High Involvement Work Practices - Case Study Example

Part One It has been suggested that High Involvement Work Practises (HIWP) can lead to improved performance, benefiting organisations, and improved skills and autonomy for employees. Briefly consider whether there are any substantial differences between references to “high performance”, “high commitment” and “high involvement” practise, and then critically assess what these practises are, how they work, and the evidence that organisations and employees can benefit. Recent research has suggested that making use of high involvement work practises will support the development of encouraging beliefs and constructive behaviours toward employee commitment (Konrad 2006). These work practises have also been considered as the driving force for flexible behaviours among employees that will eventually lead to an overall improvement in performance. In other words, the employees who create and apply changes in their workplace and course of action are employees who are completely committed. More than a few authors have been suggesting a number of management practises that can supposedly conjure high involvement, thus a better performance within a workforce. Many factors and procedures are involved in these management practises and these include the proper selection and recruitment of potential employees, dedication to one’s experience of training and skill development, organisational efforts, security and assurance in the job as well as payments based on incentives. These general categories have resulted into several practises; for example, a training programme can be further extended for the development of existing skills along with those useful for the future. Moreover, such programmes are conducted not only for new employees but for experienced workers as well. Because of these choices, to develop a uniform set of high-involvement practises that employees will find reliable and that will be harmoniously integrated and supportive of the organisation is very challenging to any manager. Lawler (2008) and his fellow researchers have recognized four components that they believe are necessary in creating an effective work system. Such system incorporates high involvement and positively affects the commitment of employees to the organisation. First is to give power to the employees in making decisions that are relevant to their performance and the organisation as well. Organisations can take full advantage of involvement when they accord a strong sense of empowerment to their employees and allow these workers to carry out decisions. For example, to create forums and discussions between employees so they can share and develop their suggestions for enriching organisational performance has been proven effective; however, this step can only be successful when good ideas are used and applied (Lawler 2008). The second component is information such as providing as many facts and details as possible about how the organisation is doing. These may come in the form of short reports on overall outputs, earnings, and customer responses. The more that employees know about where their efforts are going and how they are doing, the more that they will be able to effectively contribute to the organisation. Coming up with a comprehensible information system that shows their work process and results will greatly influence their efforts and actions. When managers are transparent regarding the organisation’s processes, it will give employees an easier time in recognising the connection that exists between their own productivity and performance of their organisation (Lawler 2008). The next component to consider is the employees’ overall knowledge or their abilities and expertise. Enhancing the knowledge of the employees will allow them to become committed to training and development. In an organisation that makes use of high involvement practises, these training experiences can be helpful as the right skills and knowledge are necessary for making important organisational decisions. Finally, the last component is reward. Edwards and Wright (2001) believe that in a high involvement organisation, employees are rewarded when they contribute flexible efforts and a compliant behaviour for the improvement of organisational performance. As a an essential key in maintaining a high involvement organisation, rewarding employees based on their performance will reassure these workers that they are contributing the other three elements which are their power, knowledge, and information for the success of the organisation. For high involvement management practises to be implemented and applied, Lawler (2008) suggests that “virtually every major feature of the organisation needs to be designed differently” (p. 450). In other words, specific changes are necessary in an organisational system for high involvement practises to work effectively. With this challenging task, managers often do not know where to start. Ledford and Mohrman (1993) do have put forward a suggestion that using a “self-design” change strategy will call for a development of the organisation’s insights and objectives. Kalleberg et al (2006, p. 271) believe that changes will take place through a “decentralized manner” as different organisational levels and business units implement changes the best way they can at their own pace. Because of the constant competition that occurs between managers and the urgent need for more participation from the whole workforce, those units that have been unhurriedly working and are slow on the uptake will be pressed on to catch up with the others. Through this process, a long-established customary system will work its way towards a high involvement system. Kirkman et al (1999) asserts that self-design has been proven effective due to the fact that developing system changes and putting a high