1. High-Involvement Organizations
High-Involvement Organizations

2. Overview Key Components of High-Involvement Organizations
Overview
Key Components of High-Involvement Organizations
History/Evolution of Management & Organizational Change
Components of High-Involvement Organizations; how they’ve evolved, how they are currently manifested
Process of implementation
Case studies highlighting real-world implementation
Cultural influences on High-Involvement Organizations
Current trends and the future of HIOs

3. Hallmarks of High-Involvement Organizations
Hallmarks of High-Involvement Organizations
Based on Edward Lawler’s model
Challenge the structures and values of traditional organizations
Employees are given the right mix of power, information, rewards and knowledge
Encourage employee commitment to the success of the organization
Employee oriented approach versus control oriented approach to management
An approach to management that encourages employee commitment to the success of the organization
Employees at all levels of the organization are given the right mix of information, knowledge, power, and rewards so that they can influence and be rewarded for organizational performance

4. Evolution of the High Involvement Approach – A Timeline
Evolution of the High Involvement Approach – A Timeline
End of 19th century – Introduction of Classical Organizational Theory, development of Bureacracy
1910 – 1920 – Scientific Management; Taylor
1920s – 1930s – Hawthorne studies; Mayo, Introduction of Behavioral Organizational Theory, Human Relations Movement
1950s – 1960s - Human Resources Movement; Open Systems Theory, Introduction of Contingency Theory
Classical Theory – Max Weber & Fayol
Human Relations – Mayo * McGregor
Contingency - Woodward

5. Evolution of the High Involvement Approach – A Timeline
Evolution of the High Involvement Approach – A Timeline
Criticism of the Traditional Model begins
Initial Experimentation
1970s
National debate regarding bureaucratic organizations
1980s
Concern about U.S. economic well-being
1990s – today
Advocacy to broaden the scope of high-involvement management to encompass the entire organization

6. High-Involvement Organizations: Organizational Democracy
High-Involvement Organizations: Organizational Democracy
Definition of workplace/organizational democracy (Cheney)
Participation is a necessary condition of democracy
Employee participation is largely a function of power, information, rewards and knowledge
According to Cheney, one of the greatest ironies of the modern world is that the principles of democracy are rarely applied to the workplace.
Extending democracy to the workplace involves the realization of our standards for a democratic society
Definition of workplace democracy: “a system of governance which truly values individual goals and feelings as well as typical organization objectives (effectiveness, efficiency) which actively fosters the connection between those two sets of concerns by encouraging individual contributions to important organizational choices, and which allows for the ongoing modification of the organization’s activities and policies by the group”. (Cheney, 1995).
The degree to which an organization is “democratic” is determined by the level of employee involvement/participation, which is a function of P.I.R.K. -- therefore, HIOs bridge the gap between our society’s democratic values, and common workplace practices.

7. Key Features of High-Involvement Organizations
Key Features of High-Involvement Organizations
P.I.R.K.
Power
Information
Rewards
Knowledge

8.
Power
Power to act and make decisions about the work in all its aspects

9.
Information
Information about processes, quality, customer feedback, events and business results

10.
Rewards
Rewards tied to business results and growth in capability and contribution

11.
Knowledge
Knowledge of the work, the business, and the total work system

12. Relationship Between the Four Elements
Relationship Between the Four Elements
POWER w/o knowledge, info. & rewards = poor decisions
INFORMATION & KNOWLEDGE w/o power = frustration
REWARDS w/o power, knowledge & info. = frustration & lack of motivation
INFO., KNOWLEDGE & POWER w/o rewards = danger
nothing will ensure people will exercise their power in ways that will contribute to organizational effectiveness

13. COMPONENTS OF HIGH-INVOLVEMENT
COMPONENTS OF HIGH-INVOLVEMENT
ORGANIZATIONS

14. Implementation of HIO No universally accepted approach
Implementation of HIO
No universally accepted approach
Implementation is specific to the organization’s situation
Guided by an explicit statement of values that members in an organization support
Guided by participative nature

15. Organizational Structure
Organizational Structure
Flat
Lean
Mini Enterprise-oriented
Team-based
Participative structure

16. Job Design Individually enriched Self-managing teams
Job Design
Individually enriched
Self-managing teams
Psychological needs of employees

17. Information System Open Inclusive Tied to jobs
Information System
Open
Inclusive
Tied to jobs
Decentralized; team-based
Participative in setting goals & standards

18. Career System Tracks & counseling available
Career System
Tracks & counseling available
Train individuals to manage careers
Encourage horizontal moves
Open job posting
Provide feedback

19. Selection Realistic job preview Team-based interviews
Selection
Realistic job preview
Team-based interviews
Involve people from the potential work area
Promote growth

20. Training Heavy commitment Peer training Economic education
Training
Heavy commitment
Peer training
Economic education
Interpersonal skills

