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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.