Managing
Human Resources
            Bohlander  Snell  Sherman
                                                                  Chapter
                                                                  Chapter 17
                                                                           17
                                                                   Creating
                                                                   Creating
                                                               High-Performance
                                                               High-Performance
                                                                  Work
                                                                  Work Systems
                                                                        Systems
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning
                                                                                                  17-1
                       Learning Objectives
 Discuss the underlying principles of high-
  performance work systems.
 Identify the components that make up a high-
  performance work system.
 Describe how the components fit together and
  support strategy.
 Recommend processes for implementing high-
  performance work systems.
 Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning
                                                                                                   17-2
           Learning Objectives, cont.
 Discuss the outcomes for both employees and the
  organization.
 Explain how the principles of high-performance
  work systems apply to small and medium-sized, as
  well as large, organizations.
 Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning
                                                                                                   17-3
          High-Performance Work
              System (HPWS)
    A specific combination of HR practices,
      work structures, and processes that
    maximizes employee knowledge, skill,
          commitment, and flexibility
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning
                                                                                                  17-4
Presentation Slide 17-1
Developing High-Performance
Work Systems
                                    Linkages
                                     Linkages to
                                               to
                                     Strategy
                                      Strategy
    Principles
     Principles
      of
       of High
          High
   Involvement
    Involvement
                                                                                 OUTCOMES
                                                                             • Organizational
                         System
                         System Design
                                Design
                            •• Work-flow
                               Work-flow
                                                                                • Employee
                          •• HRM practices
                              HRM practices
                         •• Support technology
                             Support technology
                                                                         The
                                                                          The
                                                             Implementation
                                                              Implementation
                                                                      Process
                                                                       Process
      Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning
                                                                                                        17-5
                                           Presentations Slide 17-2
 Four Principles of High-Performance Systems
                                                                                               Knowledge
Shared Information
                                                                                              Development
  Performance-
 Reward Linkage                                                                            Egalitarianism
   Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning
                                                                                                       17-6
Anatomy of High-Performance Work Systems
                                 Shared     Knowledge Perf-Reward Egalitarian
                               Information Development  Linkage   Environment
Workflow
  •   Self managed teams
  •   Empowerment
Staffing
  •   Selective recruiting
  •   Team decision
Training
  •   Broad skills
  •   Cross-training
  •   Problem-solving
  •   Team training
Compensation
  •   Incentives
  •   Gainsharing
  •   Profit sharing
  •   Skill-based pay
Leadership
  •   Few layers
  •   Coach/facilitate
Technologies
  • HRIS
      Communications
  •Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning
                                                                                                     17-7
                              Cross-Training
              Training of employees in jobs
           in areas closely related to their own
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning
                                                                                                  17-8
                                  Competitive
                                   Competitive                              Presentation Slide 17-3
            Company                Challenges
                                    Challenges
             Company
             Values
              Values
                                                              Achieving Strategic Fit
                      Strategy
                      Strategy
  Workflow
  Workflow
   Design
    Design
                                                                   Workflow
                                                                   Workflow                           HR
                                                                                                       HR
                                       VERTICAL                     Design
                                                                     Design                        Practices
                                                                                                    Practices
                                          FIT
                                                                                 HORIZONTAL
                                                                                 HORIZONTAL
                                                                                     FIT
                                                                                      FIT
Achieving Strategic Fit
              • Vertical
                                                                                                   Leadership
                                                                                                    Leadership
             • Horizontal                                        Technologies
                                                                  Technologies
 Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning
                                                                                                            17-9
                                Horizontal Fit
Situation in which all the internal elements
   of the work system complement and
            reinforce one another
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning
                                                                                                  17-10
                                      Vertical Fit
Situation in which the work system supports
    the organization’s goals and strategies
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning
                                                                                                  17-11
                                           Presentation Slide 17-4
Implementing High Performance Work Systems
                        Build
                         Build aa
                       case
                        case for
                              for
                         change
                          change
                                                                                       Navigate
                                                                                        Navigate
                                                                                     Navigate
                                                                                      Navigate
                                                                                   Navigate
                                                                                 Navigate
                                                                                    Navigate
                                                                                       transition
                                                                                  Navigate
                                                                                        transition
                                                                                     transition
                                                 Involve                              transition
                                                                                   transition
                                                                                 transition
                                                                                    transition
         Communicate                              Involve                         transition
          Communicate                             union
                                                   union
                                                                                                     Evaluation
                                                                                                      Evaluation
   Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning
                                                                                                                   17-12
                                                                             Critical Steps
         Build
         BuildCase
               Casefor
                    forChange
                       Change                                                 for Success
                  Establish
                  EstablishCommunications
                            Communications
                            Plan
                             Plan
                                          Involve
                                           InvolveUnion
                                                  Union
                                                 Cultivate
                                                 CultivateMutual
                                                           MutualGain
                                                                 Gain
                                                                  Establish
                                                                  EstablishFormal
                                                                            Formal
                                                                    Commitment
                                                                    Commitment
Critical
Critical
Success
Success                                                               Foster
                                                                       FosterConstituent
                                                                             ConstituentSupport
                                                                                         Support
Factors
Factors
                                                                                        Adhere
                                                                                        Adhereto
                                                                                               toProcedures
                                                                                                 Procedures
  Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning
                                                                                                     17-13
                                 Process Audit
Determining whether the high-performance
   work system has been implemented
              as designed
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning
                                                                                                  17-14
Competencies for Competitive Advantage
                               E                                                       RA
                            L U                                                          RE
                          VA
                       Combining
                   Core Competencies
                    through People to
         DI              Create
            FF
               IC Competitive Advantage
                 U       LT                                                                      D
                                                                                               ZE
                               TO                                                            I
                                      IM                                                   AN
                                           IT                                         RG
                                             AT                                   O
                                                E
  Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning
                                                                                                     17-15
            Some additional acetates from the author follow….
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning
                                                                                                  17-16
Anatomy
Anatomy of
        of High-Performance
           High-Performance Systems
                            Systems
                                                                                 Knowledge
                                  Principles of                          Shared    Devel-            Egal-
Structures, HR, and Management
                                  High Performance                     Information opment Linkage itarianism
                                               Work Design
                                                        Staffing
                                 Training/Development
                                                      Rewards
                                                  Leadership
                                              Technologies
                       Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning
                                                                                                                         17-17
   Ensuring
     Fit                                                      Organ-
                                                             izational
                                                              Values
                                   Competitive                                   Employee
                                   Challenges                                    Concerns
                                                             Strategy
                                                        Vertical Fit
Supporting             Workflow                                                               Leadership     HRM
Technology              Design
                                                     Horizontal Fit                            Practices   Practices
      Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning
                                                                                                           17-18
Underlying
Principles                                                                 Shared
of High                                                                  Information
Performance
Work Systems
                                        Egalitarian                                S                 Knowledge
                                       Environment                               PW                 Development
                                                                                H
                                                                        Perf.-Reward
                                                                           Linkage
  Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning
                                                                                                          17-19