performance

  

What are the conditions that contribute to a high-performance work system? What are the expectations of the employer? What are the expectations of the employee in each of these areas?Your response should be at least 75 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.  

 

Noe, R., Hollenbeck, J., Gerhart, B., & Wright, P. (2011). Fundamentals Of Human Resource Management. (4th ed., pp. 500-503). Boston, MA: McGraw-Hill.

 

No wiki, dictionary.com or cited work not listed.

5OO PART 5

Le4 Explain how
human resou

rce

management can

contribute to high
performance

.

Table 16″1

HRM Practices That Can
Help 0rganization

s

Achieve High
Performance

Meeting Other HR Goals

HRM’s Contribution to High Perfarmanee
Management of human resources plays a ctitical role in d”ter*inidg companies

success in meeting the challenges of a rapidly changing, highiy comferitive envi-
ronment.zZ Compensation, staffing, training and development, perfoirnance lnan-
agement, and other HRM practices are investments that directly affelr ernployees’
motivation and abihty to provide products and services that are valued lby c,rsto*ers.
Table 16.1 lists examples of HRM practices that contribute to high perfprmance.

Research suggests that it is more effective to improve HRM practides as a whole
than to focus on one or two isolated practices, such as the organization! Rav structure
or selection ryrt.*.?l Also, to have the intended influence on perfonnarjrce, the HRM
practices must fit well with one another and the organization as a whol$.z

a

Job Design
For the organization to benefit from teamwork and employee.*po*..*prrt, jobs n-rust
be designed appropriately. Often, a high-performance work system pla{es employees
in work teams where employees collaborate ro make decisions and so[r’e problems.
Individual empioyees also may be empowered to serve on teams that d$sign jobs and
work processes.

Job design emphasizing teamwork and empowerment is a fundam{ntal piece of
improving i.rfor*urr.. aJnlrsing homes suctr-as Mercy Nursing Facili{v and Beech-
wood Continuing Care, located near Buffalo, New York. Applying a philosophy
known as “culture change,” these nursing homes are moving toward gilaing residents
more choices and personal attention in a homier atmosphere. Deiivefing this type
of care requires less rigid job descriptions than have developed in th{ highly regu-
lated nursing home industry. Mercy, Beechwood, and other facilities adopting culture

change have srructured rvork into teams of employees who are given gre{rer flexibility
and authority for how they carry out their jobs. Aides are assigned to $roups of resi’
dents, rarher than to a few specialized duties, so they can develop carin! relationships
with ihe residents.z5

Recruitment and Selection
At a high-performance organization, recruitment and selection aim at obtaining
rhe kinds of employees who can thrive in this type of setting. These $mployees are
enthusiastic about and able to contribute to teamwork, empowermeni, and knowl-
edge sharing. Qualities such as creativity and abiiity to cooperate as fl”.t of a team

. HBM practices match organization’s ‘ Performance management syitem mea-
goals. sures customer satisfaction afld quality.

. lndividuals and groups share ‘ Organization monitors emplolees’
knowledge. satisfaction.

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Work is performed by teams. ‘ Discipline system is progre
0rganization encourages continuous ‘ Pay systems reward skills an
learning. accomPlishments’
Work design permits flexibility in where ‘ Skills and values of a diverse
and when iasks are performed. are valued and used’
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CHAPTER 16 Creating and Maintaining High-Performance Organizaticns 501

may play a iarge role in selection decisions. High-per{ormance organizations need
selectior-r inethods that identify more than te.hnical skilis like

“b’rlity
to p”r{o.,r1

accounting ar-id engineering tasks. Ernployers may use group interviewp, ope,l-ended
questions, and psychological tests to find employees -ho i..o,rute, shire ideas, and
take irritiative.

Training and Development
‘$Uhen

organizations base hiring decisions on qualities like decision-making and ream-
u,ork skills, training may be required ro reach employees the specific skills they need
to perform the duties of their job. Extensive trair-ring and developmenr also are parr
of a learnir-rg organization, described earlier in this chapter. And when organizations
delegate rnany decisions to work teams, the members of rhose rearns likely r.l’ill benefit
from participating in team development activities rhat prepare thern for their roles as
tearn rnernbers.

Training programs at Whirlpool have been aiigned with the cornpany’s commiL-
ment to innovation. After rhe company defined the role innovarion would play in
the company’s strategy, ir trained 75 employees to be “Masters of Inrrovation”-
experts in the qualities and Lrrocesses that enable new ideas to contribute to Whirl-
pool’s success. The Masters of Innovation are charged with rraining the rest of Whirl-
pool’s employees to be innovative. Their lessons are supplemented btr or-rline and
classrooin training ptograms in innovation skills such as tappir-rg into nerv resources
and thinking about projects from various points of view. Ernployee developmenr also
focuses on knowledge sharing. Project teams conplete five-question surveys that
ider-rtify team members’ networks of professionai contacts. The results help the tearns
develop action plans for using their networks to come up with more creafive and suc-
cessfirl ideas.26

