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High Performance Work Research Project |
The introduction in the early 1990s of cellular-based manufacturing on the shop floor allowed for better management of the product range. The layout within the factories was changed so that all operations relating to a product could be done in one area. A cell has anything between 20 and 200 employees, depending on the product, with larger cells divided into smaller teams. Associated with this was the devolution of authority to teams. As team leaders were developed as supervisory or first-line managers, the company was able to reduce the number of management levels. Here self-managed work teams and delayering went hand in hand.
Teams now typically have up to 20 members and are led by a working team leader. The team members are multi-skilled operators and carry out their own maintenance. To a large degree, operators rotate around jobs, although not every team member is able to complete every task. One operator is typically competent in three jobs. Team leaders may be working day to day with the team or may have a wider planning role, depending on the product. The payment system was realigned and simplified to support teamworking.
As teams were introduced and employees started making decisions about their own work processes, it was essential that they were fully informed about all facets of the business. To facilitate this, the company diverted resources from an "outdoor" team-building exercise for managers to create an internal programme for all employees through which they participated in simulated business activities. The "UK Team Building" business awareness programme, as it was called, exposed employees to all of the main functions of the business to give them a rounded view. This was a two-day programme, which ran every two weeks for14 people at a time, over a four-and-a-half year time span. This awareness is reinforced by business awareness sessions that cover every aspect from cash flow to material inflation and the state of the market place. In addition, line managers provide monthly team briefings for their staff. This ensures that information cascades down through the tiers of teams and thus throughout the organization as a whole. In this way, consistent information is cascaded through the business to shop-floor level. The pursuit of an open and transparent style of leadership is seen as a never-ending process.
The line managers played a crucial role in this transformation. The initial team-building programme was facilitated by line managers who were perceived as role models for the new ways of working. They were invited to make presentations on the functional role of their departments and the external market place during the business awareness programme. This helped emphasize the fact that the line manager is in the leadership role for the development of employees. For this, they had the support of the human resource function. This key supporting role was to design, develop and facilitate innovative practices, as well as to develop the line managers themselves. The head of the HR function sees his role as aligning HR with business objectives.
No one programme, no matter how well conceived, is sufficient to ensure the effective operation of HPWPs. Therefore, over the last nine-year period, there has been a constant struggle to align structures with strategies; after all, this is an ongoing process. This first attempt in 1992-93 was called Best Operating Practice (BOP1) and involved the introduction of team-based structures in manufacturing. It meant redesigning work, the establishment of work teams, shop- floor problem solving, and the introduction of performance measures, all supported by the use of new technology to streamline the administration. This resulted in the establishment of a four-tier team structure: the regional executive team, the departmental management team, the unit/section team, and the shift team. At the same time (1993), the human resource management function was restructured to ensure that line managers were directly accountable for all aspects of people management. The role of the departmental HR specialist and training specialist was transformed to provide professional support to the line manager.
In 1995 there was a further realignment of structure and strategy with the decision to "outsource" the driving of distribution trucks to SAB employees. This was done through a structured process, so that in excess of 50 per cent of SAB's distribution is currently conducted through its owner-driver network.
The second phase in the attempt to align structures with strategy, BOP2, involved revised team-based structures in packaging. This took place from 1997 onwards and was focused on enhancing the skills of the team members. Following a pilot project, the basic-level 1 team now consists of four "building block" positions, designed on the assumption that maintenance is the core competence in packaging and that product quality is key. Therefore, each team now plays four key roles, each with its own outputs, qualifications and attributes. The four key roles are team leader, process artisan, process operator and BOP operator. All roles require appropriate technical skills, team skills and problem-solving skills. These teams are now fully self-sufficient in that there is no external support for them in the form of artisans or quality-control technicians. The teams are autonomous and equipped for the full range of their outputs.
W. H. Smith & Sons (Tools) Ltd.
Considerable management attention is given to creating an environment where the maximum opportunity is afforded to an employee's initiative for achieving business objectives. This attention can be categorized into three specific areas: culture for learning; space available; and quality of working conditions. The latter two areas will be briefly commented upon, as they have an effect upon the first, but the learning culture is the subject of a more detailed commentary.
