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HPO organisational behavior

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  • 1. Organizational BehaviourOrganizational Behaviour Canadian EditionCanadian Edition Schermerhorn, Hunt, Osborn, CurrieSchermerhorn, Hunt, Osborn, Currie Prepared by: Joan CondiePrepared by: Joan Condie
  • 2. Chapter 2Chapter 2 The High-PerformanceThe High-Performance OrganizationOrganization
  • 3. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. QuestionsQuestions  What is the high-performance context ofWhat is the high-performance context of organizational behaviour?organizational behaviour?  What is a high-performance organization?What is a high-performance organization?  What are the management challenges of high-What are the management challenges of high- performance organizations?performance organizations?  How do high-performance organizationsHow do high-performance organizations operate?operate?
  • 4. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. High-Performance Context ofHigh-Performance Context of Organizational BehaviourOrganizational Behaviour  Changing customer expectationsChanging customer expectations  Competitive environment and demand for highCompetitive environment and demand for high quality and strong servicequality and strong service  Focus remains on total quality management,Focus remains on total quality management, continuous improvementcontinuous improvement  Needs of customer are paramountNeeds of customer are paramount
  • 5. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. High-Performance Context ofHigh-Performance Context of Organizational BehaviourOrganizational Behaviour  Changing workforce:Changing workforce:  Greater diversityGreater diversity –– more women, more visiblemore women, more visible minorities, aging workforceminorities, aging workforce  Generation X workers –Generation X workers – wwant: greater autonomy,ant: greater autonomy, challenging work, flexible work schedules; work in achallenging work, flexible work schedules; work in a team; loyalty not important to themteam; loyalty not important to them  Skill deficienciesSkill deficiencies – in many high school graduates;– in many high school graduates; in a knowledge-driven economy, lack of basic skillsin a knowledge-driven economy, lack of basic skills means need for expensive remedial trainingmeans need for expensive remedial training
  • 6. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. High-Performance Context ofHigh-Performance Context of Organizational BehaviourOrganizational Behaviour  Changing Organizations:Changing Organizations:  Constant changeConstant change –– sometimes deliberatelysometimes deliberately pursued through process re-engineeringpursued through process re-engineering  Expanding use of informationExpanding use of information technologytechnology –– electronic commerceelectronic commerce  Movement towards a free-agent economyMovement towards a free-agent economy –– individuals contract their services to a changingindividuals contract their services to a changing mix of employersmix of employers • Concept ofConcept of shamrock organizationsshamrock organizations – three leaves– three leaves comprised of core full-time workers, outsidecomprised of core full-time workers, outside contractors, and part-time workers as neededcontractors, and part-time workers as needed
  • 7. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. What Is a High-Performance OrganizationWhat Is a High-Performance Organization (HPO)? – Five Key Components(HPO)? – Five Key Components 1.1. Employee involvementEmployee involvement 2.2. Self-directing work teamsSelf-directing work teams 3.3. Integrated productionIntegrated production technologiestechnologies 4.4. Organizational learningOrganizational learning 5.5. Total quality managementTotal quality management
  • 8. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. Key Components of HPOsKey Components of HPOs 1.1. Employee involvementEmployee involvement  Decision making by employees enhancesDecision making by employees enhances productivity and satisfactionproductivity and satisfaction  Traditional organizations have low involvementTraditional organizations have low involvement (people just do their jobs); HPOs have(people just do their jobs); HPOs have involvement through participativeinvolvement through participative management (where workers havemanagement (where workers have responsibilities for day-to-day decisions) orresponsibilities for day-to-day decisions) or empowerment, where workers make manyempowerment, where workers make many decisions affecting them and their workdecisions affecting them and their work
  • 9. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. Key Components of HPOsKey Components of HPOs 2.2. Self-directing work teamsSelf-directing work teams  Empowered to plan, do, and evaluate theirEmpowered to plan, do, and evaluate their own workown work  Useful in downsized entity with fewerUseful in downsized entity with fewer managers; enhances satisfaction and utilizesmanagers; enhances satisfaction and utilizes employee expertiseemployee expertise
