HRM500 Week 10 Scenario Script: High-Performance Work Systems Slide # Scene/Interaction Narration HRM500 Week 10 Scenario Script - Part 1: High Performance Work Systems Slide 1 Scene 1 HRM500_10_1_Angela-1: Welcome back, team! This will be our last meeting, since Michael will Angela's Office have completed his training period after today. The company has decided to look at creating and maintaining a high-performance work organization. For today's meeting, we need to define the elements and outcomes of a high performance work system, and look at the conditions that create such a system. We also need to determine our roles as human resource professionals, and understand how our HRM technology can support a high performing organization. Slide 2 Scene 2 - Angela's office HRM500_10_2_Angela-1: Ashley and Michael, a high performance work system is defined as one that has the right combination of people, technology and organizational structure to make full use of the organization's resources and opportunities in achieving its goals. What else can you tell me about high-performance work systems? HRM500_10_2_Ashley-1: Well Angela, we've learned that organizations that adopt the right mix of high performance work practices usually experience increases in productivity and long-term financial performance. HRM500_10_2_Michael-1: In the past, decisions about technology, organizational structure and human resources were treated as if they were unrelated. An organization might acquire a new information system, restructure jobs, or add an office in another country without considering the impact on people. We need to understand that all of these areas are actually closely related and have significant impacts on one another. HRM500_10_2_Angela-2: Can you give me a brief explanation of the elements that go into a high-performance work system? HRM500_10_2_Ashley-2: The first element is the right people. HRM has a significant role in providing people who are well suited and well prepared for their jobs. We have the responsibility of recruiting and selecting the right people. We need to determine what kinds of people meet the needs of the organization, and then locate, train and motivate those individuals. Training, development and career management ensure that these people will be able to successfully perform their current and future jobs within the organization. HRM500_10_2_Michael-2: A second element of a high-performance work system is the organizational structure, or the way an organization groups its people into useful divisions, departments and reporting relationships. HRM500_10_2_Ashley-3: Another element of a high-performance work system is task design, which determines how the details of the organization's necessary activities will be grouped, whether into individual jobs or team responsibilities. HRM500_10_2_Michael-3: The last element is a reward system that contributes to high performance by encouraging people to strive for objectives which support the organization's goals. The reward system includes performance measures by which employees are rated, methods of measuring performance, and incentives and rewards that are linked to success. HRM500_10_2_Angela-3: All right, team - great job defining high performing work systems as well as the elements that make up these systems. Let's change gears now and take a look at outcomes and conditions of a high-performance work system. Slide 3 Scene 3 - Angela's office *Conditions that contribute to high performance will be a Business Circles Interaction HRM500_10_3_Michael-1: The outcomes of a high-performance work system include higher productivity and efficiency. These outcomes contribute to higher profits. A high-performance work system may have other outcomes as well, including high product quality, great customer satisfaction and low employee turnover. HRM500_10_3_Ashley-1 (home screen of interaction): Conditions that contribute to high performance include: - teamwork; -knowledge sharing; -employee participation in selection; -employees receiving formal feedback; -ongoing training; -employee rewards and compensation relating -directly to the company's financial performance; and -a high degree of ethics. HRM500_10_3_Michael-2A (Layer A): Teamwork and empowerment are expected. One of the most popular ways to empower employees is to design work so that it is performed by teams. On a team, employees bring together various skills and experiences to produce goods or provide services. HRM500_10_3_Ashley-2B (Layer B): Knowledge sharing is encouraged in a highperforming organization. Companies attempt to create a learning organization that supports lifelong learning by enabling all employees to acquire and share knowledge. The organization is engaged in continuous learning. Employees and their groups both gather information and apply information in a learning organization. HRM500_10_3_Michael-2C (Layer C): Generally, in high performing organizations, employees experience job satisfaction. They experience their jobs as fulfilling, and their jobs allow them to fulfill important values. Organizations can promote job satisfaction by making jobs more interesting; setting clear and challenging goals; and providing valued rewards that are linked to performance in a performance management system that employees view as fair. HRM500_10_3_Ashley-2D (Layer D): A highperformance team normally meets high ethical standards. This helps to maintain positive longterm relationships with customers and the larger community. We can promote ethical behavior by creating a written code of conduct that is distributed to members of the organization to be used in decision making. This is especially effective if employees are involved