involvement system into operation will allow both managers and employees to successfully develop more skills and gain more learning and knowledge. Furthermore, using a self-designed method will allow the creation and the implementation of necessary changes as different organisational units will recognise the changes and adjustments that they have to make. Lawler and Mohrman (1998) also argue that this strategy in creating change allows foresight of events and their relationships. To adapt, the organisation and its workforce will have to learn “new behaviour patterns” for the high involvement work system to be supported. According to Guy (2003), participation in the organisation creates a more positive attitude and behaviour toward the changes necessary for building a high involvement system. When individuals fully cooperate in designing the new system, they tend to commit and put in more efforts to ensure that the system achieves success. Pfeffer and Veiga (1999) assert that using a high involvement work system will allow an organisation to largely gain in productivity, A system that incorporates high involvement practises that give the entire workforce power to make their own decisions for the organisations; proper training to further develop their skills and knowledge in effectively making decisions; adequate information on how their production affects organisational performance; and rewards to pay back all their efforts in enhancing performance; can all lead to a successful accomplishment for managers and their employees (Mackie et al 2001). Apparently, workers enjoy performing tasks in an organisation that uses high involvement practises and because of this, managers obtain better performance from using such a system. Guest (2007) also believes that when systems are established through organisational efforts, they influence workplace practice, employee attitudes change, thus positively affecting behaviour, and leading to improvements in performance. However, to design and apply a high involvement system in an organisation is not a simple task (Konrad 2006). Even though the four components of power, knowledge, information and rewards have become a comprehensive foundation for a large number of working environments, the application of such strategies will vary from one workplace to another, and should be appropriately applied to specific situations. To convert a traditional system into a high involvement work system calls for managers and their employees to work together in accordance to their organisation’s values and objectives, and rebuild their organisation by using self-design. Kalleberg (2006) believes that implementing high involvement work practises is clearly a long-term process that requires a great deal of thought and accuracy; however, its results can transform any organisation into a carefully planned and well thought out structure that employs workers who are truly committed. The latter shall contribute satisfactory performance and allow the enterprise to gain leverage over their competitors. A further understanding of high involvement practises can be obtained when high performance work practises are brought into view (Harley 2002). No one has given a consistent definition of high performance work practices though (Wood 1999) and has been given the terms “alternate work practices”, “high performance work systems”, and “flexible work practices”. However, even though it has been called many names, these practices share common characteristics such as a proper and thorough selection and recruitment of employees, performance-based incentives as well as training programs that place an emphasis on the needs and objectives of the organisation (Becker, Huselid, Pickhus and Spratt 1997). Implementing high performance work practices will require an organisation to use and invest their money on human capital for the overall improvement of employees’ knowledge, skills, capabilities, and their ability to adapt to changes according to specific situations as their employer expects them to provide input and ideas for workplace decisions. Through these practices, companies expect the members of their workforce to quickly adapt and adjust to the current competitive market conditions that are rapidly changing, and to enhance the efficiency of the organisation’s efficiency and performance (Cappelli and Neumark 1999). Previous studies of Johnson (2004) have also suggested that effectively applying high performance work practices will allow an organisation to attain success in coming up with strategies for instigating innovation and improving market performance. In a similar study of Boxall and Macky (2007), high performance practises are clearly and positively related to job satisfaction as well as the employees’ commitment and trust towards the organisation. Moreover, in a study made by Thompson (2007), similar to Pare & Tremblays (2007) and Gollan’s (2005) findings regarding high performance work practises in the aerospace industry, it was shown that the high performance work practises allow employees to be highly involved and committed to an organisation. When human resources are supported by their “industrial relations”, the organisation is able to achieve a higher level of success and overall performance. According to Richardson et al (2010), the manufacturing environment, at present, is pressing organisations to come up with new developments and enhancements of competencies as pressures and competitions are continually on the rise in the global market. The aerospace industry, for one, requires a high level of knowledge and skill for organisations to succeed (Danford et al 2001; Vandenberg et al 1999). In a previous research of Tsao et al (2009), it has been suggested that implementing high performance work practises will significantly contribute to the overall performance and efficiency of