Overview of HR Strategy and Development/Evolution of High Performance Organizations

Prepared by Daniel F. Duran HRD 328 Spring 2008

The High Performance Organization
 Questions to Ponder:
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What is the role of HR in building and sustaining a HPO? What is the high performance context of organizational behavior? What is a high performance organization?
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Achieving extraordinary results from ordinary people A HPO is foremost a learning organization

– What are the management challenges of domestic and

international high performance organizations? – How do high performance organizations operate?

2

The HPO as a Learning Organization  Learning faster than your competitors – What personal characteristics facilitate a learning advantage?  The HPO is defined as a Learning Organization – – Name a HPO that you believe is a LO Name a F 100 that has ceased to be a LO 3 .

– HPOs place people first. continuously train. 4 . – HPOs intentionally designed to:  Bring out the best in people via a strategically focused HR organization – Hire right. ashes. and use the talent  Disasters.What is a high performance organization?  High performance organizations (HPOs). and flight (ATT and SCE examples)  Produce organizational capability that delivers sustainable organizational results.

‖ From David Garvin’s Learning in Action. interpreting. where collective aspiration is set free. 1990: ―…organizations where people continually expand their capacity to create the results they truly desire. transferring. and at purposely modifying its behavior to reflect new knowledge and insights. and retaining knowledge.Two Definitions of HPOs  From The Fifth Discipline. where new and expansive patterns of thinking are nurtured. 2000: ―A learning organization is an organization skilled at creating. and where people are continually learning how to learn together.‖  5 . acquiring.

 Top managers clarify the mission and objectives.  Customers and clients at the top of organization. – Upside-down pyramid view of organizations. 6 . and make adequate resources available.  Workers directly affect customers and clients. set strategies.What is the high performance context of organizational behavior?  OB and changing customer expectations — cont.  Team leaders and middle managers directly support the workers.

HPOs often organize workflow around key business processes and use work teams within these processes 7 . – Intellectual capital is the foundation for HPOs To utilize intellectual capital.What is a high performance organization?  Emphasis on intellectual capital.

– Focus on Total Quality Management and Continuous Improvement. – Organizational learning. – Integrated production technologies. 8 . – Employee involvement. – Systems Thinking – Self-directing work teams.What is a high performance organization?  Key components utilized in HPOs.

 No involvement or parallel involvement. – Employment involvement can be visualized on a continuum. 9 . – The amount of decision making delegated to workers at all levels.What is a high performance organization?  Employee involvement.  Moderate involvement or participative management.  High involvement or employee empowerment.

– Sometimes called self-managing or self-leading work teams. and evaluating their work. – Empowered to make decisions about planning. – Important in HPOs due to:  Need to tap employees’ expertise and knowledge. 10 . doing.  Need for employees to manage themselves.What is a high performance organization?  Self-directing work teams.

What is a high performance organization?  Integrated production technologies. 11 . – Focus on providing flexibility in manufacturing and services and involves job design and information technology.  Modular/Variable Manufacturing and Customer Support Systems  Use of computers. – Key components:  Just-in-time systems.

– A way for organizations to adapt to their settings and to gather information to anticipate future changes.What is a high performance organization?  Organizational learning. breathe as one  Remove desire to leave premises to get other ―work‖ done 12 . – HPOs are designed for organizational learning  Google model: Eat. play.

– A total commitment to:  High-quality results.  Encourages all workers to do their own quality planning and checking.What is a high performance organization?  Total quality management (TQM). 13 .  Meeting customer needs. – TQM is a a tightly integrated part of HPOs.  Continuous improvement.

Traditional Vs. HPO/TQM Organizational Structure Traditional Organizational Structure Top Management Middle Management Lower Level Management and Front Line Supervisors Employees Support Flow TQM/HPO View Employees Lower Level Management and Front Line Supervisors Middle Management Top Management 14 .

Require. Create a structure in top management that will push everyday on the above 13 points. 10. posters and slogans for the workforce asking for new levels of productivity without providing methods. 7. mistakes. 15 . 5. company 9. Institute modern methods of training on the job. 14.HPO Driven by TQM: Borrowing from Walter Deming’s 14 Points 1. Eliminate numerical goals. instead. Cease dependence on mass inspection. It is management’s job to work continually on the system. Create constancy of purpose towards improvement of product and services. 2. 3. 8. 11. Break down barriers between departments. 6. Institute a vigorous programme of education and retraining. Find problems. We can no longer live with commonly accepted levels of delays. 12. Adopt the new philosophy. Eliminate work standards that prescribe numerical quotas. Drive out fear so that everyone may work effectively for the 9. Remove barriers that stand between the hourly worker and his right to pride of workmanship 13. End the practice of awarding business on the basis of price tag. 4 .. defective workmanship. Institute modern methods of supervision of production workers. statistical evidence that quality is built in. The responsibility of foremen must be changed from numbers to quality.

The Five Deadly Sins to Developing a Genuine HPO      Lack of constancy Concentration on short term profits Over reliance on performance appraisals Job-hopping Over emphasis on visible figures 16 .

 Flat and lean hierarchy.  Rapid decision making emphasized.  Heavy team emphasis throughout organization.  People were empowered to do ―whatever it takes‖ to get the job done.  Paper work minimized.How do high performance organizations operate? – HPO component: employee involvement. 17 .

How do high performance organizations operate?  Southwest Airlines as an HPO. People are important—every person can make a difference 18 . Work is important but don’t kill it by being too serious  3. Work should be fun  2. – Begin with Simple Values  1.

How do high performance organizations operate?  Southwest Airlines as an HPO.  Longer term service teams. – HPO component: self-directing work teams.  Ad hoc teams for given projects or duties.  Culture promotes cooperative activities. 19 .

 Integrated use of information technology in distribution. revenue management. and parts replacement.How do high performance organizations operate?  Southwest Airlines as an HPO. crew pairings. – HPO component: integrated production technologies. order entry. schedule planning. 20 . dispatching of flights.

helping others. 21 . – HPO component: total quality management.How do high performance organizations operate?  Southwest Airlines as an HPO. and communications devices. and doing the ―right‖ thing. a strong desire for quality work.  TQM qualities are reinforced by empowerment. learning. going beyond the call of duty.  ―Southwest Spirit‖ focusing on a strong work ethic.

individual pride. 22 .  ―The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth. – Other HPO considerations: vision/direction setting package.How do high performance organizations operate?  Southwest Airlines as an HPO.  Core values.‖  Strategic elements in direction setting. and Company Spirit. friendliness.

 Pilots’ salaries are comparable to other airlines but they fly 40% more hours.  Incentives for employee performance.  Usual airline fringe benefits.How do high performance organizations operate?  Southwest Airlines as an HPO.  Profit sharing and pension plans. 23 . – Other HPO considerations: compensation.  Flight attendants paid by the trip.

Metrics. Culture. – Other HPO considerations: outcomes.  Strong performance on various productivity measures.  Active in contributing to the communities in which it operates. Compensation/Rewards 24 and HR practices .  Low turnover. Strategy.How do high performance organizations operate?  Southwest Airlines as an HPO. – Your Assignment for Next Week:  Select and deconstruct a HPO that you believe can serve as a model for your current firm or one that you want to work with or can learn from – Maximum length 5 PowerPoints – Include Values.  Highly satisfied employees.  Strong commitment to the company.

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