Challenge

High

Performance

Work

System

Challenge Literature Review

High Performance Work Systems Framework

High Performance Work Systems Framework

Model of Planned Change

Four Principles of High-Performance Systems In todays competitive environment, organizations are discovering that its how the pieces are combined that makes all the difference. practices in isolation to one another. The purposeful combination of these HR practices is what we refer to as highperformance work systems. A high-performance work system can be defined as a specific combination of HR practices, work structures, and processes that maximizes employee knowledge, skill, commitment, and flexibility. system. The key concept is the After all, managers typically dont just focus on staffing, or training, or compensation

High-performance work systems (HPWS) comprise many interrelated parts that complement one another to reach the goals of an organization.

The best organizations go beyond balancing the often conflicting demands of business to compete. They create work environments that blend these concerns to simultaneously get the most from employees, contribute totheir needs, and meet the short-term and long-term goals of the organization. Edward Lawler and associates have identified four principles of high performance work systems that create such environments

Shared Information - Traditionally, employees did not ask for or receive much information from management. In todays environment, with more customer-centered decisions being pushed down to the front-line level, employees at all levels need access to more information from a variety of sources.

Shared Information (continued) - High performance work systems provide both the authority to access information on demand and the technological infrastructure needed to get it. Tip:Employees should be-able to access the database of any functional area of a company to get answers to customer questions. Knowledge Development - As organizations attempt to compete in an information-based economy on the basis of their people, they must invest in employee development. Performance-Reward Linkage - People intentionally or unintentionally pursue outcomes beneficial to them. High-performance work systems build strong performance-reward linkages. Egalitarianism - Status and power differences divide people when Professionals

information based competition requires closer teamwork.

recognize authority and dont need it beat over their heads with empty status symbols and wasteful signs of deference to power when there is real work to be done together regardless of station.

If we take the four principles underlying high-performance work systems and apply them to various work structures, HR practices, and management processes, we can generate a 4 X 6 matrix that illustrates the anatomy of high performance systems. Key elements include:

Work Design - Basing work design on TQM and re-engineering concepts to empower employees with the authority to make decisions to improve performance is a hallmark of high performance work systems. Staffing - In high performance work systems, recruitment and selection must be very selective. Recruitment tends to be both broad (looking many places) and intensive (scrutinizing applicant details and characteristics) to get the best pool of candidates. Selection is made not only on the basis of demonstrated KSAs, but also on the ability of the candidate to learn continuously. Training/Development - Training focuses on ensuring that employees have the skills needed to assume greater responsibility in a high-performance environment. It also works at cross-training to develop multiple competencies and foster teamwork. Rewards - High performance work systems experiment with different combinations of performance related compensation, such as profit sharing gain-sharing, ESOPs, and team based rewards. They also make use of skill based plans to encourage continuous skill acquisition and improvement. Leadership - In high performance work systems, managers must do more than manage the work of others. They must provide real leadership - the

vision, inspiration, motivation, and example of excellence that moves others to want to emulate and work for them. Technologies - Communication and information technologies of high performance work systems help to implement decentralized access to information on demand, track customer satisfaction and needs, and allow each part of the organization to leverage the learning experiences of the other parts. Ensuring Fit - Needless to say, high performance work systems dont just create themselves. Careful planning helps to make certain that the pieces fit together and are linked with the overall strategic goals of the organization. Key horizontal and vertical linkages include: Horizontal Fit - Horizontal fit occurs when all the internal elements of the work system complement and reinforce one another. Because all pieces are interdependent (changes in one component affect all other components), horizontal fit means testing to make sure that all the HR practices, work designs, management processes, and technologies integrate and complement one another. Vertical Fit - To achieve vertical fit, high performance work systems must support the organizations goals and strategies. This begins with an analysis and discussion of competitive challenges, organizational values, and concerns of employees. It ends (of course, in a process system, nothing

really ends; results are inputs into the continuing cycle) in a statement of the strategies being pursued by the organization.

The critical factors for successfully implementing high performance work systems include: (Reported by the American Society for Training and Development (ASTD))

Building a Business Case for Change - Change can be threatening to anyone used to the status quo (or benefiting from it). To get initial commitment to high performance work systems, managers have to build the case for why the changes are needed for the success of the organization. Establishing a Communications Plan - For high performance work systems, top down communication is not enough. shared information. Involving the Union - Autocratic styles of management and confrontational approaches to labor-management relations will kill any chance for implementing high performance work systems. and respect. Cultivate Mutual Gain -Labor relations must be built on a true win-win scenario. Establish Formal Commitment - Management and labor must concretize their commitment to a high performance work system with written, signed statements of principles, expected outcomes, goals and objectives, and declarations of operating philosophy. Foster Support of Other Key Constituents - All key stakeholders have to be brought on board, not just union labor. Adhere to Procedures - Once processes, agreements, and ground rules are established, they are vital to the integrity of the relationship. Nothing builds credibility like keeping ones word and taking the observable actions that demonstrate it. Competencies for Competitive Advantage Management must build, The organization must implement two way communications that ensure adequate feedback and

include, and involve the union in the new mission in an atmosphere of trust

High performance work systems can help to create the sustainable competitive advantages an organization needs to survive and succeed. As the work force of successful companies continues to be better educated and committed to lifelong learning, high performance work systems help to create competitive advantage through people when: Value - High performance work systems increase value by establishing ways to increase efficiency, decrease costs, improve processes, and provide something unique to customers. The work force of the organization that masters these competencies differentiates itself from competitors. Rare - High performance work systems help organizations to develop and harness skills, knowledge, and abilities that are not equally available to all organizations whose people cannot benefit from the growth opportunities of high performance work systems. Difficult to Imitate - High performance work systems are designed around people oriented team processes and capabilities that cannot be transported, duplicated, or copied by rival firms. Organized - High performance work systems combine the talents of employees and rapidly deploy the new assignments with maximum flexibility. The relevance of high performance work systems is integral for HR practices that amplify employee knowledge, skill, commitment, and flexibility. business processes. The system begins with implementing empowered work teams to perform key Training of team members is paramount, and reward systems are used to motivate behavior.