chapter 16 creating high-performance work...

Chapter 16 Creating High-Performance Work Systems

MULTIPLE CHOICE

1. Which of the following statements captures the fundamental logic of high-performance work systems?a.

These are HR practices used to manage higher-performing employees.

b.

Each of the HR practices creates high-performance employees in isolation.

c.

These are work systems that are prominent in high-performance organizations.

d.

All the HR practices work in complementary fashion to create synergy.

ANS: D REF: page 16-3 OBJ: 1 BLM: Understanding

2. In order to address competitive challenges, all of the following employee concerns are important EXCEPT which one?a.

developing high technologies and processes

b.

recognizing employee rights

c.

managing a diverse workforce

d.

balancing work–family demands

ANS: A REF: page 16-2 OBJ: 1 BLM: Key Terms

3. Which of the following is NOT a primary principle for support of high-performance work systems?a.

knowledge development

b.

reliance on hierarchy

c.

linking rewards with performance

d.

shared information

ANS: B REF: page 16-2 OBJ: 1 BLM: Key Terms

4. High-performance work systems depend on the shift from touch labour to which of the following types of work?a.

knowledge

b.

managerial

c.

scientific

© Copyright 2011 by Nelson Education Ltd.1

d.

technical


5. For investing in employee knowledge development, which of the following HR practices is NOT appropriate?a.

providing all employees opportunities to continuously learn

b.

selecting the best and brightest candidates available

c.

rewarding employees for the acquisition of new skills

d.

evaluating employees based primarily on task performance

ANS: D REF: page 16-5 OBJ: 1 BLM: Application


6. Which of the following is NOT a benefit that is realized by aligning employee rewards with performance?a.

Employees will share the gains that result from any performance improvement.

b.

Employees will perceive a greater degree of fairness.

c.

Customers are more likely to be satisfied.

d.

Employees will pursue outcomes that are beneficial only to them.

ANS: D REF: page 16-6 OBJ: 1 BLM: Understanding | Application

7. Which of the following is the most likely outcome in connecting rewards to organizational performance?a.

lower employee turnover

b.

lower total labour costs

c.

fairness and focusing employees on the organization

d.

competitive wages in the marketplace

ANS: C REF: page 16-6 OBJ: 1 BLM: Key Terms

8. In which of the following work environments are collaboration and teamwork encouraged and status and power differences diminished?a.

a democratic environment

b.

an egalitarian environment

c.

an autocratic environment

d.

a self-actualization environment


9. While increasing or improving collaboration and teamwork, egalitarian work environments reduce or eliminate which of the following?a.

the need for shared information

b.

the need for skill-based pay systems

c.

status and power differences

d.

pay-scale differences



10. Which of the following do high-performance work systems NOT seek to include in maximizing employee performance and well-being?a.

HR practices

b.

customer service practices

c.

management processes

d.

work structures


11. All of the following benefits are realized by redesigning work around key business processes EXCEPT which one?a.

It empowers employees to make decisions.

b.

It standardizes employees’ skills.

c.

It establishes a work environment that facilitates teamwork.

d.

It takes advantage of employees’ skills and knowledge.

ANS: B REF: page 16-7 OBJ: 2 BLM: Understanding


12. Changes in work-flow design should be combined with HR practices that encourage skill development and which of the following?a.

team-based selection

b.

downsizing

c.

