Managing People and Resolving Differences

1
Managing People and Resolving Differences

• Topic 5 High Performance/Empowered Work
  Organisation

2
Nature of High Performance Work Systems

• High-commitment or High Involvement outcomes
  (Ramsey et al 2000)
• Employee Involvement/work-teams
• Employee Participation/Profit sharing, PRP,
  Employee stock ownership
• Extensive screening at time of hire

3
Nature of High Performance Work Systems (Wood,
1999)

• Unity of high commitment and total quality
  management
• Based on team working and quality circles
• Complementary HR practices

4
Nature of High Performance Work Systems

• Flexible and broadly defined job assignments
• Employment Security Policies
• Improved Communication
• Effective Dispute Resolution Procedure

5
Nature of High Performance Work Systems

• Decentralised Decision-making
• Enhanced Training and Development
• Gain Sharing and High-wage Reward Systems
• Harmonisation of terms and conditions

6
High Performance/Empowered Work Systems Outcomes

• Workers work more efficiently/work smarter
• Reduced costs in absenteeism
• Reduced numbers of managers and supervisors

7
High Performance/Empowered Work Systems Outcomes

• Improved communication
• Enhanced problem solving
• Reduced grievances and conflict
• Information Sharing

8
High Performance/Empowered Work Systems Outcomes

• Paper Mill (Kochan et al, 1996)
• Grievance rates dropped from 80 per month to 4
  per month
• Production increased by 20 over five years
• Absenteeism reduced by half
• Profitability trippled over one year

9
High Performance/Empowered Work Systems Outcomes

• Telecommunications company(Batt,1995)
• Reduced costs at middle management
• Sales 20 higher than traditionally organised
  work groups
• Self-managed teams reported more autonomy,
  learning and cooperation within their groups
  compared to traditionally organised groups

10
Implementation of High Performance/Empowered Work
Systems

• Individual work practices have no effect on
  productivity/employee performance
• More effective when bundled with supporting
  management practices
• Must fit within the context of the firms overall
  strategy and market environment

11
Implementation of High Performance/Empowered Work
Systems

• Implementation must be part of a coherent and
  integrated system i.e. (Bundles)
• Extensive recruitment and careful selection
• Extensive training on and off the job
• Flexible job description problem solving teams

12
Implementation of High Performance/Empowered Work
Systems

• Employment security
• Extensive labour-management communication
• Gains-sharing remuneration plans to support new
  working practices

13
Obstacles in Diffusion of High Performance/Empower
ed Work Systems

• Lack of senior level leadership (Culture change)
• Resistance by middle managers and trade unions
  (Cynicism)
• Short-terminism (long-term financial
  gain,stockmarket pressure)
• Limited performance gains for some firms
• Piecemeal Implementation (Pick and mix)

14
Obstacles in Diffusion of High Performance/Empower
ed Work Systems

• Lack of time
• Lack of resources and infrastructure
• Lack of action and consistency
• Fear amongst front-line employees
• Values and attitudes of organisational actors
  (Unitarist/Pluralist)

15
Obstacles in Diffusion of High Performance/Empower
ed Work Systems

• Barriers between departments/functions
• High labour turnover
• Social cultural issues (Cultural pluralism)
• Winners and losers
• Development and implementation costs

16
Conclusions

• Diffusion of new workplace innovations is limited
  especially amongst older firms
• Firms abandon change initiatives after limited
  policy changes have little effect on performance
• Costs of other required practices or resources
  too excessive
• History of labour-management mistrust

17
Conclusions

• Resistance from senior management, middle
  management, trade unions
• Resistance from workers who might not fare as
  well under the newer practices
• Pressure from shareholders or financial
  intitiutions