Designing High Performance Organizations
Introd
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Designing High Performance Organizations High performance organizations are defined as those organizations designed while taking in consideration the business situation or external environment, the business results, and the business strategy of the organization (Farias and Varma 50). High performance work system and organizational design has gained tremendous support in recent years. The rationale for this was identified by Farias and Varma as follows: Highly turbulent and constantly changing environments have challenged organizations to respond with organization designs that enable sustained levels of high performanceà. We have witnessed an increasing amount of literature prescribing the use of high performance work systems (HPWS) design principles û prescriptions that are often embedded in glowing stories In essence, high performance work systems are a response to environmental uncertainty. Kirkman, Lowe, and Young (3) state that the various models subsumed within this general construct typically include both structural changes such as team organization and process changes such as flexible manufacturing systems in the pursuit of higher levels of organizational performance. While known by only one name, there are a variety of definitions associated with the concept. For example, Kirkman, Lowe and Young offer the following: Clearly, existing definitions and approaches to the HIPO share some common i
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naging teams, quality circles, flatter organizational structures, new flexible technologies, innovative compensation schemes, increased training, and continuous improvement. What this suggests is a systems approach coupled with a clear focus on the utilization of human, material, and technological resources.
Thompson (27) sees one way of achieving high performance organizations as emerging from the integration of Six Sigma with the basic tenets of HIPO itself. Six Sigma deploys statistical methods to reduce variation and to eliminate defects. HIPO focuses on developing an execution-based culture through organizational restructuring and increasing levels of intrinsic motivation, ownership, and commitment. Further, Thompson (27) calls for adding to this mix the principles of Lean Manufacturing with its focus on cycle time reduction and the elimination of waste.
Thompson describes this linkage as follows:
Experience has shown that Lean Six Sigma/High-Performance Organization (LSS/HPO) is best implemented at the level of a plant, site, or other relatively self-contained organizational unit. This strategy, as contrasted with a "big bang" approach spread across multiple global locations simultaneously, provides for an easie
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Reid Hobbell, IBM Wang, Farias Varma, Six Sigma, Kirkman Lowe, Boland Collopy, Design Principles, Goold Campbell, Human Sigma, Florida Goodnight, performance organizations, human sigma, farias varma, harvard business review, harvard business, review july-august, performance systems, design principles, business review, 2005 83, july-august 2005 83, review july-august 2005, july-august 2005, business review july-august, fleming et al,
Approximate Word count = 6706
Approximate Pages = 27 (250 words per page)
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