HRIS technologies

d.

employee involvement


13. Studies indicate that performance and satisfaction are higher when organizations do which of the following?a.

combine work-flow design with top-down communication and implementation

b.

pay employees more

c.

develop work-flow systems around family-friendly principles

d.

combine work-flow design with HR practices that encourage development and involvement

ANS: D REF: page 16-7 OBJ: 2 BLM: Key Terms

14. High-performance work systems frequently begin with which of the following?a.

compensation packages

b.

supportive information technologies

c.

highly directive recruitment and selection practices

d.

employee training

ANS: C REF: page 16-8 OBJ: 2 BLM: Application

15. In high-performance organizations, which of the following is a key purpose of training?a.

to get employees to assume greater responsibility

b.

to help employees earn higher wages

c.

to encourage employees to remain loyal to the organization

d.

to encourage employees to lower organizational costs



16. Organizations that wish to emphasize teamwork and cooperation across units would promote which of the following types of training?a.

cross-training

b.

spot training

c.

efficiency training

d.

work training

ANS: A REF: page 16-8 OBJ: 2 BLM: Application

17. In high-performance work systems, training efforts tend to primarily focus on all of the following EXCEPT which one?a.

technical skills

b.

interpersonal skills

c.

problem-solving skills

d.

time management skills

ANS: D REF: page 16-8 OBJ: 2 BLM: Key Terms


18. To create a more flexible pool of employees, which of the following should managers do?a.

implement a gainsharing incentive system

b.

rely on skill-based pay structures.

c.

rely on job-based pay structures

d.

implement an employee stock ownership plan

ANS: B REF: page 16-9 OBJ: 2 BLM: Understanding | Application

19. Which of the following is one of the primary benefits of cross-training employees?a.

Cross-training helps employees identify trouble spots that cut across several jobs.

b.

Cross-training enables managers to save money in labour costs.

c.

Cross-training enables managers to spend less time supervising individual performance.

d.

Cross-training enables individuals to exert more effort on their job.

ANS: A REF: page 16-8 OBJ: 2 BLM: Key Terms | Understanding

20. Which of the following compensation systems does NOT focus employee efforts on outcomes that are beneficial to both themselves and the organization as a whole?a.

profit-sharing plans

b.

skill-based pay systems

c.

hourly based pay systems

d.

employee stock ownership plans

ANS: C REF: page 16-9 OBJ: 2 BLM: Understanding

21. Which of the following trends in the role of managers and supervisors in high-performance work systems has been observed?a.

Their role has remained about the same.

b.

Their role has become less important.

c.

Their role has changed substantially.

d.

Their role has changed only slightly.



22. Communication systems should provide accurate information regarding all of the following EXCEPT which one?a.

incipient problems and opportunities

b.

unit and corporate operating results

c.

employee background and personal data

d.

business plans and goals


23. To achieve internal fit, organizations should use all of the following HR practices together EXCEPT which one?a.

compensation

b.

training and development

c.

first-rate selection system

d.

morale testing



24. Which of the following types of fit describes high-performance work systems that complement and reinforce one another?a.

depth fit

b.

lateral fit

c.

internal fit

d.

external fit


25. What type of fit describes high-performance work systems that support the organization’s goals and strategies?a.

internal fit

b.

horizontal fit

c.

external fit

d.

lateral fit


26. Which of the following HR tools do Dave Ulrich and other professors advocate using to diagnose internal and external fit?a.

HR Communication Plan

b.

HR Strategic Performance Drivers

c.

HR Scorecard

d.

HR Plan for Workforce Deliverables


27. A recent survey by the American Society for Training and Development identified all of the following as necessary actions for successful implementation of high-performance work systems EXCEPT which one?a.

making a compelling case for the change linked to the company’s strategy

b.

allocating sufficient resources and support for the change

c.

relying upon a narrow chain of communication with the managers who are responsible for implementation

d.

establishing methods for measuring the results of change



28. Which of the following is one of the best ways to help employees see the need for change?a.

show a gap between the present and future

b.

promote roundtable discussions

c.

communicate change through consultants

d.

start progressive rumours

ANS: A REF: page 16-15 OBJ: 4 BLM: Understanding

29. Which of the following is the most frequent mistake that companies make during implementation, as noted by the ASTD council on high-performance work systems?a.

failure to involve the union

b.

failure to create a compelling reason for change

c.

failure to provide an adequate communication system

d.

failure to evaluate the system


30. Which of the following is NOT an added value of open, ongoing dialogue during change implementation?a.

It speeds up the implementation process.

b.

