THE RESEARCH: In the 25th Anniversary edition of Organization Dynamics (Summer 96) Jeffrey Pfeffer asks, "Why do smart organizations occasionally do dumb things?" In his article he says that we have known what makes for high performance work systems for a long time, yet far too few organizations have adopted these practises. The recent research that he quotes is overwhelming in documenting how a set of practices with a long history of success produces dramatic performance differences in industry after industry. Those practices include flexible or lean manufacturing methods coupled with high commitment human resource approaches such as performance-based compensation; highly selective recruitment; substantial investment in training; employee involvement in decision-making; high pay; work system re-design; employment security; information sharing; team-based structures; and reduced use of hierarchical, 'command and control' style management. Pfeffer's new book, "The Human Equation: Building Profits by Putting People First" expands on these themes. He provides more details on the research behind his conclusions; helps us look at ways of moving towards 'high performance' and also provides some insights as to why these widely-known keys to success have not been so widely put into practice. THE PRE-CONDITIONS: According to Pfeffer, these new Human resource Strategies are most likely to impact economic performance when three pre-conditions are met... FRONTLINE EMPLOYEES POSSESS KNOWLEDGE AND SKILLS THAT MANAGERS LACK EMPLOYEES ARE MOTIVATED TO APPLY THEIR SKILLS AND KNOWLEDGE THROUGH DISCRETIONARY EFFORT, and THE FIRM'S BUSINESS OR PRODUCTION STRATEGY CAN ONLY BE FULLY ACHIEVED WHEN EMPLOYEES CONTRIBUTE THAT DISCRETIONARY EFFORT. Another way to look at this is through the "High Performance Chain" developed below... TEN STRATEGIES FOR DOING WHAT WE KNOW WILL WORK: Pfeffer offers ten suggestions as to how we might get on with doing things that will help transform your organization into a 'high performance workplace'. 1. VISIT OTHER ORGANIZATIONS THAT ARE DOING SOMETHING DIFFERENT 2. USE SOME HARD DATA TO HIGHLIGHT THE GAPS BETWEEN 'WHAT IS' AND 'WHAT COULD BE' 3. CHANGE THE STRUCTURE FIRST 4. CHANGE THE PHYSICAL WORKPLACE 5. CHANGE THE PRODUCTION SYSTEM 6. RE-ALIGN THE REWARD SYSTEM 7. DO SOMETHING THAT WILL PRODUCE IMMEDIATE RESULTS 8. FIND YOUR UNIQUE COMPETITIVE ADVANTAGE 9. CHANGE WHO SUCCEEDS AND WHO DOESN'T 10. GO FOR THE LONG TERM In the interest of helping organizations develop some 'hard data' to highlight the gaps between 'what is' and 'what could be', we have developed the HIGH PERFORMANCE WORKPLACE diagnostic instruments. THE MANAGEMENT QUESTIONNAIRE: This link will take you to a trial version of the Management questionnaire. This questionnaire collects information from the executive level of the organization. First we are looking to see whether or not the pre-conditions for a 'high performance workplace' exist and if so, to what extent. Then we ask respondents to rate several items. For each item in the questionnaire we ask two questions, 1. how important is the item to organizational success, and 2. how well does the organization perform on the item. To access a full version of the questionnaire, you will need a password. Visit our shopping page to find out how to get one. THE FRONTLINE STAFF QUESTIONNAIRE: The second questionnaire collects information from the frontline of the organization. We gather their perspective on whether or not the pre-conditions for a 'high performance workplace' exist and if so, to what extent. Then we ask these respondents to assess the same items that management rates. For each item in the questionnaire we again ask two questions, 1. how important is the item to organizational success, and 2. how well does the organization perform on the item. To access a full version of the questionnaire, you will need a password. Visit our shopping page to find out how to get one. THE ANALYSIS: The data is first analysed in the usual way including a distribution of the results over the rating scales along with means and standard deviations. A scoring system separates the trivial from the critcal. A 'clustering system' groups items into the seven practices that Pfeffer and others have associated with long term economic success including.. 1. EMPLOYMENT SECURITY 2. SELECTIVE HIRING OF NEW PERSONNEL 3. SELF-MANAGED TEAMS AND DECENTRALIZATION OF DECISION MAKING AS THE BASIC PRINCIPLES OF ORGANIZATIONAL DESIGN. 