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High-Involvement Organizations

High-Involvement Organizations

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High-Involvement Organizations

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  1. High-Involvement Organizations

  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 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 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 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 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 High-Involvement Organizations: Organizational Democracy

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

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

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

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

  11. Knowledge of the work, the business, and the total work system 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 Relationship Between the Four Elements


  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 Implementation of HIO

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

  16. 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 Information System

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

  19. 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 Training

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

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

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

  24. 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

  26. 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 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 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 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? The Dilemma

  31. Chevron needed to directly involve their employees in the change through a process called “Direct Participation” 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 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 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 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 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 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 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 * Design Features

  39. Where do you think PIRK has been applied to Chevron’s system? 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 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 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 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 Outcomes

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

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

  46. 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. Individualism Scores (Hofstede, 1997)

  48. 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 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] !Contradiction! Individualists working collectively Working independently despite her collectivistic society