"Manufacturing Employee Performance Reviews"
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)