It enables both managers and workers to identify areas for improvement throughout the implementation.

c.

It enables employees to ask questions as they come up.

d.

It reaffirms commitment at all levels.

ANS: A REF: page 16-15 OBJ: 4 BLM: Understanding

31. Which of the following would most likely help managers develop a strong relationship with a union in implementing high-performance work systems?a.

concentrating accountability for union relations with the top management

b.

relying on informal communication

c concentrating efforts on achieving all the organization’s objectives


.d.

involving the union early in the design process


32. Within a high-performance work system, what type of labour–management relationship is LEAST likely to prove effective?a.

a cooperative relationship

b.

an adversarial relationship

c.

a highly involved relationship

d.

a collaborative relationship

ANS: B REF: page 16-16 OBJ: 4 BLM: Understanding | Application

33. Which of the following is NOT a tangible symbol of commitment between labour and management?a.

the establishment of joint forums with explicit mandates

b.

clauses in the collective bargaining agreement

c.

a policy document clarifying union involvement

d.

good-faith negotiations

ANS: D REF: page 16-16|page 16-17 OBJ: 4BLM: Key Terms

34. Which of the following best describes the process of building commitment to high-performance work systems?a.

It is competitive.

b.

It is based on technology.

c.

It is an ongoing activity.

d.

It is costly.


35. Regardless of the time available to implement a high-performance work system, which of the following helps keep everyone on track and prevents the system from bogging down?a employee involvement


.b.

a transition structure

c.

empowerment

d.

top-management directives


36. Which of the following are valuable, but sometimes overlooked, internal resources when implementing a high-performance work system?a.

line managers

b.

external consultants

c.

HR managers

d.

customers


37. Which of the following questions would be the LEAST likely to be asked during a process audit?a.

“Are employees rewarded for good performance and useful suggestions?”

b.

“Is training developing the knowledge/skills employees need?”

c.

“Are employees making more money than in the past?”

d.

“Are employees actually working together, or is ‘team’ just a label?”


38. Which of the following is most likely to occur when employees become more involved in their work within a high-performance work system?a.

They feel overworked from added responsibilities.

b.

They tend to be under a higher level of stress.

c.

They find their growth needs more fully met.

d.

They tend to be less satisfied.

ANS: C REF: page 16-20 OBJ: 5 BLM: Understanding | Application


39. All of the following are results from using high-performance work systems EXCEPT which one?a.

higher profitability

b.

lower costs

c.

lower employee involvement

d.

higher employee productivity


40. Which of the following sets of competencies should organizations develop in their employees to enhance the degree of rareness in employee skill and abilities?a.

those that provide generic skills that are widely valued

b.

those that are not equally available in the labour market

c.

those that can be transferred to other organizations

d.

those that can be duplicated

ANS: B REF: page 16-20 OBJ: 5 BLM: Application

41. To attain a sustainable competitive advantage through people, which of the following sets of competencies should organizations develop in their employees?a.

those can be duplicated

b.

those that provide generic skills that are widely valued

c.

those that are designed around unique team processes

d.

those that are transferable to other organizations



42. In order for organizations to achieve a sustainable competitive advantage through people, they must develop competencies in their employees that are all of the following EXCEPT which one?a.

difficult to imitate

b.

generic

c.

valuable

d.

organized


43. Which of the following features of high-performance work systems do small-sized employers tend to have difficulty with?a.

fostering an egalitarian work culture

b.

sharing information with employees

c.

linking pay to performance

d.

implementing the system

ANS: D REF: page 16-21 OBJ: 5 BLM: Understanding

44. Which of the following would not support a high-performance work system in a small-sized organization?a.

developing training programs that continually update employee skills

b.

relying upon outsourcing arrangements

c.

implementing team-based work systems

d.

utilizing compensation practices that support specific organizational goals.

