CHAPTER 16—CREATING HIGH-PERFORMANCE WORK SYSTEMS
TRUE/FALSE
1. The primary principles that support high-performance work systems are teams, empowerment, and
hierarchy.
2. Today organizations are relying more on the expertise and initiative of employees.
3. Employees who are given timely information about business plans, performance, and strategies are
more likely to make good suggestions for improving business.
4. The principle of shared information is part of the implementation of a command and control
organizational system.
5. Knowledge development goes hand-in-hand with information sharing in high-performance work
systems.
6. Moving power downward in organizations frequently requires structural change.
7. High-performance work systems depend on the shift from knowledge work to touch labor.
8. To encourage employees to pursue job outcomes that are in alignment with the organization’s goals,
managers should be sure to link rewards to performance.
9. Redesigning workflow around key business processes results in a focus on employee tasks and tends to
detract from teamwork.
10. Ironically, involving employees in decision making and giving them the power to act tends to decrease
employee engagement.
11. One of the underlying ideas of high-performance work systems is that workers are intimately
acquainted with the nature of their own work and are therefore in the best position to recognize
problems and devise solutions to them.
12. The principle of shared information typifies a shift in organizations away from the mentality of
command and control toward one more focused on employee commitment.
13. It is not uncommon for employees to intentionally or unintentionally pursue outcomes that are
beneficial to them but not necessarily to the organization as a whole.
14. High-performance work systems frequently begin with the way work is designed.
15. Most high-performance work systems focus their training efforts on ensuring that employees have the
skills necessary to assume a greater degree of responsibility.
16. Many high-performance work systems begin with highly directive recruitment and selection practices.
17. The compensation package is not significant for high-performance work systems to succeed, as
HPWSs generally focus on knowledge development and information sharing.
18. Training focuses on ensuring that employees have the skills they need to assume greater responsibility
in a high-performance work environment.
19. Most high-performance work systems are able to isolate a single approach to a pay system that works
for everyone.
20. Open pay systems create a more egalitarian environment.
21. With fewer layers of management and a focus on team-based organization, the role of managers and
supervisors is substantially different in an environment of high-performance work systems.
22. The richest communication occurs face to face.
23. In an environment of shared information, the richest communication occurs face to face.
24. Timely and accurate communications are essential for high-performance work systems to succeed.
25. When the components of a high-performance work system support the organization’s goals and
strategies, internal fit is achieved.
26. When the elements of the work system complement and reinforce one another, internal fit is achieved.
27. In a work system with a high degree of internal fit, adjusting one HR practice is not likely to
substantially impact the other components of the work system.
28. Efforts to achieve external fit help focus the design of high-performance work systems on strategic
priorities.
29. The HR Scorecard can be used to diagnose both internal and external fit.
30. The HR scorecard helps managers assess the strategic alignment of their work systems.
31. Using the HR scorecard, managers assess internal fit by determining whether particular HR practices
reinforce one another.
32. The synergy achieved through overlapping work and human resources practices is at the heart of what
makes a high-performance system effective.
33. Most employees welcome change efforts.
34. To successfully implement high-performance work systems, managers should emphasize the strategic
importance of the change effort.
35. To achieve internal fit, high-performance work systems must support the organization’s goals and
strategies.
36. One of the best ways to communicate the business needs to employees is to show them the gap
between today’s current performance and capabilities and where the organization needs to be in the
future to be successful.
37. Involving union members only after the design process and implementation plan has been completed
helps build a bridge toward employee buy-in.
38. In a union environment, organization power in negotiating is the key criterion for successfully
implementing high-performance work systems.
39. Formal commitments between management and unions to jointly implement high-performance work
systems serve to institutionalize the relationship so that it keeps going even if key champions leave.
40. The gap between today and the future represents a starting point for discussion when communicating
business needs to employees.
41. To successfully implement a high-performance work system, managers should try to implement all
facets of the change at once.
