Competitiveness and Performance Management Note 3 ways to look at work: Industrial Engineering Human Resource Management Human Relations

Industrial Engineering Approach person-machine production unit Emphasize efficiency Roots in F.W. Taylor’s Scientific Management Study job, seek the “one best way” to do it Train employees in the new best way Share productivity gains among shareholders

Industrial Engineering Very effective Can be taken to extreme Some forgot about gainsharing among all stakeholders Modern fields of human factors psychology and industrial engineering Main theme approach to performance appraisal

Human Resource Management Approach Match People to Job Demands and Job Demands to People Design work, hire for skills, train to close gaps Performance appraisal compares job description to actual performance

Human Relations Approach Examine the psychological aspects of work, how people can sustain themselves and have high quality work life Roots in Hawthorne Studies Hackman and Oldham’s Job Characteristics Model Emphasis on positive employee reactions, rather than efficiency Success determined by satisfied and motivated work force

Hackman and Oldham Model Core Job Characteristics – 5 factors Summarized as “job complexity” Internal Psychological States – 3 factors Individual/Organizational Outcomes -several Growth Need Strength as moderating variable Mixed success – naive treatment of responsibility (a good by itself in this model versus something you get paid more for in reality)

Integration The Socio-technical Systems Model Focus both on task and person doing work Balance efficiency and psychological needs Note role of performance management cycle to ensure task and person are both working out Very effective

Miscellaneous Quality Circles Process Re-engineering Gain-sharing, ESOP’s, etc. PDM – participation in decision making Ed Locke’s research summary

Locke’s conclusions Comparing goal-setting, financial incentives, PDM, and job redesign … and simplifying a lot … Goal-setting and financial incentives will improve individual, group performance PDM and job redesign will improve individual morale, retention