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Managing Performance
Ability VS Technology 
There are two different effects: 
Ability-based work are those where the capacity 
that a person has is the most important aspect to 
accomplish a task.( i.e Sport or drawing) 
Technology–based work are those in which the 
level of technology doesn’t require high abilities. 
(i.e Assembly line ). 
As you can immagine higher is the level of 
technology used, lower is the ability required.
CREATING A HIGH-INVOLVEMENT 
STRUCTURE 
BUSINESS STRATEGY 
ORGANIZATIONAL DESIGNS AND STRUCTURES 
DIFFERENT BEHAVIOURS AND OUTCOMES
INFORMATION, KNOWLEDGE, 
POWER, REWARDS 
• Congruence: in the HIO approach, congruence is 
achieved by locating significant amount of 
information, knowledge power, and rewards at 
low levels in the organization. 
INVOLVEMENT=INFORMATION X KNOWLEDGE X POWER X REWARDS
HIO 
Hio is a business approach that emphasizes 
employees involvement, providing them with the 
opportunity to make decisions.
HIO AT NUMMI 
Before… 
GM had to layoff its 5700 workers when in 1982 
it had to close its doors due to unexcused 
absenteeism (around 20%) and to low quality 
and low productivity levels. 
After… 
By 1986,NUMMI’s productivity increased by 
40%(with no change in workforce and equipment).
This huge turnover took place thanks to 2 guiding 
philosophies: 
11.. TTPPSS (Toyota Production System) 
22.. SSuuppppoorrttiinngg ((MMGGMMTT)) PPoolliicciieess 
TPS 
The work processes at NUMMI were structured on: 
• JIT 
• Team concept 
• Jidoka 
• Kaizen 
SUPPORTING POLICIES 
• Job Security 
• Gainsharing programs 
• Cooperative labour-management relations(i.e UAW)
The New Selection Model: 
Hiring for Person-Organisation FIT 
4 Steps: 
1. Assess the overall work enviroment. 
2. Infer the type of person required. 
3. Design “rites of passage” for organization entry 
that allow the organization and the applicant to 
assess their FIT. 
4. Reinforce person-organization FIT at work. 
(NON TRADITIONAL SELECTION VIDEO)
CONCLUSIONS 
Below are the results of how HIO helped in 
improving the Fremont plant: 
CASE STUDY CONCLUSION: 
• Job satisfaction < 35% 
• Absenteeism rate decreased > 17% 
• Workers participation in suggestion programs = 
90% 
HIO CONCLUSION: 
• Hio approach improves workers performance and 
therefore,EFFECTIVNESS
CONCLUSIONS 
Below are the results of how HIO helped in 
improving the Fremont plant: 
CASE STUDY CONCLUSION: 
• Job satisfaction < 35% 
• Absenteeism rate decreased > 17% 
• Workers participation in suggestion programs = 
90% 
HIO CONCLUSION: 
• Hio approach improves workers performance and 
therefore,EFFECTIVNESS