  • 10. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. Key Components of HPOsKey Components of HPOs 3.3. Integrated production technologiesIntegrated production technologies  Use of technology to make manufacturing andUse of technology to make manufacturing and services flexible; extensive use of computers,services flexible; extensive use of computers, just-in-time approachjust-in-time approach  Job design and information systems areJob design and information systems are includedincluded
  • 11. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. Key Components of HPOsKey Components of HPOs 4.4. Organizational learningOrganizational learning  Gather information to anticipate change andGather information to anticipate change and prepare for adaptationprepare for adaptation  Information put into the organization’s memoryInformation put into the organization’s memory to use in future situationsto use in future situations  Share information across functionsShare information across functions
  • 12. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. Key Components of HPOsKey Components of HPOs 5.5. Total quality managementTotal quality management  Commitment to high quality results,Commitment to high quality results, continuous improvement, meeting customercontinuous improvement, meeting customer needsneeds
  • 13. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. Management Challenges ofManagement Challenges of High-Performance OrganizationsHigh-Performance Organizations  Environmental linkagesEnvironmental linkages  Internal integrationInternal integration  Middle manager rolesMiddle manager roles  Upper-level leadershipUpper-level leadership  Greenfield sitesGreenfield sites versus redesignsversus redesigns
  • 14. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. Challenge 1: Environmental LinkagesChallenge 1: Environmental Linkages  HPO is an open system, influenced by externalHPO is an open system, influenced by external environment and influencing it in turnenvironment and influencing it in turn  Need to keepNeed to keep tuned in to changestuned in to changes in environment, e.g.,in environment, e.g., changing customer expectationschanging customer expectations  Need toNeed to develop missions or visionsdevelop missions or visions that focus allthat focus all energies on how the organization addresses its inputsenergies on how the organization addresses its inputs (problems and opportunities); involvement of all(problems and opportunities); involvement of all employees in vision directing is crucial for acceptanceemployees in vision directing is crucial for acceptance  Need to be aware that outputs include not only theNeed to be aware that outputs include not only the product or service provided, but alsoproduct or service provided, but also impact on quality ofimpact on quality of lifelife of organizational members, impact on societyof organizational members, impact on society through activitiesthrough activities
  • 15. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. Challenge 2: Internal IntegrationChallenge 2: Internal Integration  Smooth integration of all five components neededSmooth integration of all five components needed yet not easyyet not easy  E.g., self-directed teams using productionE.g., self-directed teams using production technology, involved in decision making but alsotechnology, involved in decision making but also working with others above and below, also involvedworking with others above and below, also involved in the decisions relevant to them, trackingin the decisions relevant to them, tracking appropriate info for organizational learning andappropriate info for organizational learning and maintaining focus on high qualitymaintaining focus on high quality  HPO may be an island within a larger, moreHPO may be an island within a larger, more traditional organization that may even oppose ittraditional organization that may even oppose it
  • 16. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. Challenge 3: Middle Manager RolesChallenge 3: Middle Manager Roles  Implementing the HPO components can bringImplementing the HPO components can bring challenges that must be addressed by middlechallenges that must be addressed by middle managers:managers:  Resistance from employeesResistance from employees (e.g., prefer individual work)(e.g., prefer individual work)  Resistance from managersResistance from managers (fear loss of traditional role;(fear loss of traditional role; uncomfortable with move to being facilitators anduncomfortable with move to being facilitators and coaches)coaches)  Tensions between componentsTensions between components (e.g., total quality(e.g., total quality management (TQM) focus on quality may conflict withmanagement (TQM) focus on quality may conflict with demands from involved employees to address otherdemands from involved employees to address other aspects of concern)aspects of concern)