42. Some research studies have found that unions can be a barrier to high-performance work systems.
43. Each organization has unique circumstances, and parties are more likely to commit to procedures they
create and own.
44. High-performance work systems need to be periodically evaluated in terms of organizational priorities
and initiatives.
45. Once implemented, a process audit is used to determine whether the high-performance work system
has been profitable.
46. Line managers typically own the responsibility for implementing high-performing work systems.
47. The advantage of high-performance work systems is that they are flexible and, therefore, more easily
adapted.
48. Skills, knowledge, and abilities that are not equally available to all organizations are known as rare.
49. Employee skills, knowledge, and abilities that are not equally available to all organizations are
difficult to imitate.
50. High-performance work systems that are designed around team processes and capabilities that cannot
51. Because high-performance work systems are difficult to implement, successful organizations are
difficult to copy.
MULTIPLE CHOICE
1. According to the research organization Gallup, only _____ of U.S. employees are actively engaged on
the job.
a.
14 percent
b.
29 percent
c.
44 percent
d.
59 percent
2. Which of the following is not a primary principle for support of high-performance work systems?
a.
shared information
b.
knowledge development
c.
totalitarianism
d.
linking rewards with performance
3. Which of the following principles is critical for the success of empowerment and involvement
initiatives in organizations?
a.
shared information
b.
knowledge development
c.
totalitarianism
d.
linking rewards with performance
4. Which of the following principles typifies a shift away from mentality of command and control in
organizations?
a.
shared information
b.
knowledge development
c.
totalitarianism
d.
linking rewards with performance
5. The number of jobs requiring little knowledge and skills is ____ and the number of jobs requiring
greater knowledge and skills is ____ in recent years.
a.
increasing; increasing
b.
decreasing; decreasing
c.
increasing; decreasing
d.
decreasing; increasing
6. According to the research organization Gallup, _____ of U.S. employees are actively disengaged on
the job.
a.
15 percent
b.
28 percent
c.
41 percent
d.
60 percent
7. To invest in employee knowledge development, all of the following HR practices would be
appropriate except:
a.
selecting the best and brightest candidates available.
b.
providing all employees with continuous training.
c.
rewarding employees for the acquisition of new skills.
d.
evaluating employees based on task performance.
8. _____ occurs when all the internal elements of the work system complement and reinforce one
another.
a.
Synergy
b.
External fit
c.
Internal fit
d.
Benchmarking
9. Connecting rewards to organizational performance ensures:
a.
lower total labor costs.
b.
fairness and focuses employees on the organization.
c.
competitive wages in the market place.
d.
lower employee turnover.
10. _____ is a situation in which the work system supports the organization’s goals and strategies.
a.
Synergy
b.
External fit
c.
Internal fit
d.
Flattening
11. Work environments in which collaboration and teamwork are encouraged and status and power
differences are diminished is known as:
a.
an egalitarian environment.
b.
an autocratic environment.
c.
a democratic environment.
d.
a self-actualization environment.
12. Egalitarian work environments reduce or eliminate ____, while increasing or improving ____.
a.
the need for skill-based pay systems; team performance
b.
status and power differences; collaboration and teamwork
c.
the need for shared information; teamwork
d.
status and power differences; other disparities
13. Which of the following is not a typical method of increasing the power of employees?
a.
job enlargement
b.
enrichment
c.
standardization
d.
relying on self-managed teams
14. High-performance work systems frequently begin with:
a.
selecting employees.
b.
writing a mission statement.
c.
employee training.
d.
looking at how work is designed.
15. Which of the following questions is NOT likely to be in a process audit?
a.
Are employees getting the information they need to make empowered decisions, and are
they engaged?
b.
Are union officials on notice and cooperating with organizational changes?
c.
Are training programs developing the knowledge and skills employees need?
d.
Are employees being rewarded for good performance and useful suggestions?
