1. Pandit Deendayal Petrolium University
Power Sector Roundtable
Creating High Performing Work Systems
30/8/2013
It is a privilege to be with you and share my views & experience on
creating ‘high performing work systems’. While I present my views &
insights, the perspective that I bring into discussion is that of a
practising manager rather than that of an academician. I will share the
experiences that we are having in driving performance in our
organization as well as some of the phenomena & dilema that we are
experiencing. I will also share some of the underlying principles which
have helped us in achieving success.
When we think of high performance work the metaphor that comes to
the mind is that of a beehive and the closest synonym is efficiency.
Broadly there are 2 aspects of creating a hi performaing work system:
1. The processes & work systems as bedrock of performing work
organization AND
2. The human systems and the role of organization in shaping
human behaviour at the workplace.
In my discussion, I will focus on the other aspect of high performance
work system which is creating ‘enduring and endearing work place’
as opposed to a plain vanilla efficient work place. My effort is to
present before you the story of high performance work place from the
individual’s perspective.
1. What is it that people need,
2. What is it that people expect,
3. What is it that people aspire,
when they come to the work place
The classical view of talent in creating high performance work force by
putting in efforts to carry entire mass by creating lowest common
denominator has undergone a sea change. In today’s world, identifying
the high performing high potential talent and treating them
differently through appropriate differentiation methods, is a must.
The selection, recognition, development & reward systems of HR
need to be geared up to continuously identify and differentiate talent
across all levels of organization and nurture them to actualise their

2. potential. Wherever such identification, differentiation and nurturing
elements are missing in design basis of the work place, the results are
likely to be mediocre. This does not mean that an organization system
is to be designed only for top 15-20 per cent and balance are to be
neglected. Every organization needs different type of talent and
organization should have the ability of dealing with individuals by
following principle of n = 1.
Before we move forward, I want to put across some disclaimers which
are very important to correctly understand the framework and
perspective that I am going to follow:
1. High performance work places & their systems are contextual.
There are generic principles which cut across but these
principles need to be suitably moderated and adapted to suit
the context.
2. High performance work places are not one time affair. They
have to be created by careful design and maintained on every
day basis.
3. Performance as a synonym for efficiency alone is not likely to
be sustainable over the long period of time. Efficiency needs
to be over layered by care to make it sustainable.
The society is changing and with society all values, beliefs and
assumptions are also changing. More & more democratization of
society is pushing the boundaries & putting pressure on the workplaces
to adapt to these changes. The causal relationship of values and
behaviour is very well known. With large proportion of Gen Y entering
into the workforce, there is a change of values and behaviour of
people at workplace. Hence the concept of high performance
workplace as we understood in the 20th
century is no more valid. The
aspiration and dreams of this new age workforce are very different
than what it used to be even a decade ago. This has implication in our
efforts to build & maintain a performing workplace.
If we really want to create high performance work place engaging the
young minds of the 21st century, the solution is not to entice people
with carrot and stick approach. Any work system which is designed to
be high performing with only productivity, efficiency and ROI, as
primary driver will give results till the environmental factors are

3. supportive. When there is a change in the economic environment and
the macro economic factors turn adverse or challenging, stress is likely
to be experienced on these work systems. A work system designed
entirely around carrots and sticks approach -the extrinsic motivators-
may have worked in the 20th
century. But for 21st century, such
mechanistic, reward-and-punishment approach doesn't work. We need
a whole new approach.
We need an approach around the desire to do things because they
matter, because we like it, because they're interesting, because
they are part of something important. Hence the imperative is to
leverage these softer elements of human psychology wherein the
discretionary efforts are put in by members of work place in
challenging environment to overcome and sustain the adversity.
Hence, we need an approach built much more around intrinsic
motivation. And that new approach for our businesses revolves around
three elements: autonomy, mastery and purpose.
The modern research indicates that most important aspects of work
life for contemporary generation are:
1. Autonomy
2. Mastery
3. Purpose
Autonomy is the urge to direct our own lives.
Mastery is the desire to get better and better at something that
matters.
Purpose is the yearning to do what we do in the service of
something larger than ourselves.
Autonomy, mastery and purpose are the building blocks of a new
way of doing things.
Now, the engagement of any individual with organisation has two
concurrent contracts – Economic Contract & Psychological Contract.
The economic contract requires effort of individual in lieu of economic
rewards which are given to the individual. This relates to the extrinsic
motivators.

4. The psychological contract between the individual and the
organization expands to far bigger horizon beyond economic
consideration wherein the individual looks forward for presence of
softer elements at work place viz; trust, transparency, fairness, care
etc.
In the absence of elements which fulfil the psychological needs of
people like the need to belong, need to associate, need to be involved,
need to relate to into matters which impact them - the efforts put in
by individual at work are sub-optimal. Efforts are limited to the extent
of survival as opposed to excel. However when these softer elements
are present at work place and people are truly engaged, then the
individual’s effort goes beyond the normal degree and discretionary
effort is put in by the people. This is a win-win arrangement wherein
the organization gets results out of the discretionary effort put in by
people and peoples’ holistic needs are fulfilled by doing what they
want to do. These psychological needs & fulfillment act as intrinsic
motivators.
The true challenge in creating high performing work system is to
understand and address these changing psychological needs of work
force on continuous basis so as to maximise the collective
discretionary efforts.
While best of the best performing work systems can be conceptually
designed with work processes and softer human elements taken care
of, the taste of success is in the experience that an individual gets in
his day to day interaction of organization and work systems.
The response of the organization to individual performance, success,
failure and short comings define the character of the organization.
While the interaction and decision may be limited to one individual or
to a small group of people but the message is received across the
organization and behaviour of the people gets moderated
accordingly.
One of the key imperative of this in designing high performing work
systems is to build people capability among the managers to
translate these well meaning human systems into right experience
for individual in their day to day interactions.