4. COMPARATIVELY HIGH COMPENSATION CONTINGENT ON ORGANIZATIONAL PERFORMANCE. 5. EXTENSIVE TRAINING. 6. REDUCED STATUS DISTINCTIONS AND BARRIERS, INCLUDING DRESS, LANGUAGE, OFFICE ARRANGEMENTS, AND WAGE DIFFERENCES ACROSS LEVELS. 7. EXTENSIVE SHARING OF FINANCIAL AND PERFROMANCE INFORMATION THROUGHOUT THE ORGANIZATION. AND THE APPLICATION OF 'LEAN MANUFACTURING' OR EQUIVALENT TOLLS AND TECHNIQUES THE REPORT: In most applications, one report on the entire surveyed population suffices. We provide the management perspective and then compare and contrast it to that of the frontline staff. In large organizations we find ourselves issuing multiple reports. Often we are asked for a report for each organizational unit. The contents of a typical 15 to 20 page report would be.. EXECUTIVE SUMMARY: The Executive Summary highlights the findings and usually includes recommendations for action on top priority issues. FULL DATA SUMMARY: We provide all of the data in tables with distributions, means, standard deviations etc. and can supply the raw data so that the client can do further analysis. CLUSTER REPORTS: For each of the components of the high performing workplace, an analysis is provided along with suggestions for action if required. THE OUTCOME: Out of the survey process comes a preliminary change agenda that targets the high priority issues. The agenda is tested with the client and adjusted based on feedback. Then we sometimes help implement because the barriers to change are formidable in most organizations. Pfeffer suggest that among the many barriers are the focus on finance and market strategy often at the expense of human resources; the CEO as "tough guy" mythology; the power and political barriers presented by middle managers who are most likley to feel like "losers" in the empowerment game; and the relatively lower status of Human Resource executives (often the change advocates) in the typical North American hierarchy. THE PACKAGE: You can purchase a complete High Performance Workplace Diagnosis package on our Shopping Page and you can even fill in the questionnaires OnLine once you have a password. You will find a trial version of the OnLine Diagnostic Questionnaire if you follow this link. |
HIGH PERFORMANCE WORKPLACES |
Sequus International Management: Consulting Education Development |
THE RESEARCH: In the 25th Anniversary edition of Organization Dynamics (Summer 96) Jeffrey Pfeffer asks, "Why do smart organizations occasionally do dumb things?" In his article he says that we have known what makes for high performance work systems for a long time, yet far too few organizations have adopted these practises. The recent research that he quotes is overwhelming in documenting how a set of practices with a long history of success produces dramatic performance differences in industry after industry. Those practices include flexible or lean manufacturing methods coupled with high commitment human resource approaches such as performance-based compensation; highly selective recruitment; substantial investment in training; employee involvement in decision-making; high pay; work system re-design; employment security; information sharing; team-based structures; and reduced use of hierarchical, 'command and control' style management. Pfeffer's new book, "The Human Equation: Building Profits by Putting People First" expands on these themes. He provides more details on the research behind his conclusions; helps us look at ways of moving towards 'high performance' and also provides some insights as to why these widely-known keys to success have not been so widely put into practice. THE PRE-CONDITIONS: According to Pfeffer, these new Human resource Strategies are most likely to impact economic performance when three pre-conditions are met... FRONTLINE EMPLOYEES POSSESS KNOWLEDGE AND SKILLS THAT MANAGERS LACK EMPLOYEES ARE MOTIVATED TO APPLY THEIR SKILLS AND KNOWLEDGE THROUGH DISCRETIONARY EFFORT, and THE FIRM'S BUSINESS OR PRODUCTION STRATEGY CAN ONLY BE FULLY ACHIEVED WHEN EMPLOYEES CONTRIBUTE THAT DISCRETIONARY EFFORT. Another way to look at this is through the "High Performance Chain" developed below... TEN STRATEGIES FOR DOING WHAT WE KNOW WILL WORK: Pfeffer offers ten suggestions as to how we might get on with doing things that will help transform your organization into a 'high performance workplace'. 