in creating the code of conduct. Slide 4 Scene 4 HRM500_10_3_Angela-1: Thanks, team - you've done a good job explaining the conditions needed for a high-performance environment. My next question is, how do we here in HR fit in? HRM500_10_4_Michael-1: As managers in HR, we play a critical role in determining our company's success in meeting the challenges of a rapidly changing, highly competitive environment. Compensation, staffing, training and development, performance management, and other HRM practices directly affect employees' motivation and the ability to provide products and services valued by consumers. HRM500_10_4_Ashley-1: For the company to benefit from teamwork and employee empowerment, jobs must be designed appropriately. In a high performing work environment, employees collaborate to make decisions and solve problems. During recruitment and selection, employees are identified who are enthusiastic and who want to contribute to teamwork, empowerment and knowledge sharing. However, it is important to note that when companies make hiring decisions based on qualities like decision-making and teamwork, training is often required to teach these employees the specific skills they need. HRM500_10_4_Michael-2: In a high-performance organization, employees know the organization's goals and what they must do to achieve them. We as HR professionals can contribute to this idea through the design of the organization's performance management system. The system should be set up to support organizational goals. HRM500_10_4_Ashley-2: The guidelines of a performance management system should include defining and measuring performance in precise terms; linking performance measures to customer needs; and measuring and correcting for the effect of situational constraints. Slide 5 Scene 5 HRM500_10_4_Angela-1: That makes sense! Alright, so far today we have discussed highperformance work systems and their elements, outcomes and conditions. Next we will look at compensation HRM technology, human resource management audits, and analyzing the effects of HRM programs. HRM500_10_5_Angela-1: Ashley, what can you tell us about the relationship between compensation and employee performance? HRM500_10_5_Ashley-1: Organizations can have an impact on performance management through compensation by linking to performance measures. Employers can increase empowerment and job satisfaction by including employees in decisions about compensation and by communicating the basis for decisions about pay. HRM500_10_5_Michael-1: We can improve both our own efficiency and the organization's performance by appropriately using new technology, including automation and collaboration tools which complete tasks previously performed by individuals. HRM500_10_5_Ashley-2: In the past, human resource management at some organizations opted to use total quality management to take a customeroriented approach. For human resources, the customers are the organization and its divisions. Several techniques are available to measure the success in HR at meeting the needs of internal customers. These include reviewing key indicators, measuring HRM activity, and measuring economic value. HRM500_10_5_Angela-2: Hmmm, I see. I think we will be able to use some of those techniques here at Montrose. What did you find out about HRM audits? HRM500_10_5_Michael-2: An HRM audit is a formal process that can be used to review outcomes of HRM functions. To conduct an audit, HR professionals must identify key measures of business performance and customer satisfaction that would indicate whether the HRM functions are succeeding. The audit may also look at compliance with equal employment opportunity laws, succession planning, maintaining a safe workplace, and positive labor relations. HRM500_10_5_Ashley-3: To summarize, an HRM audit using customer satisfaction measures supports the customer-oriented approach to HRM. HRM500_10_5_Angela-3: Excellent work, team! Let's complete a brief activity to review high performance work environments before wrapping things up for today. Slide 6 *Drag and Drop Interaction - Match the following key concepts regarding high performance work systems with examples of each. Elements of a highperformance work system - \"the right people\" Outcomes of a highperformance work system - \"higher productivity\" Conditions required for a highperformance work system - \"teamwork and empowerment\" Slide 7 HRM's role in a highperformance work system - \"designing the performance management system\" Scene 6 10_6_Angela-1: Nice job on that activity, both of you. Let's review what we've learned today. We have defined high-performance work systems and looked at their elements, outcomes, and conditions. We have also looked at HRM's role in a high-performance work system. Here, we discussed compensation, HRM technology, human resource management audits, and analyzing the effects of our HRM programs. A successful program should deliver value that is greater than the program's cost. Our HR department here at Montrose should be able to improve performance through a combination of greater efficiency and greater effectiveness. As you know, today was our last meeting. Please remember to complete your discussions on \"High Performance\" and \"The Choices Managers Make.