Managing Performance

Team members

• Samer Abdul Samad

• Giacomo Conti

• Jacopo Coppi

• Joseph Pothen

• Rebecca Nuti

• Zeno Rama

What do you think the topic might be?

Make an educated guess...

In some fields the use oftechnology is not so

important

To give you a better explanation let’s play some golf!

Impressions

• Why do we use two different kind of clubs?

• Did you fell any improvements?

• How has it affected your game?

Ability VS Technology

There are two different effect:

Ability-based work are those where the capacity that a person has is the mostimportant aspect to accomplish a task ( Sport or drawing ).

Technology–based work are those in which the level of technology doesn’t require high abilities (Assembly line ).

As you can immagine higher isthe level of technology used, lower is the ability required.

CREATING A HIGH-INVOLVEMENT STRUCTURE

BUSINESS STRATEGY

ORGANIZATIONAL DESIGNS AND STRUCTURES

DIFFERENT BEHAVIOURS AND OUTCOMES

INVOLVEMENT DESIGN FITS STRATEGIES THAT EMPHASIZE: HIGH

QUALITY PRODUCT, SPEED OF RESPONCE, INNOVATION, AND THAT

REQUIRE COMPETIVE OR LOWER THAN COMPETITIVE COSTS.

THE CONCEPT OF FIT

• STARTING POINT FOR FIT: SPECIFY WHAT BUSINESS THE ORGANIZATION IS INVOLVED IN, WHO ITS CUSTOMERS ARE, AND HOW IT INTENDS TO PERFORM IN ORDER TO GAIN COMPETIVIVE ADVANTAGE.

• THE MAJOR ELEMENTS OF AN ORGANIZATION THAT NEED TO FIT IN ORDER TO HAVE AN EFFECTIVE ORGANIZATIONAL SYSTEM ARE:

• PEOPLE

• TASK/ TECNOLOGY

• INFORMATION PROCESS

• REWARDS

• ORGANIZATIONAL STRUCTURE

INFORMATION, KNOWLEDGE, POWER, REWARDS

• CONGRUENCE: IN HI APPROACH, CONGRUENCE IS ACHIEVED BY LOCATING SIGNIFICANT AMOUNT OF INFORMATION, KNOWLEDGE POWER, AND REWARDS AT LOW LEVELS IN THE ORGANIZATION.

• CONGRUENCE BETWEEN THE 4 ELEMENTS CAN BE STATED WITH A SIMPLE EQUATION:

• INVOLVEMENT = INFORMATION X KNOWLEDGE X POWER X REWARDS. ( scale of the presence of an element: 0-1)

• ALIGNMENT: THE 4 ELEMENTS NEED TO BE PROPERLY DISTRIBUTED AMONG AN ORGANIZATIONAL LEVEL FOR THE ORGANIZATION TO BE EFFECTIVE.

• THE 4 ELEMENTS CAN BE EXPANDED.

Organizational structure

• “Small is beautiful”:design organizations that can be big

when they need to be gaining competitive advantages but small in terms of letting everyone feel as though they are involved and can contribute to and influence the success of

the organization.

• Two important elements: Vertical hierarchy andHorizontal hierarchy

Vertical design

• Number of hierarchical levels: the more levels in an organization, the more difficult it is to move information, knowledge , power and rewards to lower levels

• Span of control: the number of employees reporting to a supervisor. A small span of control creates two problems:

-Employees perform their work poorly because they are not motivated

-Employees are underutilized

Horizontal design

Decide how the organization is structured at the very top.It can be structured in different ways:

• Functionalization:grouped around functional

areas(sales,manufacturing,marketing…)

• Profit centers around the costumers :align employees with an external customer who can give feedback and who makes purchasing decisions

• Structure organized around products or services

There are also two others interesting alternatives :

1. Front-End-Back-End Organizations:Combine a focus on costumers and products at the same level in the

organization

2. Network Organizations:this approach is about focusing on something that the organization does really well and

building relationships with others to do other parts of the business process

HIO IMPLEMENTATION AT NUMMI

The New United Motors Manufactering Inc. (NUMMI)is a GM-Toyota joint venture having plant inFremont,California.

This plant was earlier used by GM for its ownmanufactering processes but it had to layoff its5700 workers when in 1982 it had to close its doorsdue to unexcused absenteeism (around 20%) and tolow quality and productivity levels.

