Human%20Resource

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Chapter 6

• Human Resource
• Practices

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Toyota Georgetown

• Weve got nothing, technology-wise, that anyone
  else cant have. Theres no secret Toyota
  Quality Machine out there. The quality machine is
  the workforce -- the team members on the paint
  line, the suppliers, the engineers -- everybody
  who has a hand in production here takes the
  attitude that were making world-class vehicles.

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Key IdeaIntroduction
Businesses are learning that to satisfy
customers, they must first satisfy
employees. Impact of Fredrick Taylor
Scientific Management
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Objectives of HRM

• To build a high-performance workplace and
  maintain an environment for quality excellence to
  enable employees and the organization to achieve
  strategic objectives and adapt to change.

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Key Activities in HRM

• Determine organizations HR needs to build a
  high-performance workplace
• Assist in design of work systems
• Recruit, select, train develop, counsel,
  motivate, and reward employees
• Act as liaison with unions government
• Handle other matters of employeewell-being

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Leading Practices (1 of 2)

• Design work and jobs to promote cooperation,
  initiative, empowerment, innovation, and
  organizational culture
• Promote teamwork and skill sharing across work
  units and locations
• Empower individuals and teams to make decisions
  that affect quality and customer satisfaction
• Develop effective performance management systems,
  compensation, and reward and recognition
  approaches

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Leading Practices (2 of 2)

• Effective processes for hiring and career
  progression
• Make extensive investments in training and
  education
• Motivate employees to develop and use their full
  potential
• Maintain a work environment conducive to the
  well-being and growth of all employees
• Monitor extent and effectiveness of HR practices
  and measure employee satisfaction

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Teams

• Team - a small number of people with
  complementary skills who are committed to a
  common purpose, set of performance goals, and
  approach for which they hold themselves mutually
  accountable

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Teams

• Cooperation vs. competition among employees
• Teams represent a fundamental shift in how work
  is done
• Teams lead to higher employee satisfaction and
  improvement in quality

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Types of Teams

• Management teams
• Natural work teams
• Self managed teams
• Virtual teams
• Quality circles
• Problem solving teams
• Project teams

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Key IdeaTeams
The three basic functions of quality circles and
problem-solving teams are to identify, analyze,
and solve quality and productivity problems.
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Functions of Teams
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Key IdeaBuilding Effective Teams
The key stages of a teams life cycle are called
forming, storming, norming, performing, and
adjourning.
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Ingredients for Successful Teams (1 of 2 )

• Clarity in team goals
• Improvement plan
• Clearly defined roles
• Clear communication
• Beneficial team behaviors

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Ingredients for Successful Teams (2 of 2)

• Well-defined decision procedures
• Balanced participation
• Established ground rules
• Awareness of group process
• Use of scientific approach

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Six Sigma Project Teams

• Champions senior managers who promote Six Sigma
• Master Black Belts highly trained experts
  responsible for strategy, training, mentoring,
  deployment, and results.
• Black Belts Experts who perform technical
  analyses
• Green Belts functional employees trained in
  introductory Six Sigma tools
• Team Members Employees who support specific
  projects

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High Performance Work Systems
Compensation and recognition
Work and Job Design
Flexibility Innovation Knowledge and skill
sharing Organizational alignment Customer
focus Rapid response
Health and safety
Empowerment
Suggestion systems
Employee Involvement
Training and Education
Teamwork and Cooperation
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Designing High Performance Work Systems

• Work design - how employees are organized in
  formal and informal units (departments, teams,
  etc.)
• Job design - responsibilities and tasks assigned
  to individuals

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Key IdeaWork and Job Design
The design of work should provide individuals
with both the intrinsic and extrinsic motivation
to achieve quality and operational performance
objectives.
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Hackman/Oldham Model
Critical psychological states
Core job characteristics
Outcomes
Skill variety Task identity Task significance
Experienced meaningfulness of work
High motivation High satisfaction High
work effectiveness
Experienced responsibility
Autonomy Feedback from job
Knowledge of actual results
Moderators
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Enhancing Work Design

• Job enlargement expanding workers jobs
• Job rotation having workers learn several tasks
  and rotate among them
• Job enrichment granting more authority,
  responsibility, and autonomy

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Employee Involvement

• Employee Involvement - any activity by which
  employees participate in work-related decisions
  and improvement activities, with the objectives
  of tapping the creative energies of all employees
  and improving their motivation

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Key IdeaEmployee Involvement
EI approaches can range from simple sharing of
information or providing input on work-related
issues and making suggestions to self-directed
responsibilities such as setting goals,making
business decisions, and solving problems, often
in cross-functional teams.
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Advantages of EI

• Replaces adversarial mentality with trust and
  cooperation
• Develops skills and leadership abilities
• Increases morale and commitment
• Fosters creativity and innovation

• Helps people understand quality principles and
  instilling them into the organizations culture
• Allows employees to solve problems at the source
• Improves quality and productivity

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Suggestion System

• Toyota example
• Employees generate nearly 3 million ideas each
  year, of which 85 percent are implemented by
  management.