5. This capability is very difficult to build through an off-hand training
program where content is downloaded without an effort to moderate
the belief system of managers. We must understand what
fundamentally drives their belief system & channelize the efforts into
that direction.
The top-most visible layer of the belief system are the Artefacts.
Artefacts are observable phenomena which can be seen in any work
unit or work place. It can be tangible or intangible. The tangible
artefacts are design of work place. Physical arrangement and the way
people transact their business etc. Whereas the intangible artefacts
are the socio cultural interactions, interpersonal relations, the
collaboaration or competition that exists in the work groups,
innovation and innovative thought process that people apply. Artefacts
are the physical / visible objects & schemas put in place and being
used. These are shaped by the Values & Beliefs being shared by the
influential members of the organization.
The artefacts are manifestation of espoused values & beliefs that
people have and hold dear to them. Espoused Values & Beliefs that
inform a sense of right and wrong are embedded in the way people
act in their environment and stem from implicit assumptions about
the way world is and how it fits together. These beliefs form a
holistic approach to life; they constitute an implicit framework or
philosophical perspective on life and it's various components.
The espoused values again are guided by the Implicit Assumptions that
each individual is having and hence while creating a high performance
work systems, to my mind, the most important aspect is clear
understanding of belief system of collective workforce and the
organization belief system and creating a synergy between these two.
In sum, the Talent Value Proposition needs to be clearly defined by the
organization & work proceses & human systems need to be closely
woven around it.
While understanding the belief systems, a careful analysis of cultural
differences of society is extremely important in designing and putting
work systems which appeal to work force. For example, while western
values support very candid, matter of fact work places where people
prefer transactional relationships. The eastern societies are different
in their expectations and aspirations. Hence considering these societal

6. values and their impact on work process is of great importance in this
part of the world.
I firmly believe that People in the organization respond to the cues,
that the organization keeps giving on day to day basis through its
policies and decisions. The transactional work places which are
designed with return on talent invested considerations alone, are likely
to get back a transactional response which can be viable in short run
but life cycle is likely to be shorter. So, the concept of enduring and
endearing organization suggest that work systems which are created
by incorporating human values as part of the human architecture of
the orgsnization are likely to give higher results as well as remain
sustainable in their life cycle. As an example if the organizational work
systems are designed on the basis of trust and openness, in all
likelihood people will also respond with exhibiting trust and openness
with one another as also towards the organization. However, if systems
are designed as matter of fact and without trust as an element, people
will also respond accordingly. Existence of TATA as a Group for more
than 100 years is a standing example of how beliefs can shape the
behaviour of people and how practising human values can ensure long
term sustainable success.
To sum it up,
1. The approach to create high performance work systems for the
GEN-Y is to move beyond traditional carrot and stick approach
to the intrinsic motivators built on Autonomy, Mastery and
Purpose.We must understand and address the psychological
needs of work force on continuous basis so as to maximise the
collective discretionary efforts.
2. To translate well meaning work systems & processes, investment
in building people cpabilities among business managers is a
must to create right experience to people.
3. To create efficient & sustainable high performance work system,
it is a must to shape the values & belief of collective workforce
and create a synergy with the organization’s values & belief.
4. To create enduring and endearing organization for long term
sustainable performance & results the work systems & practices
must incorporate human values and care beyond transactional &
ROI considerations.

7. values and their impact on work process is of great importance in this
part of the world.
I firmly believe that People in the organization respond to the cues,
that the organization keeps giving on day to day basis through its
policies and decisions. The transactional work places which are
designed with return on talent invested considerations alone, are likely
to get back a transactional response which can be viable in short run
but life cycle is likely to be shorter. So, the concept of enduring and
endearing organization suggest that work systems which are created
by incorporating human values as part of the human architecture of
the orgsnization are likely to give higher results as well as remain
sustainable in their life cycle. As an example if the organizational work
systems are designed on the basis of trust and openness, in all
likelihood people will also respond with exhibiting trust and openness
with one another as also towards the organization. However, if systems
are designed as matter of fact and without trust as an element, people
will also respond accordingly. Existence of TATA as a Group for more
than 100 years is a standing example of how beliefs can shape the
behaviour of people and how practising human values can ensure long
term sustainable success.
To sum it up,
1. The approach to create high performance work systems for the
GEN-Y is to move beyond traditional carrot and stick approach
to the intrinsic motivators built on Autonomy, Mastery and
Purpose.We must understand and address the psychological
needs of work force on continuous basis so as to maximise the
collective discretionary efforts.
2. To translate well meaning work systems & processes, investment
in building people cpabilities among business managers is a
must to create right experience to people.
3. To create efficient & sustainable high performance work system,
it is a must to shape the values & belief of collective workforce
and create a synergy with the organization’s values & belief.
4. To create enduring and endearing organization for long term
sustainable performance & results the work systems & practices
must incorporate human values and care beyond transactional &
ROI considerations.