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

2. 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

3. 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

4. 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

5. 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

6. 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)

7. 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

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

9. 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