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High-Involvement Organizations

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  1. www.mubeena.net High-Involvement Organizations www.mubeena.net

  2. Key Components of High-Involvement Organizations History/Evolution of Management & Organizational Change Components of High-Involvement Organizations; how they’ve evolved, how they are currently manifested Process of implementation Case studies highlighting real-world implementation Cultural influences on High-Involvement Organizations Current trends and the future of HIOs www.mubeena.net Overview

  3. Based on Edward Lawler’s model Challenge the structures and values of traditional organizations Employees are given the right mix of power, information, rewards and knowledge Encourage employee commitment to the success of the organization Employee oriented approach versus control oriented approach to management www.mubeena.net Hallmarks of High-Involvement Organizations

  4. End of 19th century – Introduction of ClassicalOrganizational Theory, development of Bureacracy 1910 – 1920 – Scientific Management; Taylor 1920s – 1930s – Hawthorne studies; Mayo, Introduction of Behavioral OrganizationalTheory, Human Relations Movement 1950s – 1960s - Human Resources Movement; Open Systems Theory, Introduction of Contingency Theory www.mubeena.net Evolution of the High Involvement Approach – A Timeline

  5. Criticism of the Traditional Model begins Initial Experimentation 1970s National debate regarding bureaucratic organizations 1980s Concern about U.S. economic well-being 1990s – today Advocacy to broaden the scope of high-involvement management to encompass the entire organization www.mubeena.net Evolution of the High Involvement Approach – A Timeline

  6. Definition of workplace/organizational democracy (Cheney) Participation is a necessary condition of democracy Employee participation is largely a function of power, information, rewards and knowledge www.mubeena.net High-Involvement Organizations: Organizational Democracy

  7. P.I.R.K. Power Information Rewards Knowledge www.mubeena.net Key Features of High-Involvement Organizations

  8. www.mubeena.net Power • Power to act and make decisions about the work in all its aspects

  9. www.mubeena.net Information • Information about processes, quality, customer feedback, events and business results

  10. Rewards tied to business results and growth in capability and contribution www.mubeena.net Rewards

  11. Knowledge of the work, the business, and the total work system www.mubeena.net Knowledge

  12. POWERw/o knowledge, info. & rewards = poor decisions INFORMATION & KNOWLEDGE w/o power = frustration REWARDSw/o power, knowledge & info. = frustration & lack of motivation INFO., KNOWLEDGE & POWERw/o rewards = danger nothing will ensure people will exercise their power in ways that will contribute to organizational effectiveness www.mubeena.net Relationship Between the Four Elements

  13. www.mubeena.net COMPONENTSOF HIGH-INVOLVEMENT ORGANIZATIONS

  14. No universally accepted approach Implementation is specific to the organization’s situation Guided by an explicit statement of values that members in an organization support Guided by participative nature www.mubeena.net Implementation of HIO

  15. Flat Lean Mini Enterprise-oriented Team-based Participative structure www.mubeena.net Organizational Structure

  16. www.mubeena.net Job Design • Individually enriched • Self-managing teams • Psychological needs of employees

  17. Open Inclusive Tied to jobs Decentralized; team-based Participative in setting goals & standards www.mubeena.net Information System

  18. www.mubeena.net Career System • Tracks & counseling available • Train individuals to manage careers • Encourage horizontal moves • Open job posting • Provide feedback

  19. www.mubeena.net Selection • Realistic job preview • Team-based interviews • Involve people from the potential work area • Promote growth

  20. Heavy commitment Peer training Economic education Interpersonal skills www.mubeena.net Training

  21. www.mubeena.net Reward System • Open • Skill-based pay • Gain sharing, profit sharing & ownership • Flexible benefits • All salaried workforce • Egalitarian perks

  22. www.mubeena.net Personnel Policies • Stability of employment • Participatively established through representative group

  23. Around organizational structure Egalitarian Safe and pleasant work environment Transparent and open www.mubeena.net Physical Layout

  24. www.mubeena.net The Power of Participation Why should organizations initiate high involvement strategies? employee involvement increased motivation & commitment higher levels of+higher levels of employee motivation employeecommitment = IMPROVED ORGANIZATIONAL PERFORMANCE (Directly impacts the BOTTOM LINE)

  25. Selection Reward System Career System OrganizationalStructure Personnel Policies Information System Physical Layout Job Design Training www.mubeena.net

  26. www.mubeena.net Case Study Chevron

  27. Mini Enterprise-oriented company Four business groups: Chevron Corporation Chevron Chemical Corporation Chevron Information Technology Company Chevron Shipping Company 34,000 employees www.mubeena.net Case Study

  28. Parent Organization to other three Operations in 90 countries Involvment in such things as: Exploration and production Transportation Refining and retail marketing Chemical manufacturing and sales www.mubeena.net Chevron Corporation