\" Your assignment on \"Recognizing Employee Contributions\" must also be submitted this week. Next week, your final tasks are to complete your \"Transfer It\" and \"Sum It Up\" discussions and to take your Final Exam. Ashley, I want to thank you for taking the time to train Michael and help him research all of these HRM concepts so thoroughly. You are a great asset to our Montrose team! Michael, I want to congratulate you for your hard work - you have learned many new skills which you will utilize as a Human Resource Manager, and I wish you continued success in your new career here at Montrose. Good luck! HRM500 Week 9 Scenario Script: Globalization Slide # Scene/Interaction Narration HRM500 Week 9 Scenario Script: Globalization Slide 1 Scene 1 HRM500_9_1_Angela-1: Welcome back, team! The company has decided to expand globally and Angela's Office we need to explore HR planning, selection, training, and compensation in international settings. Also, we will need to examine guidelines for managing employees sent on international assignments. The environment in which organizations operate is rapidly becoming a global one. Foreign markets can provide the business with new customers. In addition, by operating overseas, we can reduce our labor costs. At today's meeting, we will examine employees in an international workforce. Slide 2 Scene 2 - Angela's office HRM500_9_2_Angela-1: As we operate globally, our employees are likely to function as citizens of more than one country. Can you define the terms used for the different countries involved in a global operation? HRM500_9_2_Ashley-1: We should first look at the parent country, which is the country where the organization's headquarters are located. A host country is a country in which an organization operates a facility. Great Britain is a host country of General Motors because they have operations there. HRM500_9_2_Michael-1: A third country is neither the parent country nor the host country of an employer. A third country can be brought into the mix by hiring a person to work for the company that is not originally from the parent country or host country. Expatriates are employees assigned to work in another country. Expatriates are common in organizations expanding globally. The extent to Slide 3 Scene 3 - Angela's office which companies use parent-country, host country, or third country nationals varies. HRM500_9_3_Angela-1: Thank you for the thorough explanation on the terms for the different countries involved in an international operation. There are also many different levels at which a company can be involved in overseas business. This can range anywhere from shipping products to customers in other countries all the way to transforming the organization into a truly global one, with operations, employees, and customers in many countries. Can you tell me more about methods of doing business globally, team? HRM500_9_3_Ashley-1: We sure can! An international organization is one that sets up one or a few facilities in one or more countries. A multinational organization is one that builds facilities in a number of different countries in an effort to minimize production and distribution costs. HRM500_9_3_Michael-1: A global organization is one that chooses to locate a facility based on the ability to effectively, efficiently, and flexibly produce a product or service, using cultural differences as an advantage. Using a transnational HRM system allows decisions to be made from a global perspective, includes managers from many countries, and is based on ideas contributed by people representing a variety of cultures. HRM500_9_3_Ashley-2: Decisions that are the outcome of a transnational HRM system balance uniformity with flexibility. This balance and the variety of perspectives should work together to improve the quality of decision making. The participants from various countries and cultures contribute ideas from a position of equality, rather than the parent country's culture dominating. HRM500_9_3_Angela-2: That makes sense! It sounds like Montrose's efforts to increase our Slide 4 Scene 4 - Some type of tab or business circles interaction international business will have many positive results. What can you tell me about the differences in HRM in global markets? HRM500_9_4_Michael-1: (home screen of interaction): There are several factors affecting HRM in international markets. These include culture, education, economic systems, and politicallegal systems. HRM500_9_4_Ashley-1a: (Tab A): Culture has the greatest influence on international HRM. Culture is a community's set of shared assumptions about how the world works and what ideals are worth striving for. Culture is important to HRM for two reasons. It often determines the other three international influences. Culture can greatly affect a country's laws, because laws often are based on the culture's definitions of right and wrong. Culture also influences what people value, so it affects people's economic systems and efforts to invest in education. HRM500_9_4_Michael-1b: (Tab B): Countries also differ in the degree to which their labor markets include people with education and skills of value to employers. The United States suffers from a shortage of skilled workers in many occupations, and the problem is expected to increase. The labor markets in many foreign countries are very attractive because they offer high skills and low wages. HRM500_9_4_Ashley-1c (Tab C): In addition, a country's economic system, whether capitalist or socialist - as well as the government's involvement in the economy through taxes, compensation, price controls and other activities - influences human resource management practices in a number of ways. HRM500_9_4_Michael-1d (Tab D): A country's political-legal system strongly impacts human resource management. The country's laws often dictate the requirements for certain HRM practices, such as training, compensation, hiring, firing, and layoffs. Slide 5 Scene 5 - Angela's office Laws and regulations in other countries reflect the norms of their cultures. An organization that expands internationally must gain expertise in the host country's legal