Organizational Effectiveness (continued) CH 2Discussion Question I due, and discussed in class (Turn in hard copy): Some people would argue that Google, Netflix, Amazon, Apple, Lincoln Electric, & Wegman’s Groceries are among the “Best Places to Work”, and are also examples of “World Class” (Most Effective) organizations in their various industries. (Some of these companies are on Fortune’s “Best Places to Work” list, but not all of them participate in that survey. http://fortune.com/best-companies/ ) a. Do you agree or disagree that these are “World Class” organizations in their respective industries? WHY? b. What evidence would you cite to support your evaluation? (Be sure to search beyond the Fortune website.) c. If somebody had given you 100 shares of each company’s stock when you graduated from High School (WOW!!!! #**@[email protected]#$$$ CA CHING!) would you be happy with the stock’s performance (gain or loss) today. Look up and report what your net gain would have been on each stock. (Note Wegman’s Groceries is not publically traded, so you cannot answer that question for them.) d. How much would you like to work for each of these companies? Use a 1 – 5 scale where 1 = Would dislike this company & 5 = Would very much like to work for this company. “BEGIN WITH THE END IN MIND” (Steven Covey: Seven Habits…) Outcome variables for Human Resource Systems Chris J. Berger 1/15/2015 HUMAN RESOURCE MANAGEMENT* ORGANIZATION & ENVIRONMENT HR SYSTEM (HR affects INDIVIDUALS…. ALL individuals in Org.) ORGANIZATIONAL EFFECTIVENESS (The Ends we Want to Achieve for all Stakeholders) OUTCOMES EXIST AT MULTIPLE LEVELS*  Organization  Work Unit  Individual and Small Group ORGANIZATIONAL EFFECTIVENESS*all*  Survival  Adaptation to Change  Growth  Productivity  Profit (And ultimately market value of the firm: Stock Price; IPO; Acquisition; etc.) WHAT IS ORGANIZATIONAL EFFECTIVENESS?  Stockholders  Stakeholders Survival  Organizations Routinely Fail  Many Threats to Survival Exist  When Survival is Threatened, Coping with the Threat is The Dominant Task Adaptation to Change  Consumer Preference  Product Technology  Production Technology Growth  Growth Leads to “Economies of Scale”*  Growth Increases Shareholder Value  The Opportunity to Grow is Not Always Available Growth  Growth Increases the Size of the Organization (Number of Employees)*  Problems  Solution s Productivity*  Multiple Measures of Productivity  Appropriate Measures Depend on How the Firm Intends to Compete  Operations Strategy (primary and secondary) ORGANIZATIONAL EFFECTIVENESS THE ULTIMATE GOAL OF ALL FUNCTIONAL AREAS OF THE ORGANIZATION WORK UNIT OUTCOMES What is a “Work Unit”? - Depends on the Organization - Depends on our Purpose or Problem Units Within Corporatio.

1. Organizational Effectiveness (continued)
CH 2Discussion Question I due, and discussed in class (Turn in
hard copy):
Some people would argue that Google, Netflix, Amazon, Apple,
Lincoln Electric, & Wegman’s Groceries are among the “Best
Places to Work”, and are also examples of “World Class” (Most
Effective) organizations in their various industries. (Some of
these companies are on Fortune’s “Best Places to Work” list,
but not all of them participate in that survey.
http://fortune.com/best-companies/ )
a. Do you agree or disagree that these are “World Class”
organizations in their respective industries? WHY?
b. What evidence would you cite to support your evaluation?
(Be sure to search beyond the Fortune website.)
c. If somebody had given you 100 shares of each company’s
stock when you graduated from High School (WOW!!!!
#**@[email protected]#$$$ CA CHING!) would you be happy
with the stock’s performance (gain or loss) today. Look up and
report what your net gain would have been on each stock. (Note
Wegman’s Groceries is not publically traded, so you cannot
answer that question for them.)
d. How much would you like to work for each of these
companies? Use a 1 – 5 scale where 1 = Would dislike this
company & 5 = Would very much like to work for this company.
“BEGIN WITH THE END IN

