The high performance organization (HPO) is a conceptual framework for organizations that leads to improved, sustainable organizational performance. It is an alternative model to the bureaucratic model known as Taylorism. There is not a clear definition of the high performance organization, but research shows that organizations that fit this model all hold a common set of characteristics. Chief among these is the ability to recognize the need to adapt to the surroundings that the organization operates in. High performance organizations can quickly and efficiently change their operating structure and practices to meet needs. These organizations focus on long term success while delivering on actionable short term goals. These organizations are flexible, customer focused, and able to work highly effectively in teams. The culture and management of these organizations support flatter hierarchies, teamwork, diversity, and adaptability to the environment which are all of paramount success to this type of organization. Compared to other organizations, high performance organizations spend much more time on continuously improving their core capabilities and invest in their workforce, leading to increased growth and performance. High performance organizations are sometimes labeled as high commitment organizations.
History
World War II ushered in a great amount of increased manufacturing and industrial production. With this came an increased concern over the human impact on work. The Hawthorne studies were part of the reason why more importance was placed on considering the human impact of work. During this period, industrial manufacturers followed the standardized large scale production method, characterized by mass production, scientific management, and stringent division of labor. This led to increased boredom among blue collar workers who would do the same repetitive job on a daily basis. Management in this period was characterized by careful and calculated monitoring which would cause workers to feel a sense of distrust. By the 1960s management for the industrial manufacturing industries had difficulty attracting and retaining its workforce. During the 1960s there was a push for job enrichment. This grew out of the sociotechnical systems approach to work, which was pioneered by the Tavistock Institute. This system is characterized by the open systems model and self-directed work team, which are also key to the success of a high performance organization. Research on the sociotechnical systems approach to work has shown that this approach is related to increased employee satisfaction and motivation.
Another important step towards the high performance organization was the Japanese Revolution in manufacturing, which pointed out another flaw to the scientific model of production. Because workers were so focused on only doing one monotonous task, they were not aware of the bigger picture. Most employees were completely unaware of the quality of the products that they were producing. The focus that Japanese manufacturing companies put on quality, through their early quality circles, eventually led to the implementation of total quality management which is a key factor of producing quality products that meet consumer demands at low price points. Another reason for the move away from the older, highly bureaucratic approach towards the high performance organization was the rapid change in the business environment since the 1980s.
The 1980s were characterized by a difficulty in American production due to increased competition from foreign firms, increased inflation on oil prices, and a decrease in productivity. This change was characterized by increased globalization, an increase in diversity in the workplace, large technological advances, and increased competition. To better meet the demands of the changing market place, organizations first tried to implement increased technological innovation in their production facilities in order to regain the competitive advantage. These companies soon came to realize that the human factor was also necessary in regaining its competitive footing. The realization of the importance of the human factors in work have led organizations to rely on the high performance organization to drive production and increase their employee's quality of work.