Episode 14 - Improving Organisational Performance - Kamal Birdi and Vikki Matthews
There have been numerous management initiatives to improve organisational performance. They have included TQM, Just in time, supply chain partnering, empowerment, training and development and team working. But have they worked?
The results of a study of three hundred UK manufacturing companies over the last twenty years shows that human resource management has had a greater impact on productivity than any operational management initiative.
Download the episode (6.11 MB)
Follow up on Beating the Talent Crunch
“With loyalty to company’s gone, and talent hard to find, retaining the talent you have, in my opinion, is a key business priority. I did the exact same thing - redesigned the benefits package and put together a comprehensive training and development program. According to employee surveys, it worked” – Kathy
“I think that lesser known companies have to be more creative in the way they attract and retain people. Sometimes for example in B2B sales companies, compensation plans that on the surface appear to be “really rich”, can be less so once the reputation of the company’s products are taken into account.
Sign on bonuses, cafeteria benefits, the ability to work from home, flexible schedules, etc can all play a part in attracting and retaining talented people.
I think the competition is part of the marketplace and we have to adjust locally while not losing sight of global influences.” - Andrew
Top Briefings Podcast Club
We have just launched the Top Briefings Podcast club-. It’s a new community site, for people who want to find out more about using podcasting to develop people’s knowledge and skills. Its free to subscribe to and if you send an email to club@topbriefings.com we’ll send you a free ecademy PowerNetworker Pass so you can also network with thousands of people worldwide.
Leave a comment
Do send us through your comments on the show using the voicemail line, which is: 020 8816 8033, or by leaving a reply on the show notes at blog.topbriefings.com.
The next show will be released on 28th May and will feature an interview with Geraldine Grainger from John Lewis on creating a learning culture, which was recorded at the CIPD’s HRD 2008 Conference.
To ensure you get the next episode you can subscribe for free by visiting www.topbriefings.com and clicking on the subscribe button at the bottom of the page.
May 28th, 2008 at 03:39 am
Improving Organisational Performance - Summary of the Study
1. The study looked at 7 common practices:
Operational Practices
• Total Quality management - continuous improvement with all staff responsible for quality of their work
• Just in Time – making the products in response to internal or external customer demands (rather than building in advance for stock)
• Information technology – linking together computerized equipment to enable enhanced integration and automation (e.g. CADCAM)
• Supply chain partnering – developing strategic alliances with suppliers and customers 9rather than negotiating on a short term-basis)
People Practices
• Team work – placing operators in teams with their own responsibilities and giving them the freedom to allocate work among team members (rather than have everyone work as individuals)
• Empowerment – passing considerable responsibility for operational management to individuals or teams (rather than concentrating decision-making at the managerial level)
• Staff development – providing a range of development opportunities for all employees (rather than training people occasionally just to meet specific job needs)
2. It wanted to find answers to the following questions:
• Do companies that adopt these practices actually show improved productivity compared with those that don’t.
• Which of these practices are the most effective
• How soon after adoption do benefits appear, and do they last?
• Are there synergies among practices
It did it in the following way:
• 308 UK Manufacturing companies were studied
• Productivity (£ value-added per employee) monitored up to 22 years
• Respondents were CEO, HRM Director, etc
• Each respondent given definition of practice and asked if introduced and if so, in which year
• Focus on % gain in productivity following introduction
3. The Findings were:
• Empowerment, staff development and team working increased productivity by 7%, 6% and 4% respectively. While TQM, JIT, IT increased productivity by 3%, 3% and 1%. Supply Chain Partnering reduced productivity by 2%
• The benefits of team working kick in after 6+ years, while empowerment gives immediate benefits.
• When team working is combined with TQM and IT it can lead to high gains in productivity
4. The conclusions
• Companies shouldn’t abandon operational practices but they should realise that their people practices DO contribute to their competitive advantage
• UK companies need to:
o Reduce hierarchy and day to day control
o Involve employees in decision-making
o Enhance the breadth and depth of employees skills
o Strengthen aims and objectives so that employees are clear about how they can contribute
The Research findings will be published in
Birdi, K., Clegg, C., Patterson, M., Robinson, A., Stride, C., Wall, T and Wood, S. (in press). The impact of human resource and operational management practices on company productivity: A longitudinal study: Personnel Psychology.
_____________________________________________________________
Listen to the interview with Kamal Birdi, from the University of Sheffield and Vikki Matthews from Nike on how to improve organisational performance at www.topbriefings.com