Seven Practices of
Successful Organizations
1.
2.
3.
4.
5.
6.
7.
Employee Security
Selective Hiring
Self-managed teams
Comparatively high
compensation
Extensive training
Reduced status distinctions
Extensive sharing of
information
1) Employment Security
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Employment Security
Policy
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Avoid “Dumbsizing”
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more careful / leaner
hiring
buying high selling
low (IT industry)
doing their job
(Bank - loans officers)
Fire when necessary
2) Selective Hiring

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High number of applicants
Screen for cultural fit and
attitude
What are important skills
Several rounds to scrutinize
Involve senior people
Assess the results and
performance
3) Self-Managed Teams


Research = they work!
Why?
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peer-control
pooled ideas
decrease administrative
overhead
empowered workers
4) High Compensation
Contingent on Performance


Relationship
between money paid
and attracting right
workforce
Can take other
forms than just a
pay-cheque (i.e.
employee ownership
or profit sharing)
5) Training

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Affords flexible
production
Competitive Advantage
NA / Japan differences
reflects differences in
“time horizon” for
holding on to
employees
6) Reduce Status Differences


Make all organizational
members feel
important
How - symbolically

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“associates”
How - figuratively

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parking
dining hall
offices
7) Share Information
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‘Open Book’ management
Shows organizational
members that they are
trusted
People must know what is
happening to make
changes
(but fears that information
will leak out to competitors
is troublesome)
Conclusion


Difficult to do them
in a staged
approach - jump in!
Some will take
longer to work
(training)
HRM Task


What of these
practices is your
company
undertaking right
now?
What are they
missing and should
they consider it?
Company – Report outline
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The Organization and its Mission
Pfeffer’s practices (3): employee security / selfmanaged teams / reduced status distinctions
Recruitment – employment decisions
Retention – working conditions, compensation
Rouse – employee extrinsic and intrinsic rewards
Redevelop – employee training and development
Written report and 10 minute presentation
(everyone must present)!