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16-1McGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.

fundamentals of Human Resource Management 4 th editionby R.A. Noe, J.R. Hollenbeck, B. Gerhart, and P.M. Wright

CHAPTER 16

Creating and Maintaining High-Performance Organizations

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Figure 16.1:Elements of a High-Performance WorkSystem

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Figure 16.2:Outcomes of a High-Performance WorkSystem

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Learning Organizations

Learning organization an organization thatsupports lifelong learning by enabling allemployees to acquire and share knowledge.

The people in a learning organization haveresources for training, and they are encouragedto share their knowledge with colleagues.

Managers take an active role in identifyingtraining needs and encouraging the sharing of ideas.

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Table 16.1: HRM Practices that Can HelpOrganizations Achieve High Performance HRM practices match

organization

s goals Individuals and groups

share knowledge Work is performed by

teams

Organizationencourages continuouslearning

Work design permitsflexibility in where andwhen tasks are

performed Selection system is job

related and legal Performance

management systemmeasures customersatisfaction and quality

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Table 16.1: HRM Practices that Can HelpOrganizations Achieve HighPerformance (continued)

Organization monitorsemployees

satisfaction Discipline system is

progressive Pay system rewards

skills andaccomplishments

Skills and values of adiverse workforce arevalued and used

Technology reducestime and costs of tasks

while preserving quality

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Performance Management

Each aspect of performance management should berelated to the organization

s goals. Business goals should influence the:

kinds of employees selected and their training requirements of each job measures used for evaluating results

This means the organization: identifies what each department must do to achieve the

desired results defines how individual employees should contribute to

their department

s goals

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Figure 16.3: Employee Performance as aProcess

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Performance Management (continued)

Guidelines to make the performance managementsystem support organizational goals:

1. Define and measure performance in precise terms.

2. Link performance measures to meeting customerneeds.

3. Measure and correct for the effect of situational

constraints.

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Measuring the Effectiveness of Human Resource Management

Customer-oriented approach toHRM

Human resource management audit

Analyzing the effect of HRMprograms

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Customer-Oriented Perspective of Human Resource Management

Who Are OurCustomers?

Line managers Strategic

planners Employees

What Do OurCustomers Need?

Committedemployees

Competentemployees

How Do We MeetCustomer Needs?

Qualifiedstaffing

PerformanceManagement

Rewards Training and

Development

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Human Resource Management Audits

HRM audit a formal review of the outcomesof HRM functions, based on identifying keyHRM functions and measures of businessperformance.

The audit may also look at any other measureassociated with successful management of human resources.

e.g., legal compliance, safety, labor relations

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Analyzing the Effect of HRM Programs

This analysis can measure a program

ssuccess in terms of whether it:

achieved its objectives delivered value in an economic sense

The analysis can measure the dollar value of the program

s costs and benefits. Successful programs should deliver value that

is greater than the program

s costs.

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Analyzing the Effect of HRM Programs (continued)

HR departments should be able to improve theirperformance through some combination of greater efficiency and greater effectiveness.

Greater efficiency

means the HR departmentuses fewer and less-costly resources to performits functions.

Greater effectiveness means that what the HRdepartment does has a more beneficial effect onemployees and the organization

s performance.

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Summary

A high-performance work system is the rightcombination of people, technology, andorganizational structure that makes full use of the

organization

s resources and opportunities inachieving its goals.

A high-performance work system achieves the

organization

s goals, typically including growth,productivity, and high profits.