2. MIND”
(Steven Covey: Seven Habits…)
Outcome variables for Human
Resource Systems
Chris J. Berger
1/15/2015
HUMAN RESOURCE
MANAGEMENT*
ORGANIZATION & ENVIRONMENT
HR SYSTEM
(HR affects INDIVIDUALS…. ALL individuals in Org.)
ORGANIZATIONAL EFFECTIVENESS
(The Ends we Want to Achieve for all Stakeholders)

3. OUTCOMES EXIST AT
MULTIPLE LEVELS*
ORGANIZATIONAL
EFFECTIVENESS*all*
the firm: Stock Price; IPO; Acquisition;
etc.)

4. WHAT IS ORGANIZATIONAL
EFFECTIVENESS?
Survival
with the Threat is The Dominant Task
Adaptation to Change

5. Growth
Available
Growth
Organization (Number of Employees)*
Solution

6. s
Productivity*
the Firm Intends to Compete
secondary)
ORGANIZATIONAL
EFFECTIVENESS
THE ULTIMATE GOAL OF ALL

7. FUNCTIONAL AREAS OF THE
ORGANIZATION
WORK UNIT OUTCOMES
What is a “Work Unit”?
- Depends on the Organization
- Depends on our Purpose or Problem
Units Within Corporations
Human Resources Most Frequently Functions at the Corporate
&
Plant Levels

8. Corp. (Allison … no more!, Chev.Cad.
Buick, GMC, GMAC, GM Europe, etc.)
paint, interior, testing, etc.)
(MWMP)

9. Work Unit Effectiveness*
[For Strategic Business Unit (specific product/service) or
Facility]

10. Work Unit or Operations
Strategy*
(Business Unit) will try to be
INDIVIDUAL LEVEL
OUTCOMES

11. JOB SATISFACTION*
n is Important?

12. Job Satisfaction is Important
they receive from working in their organization.
Individuals differ in what they value (or want).
commitment to the organization

13. Job Satisfaction is Important
how well the organization’s rewards are
functioning (or how they might be improved)
monitored by employee surveys in well
managed organizations (L.T. $1/person online)
Job Satisfaction Defined*
ion is the pleasurable
emotional state resulting from attaining
valued work outcomes or rewards.

14. UNPLEASANT
levels of valued outcomes)
PLEASANT
Dimensions of Job
Satisfaction (List of Rewards*)

15. insurance, Payment for time not
worked, etc.
Dimensions of Job
Satisfaction
Development Sat.*

16. uired KSA’s
and past performance
on SNORRC
weaknesses

17. Job Satisfaction Dimensions
Interpersonally pleasant; Likable
“Consideration”
Job Satisfaction Dimensions
ity of work relative to individual’s
preferences and KSA’s

18. reputation, industry, etc.
Initial Attraction to the
Organization*
he
organization
organization?

19. models commonly used by prospective applicants
Job Choice
nization Makes an Offer, the
Individual must Decide whether or not to
Accept the Offer. (more on j.c. later)
-1,
offer-2, …..offer-N,Continued Search)
-Attribute Utility model most often used.
Want?

20. Turnover*
Severed
SA’s)
“package” of rewards.
Is Turnover Good or Bad?

21. Utility = 1 - 2 - 3*
- Leaver.
of Replacement - Leaver
Job Performance
successfully accomplishes the Tasks, Duties and
Responsibilities of the job.

22. Job Performance*
must increase KSA _______ Motivation
Why does it matter?
How does the org. Affect KSA and Motivation?

23. What does HR do to Increase
KSA’s?
KSA’s
KSA’s
ease their KSA’s
What does HR do to Increase
Motivation to Perform?

24. firm offers. WHY?
Job Performance**
Effectiveness
1. JP = KSA x Motivation to Perform

25. Always Remember & Never
Forget*….. :o)
omes we are trying to
achieve exist at multiple levels (I; U; O)
outcomes = Unit Effectiveness
Organization Effectiveness
Always Remember & Never
Forget*….. :o)

26. must affect individual’s attitudes and
behaviors, but must affect All Individuals in
the organization to be successful. We would
measure the effectiveness of the HR System
on that basis.