By 1986, despite the continuity with GM-Fremont’sworkforce* and the use of comparable equipment,NUMMI’s productivity increased by 40%.

By 1990 the plant continued to excel in quality andproductivity.(trucks made here were rated n°1 ininitial quality by JD Power and Associates)

This huge turnover took place thanks to 2 guidingphilosophies:1. TPS (Toyota Production System)2. Supporting (MGMT) Policies

TPSThe work processes at NUMMI were structured by 4

mainTPS principles:

• JIT• Team concept• Jidoka• Kaizen

Employee

involvement

is

fundamental

JIT

A JIT production seeks in eliminatinig all work inprocess inventory so each part is delivered to thefollowing workstation Just In Time.

Effects of JIT on productivity:SHORT RUN: workstation downstream didn’t get the

required parts in timeMEDIUM RUN: costs fell as problems were

discovered and resolved

Consequence of JIT on workers:1. Extensive worker involvement in real time

problem-solving2. Great worker flexibility

TEAM CONCEPT

The main purposes of having Teams withinorganisations is increase workers flexibility and thus

efficiency.

WORKER TEAM GROUP

TEAM LEADER

•Train workers

•Replace absent

members

•Hand low level

responsabilities

GROUP

LEADER

Stands at the

first level of

MGMT

JIDOKA

Jidoka at the Fremont plant:

Defective parts were immediatly recognized toavoid waste and to facilitate identification of the root causes behind problems.

Consequences on workers:

Workers can decide to stop tha assembly whenthey find a defect they can’t repair.

JIDOKA AUTONOMATION HUMAN

AUTOMATION

KAIZEN

Kaizen is a Japanese philosophy that focuses on continuous improvement of processes in manufactering, engineering, supportingbusiness process and managment.

Kaizen at the Fremont plant:

Team members and leaders identified optimal procedures for each task.

Nummi

• Nummi contract promised a measure of job security. It successful avoided layoffs and enhanced employees’ confidence.

• Nummi’s Performance Improvement Plan encouragedcommitment sharing program rewarded workers forimprovement in plant-wide quality and efficiency.

• Workers commitment was supported by cooperative labour-management relations. The UAW ( A policy-making levels ) was consulted on many issues thatwould have been considered management prerogatives at GM-Fremont.

• It also opened many avenues for skill formation: new hiresreceived more than 250 hours of training during their first six months on the job compared.

• Member cross training waas fundamental to the plant’s operations : workers learned all the jobs in their team and rotate among them several times a day. It reducedmonotony and increased alertness and quality.

• Promotion provided an incentive and another opportunityfor skill formation.

• An apprentice program for its two skilled tradesclassifications, tool-and-die maker and generalmaintenance. The UAW offered a 10-week pre-apprenticeship training program.

• Skill development opportunities were available throughnumerous special project team assignments.

Employee selection

• Nummi re-hired the entire former Union hierarchy. New workers employeed had to face a long selection process by interviews and special attitude tests.

• One example of non traditional test it’s this one adopted by a famous Japanese company.

FIT: a new model of selection that is focused on hiring a "whole" person who will fit well into the specific organization’s culture.It involves hiring practises that seem peculiar, and also extravagant, from a traditional human resource point of view.

Example: In the Toyota plant in Georgetown, Kentucky (USA) was used an hiring process that involved a 18

hours examination that include for example a general knowledge exam, an attitude test toward work, a physical

exam and others.

The New Selection Model: Hiring for Person-Organisation FIT

4 Steps:

• ASSESS THE OVERALL WORK ENVIRONMENT

- Job Analysis - Organisational Analysis

• INFER THE TYPE OF PERSON REQUIRED- Technical Knowledge, Skills and Abilities - Social Skills - Personal Needs, Values and Interests - Personal Traits

• DESIGN "RITES OF PASSAGE" FOR ORGANIZATION ENTRY THAT ALLOW THE ORGANIZATION AND THE APPLICANT TO ASSESS THEIR FIT - Tests of Cognitive, Motor, and Interpersonal Abilities -Interviews by Potential Co-Workers and Others- Personality Tests - Realistic Job Previews, Including Work Samples

• REINFORCE PERSON-ORGANIZATION FIT AT WORK - Reinforce Skills and Knowledge Through Task Design and Training- Reinforce Personal Orientation Through Organization Design

Please clap your hands!

This is the end

my only friend

THE END…