Chapter 16 Creating and maintaining high-performance organizations

1. Chapter 16 Creating and maintaining high-performance organizations Fundamentals of human resource management 5theditionBy R.A. Noe, J.R. Hollenbeck, B. Gerhart, and P.M. Wright

2. 5 Elements of a High-PerformanceWork System • 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. • People: well suited and well prepared for their jobs. • Reward systems: encourages people to strive for objectives that support organization’s overall goals. • Information systems: enables sharing information widely.

3. Outcomes of a High-PerformanceWork System 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

4. Outcomes of a High-PerformanceWork System • 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.

5. 10 Conditions that Contribute toHigh Performance • Teams perform work. • Employees participate in selection. • Employees receive formal performance feedback and are involved in performance improvement process. • Ongoing training is emphasized and rewarded. • Employees’ rewards and compensation relate to company’s financial performance. • Equipment, work processes and technology encourage maximum flexibility and interaction among employees

6. 10 Conditions that Contribute toHigh Performance • Employees participate in planning changes in equipment, layout, and work methods. • Work design allows employees to use variety of skills. • Employees understand how their jobs contribute to finished product or service. • Ethical behavior is encouraged.

7. Learning Organizations • Learning organization –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.

8. ETHICS 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

9. HRM Online: E-HRM • 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.

10. 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.