Competitiveness and Performance Management

1
Competitiveness and Performance Management

• Note 3 ways to look at work
• Industrial Engineering
• Human Resource Management
• Human Relations

2
Industrial Engineering Approach

• person-machine production unit
• Emphasize efficiency
• Roots in F.W. Taylors Scientific Management
• Study job, seek the one best way to do it
• Train employees in the new best way
• Share productivity gains among shareholders

3
Industrial Engineering

• Very effective
• Can be taken to extreme
• Some forgot about gainsharing among all
  stakeholders
• Modern fields of human factors psychology and
  industrial engineering
• Main theme approach to performance appraisal

4
Human Resource Management Approach

• Match People to Job Demands and Job Demands to
  People
• Design work, hire for skills, train to close gaps
• Performance appraisal compares job description to
  actual performance

5
Human Relations Approach

• Examine the psychological aspects of work, how
  people can sustain themselves and have high
  quality work life
• Roots in Hawthorne Studies
• Hackman and Oldhams Job Characteristics Model
• Emphasis on positive employee reactions, rather
  than efficiency
• Success determined by satisfied and motivated
  work force

6
Hackman and Oldham Model

• Core Job Characteristics 5 factors
• Summarized as job complexity
• Internal Psychological States 3 factors
• Individual/Organizational Outcomes -several
• Growth Need Strength as moderating variable
• Mixed success naive treatment of responsibility
  (a good by itself in this model versus something
  you get paid more for in reality)

7
Integration

• The Socio-technical Systems Model
• Focus both on task and person doing work
• Balance efficiency and psychological needs
• Note role of performance management cycle to
  ensure task and person are both working out
• Very effective

8
Miscellaneous

• Quality Circles
• Process Re-engineering
• Gain-sharing, ESOPs, etc.
• PDM participation in decision making
• Ed Lockes research summary

9
Lockes conclusions

• Comparing goal-setting, financial incentives,
  PDM, and job redesign and simplifying a lot
• Goal-setting and financial incentives will
  improve individual, group performance
• PDM and job redesign will improve individual
  morale, retention