1. Seven Practices of Successful Organizations 1. Employee Security 2. Selective Hiring 3. Self-managed teams 4. Comparatively high compensation 5. Extensive training 6. Reduced status distinctions 7. Extensive sharing of information

2. 1) Employment Security Employment Security Policy more careful / leaner hiring Avoid “Dumbsizing” buying high selling low (IT industry) doing their job (Bank - loans officers) Fire when necessary

3. 2) Selective Hiring High number of applicants Screen for cultural fit and attitude What are important skills Several rounds to scrutinize Involve senior people Assess the results and performance

4. 3) Self-Managed Teams Research = they work! Why? peer-control pooled ideas decrease administrative overhead empowered workers

5. 4) High Compensation Contingent on Performance Relationship between money paid and attracting right workforce Can take other forms than just a pay-cheque (i.e. employee ownership or profit sharing)

6. 5) Training Affords flexible production Competitive Advantage NA / Japan differences reflects differences in “time horizon” for holding on to employees

7. 6) Reduce Status Differences Make all organizational members feel important How - symbolically “associates” How - figuratively parking dining hall offices

8. 7) Share Information ‘Open Book’ management Shows organizational members that they are trusted People must know what is happening to make changes (but fears that information will leak out to competitors is troublesome)

9. Conclusion Difficult to do them in a staged approach - jump in! Some will take longer to work (training)

10. HRM Task What of these practices is your company undertaking right now? What are they missing and should they consider it?

11. Company – Report outline The Organization and its Mission Pfeffer’s practices (3): employee security / self- managed teams / reduced status distinctions Recruitment – employment decisions Retention – working conditions, compensation Rouse – employee extrinsic and intrinsic rewards Redevelop – employee training and development Written report and 10 minute presentation (everyone must present)!