1. Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin FUNDAMENTALS OF HUMAN RESOURCE MANAGEMENT 5 TH EDITION BY R.A. NOE, J.R. HOLLENBECK, B. GERHART, AND P.M. WRIGHT CHAPTER 16 CREATING AND MAINTAINING HIGH- PERFORMANCE ORGANIZATIONS

2. 16-2 5 Elements of a High-Performance Work System 1. Organizational structure: way organization groups its people into useful divisions, departments, and reporting relationships. 2. Task design: determines how details of the organization’s necessary activities will be grouped, whether into jobs or team responsibilities. 3. People: well suited and well prepared for their jobs. 4. Reward systems: encourages people to strive for objectives that support organization’s overall goals. 5. Information systems: enables sharing information widely. 1. Organizational structure: way organization groups its people into useful divisions, departments, and reporting relationships. 2. Task design: determines how details of the organization’s necessary activities will be grouped, whether into jobs or team responsibilities. 3. People: well suited and well prepared for their jobs. 4. Reward systems: encourages people to strive for objectives that support organization’s overall goals. 5. Information systems: enables sharing information widely.

3. 16-3 Outcomes of a High-Performance Work System Outcomes of a high-performance work system include:  higher productivity and efficiency that contribute to higher profits  high product quality  great customer satisfaction  low employee turnover Outcomes of a high-performance work system include:  higher productivity and efficiency that contribute to higher profits  high product quality  great customer satisfaction  low employee turnover

4. 16-4 Outcomes of a High-Performance Work System  Outcomes of each employee and work group contribute to the system’s overall high performance.  Organization’s individuals and groups work efficiently, provide high-quality goods and services, etc., and contribute to meeting the organization’s goals.  When the organization adds or changes goals, people are flexible and make changes to as needed to meet the new goals.  Outcomes of each employee and work group contribute to the system’s overall high performance.  Organization’s individuals and groups work efficiently, provide high-quality goods and services, etc., and contribute to meeting the organization’s goals.  When the organization adds or changes goals, people are flexible and make changes to as needed to meet the new goals.

5. 16-5 10 Conditions that Contribute to High Performance 1. Teams perform work. 2. Employees participate in selection. 3. Employees receive formal performance feedback and are involved in performance improvement process. 4. Ongoing training is emphasized and rewarded. 5. Employees’ rewards and compensation relate to company’s financial performance. 6. Equipment, work processes and technology encourage maximum flexibility and interaction among employees 1. Teams perform work. 2. Employees participate in selection. 3. Employees receive formal performance feedback and are involved in performance improvement process. 4. Ongoing training is emphasized and rewarded. 5. Employees’ rewards and compensation relate to company’s financial performance. 6. Equipment, work processes and technology encourage maximum flexibility and interaction among employees

6. 16-6 10 Conditions that Contribute to High Performance 7. Employees participate in planning changes in equipment, layout, and work methods. 8. Work design allows employees to use variety of skills. 9. Employees understand how their jobs contribute to finished product or service. 10. Ethical behavior is encouraged. 7. Employees participate in planning changes in equipment, layout, and work methods. 8. Work design allows employees to use variety of skills. 9. Employees understand how their jobs contribute to finished product or service. 10. Ethical behavior is encouraged.

7. 16-7 Learning Organizations  Learning organization – an organization that supports lifelong learning by enabling all employees to acquire and share knowledge. Employees have resources for training, and they are encouraged to share their knowledge with colleagues. Managers take an active role in identifying training needs and encouraging the sharing of ideas.  Learning organization – an organization that supports lifelong learning by enabling all employees to acquire and share knowledge. Employees have resources for training, and they are encouraged to share their knowledge with colleagues. Managers take an active role in identifying training needs and encouraging the sharing of ideas.

8. 16-8 ETHICS Organizational systems can promote ethical behavior, including a written code of ethics performance measures that include ethical standards swift discipline for misdeeds channels for employees to seek help training in ethical decision making Organizational systems can promote ethical behavior, including a written code of ethics performance measures that include ethical standards swift discipline for misdeeds channels for employees to seek help training in ethical decision making

9. 16-9 HRM Online: E-HRM Improving HRM effectiveness through online technology. Speed requirements of business force HRM managers to explore how to leverage technology for delivery of HRM activities. With Internet technology, organizations use E- HRM to let all employees help themselves to HR information whenever needed. E-HRM uses social media applications. Cloud computing enables access to information that’s delivered on demand from any device 24/7. Improving HRM effectiveness through online technology. Speed requirements of business force HRM managers to explore how to leverage technology for delivery of HRM activities. With Internet technology, organizations use E- HRM to let all employees help themselves to HR information whenever needed. E-HRM uses social media applications. Cloud computing enables access to information that’s delivered on demand from any device 24/7.

10. 16-10 Analyzing the Effect of HRM Programs  HR should be able to improve their performance through some combination of greater efficiency and greater effectiveness. Greater efficiency –HR uses fewer and less-costly resources to perform its functions. Greater effectiveness –what HR does has a more beneficial effect on employees and the organization’s performance. HR analytics measure HRM efficiency and effectiveness.  HR should be able to improve their performance through some combination of greater efficiency and greater effectiveness. Greater efficiency –HR uses fewer and less-costly resources to perform its functions. Greater effectiveness –what HR does has a more beneficial effect on employees and the organization’s performance. HR analytics measure HRM efficiency and effectiveness.