A major feature of creating the learning culture is the responsibility that is given to line management for creating a learning environment for its own employees. An example which vividly illustrates the importance of this responsibility to the Managing Director is as follows:
Each of the 25 line managers was asked how many hours a week he or she needed to spend on learning how to keep abreast of developments in all aspects of his or her work. After due consideration, the answer to the Managing Director's question was "between five and six hours". A similar question was asked of them with regard to the people who worked for them. In the latter instance, the response was "between two and three hours" - approximately half of what they themselves had wanted. When it was known that the expectation of the Managing Director was that the managers would spend their forecast amount of time engaged in learning, they complained that they had insufficient time and their job objectives would suffer as a result. Following discussions upon the importance of learning as a process which is central to achieving business objectives, the Managing Director offered to reduce the managers' workload so that they could free the five or six hours for learning and training purposes. Finally, none of the managers sought a reduction of their workload, and all of them found new ways of working so that time could be devoted to their own learning process within working hours. The managers also took their responsibilities seriously with regard to their own employees' learning. It is also significant that the company does not have a specialist human resource development department or personnel department.
The main factory in Minworth, Sutton Coldfield is where the majority of products are manufactured. The factory is in a "green belt" area, and the grounds and gardens which surround the main building are attractive and well kept. However, the company is limited in securing extra space for any expansion plans. The utilization of space is therefore a priority activity and is subject to the closest scrutiny. Much management time is spent in the rearrangement of machinery to improve the prospects of satisfying customer requirements through the revision and refinement of work processes. Space utilization is one of the key criteria for measurement of impact of any training.
The quality of working conditions, in what traditionally has been a difficult industrial environment to keep clean, is very high. The quality of lighting in key areas of the company provides brightness and an ambience conducive to working on precision processes and products. Housekeeping measurement criteria are in operation on the same basis for the shop floor and for offices, and the adherence to agreed procedures appears to be very strict.
Investment in learning centres
A further managerial practice to highlight the importance of the learning culture was the decision to invest in and open two learning centres that would be both visible and accessible to all employees. Such a resource would be key to keeping up with the demands for job-related learning. In addition, the learning centres would remain open to employees outside their normal working hours to enable them to undertake subjects of particular interest to them. A further feature which dramatized the importance of learning, not only in the company but to "society in general", was the invitation to employees to bring members of their families into the factory and encourage them to learn alongside them.
Decisions to work inside the organization in partnership with specialists who have a reputation for quality work is a further important feature of creating the learning culture. Care is taken to select such specialists who usually turn out to have a long-term relationship as a supplier of services to the company. Specialists could embrace any aspect of the learning process from diagnosis of needs to giving recognition for company or individual success. The opportunity for existing employees to work alongside such specialists should not be underestimated in terms of recognition and their own personal learning and motivation. Senior management is acutely aware of this advantage, which is often over and above the reasons for inviting specialist suppliers. Two specific examples of partnerships, East Birmingham College and the Society of Motor Manufacturers and Traders (SMMT) Industry Forum, are given in the section "Implementation of practices".
A final feature which management has decided helps to create a learning culture is the policy for leaders on the shop floor to communicate directly with the end customer and to invite his or her involvement in the manufacturing process. Beyond the traditional sales/customer relationship, this means that a team leader with ideas or concerns can speak directly with the customer for advice, suggestions or confirmation whilst products are being manufactured. An invitation is often extended from the manufacturing team leader to the customer's representative to visit the factory to exchange ideas and resources. This is a very powerful symbol of a quality learning culture.
In today's complex marketplace in which customers expect seamless responses to their requests, the utilization of self-managed work teams is absolutely essential. Motorola has committed itself to the development and utilization of such teams and attributes much of its success in quality, customer satisfaction and overall business success to the existence of these teams. Initiatives such as Six Sigma, Designing for Manufacturability, and Cycle-Time Reduction through Cross-Functional Process Mapping, for example, require empowered teams for successful implementation.
As a mechanism for developing and promoting the power of teams in the service of global customers, Motorola initiated a Total Customer Service (TCS) teams competition in 1990. Now more than 4,000 teams participate on an annual basis, representing disciplines such as design engineering, customer support, and even the administrative and executive units at Motorola's Schaumburg headquarters.
Some winners of the recent TCS teams competitions in Orlando included:
These teams at Motorola and elsewhere prove that empowered employees working together, from the lowest position to the highest, can have a significant impact on the worldwide success of a global company.
Extensive use has been made of project teams to tackle management problems, for example to develop the computer-based theory package, to redesign the track layout to incorporate motorcycle instruction, and to redesign the registration system. Access to the project teams is open to all staff on the basis of individual initiative and enthusiasm.