ANS: B REF: page 16-21 OBJ: 5 BLM: Application

TRUE/FALSE

1. HR managers should take a systems approach to HR practices and policies to maximize the value and output of the firm’s human resources in conjunction with organizational strategy.

ANS: T REF: page 16-2 OBJ: 1 BLM: Understanding | Application

2. High-performance work systems depend on four things: shared information, knowledge development, performance-reward linkages, and hierarchy.


ANS: F REF: page 16-2 OBJ: 1 BLM: Key Terms | Understanding

3. To be successful, high-performance work systems rely upon a culture that promotes egalitarianism.

ANS: T REF: page 16-2 OBJ: 1 BLM: Key Terms

4. The principle of shared information is part of the implementation of a command and control organizational system.

ANS: F REF: page 16-5 OBJ: 1 BLM: Understanding

5. Today, organizations are relying more on the expertise and initiative of employees.



6. Employees who are given timely information about business plans, performance, and strategies, are more likely to make good suggestions for improving business.


7. When employees have input into decision making, they are more likely to feel committed to new courses of action.


8. Employee development goes hand-in-hand with information sharing in high-performance work systems.


9. Connecting rewards to organizational performance generally ensures fairness, and tends to focus on the employees of the organization.


10. The number of jobs requiring little knowledge and skill is declining, while the number of jobs requiring greater knowledge and skill is growing rapidly.


11. To encourage employees to pursue job outcomes that are in alignment with the organization’s goals, managers should be sure to link rewards to performance.

ANS: T REF: page 16-6 OBJ: 1 BLM: Application

12. Egalitarian work environments strive to clarify and strengthen status and power differences in order to increase collaboration and teamwork.


13. Redesigning workflow around key business processes results in a focus on employee tasks and tends to detract from teamwork.

ANS: F REF: page 16-6 | page 16-7 OBJ: 2BLM: Understanding | Application

14. Selection of employees with greater than average talent is a key component of high-performance work systems because selection errors can result in poor performance and undesirable outcomes later.

ANS: T REF: page 16-8 OBJ: 2 BLM: Understanding

15. Most high-performance work systems focus their training efforts on ensuring that employees have the skills necessary to assume a greater degree of responsibility.


16. Training in high-performance work systems focuses on arranging workflow and business processes.


ANS: F REF: page 16-8 OBJ: 2 BLM: Key Terms

17. Skill-based pay systems are particularly appropriate for organizations that hope to create flexibility.

ANS: T REF: page 16-9 OBJ: 2 BLM: Application

18. Cross-training employees facilitates teamwork and cooperation, and helps employees identify trouble spots that cut across several jobs.


19. Because of its complexity, skill-based pay is seldom used in high-performance work systems.

ANS: F REF: page 16-9 OBJ: 2 BLM: Application

20. To promote an egalitarian environment, organizations such as Monsanto have decided to pay all employees based on salary.


21. Ideally, the high-performance work system should be so effective that management processes and leadership take on a diminished role and employees are left to manage themselves.


22. Despite fewer layers of management and a greater reliance on team-based organizing, the role of managers and supervisors is not substantially different in an environment of high-performance work systems.


23. Timely and accurate communications are essential for high-performance work systems to succeed.


24. In an environment of shared information, the richest communication occurs face-to-face.


25. When the components of a high-performance work system support the organization’s goals and strategies, internal fit is achieved.


26. When the elements of the work system complement and reinforce one another, internal fit is achieved.


27. In a work system with a high degree of internal fit, adjusting one HR practice is not likely to substantially impact the other components of the work system.


ANS: F REF: page 16-10 OBJ: 3 BLM: Understanding | Application


28. External fit occurs when all of the elements of the work system complement and reinforce one another.


29. Efforts to achieve external fit help focus the design of high-performance work systems on strategic drivers.


30. Once properly designed, implementation of high-performance work systems typically encounters few difficulties.

ANS: F REF: page 16-14 |page 16-15 OBJ: 4BLM: Understanding

31. Most employees welcome change efforts.


32. To successfully implement high-performance work systems, managers should emphasize the strategic importance of the change effort.