  • 17. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. Challenge 4: Upper-Level LeadershipChallenge 4: Upper-Level Leadership  Deciding how many HPO components to useDeciding how many HPO components to use  May only be comfortable with 1 or 2, not all 5May only be comfortable with 1 or 2, not all 5  Trying to extend North American business practicesTrying to extend North American business practices internationallyinternationally  Self-directing teams and employee involvement won’t beSelf-directing teams and employee involvement won’t be adopted easily in countries where status, power, andadopted easily in countries where status, power, and prestige are basic work valuesprestige are basic work values  Workers with appropriate training may not be availableWorkers with appropriate training may not be available  Training & development of middle managers, whoseTraining & development of middle managers, whose roles are drastically changing and who may resistroles are drastically changing and who may resist
  • 18. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. Challenge 5:Challenge 5: Greenfield Sites versus RedesignsGreenfield Sites versus Redesigns  Greenfield site = starting the HPO from scratchGreenfield site = starting the HPO from scratch  Best success recordBest success record  Redesigning a traditional organizationRedesigning a traditional organization  Less success than greenfield sites but moreLess success than greenfield sites but more successful than unchanged traditionalsuccessful than unchanged traditional organizationsorganizations  Why would it be easier to create a successfulWhy would it be easier to create a successful organization on a greenfield site than throughorganization on a greenfield site than through transforming an already-existing organization?transforming an already-existing organization?
  • 19. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. WestJet Airlines: An HPO ExampleWestJet Airlines: An HPO Example  Employee involvementEmployee involvement –– flat, lean hierarchy,flat, lean hierarchy, with extensive empowerment;with extensive empowerment; heavy team emphasisheavy team emphasis  Integrated production technologiesIntegrated production technologies – internet– internet technology used for ticketless travel, dispatch,technology used for ticketless travel, dispatch, revenue management, parts replacementrevenue management, parts replacement  Organizational learningOrganizational learning – sharing of business– sharing of business information through letters and newsletters toinformation through letters and newsletters to employees, recovery/learning centre doubles as back-employees, recovery/learning centre doubles as back- up for main computer and training facilityup for main computer and training facility  TQMTQM – “WestJet Spirit” comprised of strong work ethic,– “WestJet Spirit” comprised of strong work ethic, strong desire for quality work, desire to go beyond thestrong desire for quality work, desire to go beyond the call of duty, helping others, “doing the right thing”call of duty, helping others, “doing the right thing”
  • 20. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. WestJet Airlines: An HPO ExampleWestJet Airlines: An HPO Example  Other HPO aspectsOther HPO aspects  HasHas clear mission and visionclear mission and vision, reflected in core, reflected in core values and company culturevalues and company culture  Hiring supports culture and missionHiring supports culture and mission throughthrough emphasis on “WestJet Spirit”, values of hardemphasis on “WestJet Spirit”, values of hard work and funwork and fun  Profit-sharing; over 80% of employees areProfit-sharing; over 80% of employees are shareholders; theseshareholders; these compensation policiescompensation policies support motivation and commitmentsupport motivation and commitment  Successful adaptation to environmentalSuccessful adaptation to environmental changes despite fierce competitionchanges despite fierce competition
  • 21. CopyrightCopyright Copyright © 2005 John Wiley & Sons Canada, Ltd. All rights reserved.Copyright © 2005 John Wiley & Sons Canada, Ltd. All rights reserved. Reproduction or translation of this work beyond that permitted byReproduction or translation of this work beyond that permitted by Access Copyright (The Canadian Copyright Licensing Agency) isAccess Copyright (The Canadian Copyright Licensing Agency) is unlawful. Requests for further information should be addressed to theunlawful. Requests for further information should be addressed to the Permissions Department, John Wiley & Sons Canada, Ltd. ThePermissions Department, John Wiley & Sons Canada, Ltd. The purchaser may make back-up copies for his or her own use only andpurchaser may make back-up copies for his or her own use only and not for distribution or resale. The author and the publisher assume nonot for distribution or resale. The author and the publisher assume no responsibility for errors, omissions, or damages caused by the use ofresponsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information contained herein.these programs or from the use of the information contained herein.

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