High Involvement Management

High Involvement ManagementKyle SchmellaBMBA 515Professor: Nick SearsPacific Lutheran university

Presentation OutlineFamiliarize class with the HIM conceptReal Life Application StatisticsConcerns of High Involvement ManagementDemonstrate how it relates to our learning'sHow you can apply this to your everyday lifeClass discussion / comments / questions

Empowerment Not Micro-Managementhttps://www.youtube.com/watch?v=y4nwoZ02AJMQuestion: So how do we engage and empower our employees to create the most successful opportunities for both the company and the individual to succeed??

Answer = High Involvement Management

Elephant in the Room

High performance Work SystemFour areas that make up high-performance work systems:Enriched jobs Employee voice Motivational support High-involvement management (HIM)

For the basis of this presentation we are going to focus only on high-involvement management.

Multiple IdentitiesWhen discussing HIM it is important to understand that across the world this practice is often commonly referred in 3 ways:High-involvement managementHigh-performance managementHigh-commitment management

What is it?High Involvement Management: Empowering carefully selected and trained individuals to make key organizational decisions on or above their current position level. The practice also places an emphasis on sharing information and providing incentive compensation to its employees based on performance.

Five Key CharacteristicsSelective Hiring Extensive TrainingDecision Power Information Sharing Incentive Compensation

1) Selective Hiring 2) Extensive Training 3) Decision Power 4) Information Sharing 5) Incentive CompensationNOW) Flexible Work Assignments

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So why is it important?As we have discussed throughout the majority our OD class organizations today are rapidly changing.

HIM autonomously incorporates:Organizational developmentChange managementEmployee empowermentMotivate and manage individualsEffective team characteristics

Associated BenefitsKnown to produce:Increased job satisfaction for employees & managersHigher profit margins for the companyIncreased wages for employeesLower employee and customer turnover Increased productivity rates

Selective HiringTwo Step Process:Most fitting applicants Most interested candidates

Prospective employees need to have:Sense of belonging within the organization Share the same ideals as the organization (Googleyness)

Extensive Training

Extensive TrainingTraining is the basis for informed decision making.An organization needs to conduct:Initial trainingOn-line trainingHands on trainingIncorporate ongoing discussions from years of experience of conducting the job Critically important to conduct ongoing training.

Decision PowerDecision Power Will improve:The organizations performanceSelf-Actualization for the employee

Decision PowerDecisions that could be Made: Stopping an operationCapital expendituresDiscipline actions

Process:Individually Group

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Information SharingAllows the associates to understand the direction of where the company is heading in the future and where it currently stands.Customer Reactions ProfitabilityRevenuesCosts

Incentive CompensationEconomic involvement methods of payment:

Individual piece-rate systems (Manufacturing Facility)Individual incentive systems (Sales person)Knowledge or skill-based pay (Lawyer)Profit sharing - (% of profits company makes- Edward Jones) Gain Sharing or Savings Sharing (Manufacturing Company)

Individual piece-rate systems (associates are compensated based on the amount produced or soldIndividual incentive systems (receive bonuses based on short or long term goalsKnowledge or skill-based pay Associates are paid based on the amount of knowledge Profit sharing - (Associates earn bonuses based on company profitsGain Sharing or Savings Sharing (Associates share in a potion of savings generated from employees suggestions for improvement17

Companies Currently Using HIMNordstrom'sMens WarehouseDellStarbucks??Google possibly??

StatisticsIn a study of 62 Automobile Plants researchers:Compared 20th Century vs. 21st Century manufacturing Plants

Key Characteristics:Cross training of different jobsIncentive CompensationNo higher status symbols for supervisors (parking spaces etc.)