21. Reward System Open Skill-based pay
Reward System
Open
Skill-based pay
Gain sharing, profit sharing & ownership
Flexible benefits
All salaried workforce
Egalitarian perks

22. Personnel Policies Stability of employment
Personnel Policies
Stability of employment
Participatively established through representative group

23. Physical Layout Around organizational structure Egalitarian
Physical Layout
Around organizational structure
Egalitarian
Safe and pleasant work environment
Transparent and open

24. ORGANIZATIONAL PERFORMANCE
The Power of Participation
Why should organizations initiate high involvement strategies?
employee involvement increased motivation & commitment
higher levels of higher levels of employee motivation employee commitment
= IMPROVED
ORGANIZATIONAL PERFORMANCE
(Directly impacts the BOTTOM LINE)

25. Organizational Structure
Selection
Career System
Reward System
Information System
Organizational Structure
Personnel Policies
Training
Job Design
Physical Layout

26.
Case Study
Chevron

27. Case Study Mini Enterprise-oriented company Four business groups:
Case Study
Mini Enterprise-oriented company
Four business groups:
Chevron Corporation
Chevron Chemical Corporation
Chevron Information Technology Company
Chevron Shipping Company
34,000 employees

28. Chevron Corporation Parent Organization to other three
Chevron Corporation
Parent Organization to other three
Operations in 90 countries
Involvment in such things as:
Exploration and production
Transportation
Refining and retail marketing
Chemical manufacturing and sales

29. Chevron’s Breakdowns Chevron Chemical Company - 5,000 employees
Chevron’s Breakdowns
Chevron Chemical Company - 5,000 employees
Supply of petroleum-based commodity and specialty chemicals to businesses
Chevron Information Technology – 1,300 employees
Internal operating company, delivers global IT infrastructure and differentiated custom IT solutions to Chevron businesses
Chevron Shipping Company – 1,900 employees worldwide

30.
The Dilemma
Chevron was looking for a way to quickly bring about large-scale change due to:
Global competitive pressures
Falling crude oil prices
How can a large, multi-national company implement large-scale change, quickly?

31.
The Answer
Chevron needed to directly involve their employees in the change through a process called “Direct Participation”

32.
Direct Participation
A high-involvement approach to achieving change in a short time-frame
Roots in the work of Fred Emery & Marvin Weisbord’s Search/Future Search Conferences
The process centers itself around large-scale conferences

33.
Direct Participation
The overall idea is to get a representative sample of the major stakeholders in the organization together in one place
The stakeholders work together to come up with solutions to company problems, collectively

34. How it Works – Senior Management
How it Works – Senior Management
Decide on issues to be discussed & set boundaries for what can be changed
Communicate that the process is vital must be taken seriously
Personal telephone calls
Face-to-face discussions
Personalized invitations to conference
Be present at the conference and participate as equals

35. How it Works – The Planning Team
How it Works – The Planning Team
Responsible for:
Framing Issues
Make necessary information available
Develop and distribute contextual materials
Keep the process focused during the conference
Work to channel the discussions

36. How it Works – The Planning Team
How it Works – The Planning Team
Responsible for:
Selecting Participants
Ensure that all aspects of organizational diversity are represented
Designing Tools and Conference Activities
Develops templates that participants use to capture outputs in a specific, detailed and consistent format

37. How it Works - Technology
How it Works - Technology
Interactive Polling
Give participants graphically intensive information
Allow facilitators to follow the progress of the conference
Allow facilitators to recognize when a decision could inadvertently have an adverse impact on a given minority

38. Design Features Organizational Structure Information System
Design Features
Organizational Structure
Mini Enterprise-oriented
Team-based
Participative council or structure *
Information System
Open *
Participatively set goals and standards *
Personnel Policies
Participatively established through representative group *

39.
Where is PIRK?
Where do you think PIRK has been applied to Chevron’s system?

40. Outcomes Chevron Shipping Co.
Outcomes
Chevron Shipping Co.
Purpose: identify $5 million in annual employee-related cost savings
Participants: 150 mariners & shore staff
Outcome: 13 recommendations that would cut $1.9 million in costs, another $3.4 million in cost-saving ideas were identified
The group found savings that management could not have known about and avoided adverse impact on the Asian officers
Wanted to cut spousal travel, b/c kept and management endorsed – increased trust & goodwill in organization

41. Outcomes Chevron Chemical Purpose: Performance Systems Redesign
Outcomes
Chevron Chemical
Purpose: Performance Systems Redesign
Participants: 180 employees, customers & suppliers
Outcome: Specific recommendations for enhancing job selection, career development, performance management and recognition systems
let to 20% increase in employee commitment & 50% improvement in satisfaction

