Manufacturing Employee Performance Reviews by hlk45534

VIEWS: 72 PAGES: 16

More Info
									Employee Empowerment – the Key to
Improving Performance & Promoting
            Innovation

            Stephen Wood

     The Future of Manufacturing in Ireland
      Conference: the Role of Partnership

  Royal Hospital Kilmainham, 28 June 2007



                                              1
“Progressive & Productive workplaces”
                             (Bertie Ahern TD, 2006)

1.   Profitable, effective, adaptive and proactive
     firms

2.   Innovative culture, and a capable, engaged
     and motivated workforce

3.   High job satisfaction and employee well-
     being



                                                       2
             Nine types of Performance
                 Individual      Team             Organizational
Proficient    Core tasks are     Coordinates      Represents the
              completed          work with the    organization
              properly           team             positively


Adaptive      Adjust to new      Adapts to        Copes with
              equipment or       changes in the   changes in the way
              processes          team e.g.        the organization
                                 mentors new      operates
                                 members
Proactive     Initiates better   Develops new     Makes suggestions
              ways of doing      methods to       that yield
              core tasks         help the team    organization-wide
                                 perform better   improvements

                                                                   3
             Nine types of Performance
                 Individual   Team   Organizational


Proficient


Adaptive


Proactive


                                                  4
                Key Actions

1.   Empowerment
2.   Genuine Teamworking
3.   Training and Development
4.   Managing Role Expectations
5.   Visions and Leadership which connects
     with people’s identities
6.   Operational management methods with
     clear guidelines that foster role clarity



                                                 5
The IWP 22-year Study: Research
           Evidence
   Centred on the 7 most popular practices in our
    earlier studies
   Compares effects of people-oriented practices with
    operational practices
   Data on when practices are introduced
   Matched with 22 years of data on value added per
    employee
   308 UK manufacturing companies
   Respondents were mainly CEOs and HRM Directors
   Each respondent given definition of practice and
    asked if introduced and, if so, in which year
   Focus on % gain in productivity from introduction



                                                         6
       The IWP 22-year study:
            The Practices
HR practices
 Empowerment
 Intensive employee development
 Teamworking
Lean methods
 Total quality management
 Just-in-time
 Supply-chain partnering
 Integrated computer-based technology

                                         7
    The IWP 22-year Study
Individual practice productivity effects




    TW   EMP    TD    TQM    JIT   IT         SCP



                                        *p<.05, **p<.01
                                                          8
         The IWP 22-year study:
              The Results

   Empowerment is the only practice that has
    significant effects on performance in all companies
    – 7% greater levels of performance in companies
    that empower employees
   Intensive training has a significant effect in some
    but not all firms
   Team work has a synergistic relationship with other
    practices.
   The operational (lean) management practices had
    some impact when used in a teamworking
    environment
   Human resource practices that have most impact
    are ones that are the least used, though their use is
    growing
                                                            9
     UK National Study: High Involvement
        Management & Performance

 Enriched jobs have most significant impact on labour
  productivity across the economy
 Teamworking, functional flexibility, training and
  development for employee involvement, and idea
  capturing impacts on productivity but only in combination
  with TQM
 High Involvement Management and unionism not
  antithetical


                                                         10
              HRM in UK Call Centres

 Task discretion is -ly associated with labour turnover

 Task discretion +ly associated with suggestion-making &
     customer satisfaction

 Performance monitoring is +ly related to customer
     satisfaction & absence (bad effect)




                                                           11
  Global Call Centre study: 17 country study

 Task discretion is universally -ly associated with labour
  turnover and labour costs

 Performance monitoring is -ly associated with call
  abandonment rates

 Performance monitoring +ly associated with labour
  turnover




                                                              12
     Why Empowerment is Crucial

1.   Without autonomy, there is no proactivity
2.   Empowerment develops broader horizons
3.   Empowerment maximises on-the-job
     learning
4.   Empowerment inspires confidence and
     high self-esteem
5.   Empowerment increases well-being




                                                 13
 How to Achieve Empowerment &
           Proactivity
1.   Job design
2.   Manage expectations and encourage idea
     generation
3.   Team responsibilities and reward systems
4.   Creativity training and tools
5.   Staff development reviews & performance
     monitoring focussed on the right things
6.   Create a positive non-blame climate
7.   Survey feedback method updated so it is
     focussed on behaviours and orientations
     and not satisfaction
                                                14
Definitions of the management practices used in the IWP
                         study

   Human resources practices

    Empowerment: Passing considerable responsibility for
   operational management to individuals or teams (rather
   than keeping all decision-making at the managerial level)

    Extensive training: Providing a range of development
   opportunities for all employees (rather than training people
   occasionally to meet specific job needs)

    Team-based working: Placing employees into teams
   with their own responsibilities and giving them the freedom
   to allocate work between team members (rather than        15
   having everyone work as individuals)
Definitions of the management practices used in the IWP
                         study
      Operational practices

       Total quality management: Seeking continuous change to improve
      quality and making all staff responsible for the quality of their work.
      (Such practices include Kaizen and Continuous Improvement)

       Just-in-time production: Making products or providing services in
      direct response to internal or external customer demands (rather than
      building in advance to maintain stock levels)

       Advanced manufacturing technology: Linking together computerized
      equipment to enable enhanced integration (such as CADCAM,
      Computer-Integrated Manufacturing and Flexible Manufacturing
      Systems)

       Supply-chain partnering: Developing strategic alliances and long-
      term relationships with suppliers and customers (rather than    16
      negotiating on a short-term basis)

								
To top