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Human Resources Management_High Performance Work System

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xuefang yang

on 30 May 2013

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Transcript of Human Resources Management_High Performance Work System

Case Study of Google High Performance Work System Take Google as an example High Performance Work System HPWS Outcomes firms should pay more attention to the technological intensity of the industry than to production technology when managing their human resources. Specifically, more emphasis on HPWS appears to be more effective in high-technology industries than in mid-tech, and particularly in low-tech ones.(Martin Larraza Kintana2008) Introduction of HPWS
Google implication
Ability
Motivation
Environment
Summary Introduction of HPWS A specific combination of HR practices, work structures, and processes that maximizes employee knowledge, skill, commitment, flexibility and resilience of employees.(Bohlander.Snell2011)
Human resource practices that SHRM (strategic human resource management) theorists consider performance enhancing are known as high-performance work practices (HPWPs). (RIKI TAKEUCHI,2009) 2012 Revenues of $37.9 B ; Profits of 9.7 B Google general information 20% of work time dedicated to ideas/projects Why Google? Increase HPWS from ability side Factors that affect an Employee`s performance How is that in Google? Employee Selection Google’s Training Program-GoogleEDU Motivation Techniques for Motivating Employees Employee Empowerment Granting Employees Power to initiate change, thereby encouraging them to take charge of what they do. (Bohlander and Snell, 2013, p. 160)
Managers should empower employees in the following ways:
Encourage participation
Allow for Innovation
Provide access to information
Let employees be accountable for their actions
Example- Google’s weekly all-hands meetings, where employees ask questions directly to the company’s top leaders and other execs about any number of company issues. (He, 2013) Elements of a High-Performance Work System Google general information Rank 73 on Fortune 500 Founded in 1997 620 M daily visitors to Google.com Approx 20k employees No.1 on Fortune’s “100 Best Companies to Work For” Rec’d 75k application in 1 week Avg of 3k applications/day All Resumes are looked at by human person PROFITABLE

INNOVATIVE

MOTIVATED

HAPPY

SUCCESSFUL Ability
Technical skills
Interpersonal skills
Problem-solving skills
Analytical skills
Communication skills
Physical limitations Why ability is important? Hiring the right employees to get the job done is a crucial component of success at any company. At a young company, however, hiring the right employees can make or break your business venture. HPWS----Ability High-performance work systems (HPWS) are suggested as a set of best practices, with the potential to boost firm performance by developing a more talented and committed workforce. (Becker). That is, HPWS represent the investment in human capital that, according to Snell and Dean (1992), can enhance employees’ contribution to the firm. A more skilled and knowledgeable employee is necessary to take advantage of the initial increase in productivity. How to make sure that our employees are skilled and knowledgeable?
With achieving high performance of an employee, the fundamental thing is an employee`s ability.
So the first step of achieving HPWS is to choosing right employees and training and develop them. Employee selection
This would include methods of recruitment and selection for various categories of employees. These might be differentiated as internal and external methods of recruitment, use of consultants and assessment centers etc. Recruitment practices are an important component of HPWS (Guthrie, 2001). The HRM literature recognizes that culture could influence the purpose, criteria and other aspects of recruitment and selection process (Aycan, 2003).