The project team responsible for the introduction of the computer-based training (CBT) system for the learning of theory consisted of a group of instructors who were interested in developing their skills in this area. All had only a basic secondary education, entering the job with a minimum requirement of an "N" level or National Trade Certificate Level 2. None had any previous experience of computing. They worked collectively, with the services of a consultant computer program designer, to design a package which would not only instruct the learner in the theory required for the driving test but would also provide feedback and support in a learner-friendly environment. Extensive use was made of video clips, graphics and animation to make the learning pleasurable. The result has been well received by the customers, and competitors have sought to purchase it from the company. Instruction is available from a menu of three languages. The project team continues to meet with the purpose of continually modifying the program and enhancing its effectiveness as a learning tool. Provision is now being made for access to be available via the Internet so that learners can log on at their convenience and do not have to go to the centre.
Staff teams have also redesigned the layout of the driving circuit to incorporate motorcyclists. This was considered by experts in the field to be impossible, as they argued that the circuit was not large enough. Staff have also further improved the circuit by introducing advanced digital sensory timers to allow motorcycle riders to check the times of their manoeuvres during practice and testing. This is important, because manoeuvres have to be completed within specific time frames as a demonstration of rider competences. This form of participation is one of the main means through which problem-solving skills are acquired. This principle of teamworking is now being used as the main means of organizing work throughout the company at all levels. This is a major change that has required considerable preparatory work, involving the redesign of the registration and other IT packages to incorporate the use of teams as the main focus of management.
Evidence of the Bank's commitment to stay ahead in a rapidly changing world is demonstrated through its spearheading of the use of new technology in Cyprus and abroad. It introduced the first real-time on-line system in 1982, and a few years later it installed the first ATM in Cyprus. It also pioneered the concept of home banking by developing two home-banking products, one geared to the needs of corporate customers and the other serving retail customers. Other examples include the Bank's establishment of a European Union Affairs Unit to help pave the way for the entry of Cyprus into the European Union and an International Business Unit to cater for the needs of international businesses that have set up their offices in Cyprus.
The Bank has tackled the challenges of globalization and changing technology effectively. It is expanding internationally, particularly in Greece, and keeps the introduction of new technology as one of its highest priorities in the drive to improve competitiveness. The other major factor in competitiveness is work organization. In this context, the Bank is well placed to keep track of international trends though its links with the HSBC. Thus, changes in work organization are brought about by changes in international good practice and by changes necessitated by new technology. All changes in work organization require the learning of new competencies by the staff who have to adapt to them. Such competencies encompass the requirement to:
There is sometimes some staff resistance to continuous change in processes and work organization. Such resistance is usually restricted to the older, more conservative members of the staff. There is rarely any resistance from the young, highly educated employees. The top management team is known to encourage change.
The Mandarin Oriental Hotel Group
Central to the restructuring of the management cluster has been the introduction of core competences for the group as a whole. These not only provide support for the improvement of performance, but they also provide for linking behaviours to organizational objectives. These took time to develop but were eventually derived directly from the company mission statement. A firm of consultants has been used to develop an assessment centre using these competences as the base against which managers' strengths and areas of development could be identified. Once the process has been embedded in the management team, the next task is to move down to the next level. The decision was taken not to rush the changes because of the fear of destabilizing the brand.
Given the centrality of work redesign to the process of performance improvement, it is not surprising that training and development are regarded in many ways as the essence of the project. As skills and knowledge are enhanced, the aim is to introduce a learning environment into the hotel, i.e. a university within the hotel. Each of the job bands has its own competences and every job its own standards, and as the person acquires those competences he/she will be certified not just by the company but by an external authority, either a college or university.
As the staff work long and unsociable hours, the aim is to bring the university to them. Certification is delivered at every stage. From the staff's point of view, as they acquire the competences and are certified they will build up credits for a certificate qualification, then a diploma and for some a Master's qualification. The aim is to ensure that there is something in the process of learning for the staff, to encourage them to buy into it; this is the reason for incorporating some form of a recognized qualification. It is planned to make extensive use of development centres in implementing these changes. The approach will be piloted at one hotel in the year 2000 before being implemented throughout the group.
The next issue to be tackled is succession planning. At the moment, people are moved around to help broaden their experience, but no real structure has yet been put in place. Use is being made of external consultants to ensure that as much subjectivity as possible is taken out of the process, with the aim of demonstrating to senior staff how decisions can be made in a more objective manner.
The Social Security Administration (SSA)
Creating an SSA work environment that energizes people through a high involvement (inclusive) process, leaders in the SSA HRD activity seek to: effectively communicate; design flexible structures; create family-friendly and flexible work options; and capitalize on the diversity of contribution available from each person. HRD's leaders manage work in ways that create and maintain individual and organizational vitality and which are consistent with values and vision. In addition, the SSA's HRD leaders provide meaning and challenge people, and they value learning on a daily basis.