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Presentation NUMMI HIO

  • 2. Ability VS Technology There are two different effects: Ability-based work are those where the capacity that a person has is the most important aspect to accomplish a task.( i.e Sport or drawing) Technology–based work are those in which the level of technology doesn’t require high abilities. (i.e Assembly line ). As you can immagine higher is the level of technology used, lower is the ability required.
  • 3. CREATING A HIGH-INVOLVEMENT STRUCTURE BUSINESS STRATEGY ORGANIZATIONAL DESIGNS AND STRUCTURES DIFFERENT BEHAVIOURS AND OUTCOMES
  • 4. INFORMATION, KNOWLEDGE, POWER, REWARDS • Congruence: in the HIO approach, congruence is achieved by locating significant amount of information, knowledge power, and rewards at low levels in the organization. INVOLVEMENT=INFORMATION X KNOWLEDGE X POWER X REWARDS
  • 5. HIO Hio is a business approach that emphasizes employees involvement, providing them with the opportunity to make decisions.
  • 6. HIO AT NUMMI Before… GM had to layoff its 5700 workers when in 1982 it had to close its doors due to unexcused absenteeism (around 20%) and to low quality and low productivity levels. After… By 1986,NUMMI’s productivity increased by 40%(with no change in workforce and equipment).
  • 7. This huge turnover took place thanks to 2 guiding philosophies: 11.. TTPPSS (Toyota Production System) 22.. SSuuppppoorrttiinngg ((MMGGMMTT)) PPoolliicciieess TPS The work processes at NUMMI were structured on: • JIT • Team concept • Jidoka • Kaizen SUPPORTING POLICIES • Job Security • Gainsharing programs • Cooperative labour-management relations(i.e UAW)
  • 8. The New Selection Model: Hiring for Person-Organisation FIT 4 Steps: 1. Assess the overall work enviroment. 2. Infer the type of person required. 3. Design “rites of passage” for organization entry that allow the organization and the applicant to assess their FIT. 4. Reinforce person-organization FIT at work. (NON TRADITIONAL SELECTION VIDEO)
  • 9. CONCLUSIONS Below are the results of how HIO helped in improving the Fremont plant: CASE STUDY CONCLUSION: • Job satisfaction < 35% • Absenteeism rate decreased > 17% • Workers participation in suggestion programs = 90% HIO CONCLUSION: • Hio approach improves workers performance and therefore,EFFECTIVNESS
  • 10. CONCLUSIONS Below are the results of how HIO helped in improving the Fremont plant: CASE STUDY CONCLUSION: • Job satisfaction < 35% • Absenteeism rate decreased > 17% • Workers participation in suggestion programs = 90% HIO CONCLUSION: • Hio approach improves workers performance and therefore,EFFECTIVNESS

Editor's Notes

  1. IN ORDER TO DESIGN AN EFFECTIVE ORGANIZATION MENAGERS SHOULD BEGIN CONSIDERING THE BUSINESS STRATEGY OF THE ORGANIZATION. DEPENDING ON THE STRATEGY DIFFERENTORGANIZATIONAL DESIGNS AND STRUCTURES ARE APPROPIATE, BECAUSE THESE CAN PRODUCE DIFFERENT BEHAVIORS AND OUTCOMES. The challenge in HIOs is to understand what it takes to compete and then to convert that strategy into specific policies and structures that will yield the correct kind of performance.
  2. INFORMATION: ABOUT PROCESSES, QUALITY, CUSTOMER FEEDBACK, EVENTS, AND BUBSINESS RESULTS. KNOWLEDGE: OF THE WORK, THE BUSINESS AND THE TOTAL WORK SYSTEM. POWER: TO ACT, TO MAKE DECISIONS ABOUT THE WORK IN ALL ITS ASPECTS. REWARDS: TIED TO BUSINESS RESULTS AND GROWTH IN CAPABILITY AND CONTRIBUTION.
  3. This big turnover in productivity and efficiency from the former GM_Fremont plant to the new productive plant managed by NUMMI took place thanks to 2 guiding principles
  4. Assess the Work Environment The purpose of an organizational analysis is to define the work environment in terms of the characteristics of the organization, rather than just in terms of the characteristics of a specific job. It identifies the behaviors and responsibilities that lead to organizational effectiveness. Organizational analysis also is important because job analysis’ data may quickly become outdated as a result of the changing in products and technologies that reshape employees&amp;apos; jobs. Infer the Type of Person Required In the second step, managers deal with applicants in terms of who they are, not just what they can do. This also requires discovering, from the organizational analysis, what are the needs, values and interests (so the personality) that an employee must possess to be an effective member of the organization. Organizations also must pay attention to technical skills needed by the organization. Often applicants with the most appropriate personalities and social skills are not those with the right technical skills. If the organization faces the need to upgrade technical skills quickly, it may be forced to make tradeoffs.