both the employees and the organisation and eventually will lead to a successful business performance. High performance work practises normally involve three sets of practises- “human resources”, “employee involvement” and “industrial relations” (Harrington & Blagden 1999, p. 128). Angelis & Thompson (2007) asserts that through employee involvement, the knowledge and expertise of employees are drawn out and summed up, and can therefore be used for making decisions and implementing changes in an organisation. Employment relations, meanwhile, are focused more on behavioural characteristics and guarantee a strong and favourable relationship between employees and managers. The results in Thompson’s (2007) study suggest that high performance work practises have a positive relationship with the complexity of products and services particularly in those firms that offer complex products and services. Furthermore, at a moderate level of complexity, managers focus more on the skills and capabilities of the employees as well as the proper and thorough selection and recruitment of workers in terms of their knowledge and skills. At low complexity levels, on the other hand, employee motivation is accomplished by offering a reward system that is not focused on the employees’ skills and expertise. High commitment practices were also evident as the aerospace industry entails organisations to encourage teamwork and information sharing among their employees as well as the awareness of their responsibility for their own quality. These practices will eventually lead to continuous improvement in the organisation’s system and will allow job rotation or the regular changes in duties and responsibilities. Furthermore, human resource practices were applied including performance evaluation and appraisal, rewards based on employee performance, a high level of proper training and development as well as a firm and discerning selection and recruitment of employees. Finally, practices and procedures that guaranteed effective employee relations were applied through harmonized terms and conditions, orientations and induction programs, similar eating arrangements and settings, formal reports on appraisal and evaluation, frequent social gatherings as well as recognizing and setting relations with trade unions. High commitment practices, on the other hand though, are relatively similar to those of high involvement- strategies that are more focused on an employee’s involvement as well as their ability to interact and discuss ideas with each other and the level of security that their work offer. Marchington and Wilkinson (2008) believe that these two terms can be interchangeable as their study focused on defining employee involvement as well as information sharing that involves the concept of employee commitment. 15 practices that consistently characterize high commitment work practices include temporary agency workers, personality tests, off the job training formost employees, employee share ownership, regular appraisals, guaranteed job security, group-based team briefings , 2 or more family friendly practises, use of fixed terms contracts, performace tests, profit related pay, autonomous and semi autonomous teams, single status, formal disciplinary and grievance procedures as well as problem solving groups.In their study it was also highlighted that the components involved in effective human resource management practices are job security, a thorough and selective hiring and recruitment, a wide range of training and development programs, involvement of employees by voicing out their ideas and sharing information, the ability of teams to manage and effectively work among themselves, and reduce the rate of status differentials. Part Two Write a brief report on each case study indicating how the application of HIWP could add value to the organisation. Your reports should put forward specific initiatives which are explained and justified. The first case study focuses on the Royal Automobile Association or the RAA. With an estimate of 4,000 members in its workforce, the Royal Automobile Association has become the UK’s second largest motoring organisation. About 200 permanent staff members are involved with tasks for customer service though the number of temporary staff is unpredictable especially during summer. There are unions within the organisation; however, only a small number of employees has decided to become a member of such alliances. The more important concern is that the share of total sales of the RAA is experiencing a large deal of strain and pressure from both new and old competitors especially in the current aggressive market. Due to this fact, there has been a decrease in the organisation’s members over the past years. As an attempt to address this concern, the organisation has decided to implement new changes in their services and make improvements by strengthening their customer relations as well as their sales and services. If this is the case, the four components that have been set by Lawler (2008) in relation to high involvement practises can possibly make a positive impact on the RAA’s current system. One significant reason why members may be leaving the company is the fact that their abilities are often restricted and that they are not able to make decisions that they believe will benefit the organisation itself. To prevent any more of this from happening, the said organisation must allow its members to influence decisions that directly impact them. They ought to be permitted to give input because through this, employee involvement will be maximised and will therefore improve organisational performance. Next, because the sales of the RAA has been in decline, its workforce must know and understand the reason and the details behind this occurrence. The more that they grasp full knowledge and understanding of the