High Performance Work Practices

1. High Performance Work Practices Nancy Brown Johnson

2. Traditional Work Systems • Tayloristic, based upon high volume production lines • Management acts, employees comply • Work structured from top- employees carry out management actions • Quality set by inspection

3. HPWP Defined • Maximizing the use of technology, resources, and employees • Each element must work together • Work systems are the link that tie the elements together • Can contribute to organizational success but difficult to implement

4. Elements of a HPWP • Management philosophy that employees need to share in decision-making • Participative management • Elements • Information sharing • Participative decision making • Increasing knowledge • Redistributing power

5. Information Sharing • Provide employees with information about the business • Enables the employees to make suggestions for improving product & processes

6. Increasing knowledge • Training • Business knowledge • Enables the employee’s to understand long-term goals • Interpersonal and group skills • Gives employees the skills to work together and engage in problem-solving • Basic job skills • Gives them the foundation for understanding their role in the organization and how it fits in to the total organizational goals

7. Rewarding Performance • Incentives to reinforce commitment • Profit sharing, share in cost reduction • Skill base pay or other systems to reinforce learning • Provide incentives to engage in learning & participate • Crucial to include job security

8. Redistributing power • Shifting decision-making downward • Must empower workers to make decisions • JetBlue does it by five core values • Safety, Caring, Integrity, Fun, Passion • Restructures organization to team level decisions • such as quality circles, team meetings to systematically shift power downward

9. When are HPWP a good idea? • Required when flexibility essential • Dynamic changing environments • May be less efficient • Much more difficult to implement than Tayloristic systems • Tayloristic systems more appropriate for stable, predictable environments: allow for efficiency

10. Rewarding Performance Information Sharing Increasing Knowledge Redistributing Power All Elements must work Together HPWP

11. Conditions for HPWP success • Goal Collective Identity • Problem Solving v. Blaming • Shared goals: everyone knows what needs to be done • Shared knowledge of work processes • Mutual respect among employees • Frequent & timely communication

12. Implementing • Management needs combination of credibility & caring • trust & respect • Coaching & feedback • positive reinforcement v. fear & punishment • Hire employees to work in this environment • Use conflicts to build relationships • Measure performance broadly • Flexibility in jobs

13. Summary • HPWP much more difficult to implement than traditional production systems • Increase flexibility and work best in dynamic environment • Expensive to implement • Evidence indicates can pay off if consistently implemented