42.
Outcomes
Chevron Corp.
Purpose: Develop a system to promote diversity & to measure diversity achievements
Participants: 200 employees
Outcome: 15 strategies; key metrics including numerical targets for women & minorities for leadership roles, diversity plans that are part of all leaders’ performance evaluations, & improvement in employee survey

43. Outcomes Chevron Information Technology
Outcomes
Chevron Information Technology
Purpose: New strategy to ensure the continued delivery of value-added services
Participants: 100 employees, as well as customers
Results: 6 action items; mentoring program and strategy communication
Participants signed up to participate in ongoing groups after the conference
CITC had developed this strategy and restructured it in response to competitive pressures in the fast-changing IT field, but confusion and mistrust were threatening the strategy’s execution. The conference also addressed some historical and gender and race discrimination issues
This mentoring program is still used today in Chevron Texaco

44. Employee Participation, Commitment, Empowerment
World Class Quality
Talent of workforce Quality
(Rao et al.,1999)
Workforce empowerment World Quality
Human Resource
Development
Employee Participation, Commitment, Empowerment
& Involvement

45. The Model Base (Bennett, 1999)
The Model Base (Bennett, 1999)
Influences on Work Attitudes
Cultural Values and Beliefs (east)
Situational Practices and Characteristics (west)
Work Attitudes

46. The Culture Model (Hofstede, 1980)
The Culture Model (Hofstede, 1980)
Culturally influenced dispositional characteristics of a nation serve as guides to organizational behavior
Uncertainty Avoidance
Individualism/Collectivism
Masculinity/Femininity
Power Distance
Individualistic: Reward and Power (USA, Britain)
Collectivistic: Knowledge and Commitment (China, India)

47. Individualism Scores (Hofstede, 1997)
Individualism Scores (Hofstede, 1997)

48. Power Distance Scores (Hofstede, 1997)
Power Distance Scores (Hofstede, 1997)

49. The External Environment of Newly Industrialized Countries
The External Environment of Newly Industrialized Countries
Move from centrally planned to market driven economy
Open to global competition
Large internal markets
Growing middle class with high purchasing power
Increase in volume exports to the west
CHINA
INDIA

50. !Contradiction! Collectivistic: Lack of high involvement
!Contradiction!
Collectivistic: Lack of high involvement
[INDIA, CHINA -- close-knit teams, participation]
Individualistic: Prevalence of high involvement
[USA, BRITAIN -- independent, lack of participation]
Individualists working collectively
Working independently despite her collectivistic society

51. The Idea Collectivism = High Power Distance = Low involvement
The Idea
Collectivism = High Power Distance = Low involvement
Individualism = Low Power Distance = High involvement
Collectivism = Deep-rooted Culture Influence reflected as High Power Distance = Low involvement
Individualism = Current Situation Influence reflected as Low Power Distance= High involvement
Collectivists are on their way to achieving high quality without high employee involvement and participation through their current trends in organizational operations...
The current trend within developing nations is focused on leadership and increased national reward systems

52. The Expert System Trend
The Expert System Trend
An Expert System is a computer software package that provides the computer with the art of decision making similar to human beings.
The Quality Circle Expert System was needed to combat the failure of quality circles, lack of employee participation in management decisions, and to maintain the power distance within collectivist cultures.
Emerging trend in Indian manufacturing firms.

53. Functioning of Expert Systems
Functioning of Expert Systems
1. Present Status Module
Knowledge of benefits and shortcomings of the present global status of various quality circle programs initiated
2. Action Plan Module
User interacts by enquiring about feasibility of undertaking essential activities in the firm
3. Planning for Implementation Module
QCES elicits information from user and gives detailed report on probable success
4. Diagnosis Module
Diagnoses causes of failure of quality circle programs in the firm after partial of full implementation

54. Current and Future Trends
Current and Future Trends
Organizations have been slow to implement employee involvement principles
Internal resistance
Uncertainty about to implement
Lack of systems support
Little empirical data to support the assertion of the efficacy of high-involvement organizational to produce greater qualitative and quantitative outcomes
Further research necessary
Despite the attractiveness of the concept of employee involvement, most of today’s organizations are NOT managed in this way. Why? For a long time (up until the 1980s) managers never questioned or considered changing the status quo because it was familiar.
“If it ain’t broken, don’t fix it” attitude. When the concept of high-involvement was introduced, and some organizations attempted to apply it, they experienced some internal resistance to this change. In many cases, management was reluctant to give up special privileges, status, power, etc. In addition, there may have been resistance from lower level employees who were cynical about the change.
A lack of support systems makes the HIO change effort even more difficult. Often managers attempt to build HIOs within traditional organizations. While this can be successful, in the absence of overall systems support, high-involvement work units are fragile and can be eliminated all together by new management.
Many executives/managers are still uncertain about how to implement HIOs, or simply do not think they have access to the necessary resources to implement such a drastic change.