requirements and ways of dealing with its legal system. It is considered helpful for an organization to hire one or more host-country nationals to help with this process. HRM500_9_5_Angela-1: That explanation was very helpful - thanks! What else can you tell me about HRM's roles in the new global workforce? HRM500_9_5_Ashley-1: As economic and technological changes around the world create a global environment for organizations, human resource planning is involved in decisions about participating as an exporter or as an international, multinational, or global company. HRM500_9_5_Michael-1: Many companies have their headquarters in the United States plus facilities located in outside countries. Organizations must understand the business and social culture of the regions they are operating in. Organizations often meet this need by hiring hostcountry nationals to fill most of their foreign positions. A host-country national can more easily understand the values and customs of the local workforce than someone from another part of the world can. HRM500_9_5_Ashley-2: Training and developing a global workforce can be challenging. Training and development programs should be effective for all participating employees, regardless of their country of origin. When organizations hire employees to work in a foreign country or transfer to another country, the employer needs to provide the employees with training on how to handle the challenges associated with working in the foreign country. HRM500_9_5_Michael-2: Performance management across national boundaries can be Slide 6 Scene 6 - Angela's office challenging based on culture, legal requirements, local business practices, and national cultures. Differences may include which behaviors are rated; how they are rated; the extent to which performance is measured; who performs the rating; and how feedback is provided. HRM500_9_6_Angela-1: Great information on training and performance management for international employees, team! We just have a few final issues to address today...what can you tell me about compensation in a global workforce? HRM500_9_6_Michael-1: Compensating an international workforce includes decisions about pay structure, incentive pay and employee benefits. All these decisions become more complex when an organization has an international workforce. HR specialists may need to make extra efforts to administer these systems effectively. HRM500_9_6_Angela-2: Hmmm... ok - good to know. How about issues dealing with labor relations overseas? HRM500_9_6_Ashley-1: When managing goals for labor relations, for overseeing labor agreements, and for monitoring labor performance, day to day decisions are usually handled by each foreign subsidiary. HRM500_9_6_Angela-3: Isn't that difficult to coordinate with HRM at the home office? HRM500_9_6_Michael-2: Great question! What we've learned through our research is that at some point, most international and global organizations assign managers to foreign posts. These assignments give rise to significant human resource challenges, from selecting managers for these assignments to preparing them, compensating them and helping them adjust to their return home. HRM500_9_6_Angela-4: Is there anything we at Montrose can do to ensure that our managers being transferred overseas have a positive and successful experience? HRM500_9_6_Ashley-2: Absolutely! The successful adaptation of expatriate managers is dependent on a few key factors - the ability to maintain a positive self-image; the ability to foster relationships with host country nationals; and the ability to perceive and evaluate the host country's environment accurately. HRM500_9_6_Angela-5: I'll talk to the board of directors and we'll get on those suggestions right away! Thanks, team. Let's complete a brief practice activity on managing human resources globally before wrapping things up for today. Slide 7 Case Study drag and drop interaction: Read the following case studies of expatriate manager candidates and decide whether to hire them for Montrose's new call center in India or not. Case #1: Susan - Worked in Montrose's HR department for 6 years; fluent in English, Spanish, Chinese, and Indian; has traveled abroad extensively in the past. Case #2: Anthony - Worked in Montrose's HR department for 3 years; fluent in English and Arabic; prefers a stable work environment with little changes from day to day; no international experience or travels. Case #3: Mark - Worked in Montrose's Call Center for 1 year; began studying Indian through Rosetta Stone in anticipation of trying for this position; outgoing and enthusiastic personality. Slide 8 Case #4: Jeannette - Worked in Montrose's Call Center for 5 years; no language or travel experience; introverted and detail-oriented personality; prefers solo work tasks to group work tasks. Scene 7 - Angela's office HRM500_9_7_Angela-1: Great work today, team! Let's do a quick review...We have discussed the growth of international business; identified factors that impact HRM in international markets; discussed how the differences among countries impact HR planning; explained how companies select and train employees in a global market; analyzed challenges related to managing performance and compensating employees; and discussed the use of expatriates in international assignments. We'll meet back here same time next week to discuss our final topic - creating and maintaining high performance organizations. In the meantime, please remember to complete your discussions on HRM and the Global Environment and Education. Also, check out the video I recommended, \"Trends in Global HR\" - it really ties in with what we've discussed here today. I hope you both have an excellent week