High Performance Organizations 2008 | Business Process | Employment

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 .

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

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

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

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

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

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

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

What is a high performance organization?  Integrated production technologies. – Key components:  Just-in-time systems. – 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. 11 .

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

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

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 .Traditional Vs.

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

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.How do high performance organizations operate? – HPO component: employee involvement.  Paper work minimized. 17 .  People were empowered to do ―whatever it takes‖ to get the job done.

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

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

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

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

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

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

 Strong performance on various productivity measures.  Strong commitment to the company.How do high performance organizations operate?  Southwest Airlines as an HPO.  Highly satisfied employees. – 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. Metrics. Compensation/Rewards 24 and HR practices . Culture. – Other HPO considerations: outcomes.  Low turnover.  Active in contributing to the communities in which it operates. Strategy.

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