-performance work refers to work approaches used to systematically pursue ever-higher levels of overall organizational and human performance.
High-performance work is characterized by flexibility, innovation, knowledge and skill sharing, alignment with organizational directions, customer focus, and rapid response to changing business needs and marketplace requirements.

18. Work and Job Design
Work design refers to how employees are organized in formal and informal units, such as departments and teams.
Job design refers to responsibilities and tasks assigned to individuals.

19. Key Idea
The design of work should provide individuals with both the intrinsic and extrinsic motivation to achieve quality and operational performance objectives.

20. Hackman/Oldham Model Critical psychological states Core job
characteristics
Outcomes
Skill variety
Task identity
Task significance
Experienced
meaningfulness
of work
High motivation
High satisfaction
High work
effectiveness
Experienced
responsibility
Autonomy
Feedback
from job
Knowledge of
actual results
Moderators

21. Enhancing Work Design Job enlargement – expanding workers’ jobs
Job rotation – having workers learn several tasks and rotate among them
Job enrichment – granting more authority, responsibility, and autonomy

22. Empowerment “A sincere belief and trust in people.”
Giving people authority to make decisions based on what they feel is right, to have control over their work, to take risks and learn from mistakes, and to promote change.
“A sincere belief and trust in people.”

23. Successful Empowerment
Provide education, resources, and encouragement
Remove restrictive policies/procedures
Foster an atmosphere of trust
Share information freely
Make work valuable
Train managers in “hands-off” leadership
Train employees in allowed latitude

24. Teams
Team - a small number of people with complementary skills who are committed to a common purpose, set of performance goals, and approach for which they hold themselves mutually accountable

25. Examples of Teams at Baptist Hospital, Inc.

26. Types of Teams Management teams Natural work teams Self managed teams
Virtual teams
Quality circles
Problem solving teams
Project teams

27. Six Sigma Project Teams
Champions – senior managers who promote Six Sigma
Master Black Belts – highly trained experts responsible for strategy, training, mentoring, deployment, and results.
Black Belts – Experts who perform technical analyses
Green Belts – functional employees trained in introductory Six Sigma tools
Team Members – Employees who support specific projects

28. Developing and Empowering Teams
Teams are generally formed in organizational settings by direction from a manager, leader, or governing body.
They are typically given a broad objective.
The team may also be given a time frame and resource limits, if it is a project team.

29. Key Idea
The key stages of a team’s life cycle are called forming, storming, norming, performing, and adjourning.

30. Life Cycle of Teams
Forming takes place when the team is introduced, meets together, and explores issues of their new assignment.
Storming occurs when team members disagree on team roles and challenge the way that the team will function.
Norming takes place when the issues of the previous stage have been worked out, and team members agree on roles, ground rules, and acceptable behavior when doing the work of the team.
Performing characterizes the productive phase of the life cycle when team members cooperate to solve problems and complete the goals of their assigned work.
Adjourning is the phase in which the team wraps up the project, satisfactorily completes its goals, and prepares to disband or move on to another project.

31. Ingredients for Successful Teams (1 of 2 )
Clarity in team goals
Improvement plan
Clearly defined roles
Clear communication
Beneficial team behaviors

32. Ingredients for Successful Teams (2 of 2)
Well-defined decision procedures
Balanced participation
Established ground rules
Awareness of group process
Use of scientific approach

33. Workplace Environment
Key factors:
Health
Safety
Overall well-being

34. Engaging the Workforce in Process Excellence
Develop a shared vision and behavioral skills
Develop skills for team leaders:
Conflict management and resolution, Team management, Leadership skills, Decision making, Communication, Negotiation, Cross-cultural training
Develop skills for team members:
Rules for effective meetings, Shared decision making

35. Key Idea Compared to the technical tools for
gathering and analyzing data, the
“soft skills”—those that involve
people—such as project management
and team facilitation, are more
difficult to teach and learn.