Training and development
Extensive training & development has been identified as a core component of high commitment work practices (Pfeffer, 1998). However, this HR practice encompasses a wide array of activities such as training needs assessment, purpose and importance of training, training methods etc. This would also include career management practices such as use of formal career plans and succession plans. Traditional Measure
Academic achievements and previous job titles and experience
For example, an engineer had to have made it through school with a 3.7 grade-point average. Such criteria helped the company find a manageable number of applicants to interview, but no one had really considered whether they were the most valid way to predict success at the company. New Measure
certain personality or behavior characteristics
leadership abilities, innovation, or creativity (through survey questions)
First, it set out to measure which selection criteria were important .It did this by conducting a survey of employees who had been with Google for at least five months. These questions addressed a wide variety of characteristics, such as areas of technical expertise, workplace behavior, personality, and even some non-work habits that might uncover something important about candidates. The results of the survey were compared with measures of successful performance . http://online.wsj.com/article/SB10001424052702303410404577466852658514144.html
Google offered more classes to more employees, with about a third of its 33,100-strong global workforce going through the in-house program. It cut classes that didn't work and retooled others. "What's important is that it aligns with our overall business strategy," says Karen May, Google's vice president of leadership and talent, who has led the revamping of GoogleEDU.
Google uses statistics gathered from current and former employees to recommend certain courses to managers at different points in their career, say after a move to a new city or joining a new team. Job Enlargement- Adding a variety of tasks to a job
Job Rotation- Performing different jobs
Job Enrichment- Adding more meaningful tasks and duties to make the work more rewarding or satisfying (Bohlander and Snell, 2013, p. 159) Instead of asking how can I motivate, ask how can we create conditions to motivate ourselves… Become a values driven organization Create a safe environment Encourage everyone to do their best (Strickler, 2006, p.28) Compensation Flexible Work Schedules Benefits “We want to make your life better and easier” –Google Google Benefits- Work/Life Balance Motivating Healthy Behavior Among Employees Environment Environment geist Survey on Environment Culture HPWS + Culture ? Improved Culture s “think-out-loud” culture 3 major characteristics : Policy Change with respect to ongoing cultural and societal changes

Built on key business processes
Allow flexibility and freedom necessary
for efficient application of HPWS

Align resources and knowledge for productivity Being recognized for the amount of work that is done
Defines what an individual is worth
When employees feel they are well compensated, they are more productive and motivated at work
Bonuses
Google employees get paid 12% more above the average as compared to their competitors (“Salary for Google, Inc.”, 2013) Higher productivity and morale
This will allow companies to attract and retain employees
-Flexible work hours
-More hours worked in one day
-2 workers doing one job
-Telecommuting- using technology to do work
at home (Bohlander and Snell, 2013, p. 165-169) Companies may provide benefits such as a retirement plans, health insurance, paid holidays and life insurance. Google provides these benefits however the exceed the expectations of what employee would want. Creative work areas
Play areas to help creative thought
Outdoor fitness area
Indoor recreation
Generous amount of leave for new parents -- 18 weeks for moms, 12 weeks for dads
On-site physicians and nurses
Covered travel insurance and emergency insurance
On-site child daycare
Discounted legal advice
Onsite laundry and dry cleaning
Free gourmet food Higher medical expenses for employees ultimately mean, higher health insurance premiums for employees and the firm Studies have shown that obese individuals are more likely to be absent from work and can decrease productivity Firms create health programs to motivate employees to manager their own health. (Finkelstein and Kosa, 2003, p. 51) (Kuang, 2012) Work Conditions LIFE @ “..high salaries, generous benefits, meals, job flexibility” References References Provides a productive atmosphere
Lays foundation for implementing HPWS increases productivity participation innovation supports employee empowerment
everyone’s goals
communication innovative
fun
relaxed atmosphere
creative environment
increasing participation
freedom Managers ask for continuous feedback main job is to support employees building fun team of superstars Employees’ perception personality vision, norms, values
habits
social glue employee relations inclusiveness
power distance diversity
innovation HPWS + Culture ? egalitarianism

engagement

shared information

knowledge development

collaboration Company culture with such characteristics lay foundation for implementing HPWS and creates a harmonious working environment. Improves practices and outcomes of implemented HPWS I – aspire to innovate II - minimize HR infrastructure (direct)
III – future oriented Collaboration Participation & Freedom “..we are so close to each of the functions that we understand their work” “ If you give them freedom and respect, they will amaze you. There are so many missed opportunities at so many companies because managers over-manage and people are limited in what they are allowed to do… “ Constant flow of information “ Come up with a better approach if you can.. “ backed by minimal power distance innovation
wealth of information
freedom
technology An ever-evolving part of the business environment that derived from certain core characteristics such as freedom and participation.
One of the many rings within the chain that support HPWS and let it evolve with ongoing changes. Employees do not need to switch to “corporate mode”: “Laissez – faire “ understanding improved productivity & innovation Tech Ex: compensation policy HPWS transparency accessibility for shareholders
employees
managers Data driven
decision making knowledgeshared information
collaborationenengagement Applicable policies
for everyone Aimed to strengthen Must comply with law be consistent and adequate for nature of work Support
each other Characteristics that are shaped by
culture and policies.
support and embed the employees within the company’s environment . Employee productivity depends on Work Conditions
Nature of the Work Conditions is a key for implementation of HPWS
Defines the flexibility offered to employees Must be encouraging & empowering & socially binding inclusive & harmonious & satisfying the needs have positive influence over employees Work Conditions Policy Work Conditions Culture References 1.High Performance Work system,Retrieved 2011, from
Managing Human Resources 15th, Bohlander.Snell. THROUGH THE LOOKING GLASS OF A SOCIAL SYSTEM:

