1. Chapter 16 Implementing HR Strategy: High-Performance Work Systems

2. Learning Outcomes
Discuss how a firm’s strategy can be achieved with a high-performance work system and what its fundamental principles are
Describe how a high-performance work system is designed, and explain how the components of it must align horizontally and vertically to support one another and a firm’s strategy
Recommend processes for implementing and evaluating a high-performance work system
Discuss a high-performance work system’s potential outcomes for both employees and the organization

3. High-Performance Work Systems (HPWS)
Specific combination of HR practices, work structures, and processes that maximizes employee’s:
Knowledge
Skill
Commitment
Flexibility

4. Figure 16.2 - Underlying Principles of High-Performance Work Systems

5. Figure 16.3 - Design Aspects of High-Performance Work Systems

6. Strategic Alignment
Horizontal fit: Situation in which all the internal elements of the work system complement and reinforce one another
Changes in one component affect all the other components
Vertical fit: Situation in which the work system supports the organization’s goals and strategies
High-performance work systems are designed to link employee initiatives to firm’s strategies

7. Figure 16.4 - Achieving Strategic Alignment

8. Figure 16.5 - Implementing High-Performance Work Systems

9. Figure 16.6 - Building Cooperation With Stakeholders

10. Establishing a Communications Plan
Senior management need to establish the context for change and communicate the vision more broadly to the organization
Two-way communication:
Results in better decisions
Helps to diminish the fears and concerns of employees when facing changes

11. Navigating the Transition to High-Performance Work Systems
Factors that determine the success of established implementation plan
Timetable and process for mapping key business processes
Redesigning the work flow
Training employees
HR managers help employees in transition to handle change

12. Evaluating and Sustaining the Success of the System
Process audit: Determining whether the high-performance work ­system has been implemented as designed
Evaluation process needs to focus on the goals of high-performance work systems
Building and fostering high-performance work systems is an ongoing activity

13. Evaluating and Sustaining the Success of the System
Develop strategies to retain and motivate employees to deal with the problem of employee poaching
Periodically re-evaluate high-performance work systems in terms of new organizational priorities and initiatives

14. Outcomes of High-Performance Work Systems
Employee outcomes and quality of work life
Benefits of proper implementation of high-performance work systems
New products, services, and markets
Employee satisfaction and increased job security
Outcome of improper implementation
Performance of an organization suffers
Employees develop poor work attitudes and habits

15. Organizational Outcomes and Competitive Advantages
Innovation
Greater flexibility
Higher productivity
Lower costs
Better responsiveness to customers
Higher profitability

16. Criteria for Success of High-Performance Work Systems
HPWS increases value by establishing ways to increase innovation and efficiency, decrease costs, improve processes, and provide something unique to customers
Valuable
HPWS help organizations develop and harness skills, knowledge, and abilities that are not equally available to all organizations
Rare
HPWS are designed around team processes and capabilities that cannot be transported, duplicated, or copied by rival firms
Difficult to imitate
HPWS combine the talents of employees and rapidly deploy them in new assignments with maximum flexibility
Organized