Suggestions for Making Worker Participation More Affective in an It Industry by emw17476

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									                          OS 352
                          4/22/08

I.     Reminders. Read Hammonds and Combs et al. articles for
       Thurs. There will be a check of articles so please bring them
       to class.

II.    Exam III is on Monday, 4/28, 11:45-2:45pm, in Science
       Center 362. No baseball caps. 4/28 Office Hours: 9am-11am,
       my office.

III.   Exam III format.

IV.    Mohler article on workplace safety.

V.     High performance work systems.

VI.    HR metrics and scorecards.
                   Exam III
   40 points multiple choice
    questions
   30 points true / false questions
   10 points: Choose 2 / 4
    Identifications
   20 points: Choose 1 of 2 essays
       “When Salaries Aren’t Secret” and
        HR Metrics or
       Employee benefits and labor
        relations
 High Performance Work Systems


   The right combination of people,
   technology and organizational
   structure that makes full use of the
   organization’s resources and
   opportunities in achieving its goals.


Task design, reward systems,
information systems
       HR-Related Conditions for
          High Performance

   Teams perform work.
   Ee participation in staffing and work
    design.
   Formal performance mgt process.
   Rewards related to performance.
   Work design is motivational.
   Ethical behavior is encouraged.
             What is it that coaxes
          the value out of the system?

   Sound business
    strategy
   Strong firm culture   Very difficult to
   Trust between
    workers and
                          achieve!
    management
   Relational
    psychological
    contracts
Scorecard …
   Concise description and summary of
    firm performance by particular
    categories
   Metrics: measurements that
    summarize organizational
    performance in a particular
    performance category.
   Used to aid in firm communication
    and managerial decision-making
     Balanced Scorecard
Management tool/system/metric to measure
outcomes and indicate what efforts need to be
directed at long-term goals.

Intended for:
  Linking strategy to stakeholder interests
  Directing senior manager efforts at long-term
   goals
  Business process improvement
  Augmenting the information infrastructure
     Balanced Scorecard


Four categories:

   Customer satisfaction
   Innovation / new products
   Internal / organization
   Financials
Balanced Scorecard Categories

 Internal / organization
      Employee capabilities and performance
      Information system capabilities
      Ee satisfaction
      Empowerment and alignment

      Pay and other attitudinal data
Balanced Scorecard Categories


Customer satisfaction
      Satisfaction
      Retention
      Market and account shares
Balanced Scorecard Categories


  Innovation / new products
       Quality
       Response time
       Cost
       New product introductions
Balanced Scorecard Categories


 Internal / organization
      Employee capabilities and performance
      Information system capabilities
      Ee satisfaction
      Empowerment and alignment

      Pay and other attitudinal data
Balanced Scorecard Categories


 Financials
  Return on equity
  Return on investment

  Other accounting ratios

  Economic value added
            HRM Audit

A formal review of …
   HR processes.
   The outcomes of HR functions.

based on identifying key HRM
functions and measures of
business performance.
     Why Measure People
         Outcomes?

   Prestige / role of HR in firms
   Document HR’s potential to
    control costs and add value to firm.
   Downsizing / outsourcing / lean staffing
   Continuous improvement.
   Firms are relying on intangible,
    knowledge-based assets (i.e., human
    resources) as sources of competitive
    advantage.
             HR Scorecard

   Same concept as the Balanced
    Scorecard, but focused on people-
    related outcomes.
   Scorecard information could be
    aggregated and used as one
    component of the Balanced
    Scorecard.
    HR Scorecard Relevant to …

HR Professionals: HR Scorecard written to
this audience primarily.

Managers: So they will know to request and
expect this outcome and process data from
their HR professionals.

Employees: As a means to focus their
behaviors and development in strategic
ways.
               Continuum of Criteria for
              Evaluating HR Effectiveness

Cost       Resources utilized
           Skills or behavior or competencies
           Affective reaction of ees to HR program
           Results: effect on company performance
Value      Results: return on firm investment
         HR Scorecard Tips
       (from HR Scorecard & Dr. Graham)



   The firm’s goals and strategies should guide
    the HR Scorecard (HRS) Development
   Most HRS measures should focus on value
    creation. Some HRS measures should focus
    on cost control.
   Focus on measures of “deliverables.”
   Include at least one HR “high performance
    work system” (i.e., best practices) measure.
   Include at least one “HR system alignment”
    measure (see ch. 6, HR Scorecard).
   Focus on the “vital few” indicators: No more
    than 25 measures in your HRS.
           HR Scorecard Tips
               (from Dr. Graham)




   Be as specific as possible on the measures. For example,
    “% of workers submitting at least one suggestion this
    year” is better than “suggestion system utilization”
   Include a general description of how the measure should
    be evaluated. For example, are worker suggestions
    assessed versus a goal (i.e., 85%), prior year
    achievement, industry standards, etc.?
   The justification of your scorecard criteria can rely upon
    firm goals and strategy, anticipated future challenges,
    current problems, as well as practical reasons such as
    ease of communication to employees. Justifications can
    also be strengthened by highlighting advantages of your
    criteria over potential alternatives.
  Before HR Metrics …

HR professionals often operated
independently of the business
strategy.

Management asked HR professionals
to focus almost solely on cost-cutting.

There was little hard data for
continuous improvement processes.
                 Your Turn:
       Create Part of an HR Scorecard

1. Suggest 3 specific measures for your category that would
    be most useful to managers.
2. Recommend how the data will be collected for each
    measure.
3. Your group will be assigned one of the following categories:
       Ee recruiting, selection, and retention.
       Training and development investments.
       Compensation and performance management.

4. I will collect one assignment per group.
    Terms You Should Know

 High performance work system
 Balanced scorecard

 HR scorecard

 HRM audit
        You Should be Able To …

   Discuss why HR metrics are helpful to
    people management.

   Outline and suggest metrics for an
    HR scorecard.

								
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