company’s performance, the more capable they become in evaluating their efforts and improving them to address the situation. This is where Lawler’s (2008) second component can be applied, that transparency and information is necessary for an organisation to develop a high involvement work system. Next, to be able to put up with the current competitive market, the RAA must be able to develop and enhance the knowledge and skills of its employees, as what Lawler (2008) states as his third component for a high involvement system. When employees undergo proper and thorough training and develop the necessary skills and knowledge, they become extremely capable of making decisions that will allow the organisation to gain an advantage over its competitors. Finally, it has been reported that rewards and bonuses are paid depending on the performance of employees and whether a number of criteria has been met such as the number of calls per hour, the relation of talk time to available time, an index for customer satisfaction, the rate at which calls are converted into transactions, and the average income for sales staff. Furthermore, the employees are closely monitored to make sure that all costs are kept to a minimum, but are also trusted to represent the company to the customer, and are given some initiative such as being granted with refunds. This rewards system of the RAA does comply with Lawler’s fourth component (i.e. rewards) and will allow their employees to contribute more efforts and actions toward the success of their organisation. When all of these suggested high involvement work practises are applied and implemented within the workforce of RAA and are adjusted to their specific goals and objectives, it is likely that their employees will become more involved and more committed to their work which in turn, will result to organisational success. The second study places emphasis on North Bedfordshire Mental Health Trust. This mental health institution includes a hospital that serves both inpatients and outpatients. Their main priority is to provide mental health care for children, adults, and the elderly; help these individuals with their learning disabilities; and take on specialist work. Nursing work is performed by qualified nurses, trainees, and clinical support workers who have undergone on-the-job training. Shift working is also applied, and the hospital maintains a strong workforce for 24 hours a day for every day of the week. When undertaking work, nurses are often guided by qualified medical staff. Over the past years, however, there has been a lot of changes and adjustments of the local and national mental health services, along with the modifications in the training and pay systems. At a national level, it has been reported that nurses have complained about a decrease in job satisfaction as well as an increase in workload, and a rise in the number of sickness absences. The income as well as the increasing number of workers who are leaving the profession has been a large concern in recent years. In a previous study by Briggs, Brown, Kesten and Heath (2006), besides improving health care quality, it is also very important to make an impact on the nurses’ job satisfaction as well as to give them more power and increase their level of expertise. Again, this is where the Lawler’s (2008) suggested components are brought into consideration. A proper and intense training is required for nurses and health care workers to develop their skills and expertise. When dealing with a health care setting such as the situation at the North Bedfordshire Mental Health Trust, it is necessary for training and certification to present its own intrinsic benefits such as the satisfaction in one’s personal accomplishment, development of one’s responsibility, improving one’s confidence and experience as well as overall growth and challenge in this profession. Extrinsic rewards are also brought in by training and certified qualifications through an increase in both salary and marketability along with the acknowledgement from peers, health care staff and most importantly, the employers (Rondeau 2007). Therefore, Lawler’s third component of knowledge is highlighted in this case as this situation calls for an urgent need on the employer’s part to correctly and appropriately train their nurses and health care workers so they can make advantageous decisions and take suitable actions. Parkes et al (2007) asserts that in an organisation that applies high involvement practises, to improve and enhance their employees’ knowledge and abilities means a high level of commitment and dedication towards training and development. Again, training is an important key in a high involvement organisation because possessing the rights skills and abilities will allow the employees to make decisions that benefit the whole organisation. Furthermore, when proper training is undergone by nurses and health care workers, they are able to effectively provide patient care and treatments that help build a strong name and reputation for the organisation (Gladfelter 2006). Generally, nurses are highly committed and involved in giving the care and treatment that patients expect to receive from a health institution. Through this suggestion that North Bedfordshire Mental Health Trust allow their employees to undergo more training, workers will be able to accord satisfactory services to their patients and will likely result in the organisations capacity to attract new clients and retain existing ones. With this possibility, there is a greater chance of providing higher pay for employees because of their continued excellent service along with the acquisition and retention of clients, thus allowing their workers to experience job satisfaction on both the provision of extrinsic and intrinsic factors. 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