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Empowerment

• Giving people authority to make decisions based
  on what they feel is right, to have control over
  their work, to take risks and learn from
  mistakes, and to promote change.

A sincere belief and trust in people.
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Successful Empowerment

• Provide education, resources, and encouragement
• Remove restrictive policies/procedures
• Foster an atmosphere of trust
• Share information freely
• Make work valuable
• Train managers in hands-off leadership
• Train employees in allowed latitude

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Empowerment

• Leaders and managers must relinquish some of the
  power and authority.
• Management fear and resistance
• Advantages of EI
• It is not for everyone

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Key IdeaRecruitment
Meeting and exceeding customer expectations
begins with hiring the right people whose skills
and attitudes will support and enhance the
organizations objectives.
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Training and Education

• Quality awareness
• Leadership
• Project management
• Communications
• Teamwork
• Problem solving
• Interpreting and using data

• Meeting customer requirements
• Process analysis
• Process simplification
• Waste reduction
• Cycle time reduction
• Error proofing

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Key IdeaTraining and Education
Customer needs and strategic directions should
drive training strategies. It is an essential
requirement. It is one of the largest initial
cost in a TQ initiative.
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Compensation

• The objective of a good compensation system
  should be attract, retain and not demotivate
  employees.
• Always a sticky issue.

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Compensation and Recognition

• Compensation
• Merit versus capability/performance based plans
• Gainsharing
• Recognition
• Monetary or non-monetary
• Formal or informal
• Individual or group

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Key IdeaRecognition
Recognition provides a visible means of promoting
quality efforts and telling employees that the
organization values their efforts, which
stimulates their motivation to improve.
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Effective Recognition and Reward Strategies

• Give both individual and team awards
• Involve everyone
• Tie rewards to quality
• Allow peers and customers to nominate and
  recognize superior performance
• Publicize extensively
• Make recognition fun

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Motivation

• Motivation - an individuals response to a felt
  need
• Theories
• Content Theories (Maslow MacGregor Herzberg)
• Process Theories (Vroom Porter Lawler)
• Environmentally-based Theories (Skinner Adams
  Bandura, Snyder, Williams)

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Key IdeaMotivation
There is no such thing as an unmotivated
employee, but the system within which people work
can either seriously impede motivation or enhance
it.
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Performance Appraisal

• How you are measured is how you perform!
• Conventional appraisal systems
• Focus on short-term results and individual
  behavior fail to deal with uncontrollable
  factors
• New approaches
• Focus on company goals such as quality and
  behaviors like teamwork
• 360-degree feedback mastery descriptions

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Key IdeaPerformance Appraisal
Performance appraisals are most effective when
they are based on the objectives that support the
strategic directions of the organization, best
practices, and continuous improvement.
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Measuring Employee Satisfaction and Effectiveness

• Satisfaction
• Quality of worklife, teamwork, communications,
  training, leadership, compensation, benefits,
  internal suppliers and customers
• Effectiveness
• Team and individual behaviors cost, quality, and
  productivity improvements employee turnover
  suggestions training effectiveness

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Key IdeaMeasuring employee
HR measures allow companies to predict customer
satisfaction, identify those issues that have the
greatest impact on business performance, and
allocate appropriate resources.
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Human Resources in the Baldrige Award Criteria

• The Human Resource Focus Category examines how an
  organizations work systems and employee learning
  and motivation enable employees to develop and
  utilize their full potential in alignment with
  the organization s overall objectives and action
  plans, and how the organization builds and
  maintains a work environment and an employee
  support climate conducive to performance
  excellence and to personal and organizational
  growth.
• 5.1 Work Systems
• a. Organization and Management of Work
• b. Employee Performance Management System
• c. Hiring and Career Progression
• 5.2 Employee Learning and Motivation
• a. Employee Education, Training, and
  Development
• b. Motivation and Career Development
• 5.3 Employee Well-Being and Satisfaction
• a. Work Environment
• b. Employee Support and Satisfaction