Chapter 7

Improving Human Resource Management

Google : get better people and treat them better = better performance

Google offers its employees: Up to $8,000/year in tuition reimbursement On-site perks include medical and dental facilities, oil change and bike repair, valet

parking, free washers and dryers, and free breakfast, 11 gourmet restaurants Unlimited sick leave 27 days of paid time off after one year of employment Global Education Leave program enables employees to take a leave of absence to

pursue further education for up to 5 years and $150,000 in reimbursement. Free shuttles equipped with Wi-Fi from locations around the Bay Area to

headquarter offices. Classes on a variety of subjects from estate planning and home purchasing to

foreign language lessons in French, Spanish, Japanese and Mandarin. (Source: Great Place to Work Institute, http://www.greatplacetowork.com/best/100best2007-google.php )

Strategies for Improving Human Resource Management

Develop and Implement a Human Resource Philosophy

Hire the Right People Keep Employees Invest in Employees Empower Employees Promote Diversity Putting it all Together: TQM and NUMMI

Improving Human Resource Management (II) Putting it all Together: TQM and NUMMI Getting There: Training and Organization

Development Survey Feedback Evolution of OD

Build and Implement a Human Resource Philosophy Develop a public statement of the

organization’s human resource philosophy Build systems and practices to implement

philosophy

Hire the Right People

Know what you want and be selective Hire people who bring the right skills and

attitudes Hire those who fit the mold

Keep Employees

Reward well and protect jobs Promote from within

Powerful performance incentive Increases trust and loyalty Capitalizes on knowledge and skills Reduces errors Increases the likelihood to think longer-term

Share the Wealth: give workers a stake in organization’s success

Invest in Employees

Invest in learning Create opportunities for development

Empower Employees

Provide Information and Support Make performance data available and teach

workers how to use them Encourage workers to think like owners Everyone gets a piece of the action

Foster Autonomy and Participation Redesign Work Build Self-Managing Teams Promote Egalitarianism

Promote Diversity

Develop explicit, consistent diversity philosophy, strategy

Hold managers accountable

Putting it all Together: TQM and NUMMI Total Quality Management

High quality is cheaper than low quality

People want to do good work

Quality problems are cross-functional

Top management is ultimately responsible for quality

New United Motors Manufacturing, Inc.

Getting There: Training and Organization Development Barriers to better human resource

management Management reluctance Disrupts established patterns, relationships Lack of communication and interpersonal

skills Training and OD to build capacity

Group interventions: T-groups, large-group interventions (e.g., “Workout’ at GE)

Survey feedback

Conclusion

High-involvement management strategies Strengthen employee-organization bond

Pay well, share the benefits Job security Promote from within Training and development

Empower and improve quality-of-work-life Participation, democracy, egalitarianism Job enrichment, teaming

Promote diversity