1. Creating High-Performance Work Systems
Managing Human Resources - Unit 16
Creating High-Performance Work Systems
Copyright © 2011 by Nelson Education Ltd.

2. Managing Human Resources - Unit 16
Learning Outcomes
After studying this chapter, you should be able to:
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.
Discuss the outcomes for both employees and the organization.
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

3. High-Performance Work System (HPWS)
Managing Human Resources - Unit 16
High-Performance Work System (HPWS)
HPWS
Is a specific combination of HR practices, work structures, and processes that maximizes employee knowledge, skill, commitment, and flexibility.
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

4. Figure 16.1 Developing High performance Work SystemsIc
Managing Human Resources - Unit 16
Figure Developing High performance Work SystemsIc
Linkage to Strategy
System Design:
Work Flow
HRM Practices
Support Technology
Principles of High Involvement
The Implementation Process
Outcomes:
Organization
Employee
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

5. Figure 16.2 Underlying Principles of High-Performance Work Systems
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6. Principles of HPWS Egalitarianism and Engagement
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7. Principles of HPWS (cont’d)
Shared Information
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8. Principles of HPWS (cont’d)
Knowledge Development
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9. Principles of HPWS (cont’d)
Performance-Reward Linkage
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10. Figure 16.3 Anatomy of High-Performance Work Systems
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11. Complementary Human Resources Policies and Practices
Training and Development
Compensation
Staffing Practices
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12. Assessing Strategic Alignment: Fitting It All Together
The HR Scorecard
Assessing Internal Fit
Assessing HR Practices
Assessing External Fit
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13. Figure 16.4 Achieving Strategic Fit
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14. Implementing the System
Necessary Actions for a Successful HPWS:
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15. Figure 16.5 Implementing High-Performance Work Systems
Build a case for change
Communicate
Involve union
Navigate Transition
Evaluate
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16. Figure 16.6 Building Cooperation with Unions
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17. Benefits of HPWS Employee Benefits Organizational Benefits
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18. Navigating the Transition to High-Performance Work Systems
Build a Transition Structure
Implement High-performance Work
Incorporate the HR Function as a Valuable Partner
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19. Evaluating the Success of the System
Process audit
Determining whether a high-performance work system has been implemented as designed:
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20. Evaluating the Success of the System (cont’d)
How to determine if a HPWS program is reaching its goals:
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21. Outcomes of High-Performance Work Systems
Employee Outcomes and Quality of Work Life
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22. Outcomes of High-Performance Work Systems (cont’d)
Organizational Outcomes and Competitive Advantages
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23. Achieving Sustainable Competitive Advantage through Employees
Characteristics of Employees’ Competencies
Valuable
Difficult to Imitate
Organized
Rare
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24. Highlights in HRM 16.2: The Impact of High-Performance Work Systems
Ames Rubber Corporation, a New Jersey–based manufacturer of rubber products and office machine components, experienced a 48 percent increase in productivity and five straight years of revenue growth.
Sales at Connor Manufacturing Services, a San Francisco firm, grew by 21 percent, while new orders rose 34 percent and the company’s profit on operations increased 21 percent to a record level.
Over a seven-year period, Granite Rock, a construction material and mining company experienced an 88 percent increase in market share, its standard for on-time delivery grew from 68 to 95 percent, and revenue per employee was 30 percent above the national average.
At One Valley Bank employee turnover dropped by 48 percent, productivity increased by 24 percent, return on equity grew 72 percent, and profits jumped by 109 percent in three years.
The Tennessee Eastman Division of the Eastman Chemical Company experienced an increase in productivity of nearly 70 percent, and 75 percent of its customers ranked it as the top chemical company in customer satisfaction.
A study by John Paul MacDuffie of 62 automobile plants showed that those implementing high-performance work systems had 47 percent better quality and 43 percent better productivity.
A study by Jeff Arthur of 30 steel minimills showed a 34 percent increase in productivity, 63 percent less scrap, and 57 percent less turnover.
A study by Mark Huselid of 962 firms in multiple industries showed that high-performance work systems resulted in an annual increase in profits of more than $3,800 per employee.
Source: Martha A. Gephart and Mark E. Van Buren, “The Power of High Performance Work Systems,” Training & Development 50, no. 10 (October 1996):
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25. CREDITS
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Chapter 2. 7: Photos.com 22: Andresr/Shutterstock 22: Andresr/Shutterstock 25: Yuri Arcurs/Shutterstock 33: Triff/shutterstock 36: Photos.com 37: Photos.com 38: Photos.com
Chapter 3. 4: Photos.com 5: KOUNADEAS IOANNHS/Shutterstock 11: Kurhan/Shutterstock 16: Photos.com 20: Habman_18 / Shutterstock 25: Stephen Coburn / Shutterstock 26: Andresr/Shutterstock 28: Photos.com
Chapter 4. 12: Kurhan/Shutterstock 36: Photos.com 39: Andresr/Shutterstock
Chapter 5. 4: KOUNADEAS IOANNHS/Shutterstock 10: Yuri Arcurs/Shutterstock 22: RTimages/Shutterstock 23: Zsolt Nyulaszi/Shutterstock 31: Photos.com 32: Rob Marmion /shutterstock 34: Yuri Arcurs/Shutterstock 35: Photos.com 37: Photos.com 39: Photos.com
Chapter 6. 17: Dmitriy Shironosov/Shutterstock 20: Rob Marmion /shutterstock 22: Photos.com 32: Photos.com 36: Junial Enterprises/Shutterstock
Chapter 8. 31: Photos.com
Chapter 9. 15: marianad/Shutterstock 18: Feng Yu/Shutterstock
Chapter : Photos.com 26: Christopher Dodge/Shutterstock 31: Photos.com 41: Palto/Shutterstock
Chapter 11. 4: AVAVA/Shutterstock 12: Photos.com 14: Phil Date/Shutterstock 16: Photos.com 18: Photos.com 20: Photos.com
Chapter 12. 4: Lisa F. Young/Shutterstock 5: Lane V. Erickson/Shutterstock 7: Marcin Balcerzak/Shutterstock 8: /Shutterstock 11: Photos.com 25: Photos.com 26: Photos.com 30: Photos.com 31: Photos.com
Chapter : Photos.com 21: Yuri Arcurs/Shutterstock 29: Photos.com 31: Andresr/Shutterstock 33: GLUE STOCK/shutterstock
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Chapter 16. 9: Photos.com
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