Findings:47.4 % fewer defects42.9 % greater productivity Lower associate turnover rate

StatisticsResearchers studied 250 different companies ranging from biotechnology to business services (Accounting / Marketing)Key Characteristics:Placing strong value on their peopleTotal Empowerment

Findings:79% probability of surviving for 5 years after IPOCompanies who did not only had a 60% probability

My ExperienceMonthly Meetings for Status reportSlow or Busy month forecast etc.Developed a training program Initial / monthly / Bi AnnualGrew Beverage sales by 26% in 6 months ($15,000)Incorporated new drinks / micro brewsDecreased Turnover and Increased WagesNew pay structure (Gratuity pool)Achieved a 97% customer satisfaction rating Utilized Google Voice

AdoptionOrganizations will be more likely to adopt HIM practices if:Already adopted complementary HR practices or flexible automationExhibiting poor performance relative to competitorsEmployees have less experience with existing practicesChanges that cause unfreezing in the current way of doing things

Demands on ManagersTrust between the manager and associate is critical :Trust associates will not abuse their decision power

Delegate authority to others via empowermentDeveloping others interests via coaching & trainingMotivate others and recognize contributions

Demands of AssociatesAssociates must trust their managers:Not be punished for trying to do the right thing

Exercise good decision making skillsPossess self-development via feedback Exercise self-management via focusing on targetsTeamwork having the ability to lead & follow

ChallengesCultural DifferencesBetter in collectivist and low power structure culture

Management ResistanceEducate / Train managers to become facilitators

Employee ResistanceConcerns about increased stress levels

2 Factors to ConsiderNational Culture:How values in the workplace are influenced by cultureImplement in accordance with a countrys cultural characteristicsBig 5 Personality Traits:HIM requires High that associates have high:ExtraversionConscientiousnessEmotional StabilityUse personality traits to predict ones behavior

1) The Big 5 Personality Traits

https://www.youtube.com/watch?v=oWpRKJPCI7M

Go discover yourselfhttp://www.outofservice.com/bigfive/

This website will score your 5 fundamental personality traits.

Can also link it with others and see how compatible you are with that person and score them

2) National CulturePower Distance Index (PDI)Individualism vs. Collectivism (IDV)Masculinity vs. Femininity (MAS)Uncertainty Avoidance Index (UAI)Long Term Orientation vs. Short Term Orientation (LTO)https://www.youtube.com/watch?v=XMqwi7SIWYEhttps://www.youtube.com/watch?v=6gJzRS0I7tA

Where do we stand?

Culture as a wholehttp://geert-hofstede.com/india.htmlYou can go here and compare any developed country in the world to see how one interacts with one another

Connecting the DotsSo now that we have a general idea of what HIM is and how it can be implemented did anyone notice any common trends from the other books or cases we read throughout the semester?

BooksWork Rules! Google???Culture eats strategy for breakfastBecoming a founderSearching for the bestLet the Inmates run the asylumLearning InstitutionGood-To-Great Findings:First WhoThen What A Culture of DisciplineNucor? Walgreens? Wells Fargo? Kroger? Circuit City?Leading Change:21st Century organization? Life-Long Learners? Vision & Strategy? Empowering Employees for Broad-Based Action

1) Selective Hiring ( Google) (G2G: When in Doubt dont hire, keep looking) 2) Extensive Training (Google- Learning Institution & Googlers2Googlers) 3) Decision Power (LC-21st Century) (Google) 4) Information Sharing - G2G Hedgehog (5) Incentive CompensationNOW) Flexible Work Assignments

Selective Hiring - Extensive Training - (Build a Learning Institution)Incentive Compensation (Pay Unfairly)

Flexible Work AssignmentsInformation Sharing (Decision Power (21st Century)

By sharing information in an organization it allows the associates to understand the direction of where the company is heading in the future and where it currently stands

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Other ReferencesNokiaStarbucksBerkshire HathawayT-MobileAmazon

How to Implement:Identify areas you are currently using HIM and area you are not using HIMRefine your hiring processAsk your employees what they would like to see changedAllow them to try and implement the changeSolicit feedback from your customers constantlyAdjust Business to appeal to customers needs / wantsConduct Ongoing Training Restructure your compensation

How can you apply HIM?Take 2 minutes to discuss with your neighbor in an area of where you could implement HIM into your current workplace.

Remember there is no wrong answer!

RecapHigh Involvement Management: Empowering carefully selected and trained individuals to make key organizational decisions on or above their current position level. The practice also places an emphasis on sharing information and providing incentive compensation to its employees based on performance.

The 5 StepsSelective Hiring Extensive TrainingDecision Power Information Sharing Incentive Compensation

So stop waiting and start doing. Because the clock is running out!

The End

A Kyle Schmella Production