More than ten years ago, the SSA understood that the future held increasing workloads, decreasing staff and a customer base doing more and more business by telephone and alternative service delivery modes. As a result, the SSA established an 800 telephone number service that has been responsive and cost effective. Service delivery was also addressed in the design of systems that have focused on making work portable. In this way, the many variables that drive service delivery changes can be quickly and effectively addressed by moving work to where the staffing resources reside.
There are no formal teaming activities under way in the field offices. However, in one of the other components, the programme service centres, the team concept has been piloted. The union representing those employees and management formed a joint committee, and each of the six programme service centres now has a teaming pilot under way; each team consists of 10-12 bargaining unit members and has both a union and management sponsor. The joint union-management committee developed a national team training package. All team members, sponsors and the team facilitators in each location were given three to four days of training before their teaming pilot started. The pilots are scheduled to continue through the end of April 2000.
In any team in the SSA, members have identified team characteristics, skills, and values. Team characteristics include right size, requisite expertise, and all kinds of diversity. Team skills include building trust, questioning mental models, creating shared visions, negotiating, managing processes, and giving and receiving feedback. Team values include respect for one another, integrity, and honesty. Teams value diversity, collaboration, and mutual support and creativity; there is a willingness to share information, learn together, and discuss mutual problems. Team members are open to new ideas and are willing to question their assumptions.
There is a need to maintain a learning environment in order to achieve the SSA's changing/evolving goals. There are planned approaches to sharing and transferring knowledge. The SSA's learning environment is supported by formal and informal mentoring programmes (Senior Executive Service, Advanced Leadership Programs, Leadership Development Program and Presidential Management Intern Program). Each has an assigned mentor for the duration of the programme. The Office of Human Resources prepares and supports these mentors so that their responsibilities are both understood and fulfilled. In addition to the development programmes, each employee newly selected or promoted to a technical position in the agency (e.g. Claims Representative, Benefit Authorizer) is assigned a mentor who assists him/her throughout the "probationary" period. In addition to the obvious benefits of formal mentoring, it also fosters a climate in which some employees seek and/or function as mentors on an informal basis as well. People in HRD master and improve how they do the work today and anticipate and prepare for the future. Continuous learning is part of work and a valued activity. Building and maintaining high trust among members is recognized as a key ingredient for continuous learning.
The SSA's leaders recognize that an individual's investment in self promotes readiness for optimal performance, individually and as part of a team. To invest in themselves, individuals first gain an awareness of their workstyle preferences and achieve balance between work and personal life. People engage in career/life planning that leads to "skill-based tenure". People manage stress and maintain and enhance their health. They achieve continuous personal growth. Personal values include a love of learning and a passion for excellence. People value integrity, commitment, accountability, energy, speed, and teamwork. They are willing to operate beyond boundaries, to share knowledge, and to change. They understand the mission of the SSA, and accomplishing that mission is important to them.
To improve the quality of service, the general manager launched a comprehensive Total Quality Management Programme with the help of Singapore's Productivity and Standards Board. It involved seminars on quality for all levels, beginning with his management team, the introduction of quality circles and a quality policy.
The other major change was the introduction of teams. There were a number of reasons for this. First, they ensure accountability in the delivery of services. Second, they enable performance measures to be used to reward excellence. Third, they enable management to act on poor practices across a range of areas - for example, absence rates, medical leave, and baggage and cargo pilferage rates. Data are collated on all of these and other items and then used to measure the performance of the groups responsible for cargo and baggage security, etc. Data on sick leave and absence are used to measure morale and thereby the performance of the leaders of different teams. Teams are also used for the implementation of TQM. Each of the teams acts as a quality circle in that it is a focus of discussion of performance issues and a forum for continuous improvement. The use of teams also provides a unit of personal identification and loyalty that is smaller and more meaningful than the company as a whole.
In addition to the use of teams, job rotation is an essential element of SSS, a practice introduced by the general manager from his experience in Singapore Airlines. Normally, after two years in one job, the person is moved on. No one is allowed to stay in any one job for more than five years. This practice ensures that officers move around and do not become too familiar with those they are guarding and hence fall prey to corruption. It also ensures that officers do not become too familiar with other employees and thereby become lax in their vigilance. Another reason for this practice is that for those destined to move into higher positions they thereby acquire knowledge of the whole company and its various functions. From the officers' point of view, this movement provides variety and exposes them to different types of risks.
Through this system of job rotation, all officers become multi-skilled across a range of areas. In addition to basic policing skills, the staff also acquire skills in handling travel documents, in guarding prisoners, in CCTV monitoring and surveillance, in the interpretation of x-ray images and in the ability to detect irregularities. The other area of central importance is computing, as computers become increasingly central to the running of the company. Information technology is therefore seen as one of the central skills.
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