Performance Management
In a high-performance_ organization, empioyees knorv the organization’s goals and
what they must do to heip achieve thor” goulr. HR dep”.t,’,enrs can contritute to
this ideal through the..design of the organization’s pe.fo.*ar-r.e managemenr sysrei,’
As we discussed in Chapter B, performance managernent should l”‘..r”i.a i” iir.
organizarion’s goals. Flagstar Bank, based in Tioy, Mlhig”rr, develops goals for brur-r.h
managers by using analytical software frorn pitney B;;. pitnei B.”o*., ,r., Juiu
about households in each branch’s geographic area ancl comparative data about other
bank branches, combined wrth Flagstai’s ;ustomer data, to predict *n”, e”.1, u*”.1,
can achieve in rerms of types of pioducts sold, arrerage bulur-r.., i” b;L ;;;;;;;
growth in the number of custorners, and so on. The”bank then sers goals ,hut u.”
achievable for rhe branch, given economic conditions and the needs oflhe clients i.
its.area’ This gets ernployees in the branches focused on the best opportunities avail-
able to them. Branch managers can see the criteria used to set theii goalrl;;-;h”y;;
motivared by the fairness of th” system.z?

To set up a performance nanagemerlt system that supports the organization’s goals,
managers need to understand the process of employee pe.fonnarr-ce. As shown in
Figure 16.3, individual employees biing a set of rkillr'”njubilities to ,h” j”b;;;J ;;
appiying a set of behaviors, they use those skills to achieve cerrain resuks. iBr; r;…r;
is more than the product of individual efforrs. The organizarionb goals should influ-
ence each step of the process. The organization’s culture and othei factors influence

ta-
itv.

rce

502 PART 5 Meeting Other HR Goals

Figure 1 6″ 3

Employee Performance

as a Ptocess

the employees’ abilities, behaviors, and results. It mustn’t be forgotten that sometimes

uncontrollable forces such as the current economic conditions enter the
picture-{or

example, a salesperson can probably sell more during an economic expansion
than

during an economic slowdown’
Th”is model sllggesrs some guidelines for performance management. First, each

aspecr of pe.forman.. ,ou.rugJ*ent should_Le related to the organization’s
goals’

B;rl;.r; g’oals .ho.lld influenle the kinds of employees selected and their training’
,l*,”q”ft*ents of each iob, and the-measures used for evaluating results. Gener-
,ily, ,hi, means the organizarion idenlifies what each department must do to achieve

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To develop future leaders, new IBM managels participate in lBM’,s Basic
Blue plogiram for an intensive nlne-

month training program. IBM is considered one of the best companies in the development
of future leaders’

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I I socisl
responsibiiity

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ln a business, profitability and
the company’s stoc* price pro-
vide some obvious measures of
success. A nonprofit organization .
needs to apply and adapt some
more creative measures of success.

. Performance measures for
individuals and groups in the
organization should support
the achievement of the organi-
zation’s mission. The mission
is more than the products and
services provided; it extends
to the desired outcomes of
those products and services- o
say, visiting a health clinic or
participating in a tutoring pro-
gram.These outcomes, in turn,
should be associated with an
impact on society, such as a
reduction in the prevalence of

a disease or the increase in the
proportion of high school stu-
dents who graduate.
Financial measures, such as a
cost reduction or improvement
in efficiency, are important.
Howevel they should be
related to the organization’s
ability to fulfill its mission-for
example, because they are
needed for acquiring
resources or carrying out
activities associated with the
desired outcomes and impact
on society.
When possible, measures
should be expressed in mon-
etary units (dollars in the
United States). For example,
if the organization places
unemployed people in jobs, it
can measure the decrease in

public assistance Pale :i:- i:i*
govern ment. Dol la r 5r*5-r- : -.
ments of success are us=’-
because they can be vacr.+:
over time and cleariY corni’r-.;-
nicated to donors and other
stakeholders,

. Other measurements can be
expressed as percentages,
such as the percent of the tar-
get population who ParticiPate
in a program or the percent of
parlicipants who report achiev-
ing an organizational goal,
such as earning a professionai
designation or disconti nuing
use of drugs or alcohol.

Source: Based on Marc J. Epstein and
Adriana Rejc Buhovac, “lmproving Per-
formance Measurement: Not-{or-Profit
Organizations, ” CM A M a n agement,
November 2009, pp. 16-21 .

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the desired results, then defines how indii’idual employees should contribute to their
departrnent\ goals. More specifically, the following guidelines describe how to make
the performance lnanagement system support organizatioaal goa1s,28

o Define and measure pet’formance in precise ferms-Focus on outcomes that can be
defined in terms of how frequently certain behaviors occur. Include criteria that
describe lr’ays employees can add value to a product or service (such as through
quantity, quality, or timeliness). Include behaviors that go beyond the mirrimum
required to perform a job (such as helping co-workers).

t Link performance measures to meettng custotner nss6l5-“Qu5tomers” may be the
organization’s external customers, or they rnay be intemal customers (employees
receiving services from a co-worker). Service goals for internal customers should be
reiated to satisfying external customers.

o Measure and correctfor the effect of situational g6n57vqins5-Monitor economic condi-
tions, the organization’s culture, and other influences on performance. Measures of
employees’performance should take these influences into account.

This approach gives ernployees the information they need to behave in ways that cot-r-
tribute to high per{ormance. ln addition, organizations si-rould help empioyees identifii
and obtain the abilities they need to meet their performance goals. The “HR How To” box
pror.ides additionai guidelines for per{ormance management in nonprofit organizations.

l;I l

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