ANS: T REF: page 16-14|page 16-15 OBJ: 4BLM: Understanding | Application

33. One of the best ways to communicate the business needs to employees is to show them the gap between today’s current performance and capabilities and where the organization needs to be in the future to be successful.


34. Providing an inadequate communication system is the most common mistake that companies make during implementation of high-performance work systems.


35. To support the principle of sharing information, it is critical that managers encourage open dialogue and communication at all levels of the organization.


36. Involving union members only after the design process and implementation plan has been completed helps build a bridge toward employee buy-in.


37. Formal commitments between management and unions to jointly implement high-performance work systems serve to institutionalize the relationship so that it keeps going even if key champions leave.



38. In implementing high-performance work systems, successful companies rely on incremental changes to let employees get up to speed.

ANS: F REF: page 16-17 | page 16-18 OBJ: 4BLM: Understanding

39. The top-down approach to work system implementation ensures employee acceptance and commitment.


40. HR managers typically own responsibility for the implementation of high-performance work systems.


41. HR managers can be invaluable partners to line managers during change efforts.


42. High-performance work systems need to be periodically evaluated in terms of organizational priorities and initiatives.


43. Even if employees are underutilized, organizations can still operate at full performance.


44. Skills, knowledge, and abilities that are not equally available to all organizations are known as rare.


45. Employee skills, knowledge, and abilities that are not equally available to all organizations are difficult to imitate.


46. High-performance work systems are relatively easy to copy by competitors.


47. The use of high-performance work systems is typically valuable only to larger organizations.


48. The philosophies, principles, and techniques that underlie high-performance work systems are also applicable to small and medium-sized organizations.


49. Small-sized employers often have difficulty implementing high-performance work systems.



ESSAY

1. What are the fundamental principles of high-performance work systems?

ANS:There are four fundamental principles that support high-performance work systems. First, the principle of shared information suggests that in today’s rapidly changing environment, because organizations must rely on the expertise and initiative of employees, it is imperative that these employees are provided with timely and accurate information about business performance, plans, and strategies. Second, the principle of knowledge development underscores the notion that because the nature of competition continues to change, employees’ knowledge and skills must also change. As a result, employees need to learn continuously to support the organization’s needs. Third, the principle of performance-reward linkages suggests that aligning employee intentions and behaviours with the needs of the firm can help ensure that employees engage in activities that are mutually beneficial to themselves and the organization. Fourth, the principle of egalitarianism supports the need to break down status and power barriers with high-performance work systems. By decreasing these barriers, employees can become more involved in their work, and organizational performance is improved while the quality of work life is simultaneously increased.

REF: page 16-2 | page 16-6 OBJ: 1 BLM: Analyze

2. Describe how the components of the work system fit together and support strategy.

ANS:The individual pieces of high-performance work systems are important only in terms of how they help the entire system function. There are essentially two types of fit that must be achieved to reach synergistic results. First, managers must ensure that internal fit is achieved. This occurs when all the internal elements of the work system (i.e., selection, training, compensation, and performance evaluation practices) complement and reinforce one another. For example, if a new compensation system elicits and reinforces behaviours that are directly opposed to the goals emphasized in the performance evaluation system, the two components would be working at cross-purposes.

In addition to internal fit, external fit is critical as well. External fit is achieved when the high-performance work systems support the organization’s goals and strategies. To reach this fit, managers must analyze the competitive challenges, organizational values, and concerns of employees to develop a statement of the strategies pursued by the organization. Once these strategies are determined, the practices that will support these goals are identified and implemented. For example, organizations focusing on cost containment may choose to rely on training practices that increase employee efficiency.

REF: page 16-10 | page 16-14 OBJ: 3 BLM: Analyze


chapter 16 creating high-performance work...

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