MGT 3231 The High Performance Organization Contingency approach to OB??? What do successful...
-
Upload
clifford-floyd -
Category
Documents
-
view
221 -
download
0
Transcript of MGT 3231 The High Performance Organization Contingency approach to OB??? What do successful...
MGT 323 1
The High Performance Organization
Contingency approach to OB???What do successful organizations have in
common? Careful with “best practices” and
“benchmarking.”
MGT 323 2
External Environment and OB: Performance Context
Economic and social conditions: Changing customer expectations– Total Quality Management (TQM).
• Meeting customer needs.• Doing tasks right the first time.
– Continuous improvement.• Is this necessary?• If so, can it be done better?
MGT 323 3
Customers and Employees .. Most important
– Upside-down pyramid view of organizations.• Customers and clients at the top of organization.• Workers directly affect customers and clients.• Team leaders and middle managers directly
support the workers.• Top managers clarify the mission and objectives,
set strategies, and make adequate resources available.
MGT 323 4
What is a high performance organization?
High performance organizations (HPOs).
– HPOs intentionally designed to:
• Bring out the best in people.
• Produce organizational capability that delivers
sustainable organizational results.
– HPOs place people first. Knowledge based
economy
MGT 323 5
What is a high performance organization?
Emphasis on intellectual capital.
– Intellectual capital is the foundation for HPOs.
– To utilize intellectual capital, HPOs often
organize work-flow around key business
processes and use work teams within these
processes.
MGT 323 6
What is a high performance organization?
Key components utilized in HPOs.– Employee involvement.
– Self-directing work teams.
– Integrated production technologies.
– Organizational learning.
– Total quality management.
MGT 323 7
What is a high performance organization?
Employee involvement.– The amount of decision making delegated to
workers at all levels.– Employment involvement can be visualized on
a continuum.• No involvement or parallel involvement.• Moderate involvement or participative
management.• High involvement or employee empowerment.
MGT 323 8
What is a high performance organization?
Self-directing work teams.– Empowered to make decisions about planning,
doing, and evaluating their work.– Sometimes called self-managing or self-
leading work teams.– Important in HPOs due to:
• Need to tap employees’ expertise and knowledge.• Need for employees to manage themselves.
MGT 323 9
What is a high performance organization?
Integrated production technologies.– Focus on providing flexibility in
manufacturing and services and involves job design and information technology.
– Key components:• Just-in-time systems.
• Use of computers.
MGT 323 10
What is a high performance organization?
Organizational learning.
– A way for organizations to adapt to their
settings and to gather information to anticipate
future changes.
– HPOs are designed for organizational
learning.
MGT 323 11
What is a high performance organization?
Total quality management (TQM).– A total commitment to:
• High-quality results.• Continuous improvement.• Meeting customer needs.
– TQM is a a tightly integrated part of HPOs.• Encourages all workers to do their own quality
planning and checking.
MGT 323 12
What are the management challenges of high performance organizations?
Challenges of environmental linkages.– HPOs are open systems influenced by a
rapidly moving external environment.– Open systems components.
• Inputs: worksite problems and opportunities, and vision, mission, and strategy.
• Transformation processes: five HPO components.
• Outputs: individual, group, and organizational effectiveness, and contributions.
MGT 323 13
How do high performance organizations operate?
Southwest Airlines as an HPO.– HPO component: employee involvement.
• Flat and lean hierarchy.• Heavy team emphasis throughout organization.• Paper work minimized.• Rapid decision making emphasized.• People were empowered to do “whatever it takes”
to get the job done.
MGT 323 14
How do high performance organizations operate?
Southwest Airlines as an HPO.
– HPO component: self-directing work teams.
• Longer term service teams.
• Ad hoc teams for given projects or duties.
• Culture promotes cooperative activities.
MGT 323 15
How do high performance organizations operate?
Southwest Airlines as an HPO.
– HPO component: integrated production
technologies.
• Integrated use of information technology in
distribution, order entry, crew pairings, dispatching
of flights, revenue management, schedule
planning, and parts replacement.
MGT 323 16
How do high performance organizations operate?
Southwest Airlines as an HPO.– HPO component: organizational learning.
• Deeply rooted in Southwest’s culture.
• Letters and newsletters about company business.
• Managers encourage workers to spend time at jobs other than their own.
• Southwest’s “University for People.”
MGT 323 17
How do high performance organizations operate?
Southwest Airlines as an HPO.– HPO component: total quality management.
• “Southwest Spirit” focusing on a strong work ethic, a strong desire for quality work, going beyond the call of duty, helping others, and doing the “right” thing.
• TQM qualities are reinforced by empowerment, learning, and communications devices.
MGT 323 18
How do high performance organizations operate?
Southwest Airlines as an HPO.– Other HPO considerations: vision/direction
setting package.• “The mission of Southwest Airlines is dedication
to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.”
• Strategic elements in direction setting.• Core values.
MGT 323 19
How do high performance organizations operate?
Southwest Airlines as an HPO.
– Other HPO considerations: the people.
• Attitude reflecting “Southwest Spirit” is a key
hiring requirement.
• Attitude more important than other hiring
qualifications.
MGT 323 20
How do high performance organizations operate?
Southwest Airlines as an HPO.– Other HPO considerations: compensation.
• Flight attendants paid by the trip.• Incentives for employee performance.• Pilots’ salaries are comparable to other airlines but
they fly 40% more hours.• Profit sharing and pension plans.• Usual airline fringe benefits.
MGT 323 21
How do high performance organizations operate?
Southwest Airlines as an HPO.
– Other HPO considerations: dealing with the
environment.
• Southwest flourishes in a deregulated environment.
• Southwest’s HPO attributes serve it well in dealing
with a highly competitive environment.
MGT 323 22
How do high performance organizations operate?
Southwest Airlines as an HPO.– Other HPO considerations: outcomes.
• Highly satisfied employees.• Strong commitment to the company.• Low turnover.• Strong performance on various productivity
measures.• Active in contributing to the communities in which
it operates.