2.CROSS-LEVEL EFFECTS OF HIGH-PERFORMANCE WORK SYSTEMS ON EMPLOYEES’ ATTITUDESRetrieved 2009,from
PERSONNEL PSYCHOLOGY, RIKI TAKEUCHI,2009, 62, High-performance work systems and

3.firms’operational performance: the moderating role of technology ,
Retrieved from 2008, Human Resource Management 17:1 January 2008 70 – 85, Martin Larraza Kintana , Ainhoa Urtasun Alonso and Carmen Garcı´a Olaverri 4.Google - Best Companies to Work For 2012 - Fortune. (2012). Retrieved April 24, 2013, from http://money.cnn.com/magazines/fortune/best-companies/2012/snapshots/1.html

5.Google. (n.d.). Retrieved April 24, 2013, from http://google.com

6.Johnson Mandell, L. (2011, February 4). 75,000 Apply for 6,000 Google Jobs -- in One Week - Careers Articles. Retrieved April 30, 2013, from http://jobs.aol.com/articles/2011/02/04/75000-apply-for-6000-google-jobs-in-one-week/

7.Petrecca, L. (2010, May 18). With 3,000 job applications a day, Google can be picky - USATODAY.com. Retrieved April 25, 2013, from http://usatoday30.usatoday.com/money/workplace/2010-05-19-jobs19_VA_N.htm

8.Patel, P. C. (2010). Perceived Labor Productivity in Small Firms - The Effects of High Performance Work Systems and Group Culture Through Employee Retention. ET&P, 207.

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10.University of West Georgia, Distance Education Center. (2010). High Performance Work Systems for Online Education. Online Journal of Distance Learning Administration, Volume XIII. Retrieved from University of West Georgia. 11.Becker, B.E. and Huselid, M.A. (1998) ‘High Performance Work Systems and Firm Performance: A Synthesis of Research and Managerial Implications’. In Ferris, G.R. (ed.) Research in Personnel and Human Resources Management. Stamford, CT: JAI Press, Vol. 16, pp. 53–101.

12. Snell, S.A. and Dean, J.W. Jr (1992) ‘Integrated Manufacturing and Human Resource Management: A Human Capital Perspective’, Academy of Management Journal, 35: 467–504.

13. Aycan, Z. (2003). Human resource management in cultural context (7th International Human Resource Management Conference). Limerick.

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15. Walker, J. (n.d.). Retrieved from http://online.wsj.com/article/SB10001424052702303410404577466852658514144.html

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17.Hansell, S.Retrieved from http://www.nytimes.com/2007/01/03/technology/03google.html?pagewanted=all&_r=0

18.Pfeffer, J. (1998). Seven practices of successful organisations. California Management Review, 40(2), 96. 19.Bohlander, G. & Snell, S. (Eds.). (2013). Managing Human Resources. Mason, OH: South-Western, Cengage Learning

20.Finkelstein, E.A. & Kosa, K.M. (2003). Use of Incentives to Motivate Healthy Behaviors among Employees. Gender Issues, 21, 51.

21.Strickler, J. (2006). What Really Motivates People?. The Journal For Quality & Participation, 29, 28.

22.Kuang, C. (2012). The Google Diet. Fast Company, 164, 48.

23.He, L. (2013). Google's Secrets Of Innovation: Empowering Its Employees. Forbes. Retrieved from http://www.forbes.com/sites/laurahe/2013/03/29/googles-secrets-of-innovation-empowering-its-employees/

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