  29. Chevron Chemical Company - 5,000 employees Supply of petroleum-based commodity and specialty chemicals to businesses Chevron Information Technology – 1,300 employees Internal operating company, delivers global IT infrastructure and differentiated custom IT solutions to Chevron businesses Chevron Shipping Company – 1,900 employees worldwide www.mubeena.net Chevron’s Breakdowns

  30. Chevron was looking for a way to quickly bring about large-scale change due to: Global competitive pressures Falling crude oil prices How can a large, multi-national company implement large-scale change, quickly? www.mubeena.net The Dilemma

  31. Chevron needed to directly involve their employees in the change through a process called “Direct Participation” www.mubeena.net The Answer

  32. A high-involvement approach to achieving change in a short time-frame Roots in the work of Fred Emery & Marvin Weisbord’s Search/Future Search Conferences The process centers itself around large-scale conferences www.mubeena.net Direct Participation

  33. The overall idea is to get a representative sample of the major stakeholders in the organization together in one place The stakeholders work together to come up with solutions to company problems, collectively www.mubeena.net Direct Participation

  34. Decide on issues to be discussed & set boundaries for what can be changed Communicate that the process is vital must be taken seriously Personal telephone calls Face-to-face discussions Personalized invitations to conference Be present at the conference and participate as equals www.mubeena.net How it Works – Senior Management

  35. Responsible for: Framing Issues Make necessary information available Develop and distribute contextual materials Keep the process focused during the conference Work to channel the discussions www.mubeena.net How it Works – The Planning Team

  36. Responsible for: Selecting Participants Ensure that all aspects of organizational diversity are represented Designing Tools and Conference Activities Develops templates that participants use to capture outputs in a specific, detailed and consistent format www.mubeena.net How it Works – The Planning Team

  37. Interactive Polling Give participants graphically intensive information Allow facilitators to follow the progress of the conference Allow facilitators to recognize when a decision could inadvertently have an adverse impact on a given minority www.mubeena.net How it Works - Technology

  38. Organizational Structure Mini Enterprise-oriented Team-based Participative council or structure * Information System Open * Participatively set goals and standards * Personnel Policies Participatively established through representative group * www.mubeena.net Design Features

  39. Where do you think PIRK has been applied to Chevron’s system? www.mubeena.net Where is PIRK?

  40. Chevron Shipping Co. Purpose: identify $5 million in annual employee-related cost savings Participants: 150 mariners & shore staff Outcome: 13 recommendations that would cut $1.9 million in costs, another $3.4 million in cost-saving ideas were identified The group found savings that management could not have known about and avoided adverse impact on the Asian officers www.mubeena.net Outcomes

  41. Chevron Chemical Purpose: Performance Systems Redesign Participants: 180 employees, customers & suppliers Outcome: Specific recommendations for enhancing job selection, career development, performance management and recognition systems let to 20% increase in employee commitment & 50% improvement in satisfaction www.mubeena.net Outcomes

  42. Chevron Corp. Purpose: Develop a system to promote diversity & to measure diversity achievements Participants: 200 employees Outcome: 15 strategies; key metrics including numerical targets for women & minorities for leadership roles, diversity plans that are part of all leaders’ performance evaluations, & improvement in employee survey www.mubeena.net Outcomes

  43. Chevron Information Technology Purpose: New strategy to ensure the continued delivery of value-added services Participants: 100 employees, as well as customers Results: 6 action items; mentoring program and strategy communication Participants signed up to participate in ongoing groups after the conference www.mubeena.net Outcomes

  44. Talent of workforce Quality (Rao et al.,1999) Workforce empowerment World Quality www.mubeena.net World Class Quality Human Resource Development Employee Participation, Commitment, Empowerment & Involvement

  45. www.mubeena.net The Model Base(Bennett, 1999) Influences on Work Attitudes Cultural Values and Beliefs (east) Situational Practices and Characteristics (west) Work Attitudes

  46. www.mubeena.net The Culture Model(Hofstede, 1980) Culturally influenced dispositional characteristics of a nation serve as guides to organizational behavior Uncertainty Avoidance Individualism/Collectivism Masculinity/Femininity Power Distance Individualistic: Reward and Power (USA, Britain) Collectivistic: Knowledge and Commitment (China, India)

  47. www.mubeena.net Individualism Scores (Hofstede, 1997)

  48. www.mubeena.net Power Distance Scores (Hofstede, 1997)

  49. Move from centrally planned to market driven economy Open to global competition Large internal markets Growing middle class with high purchasing power Increase in volume exports to the west www.mubeena.net The External Environment of Newly Industrialized Countries CHINA INDIA

  50. Collectivistic: Lack of high involvement [INDIA, CHINA -- close-knit teams, participation] Individualistic: Prevalence of high involvement [USA, BRITAIN -- independent, lack of participation] www.mubeena.net !Contradiction! Individualists working collectively Working independently despite her collectivistic society