16. A recent Gallup study reported that firms with top engagement scores had _____ higher productivity.
a.
9 percent
b.
18 percent
c.
36 percent
d.
72 percent
17. Many high-performance work systems begin with highly directive
a.
compensation policies.
b.
work flow systems around family friendly principles.
c.
recruitment and selection practices.
d.
top-down communication systems.
18. In high-performance organizations, training is undertaken in order for employees to:
a.
assume greater responsibility.
b.
earn higher wages.
c.
lower organizational costs.
d.
remain loyal to the organization.
19. A recent Gallup study reported that firms with top engagement scores had _____ higher profitability.
a.
6 percent
b.
8 percent
c.
16 percent
d.
18 percent
20. Organizations that wished to emphasize teamwork involvement and continuous improvement would
promote which type of training?
a.
spot training
b.
efficiency-training
c.
cross-training
d.
work-training
21. According to a study by the Corporate Executive Board, engaged employees outperform average
employees by _____.
a.
10 percent
b.
20 percent
c.
33 percent
d.
40 percent
22. To create a more flexible pool of employees, managers should:
a.
rely on job-based pay structures.
b.
rely on skill-based pay structures.
c.
implement a gain sharing incentive system.
d.
implement an employee stock ownership plan.
23. Which of the following compensation systems does not focus employee efforts on outcomes that are
beneficial to both themselves and the organization as a whole?
a.
profit-sharing plans
b.
employee stock ownership plans
c.
hourly based pay systems
d.
gain sharing
24. ____ is a pool of money employees can spend on capital improvements if the company meets
profitability goals.
a.
Profit-sharing fund
b.
Employee stock ownership
c.
Intracapital
d.
Skill-based pay
25. According to a study by the Corporate Executive Board, engaged employees are _____ less likely to
leave their organizations than highly disengaged employees.
a.
24 percent
b.
45 percent
c.
66 percent
d.
87 percent
26. ____ refers to the component of a high-performance work system that helps organizations develop and
harness skills, knowledge, and abilities that are not equally available to all organizations.
a.
Value
b.
Rarity
c.
Organization
d.
Difficulty in imitation
27. The richest communication occurs:
a.
in writing
b.
face to face
c.
via videos
d.
using technology
28. To achieve internal fit, organizations should use the following HR practices together except:
a.
first-rate selection system.
b.
training and development.
c.
compensation.
d.
morale testing.
29. What type of fit describes high-performance work systems that complement and reinforce one
another?
a.
lateral fit
b.
depth fit
c.
external fit
d.
internal fit
30. To achieve external fit, organizations must first analyze all of the following except:
a.
competitive challenges.
b.
organizational values.
c.
other HR components.
d.
employee concerns.
31. ____ refers to the component of a high-performance work systems that is designed around team
processes and capabilities that cannot be transported, duplicated, or copied by rival firms.
a.
Difficulty in imitation
b.
Organization
c.
Value
d.
Rarity
32. Efforts to design high-performance work systems in line with external fit issues such as competitive
challenges and company values:
a.
create empowerment in workers
b.
focus the design on strategic priorities
c.
improve internal fit accordingly
d.
make the implementation stage easier
33. The HR scorecard is used to diagnose:
a.
short-term organizational efficiency
b.
long-term organizational efficiency
c.
competitive strategic alignment
d.
internal and external fit
34. Employment stability, team-based behaviors, and strategy-focused behaviors are used as part of an HR
scorecard to assess:
a.
workforce deliverables
b.
HR deliverables
c.
external objectives
d.
top management support
35. ____ refers to the component of high-performance work systems that combines the talents of
employees and rapidly deploys them in new assignments with maximum flexibility.
a.
Value
b.
Rarity
c.
Organization
d.
Difficulty in imitation
36. ____ is the component of high-performance work systems based upon an increase in value by
establishing ways to increase efficiency, decrease costs, improve processes, and provide something
unique to customers.
a.