36. Compensation and Recognition
Compensation and recognition refer to all aspects of pay and reward, including promotions, bonuses, and recognition, either monetary and nonmonetary or individual and group.
Compensation
Merit versus capability/performance based plans
Gainsharing
Recognition
Monetary or non-monetary
Formal or informal
Individual or group

37. Effective Recognition and Reward Strategies
Give both individual and team awards
Involve everyone
Tie rewards to quality
Allow peers and customers to nominate and recognize superior performance
Publicize extensively
Make recognition fun

38. Performance Management
How you are measured is how you perform!
Conventional performance appraisal systems
Focus on short-term results and individual behavior; fail to deal with uncontrollable factors
New approaches
Focus on company goals such as quality and behaviors like teamwork
360-degree feedback; mastery descriptions

39. Key Idea
Performance appraisals are most effective when they are based on the objectives that support the strategic directions of the organization, best practices, and continuous improvement.

40. Assessing Workforce Engagement, Satisfaction and Effectiveness
Outcome Measures
number of teams, rate of growth, percentage of employees involved, number of suggestions implemented, time taken to respond to suggestions, employee turnover, absenteeism, and grievances; perceptions of teamwork and management effectiveness, engagement, satisfaction, and empowerment.

41. Assessing Workforce Engagement, Satisfaction and Effectiveness
Process Measures
number of suggestions that employees make, numbers of participants in project teams, participation in educational programs, average time it takes to complete a process improvement project, whether teams are getting better, smarter, and faster at performing improvements, improvements in team selection and planning processes, frequency of use of quality improvement tools, employee understanding of problem-solving approaches, and senior management involvement

42. Sustaining High-Performance Work Systems
Regular assessment of
workforce capability and capacity needs;
hiring, training and retention of employees; and
career progression and succession planning

43. Workforce Capability and Capacity
Workforce capability refers to an organization’s ability to accomplish its work processes through the knowledge, skills, abilities, and competencies of its people.
Workforce capacity refers to an organization’s ability to ensure sufficient staffing levels to accomplish its work processes and successfully deliver products and services to customers, including the ability to meet seasonal or varying demand levels.

44. Key Idea Meeting and exceeding customer
expectations begins with hiring the
right people whose skills and attitudes
will support and enhance the
organization’s objectives.

45. Effective Hiring Practices
Determine key employee skills and competencies
Identify job candidates based on required skills and competencies
Screen job candidates to predict suitability and match to jobs

46. Succession Planning
Formal processes to identify, develop, and position future leaders
Mentoring, coaching, and job rotation
Career paths and progression for all employees
Succession planning is vital to long-term sustainability

47. Key Idea In a culture of performance excellence,
employees need to understand the importance of customer satisfaction, to be given the training and responsibilities to achieve it, and to feel that they do indeed make a difference.

48. Example: Medrad Learning and Development Process

49. Workforce Focus in the Baldrige Award Criteria
The Workforce Focus Category examines how an organization engages, manages, and develops the workforce to utilize its full potential in alignment with the organization’s mission, strategy. and action plans. It also addresses the ability to assess workforce capability and capacity needs and to build a high-performance work environment.
5.1 Workforce Engagement
a. Workforce Enrichment
b. Workforce and Leader Development
c. Assessment of Workforce Engagement
5.2 Workforce Environment
a. Workforce Capability and Capacity
b. Workforce Climate

50. Workforce Focus in ISO 9000
Personnel performing work affecting product quality shall be competent on the basis of appropriate education, training, skills, and experience.
Organizations should determine the level of competence that employees need, provide training or other means to ensure competency, evaluate the effectiveness of training or other actions taken, ensure that employees are aware of how their work contributes to quality objectives, and maintain appropriate records of education, training, and experience.
The standards address the work environment from the standpoint of providing buildings, workspace, utilities, equipment, and supporting services needed to achieve conformity to product requirements, as well as determining and managing the work environment, including safety, ergonomics, and environmental factors.

51. Workforce Focus in Six Sigma
Teams are an integral part of Six Sigma implementation.
Selecting the right people to serve on teams, training and skill development, and reward and recognition approaches to drive behavior are vital to Six Sigma efforts.
Understanding how changes affect people is a necessary issue that organizations must address after Six Sigma projects are completed.