hpo organisational behavior

Organizational Behaviour Organizational Behaviour Canadian Edition Canadian Edition

Schermerhorn, Hunt, Osborn, CurrieSchermerhorn, Hunt, Osborn, Currie

Prepared by: Joan CondiePrepared by: Joan Condie

Chapter 2 Chapter 2

The High-Performance The High-Performance OrganizationOrganization

Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd.

QuestionsQuestions

What is the high-performance context of What 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 organizations How do high-performance organizations

operate?operate?


High-Performance Context of High-Performance Context of Organizational BehaviourOrganizational Behaviour

Changing customer expectationsChanging customer expectations Competitive environment and demand for high Competitive 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



Changing workforce:Changing workforce: Greater diversityGreater diversity – – more women, more visible more 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 a challenging 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 skills in a knowledge-driven economy, lack of basic skills means need for expensive remedial trainingmeans need for expensive remedial training



Changing Organizations:Changing Organizations: Constant change Constant change – – sometimes deliberately sometimes deliberately

pursued through process re-engineeringpursued through process re-engineering Expanding use of information Expanding use of information

technology technology – – electronic commerceelectronic commerce Movement towards a free-agent economy Movement towards a free-agent economy – –

individuals contract their services to a changing individuals contract their services to a changing mix of employersmix of employers

• Concept of Concept of shamrock organizationsshamrock organizations – three leaves – three leaves comprised of core full-time workers, outside comprised of core full-time workers, outside contractors, and part-time workers as neededcontractors, and part-time workers as needed


What Is a High-Performance Organization What Is a High-Performance Organization (HPO)? – Five Key Components(HPO)? – Five Key Components

1.1. Employee involvement Employee involvement

2.2. Self-directing work teams Self-directing work teams

3.3. Integrated production Integrated production technologies technologies

4.4. Organizational learningOrganizational learning

5.5. Total quality managementTotal quality management


Key Components of HPOsKey Components of HPOs

1.1. Employee involvementEmployee involvement Decision making by employees enhances Decision making by employees enhances

productivity and satisfactionproductivity and satisfaction Traditional organizations have low involvement Traditional organizations have low involvement

(people just do their jobs); HPOs have (people just do their jobs); HPOs have involvement through participative management involvement through participative management (where workers have responsibilities for day-(where workers have responsibilities for day-to-day decisions) or empowerment, where to-day decisions) or empowerment, where workers make many decisions affecting them workers make many decisions affecting them and their workand their work



2.2. Self-directing work teamsSelf-directing work teams Empowered to plan, do, and evaluate their Empowered to plan, do, and evaluate their

own workown work Useful in downsized entity with fewer Useful in downsized entity with fewer

managers; enhances satisfaction and utilizes managers; enhances satisfaction and utilizes employee expertiseemployee expertise



3.3. Integrated production technologiesIntegrated production technologies Use of technology to make manufacturing and Use 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 are Job design and information systems are includedincluded



4.4. Organizational learningOrganizational learning Gather information to anticipate change and Gather information to anticipate change and

prepare for adaptation prepare for adaptation Information put into the organization’s memory Information put into the organization’s memory

to use in future situationsto use in future situations Share information across functionsShare information across functions



5.5. Total quality managementTotal quality management Commitment to high quality results, continuous Commitment to high quality results, continuous

improvement, meeting customer needsimprovement, meeting customer needs


Management Challenges of Management 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 redesigns versus redesigns


Challenge 1: Environmental LinkagesChallenge 1: Environmental Linkages

HPO is an open system, influenced by external HPO is an open system, influenced by external environment and influencing it in turnenvironment and influencing it in turn Need to keep Need to keep tuned in to changestuned in to changes in environment, e.g., in environment, e.g.,

changing customer expectationschanging customer expectations Need to Need to develop missions or visionsdevelop missions or visions that focus all that focus all

energies on how the organization addresses its inputs energies 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 acceptance employees in vision directing is crucial for acceptance

Need to be aware that outputs include not only the Need to be aware that outputs include not only the product or service provided, but also product or service provided, but also impact on quality of impact on quality of lifelife of organizational members, impact on society of organizational members, impact on society through activitiesthrough activities


Challenge 2: Internal IntegrationChallenge 2: Internal Integration

Smooth integration of all five components needed Smooth integration of all five components needed yet not easyyet not easy E.g., self-directed teams using production E.g., self-directed teams using production

technology, involved in decision making but also technology, involved in decision making but also working with others above and below, also involved working with others above and below, also involved in the decisions relevant to them, tracking in the decisions relevant to them, tracking appropriate info for organizational learning and appropriate info for organizational learning and maintaining focus on high qualitymaintaining focus on high quality

HPO may be an island within a larger, more HPO may be an island within a larger, more traditional organization that may even oppose ittraditional organization that may even oppose it


Challenge 3: Middle Manager RolesChallenge 3: Middle Manager Roles

Implementing the HPO components can bring Implementing the HPO components can bring challenges that must be addressed by middle challenges 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 and uncomfortable 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 with management (TQM) focus on quality may conflict with demands from involved employees to address other demands from involved employees to address other aspects of concern)aspects of concern)


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 practices Trying to extend North American business practices internationally internationally Self-directing teams and employee involvement won’t be Self-directing teams and employee involvement won’t be

adopted easily in countries where status, power, and adopted 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, whose Training & development of middle managers, whose

roles are drastically changing and who may resistroles are drastically changing and who may resist


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 more Less success than greenfield sites but more

successful than unchanged traditional successful than unchanged traditional organizationsorganizations

Why would it be easier to create a successful Why would it be easier to create a successful organization on a greenfield site than through organization on a greenfield site than through transforming an already-existing organization?transforming an already-existing organization?


WestJet Airlines: An HPO ExampleWestJet Airlines: An HPO Example

Employee involvement Employee 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 to information 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

TQM TQM – “WestJet Spirit” comprised of strong work ethic, – “WestJet Spirit” comprised of strong work ethic, strong desire for quality work, desire to go beyond the strong 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”


WestJet Airlines: An HPO ExampleWestJet Airlines: An HPO Example

Other HPO aspectsOther HPO aspects Has Has 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 through through

emphasis on “WestJet Spirit”, values of hard emphasis on “WestJet Spirit”, values of hard work and funwork and fun

Profit-sharing; over 80% of employees are Profit-sharing; over 80% of employees are shareholders; these shareholders; 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

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hpo organisational behavior

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