1. VISIT OTHER ORGANIZATIONS THAT ARE DOING SOMETHING DIFFERENT 2. USE SOME HARD DATA TO HIGHLIGHT THE GAPS BETWEEN 'WHAT IS' AND 'WHAT COULD BE' 3. CHANGE THE STRUCTURE FIRST 4. CHANGE THE PHYSICAL WORKPLACE 5. CHANGE THE PRODUCTION SYSTEM 6. RE-ALIGN THE REWARD SYSTEM 7. DO SOMETHING THAT WILL PRODUCE IMMEDIATE RESULTS 8. FIND YOUR UNIQUE COMPETITIVE ADVANTAGE 9. CHANGE WHO SUCCEEDS AND WHO DOESN'T 10. GO FOR THE LONG TERM In the interest of helping organizations develop some 'hard data' to highlight the gaps between 'what is' and 'what could be', we have developed the HIGH PERFORMANCE WORKPLACE diagnostic instruments. THE MANAGEMENT QUESTIONNAIRE: This link will take you to a trial version of the Management questionnaire. This questionnaire collects information from the executive level of the organization. First we are looking to see whether or not the pre-conditions for a 'high performance workplace' exist and if so, to what extent. Then we ask respondents to rate several items. For each item in the questionnaire we ask two questions, 1. how important is the item to organizational success, and 2. how well does the organization perform on the item. To access a full version of the questionnaire, you will need a password. Visit our shopping page to find out how to get one. THE FRONTLINE STAFF QUESTIONNAIRE: The second questionnaire collects information from the frontline of the organization. We gather their perspective on whether or not the pre-conditions for a 'high performance workplace' exist and if so, to what extent. Then we ask these respondents to assess the same items that management rates. For each item in the questionnaire we again ask two questions, 1. how important is the item to organizational success, and 2. how well does the organization perform on the item. To access a full version of the questionnaire, you will need a password. Visit our shopping page to find out how to get one. THE ANALYSIS: The data is first analysed in the usual way including a distribution of the results over the rating scales along with means and standard deviations. A scoring system separates the trivial from the critcal. A 'clustering system' groups items into the seven practices that Pfeffer and others have associated with long term economic success including.. 1. EMPLOYMENT SECURITY 2. SELECTIVE HIRING OF NEW PERSONNEL 3. SELF-MANAGED TEAMS AND DECENTRALIZATION OF DECISION MAKING AS THE BASIC PRINCIPLES OF ORGANIZATIONAL DESIGN. 4. COMPARATIVELY HIGH COMPENSATION CONTINGENT ON ORGANIZATIONAL PERFORMANCE. 5. EXTENSIVE TRAINING. 6. REDUCED STATUS DISTINCTIONS AND BARRIERS, INCLUDING DRESS, LANGUAGE, OFFICE ARRANGEMENTS, AND WAGE DIFFERENCES ACROSS LEVELS. 7. EXTENSIVE SHARING OF FINANCIAL AND PERFROMANCE INFORMATION THROUGHOUT THE ORGANIZATION. AND THE APPLICATION OF 'LEAN MANUFACTURING' OR EQUIVALENT TOLLS AND TECHNIQUES THE REPORT: In most applications, one report on the entire surveyed population suffices. We provide the management perspective and then compare and contrast it to that of the frontline staff. In large organizations we find ourselves issuing multiple reports. Often we are asked for a report for each organizational unit. The contents of a typical 15 to 20 page report would be.. EXECUTIVE SUMMARY: The Executive Summary highlights the findings and usually includes recommendations for action on top priority issues. FULL DATA SUMMARY: We provide all of the data in tables with distributions, means, standard deviations etc. and can supply the raw data so that the client can do further analysis. CLUSTER REPORTS: For each of the components of the high performing workplace, an analysis is provided along with suggestions for action if required. THE OUTCOME: Out of the survey process comes a preliminary change agenda that targets the high priority issues. The agenda is tested with the client and adjusted based on feedback. Then we sometimes help implement because the barriers to change are formidable in most organizations. Pfeffer suggest that among the many barriers are the focus on finance and market strategy often at the expense of human resources; the CEO as "tough guy" mythology; the power and political barriers presented by middle managers who are most likley to feel like "losers" in the empowerment game; and the relatively lower status of Human Resource executives (often the change advocates) in the typical North American hierarchy. THE PACKAGE: You can purchase a complete High Performance Workplace Diagnosis package on our Shopping Page and you can even fill in the questionnaires OnLine once you have a password. You will find a trial version of the OnLine Diagnostic Questionnaire if you follow this link. |
