High-Commitment HRM

1. High-Commitment HRM Chapter 9 Strategic Human Resources Baron & Kreps

2. What is High-Commitment HRM? A general catch-phrase for an ensemble of HR practices that aim at getting more from workers by giving more to them

3. Goals of high-commitment HRM Employees work for the best interests of the organization Employees are flexible and willing to take on different assignments Employees work with their brains as well as with their hands.

4. 4 The Means of High-Commitment HRM Employment guarantees Egalitarianism in word and deed Emphasis on self-managing teams and team production Job enlargement and enrichment Premium compensation Incentive compensation based on team, unit, or firm-wide performance

5. 5 The Means of High-Commitment HRM (Cont�d) Extensive socialization and training Extensive job rotation Open information Open channels of communication A strong culture Extensive screening Strong emphasis on ownership

6. 6 Connecting the goals and the means Four concrete steps: Recruit employees who are capable and inclined to provide consummate effort Train employees to fill in skill gaps, to work in teams, and to give necessary background about organization Enable employees by giving information, opportunity, and authority required Motivate employees to be flexible and to use their heads and hands Recruitment ??????????????-????? ?????????????????????????,????????(e.g.,???????????)? ???????????????,???????????????? ????????????????????????????? Training ???????????????????????,????????????????? ???????????????????????? ????????????,???????????????? Enabling ????????????,????????????????????????????? ??????????????????????????????? Motivation ????:??????????????????????????????????? ?????????:????????????????????????????????????????????????????????????????? Recruitment ??????????????-????? ?????????????????????????,????????(e.g.,???????????)? ???????????????,???????????????? ????????????????????????????? Training ???????????????????????,????????????????? ???????????????????????? ????????????,???????????????? Enabling ????????????,????????????????????????????? ??????????????????????????????? Motivation ????:??????????????????????????????????? ?????????:?????????????????????????????????????????????????????????????????

7. 7 Three flavors of High-commitment HRM Total Quality Management, TQM Open-Book Management, OBM The Traditional Top-Tier Japanese Organizations: High- Commitment ILM

8. 8 One Size Does Not Fit All: Is high-commitment HRM for you? High-commitment HRM: a very well-integrated system of highly complementary individual HR practices, leading to an ideal workforce The cost may be substantial Difficult to change from standard forms of HRM to high-commitment HRM

9. 9 Maintaining High-Commitment HRM High cost�does your company compete on cost or quality? Cost benefit ratio also depend on the external environment on workforce demographics Giving employees autonomy may also bring inefficiency to the firm

10. 10 Moving to high-commitment HRM from more traditional approaches involves changing expectations and attitudes Significant costs Sources of potential resistance Sources of potential resistance Increased employee pressure & stress Don�t know or misuse the autonomy given Resistance from first-line supervisors, middle managers, unions, labor lawyers Achieving High-Commitment HRM

11. 11 Achieving High-Commitment HRM (Cont�d) Recommendation to help overcome resistance -- Profit sharing Simplicity and consistency in messages communicated through HR practices Flattering stories in the business press Promise of greater autonomy, security, training, information or other benefits to line employees.

12. 12 The Bottom Line Evidence shows that the high-commitment HRM is beneficial to firms High-commitment HR is an investment, and as with all investments, the payback doesn�t come instantaneously or for free It isn�t for everybody or for every organization