Rarity
b.
Difficulty in imitation
c.
Value
d.
Organization
37. Which of the following would most likely help managers develop a strong relationship with a union in
implementing high-performance work systems?
a.
relying on informal communication
b.
concentrating efforts on achieving all the organization’s objectives
c.
involving them early in the design process
d.
concentrating accountability for union relations with the top management
38. The principle of shared information typifies a shift in organizations _____ from the mentality of
command and control _____ one more focused on employee commitment.
a.
away; toward
b.
toward; away
c.
away; away
d.
toward; toward
39. Which of the following is not a tangible symbol of commitment between labor and management?
a.
a policy document clarifying union involvement
b.
clauses in the collective bargaining agreement
c.
good-faith negotiations
d.
the establishment of joint forums with explicit mandates
40. Building commitment to high-performance work systems is:
a.
an ongoing activity.
b.
costly.
c.
based on technology.
d.
competitive.
41. Which of the following is NOT a typical method for increasing the power of employees to influence
decisions?
a.
job enlargement
b.
job enrichment
c.
self-managing work teams
d.
diversity training
42. Regardless of the time available to implement a high-performance work system, the use of ____ helps
keep everyone on track and prevents the system from bogging down.
a.
top-management directives
b.
a transition structure
c.
employee involvement
d.
empowerment
43. Determining whether the high-performance work system has been implemented as designed is
achieved by:
a.
the HR scorecard
b.
a process audit
c.
cross-training
d.
employee surveys
44. Which of the following questions would be the least likely to be asked during a process audit?
a.
“Are employees making more money than in the past?”
b.
“Are employees actually working together, or is ‘team’ just a label?”
c.
“Is training developing the knowledge/skills employees need?”
d.
“Are employees rewarded for good performance and useful suggestions?”
45. To determine whether the high-performance work program is succeeding, managers should look at
issues such as the following, except:
a.
Are the behaviors the organization desires being exhibited on the job?
b.
Are employees abiding by the organizational changes in a manner that comports with the
company code of conduct?
c.
Are quality, productivity, flexibility, and customer service objectives being met?
d.
Are quality-of-life goals being achieved for employees?
46. Which of the following is true? A more egalitarian work environment _____ status and power
differences and _____ collaboration and teamwork.
a.
lessens; increases
b.
lessens; decreases
c.
increases; lessens
d.
increases; decreases
47. According to the research organization Gallup, _____ of U.S. employees are somewhere in the middle,
not disengaged, but not engaged either.
a.
24 percent
b.
34 percent
c.
44 percent
d.
54 percent
48. With _____ layers of management and a focus on team-based organization, the role of managers and
supervisors is substantially _____ in an environment of high-performance work systems.
a.
fewer; different
b.
greater; different
c.
fewer; the same
d.
greater; the same
49. To enhance the degree of rareness in employee skills and abilities, organizations should develop
competencies in their employees that:
a.
can be transferred to other organizations.
b.
can be duplicated.
c.
can provide generic skills that are widely valued.
d.
are not equally available in the labor market.
50. High-performance work systems that combine talents of employees and rapidly deploy them where
needed with maximum flexibility are said to be:
a.
valuable
b.
rare
c.
difficult to imitate
d.
organized
51. The notion of high-performance work systems was originally developed by _______________.
a.
Peter Drucker
b.
Carmen Miranda
c.
David Nadler
d.
Susanna Smart
52. The Gallup organization found that about _______ % of U.S. employees are actively engaged on the
job.
a.
12
b.
29
c.
45
d.
65
ESSAY
1. What are the fundamental principles of high-performance work systems?
ANS:
2. Describe how the HR Scorecard can be used by organizations.
3. What are the critical issues involved in implementing a high-performance work system?
4. Describe how high-performance work systems can create competitive advantage for the organization.
5. Describe the process audit that can be used to evaluate the HPWS.