Job Design.ppt

8/14/2019 Job Design.ppt

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1 Adz/UiTMK/Chapter 6 1

CHAPTER 6

Job Design


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Objective of Human Resource Strategy

To manage labor and design jobs so people

are effectively and efficiently utilized


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Human Resource Strategy

1. People should be effectively utilizedwithin the constraints of otheroperations management decisions

2. People should have a reasonable qualityof work life in an atmosphere of mutualcommitment and trust


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Constraints on Human Resource Strategy

Product strategy- Skills needed- Talents needed- Materials used- Safety

Locationstrategy- Climate- Temperature- Noise- Light- Air quality

Schedule- Time of day- Time of year(seasonal)- Stability of schedules

Individual differences- Strength and fatigue- Information processingand response

Layout strategy- Fixed position- Process- Assembly line- Work cell- Product

Process strategy- Technology- Machinery andequipment used- Safety

HumanResourceStrategy

Who


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Labor Planning

a) Follow demand exactly

Matches direct labor costs toproduction

Incurs costs in hiring andtermination, unemploymentinsurance, and premium wages

Labor is treated as a variable cost

1. Employment Stability Policies


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b) Hold employment constantMaintains trained workforce

Minimizes hiring, termination, andunemployment costsEmployees may be underutilizedduring slack periods

Labor is treated as a fixed cost

Cont.Employment Stability Policies


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2) Work Schedules

Standard work scheduleFive eight-hour days

Flex-timeAllows employees, within limits, to determinetheir own schedules

Flexible work week

Fewer but longer daysPart-time

Fewer, possibly irregular, hours


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3) Job Classification and

Work RulesSpecify who can do what

Specify when they can do it

Specify under what conditionsthey can do it

Often result of union contracts

Restricts flexibility in assignmentsand consequently efficiency ofproduction


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Job Design

Specifying the tasks that make upa job for an individual or groupInvolves determining

- What is to be done (i.e., responses)- How it is to be done (i.e., tools etc.)- Why it is to be done (i.e., purpose)


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Components of Job Design1) Job specialization

2) Job expansion

3) Psychological components

4) Self-directed teams

5) Motivation and incentive systems


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1) Job Specialization

The division of labor into unique tasks

First suggested by Adam Smith in 17761. Development of dexterity

2. Less loss of time

3. Development of specialized tools

Later Charles Babbage (1832) addedanother consideration

1. Wages exactly fit the required skill required


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2) Job Expansion

Process of adding more variety to jobsIntended to reduce boredom associatedwith labor specialization

Methods- Job enlargement- Job enrichment- Job rotation- Employee empowerment


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3) Psychological Components of JobDesign

Human resource strategy requiresconsideration of the psychologicalcomponents of job design

Individuals have values, attitudes,and emotions that affect job results- Example: Work is a social experience

that affects belonging needs


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Hawthorne Studies

They studied light levels, but discoveredproductivity improvement was independentfrom lighting levels

Introduced psychology into the workplace

The workplace social system and distinctroles played by individuals may be moreimportant than physical factors

Individual differences may be dominant in jobexpectation and contribution


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Hackman and Oldham have incorporatedmuch of that work into 5 desirablecharacteristics of job designJobs should include the followingcharacteristics:

a) Skill varietyb) Job identity

c) Job significanced) Autonomye) feedback

Core Job Characteristics


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4) Self-Directed Teams

Group of empowered individuals workingtogether for a common goalMay be organized for short-term or

long-term objectivesReasons for effectiveness- Provide employee empowerment- Provide core job characteristics- Meet psychological needs (e.g., belonging)


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Ensure those who have legitimatecontributions are on the team

Provide management supportEnsure the necessary training

Endorse clear objectives and goals

Financial and non-financial rewardsSupervisors must release control

To maximize effectiveness,managers should:


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Benefits of Teams and

Expanded Job DesignsImproved quality of work life

Improved job satisfaction

Increased motivation

Allows employees to accept more

responsibilityImproved productivity and quality

Reduced turnover and absenteeism


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Higher capital costMany individuals prefer simple jobsHigher wages are required since the worker must

utilize a higher level of skill A smaller labor pool exists of persons able and willingto perform enriched or enlarged jobsIncreased accident rates may occur

Higher training costs

ContLimitations to Job expansion


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5) Motivation and Incentive

SystemsBonuses - cash or stock options

Profit-sharing - profits for distribution to

employeesGain sharing - rewards for improvements

Incentive plans - typically based on

production ratesKnowledge-based systems - reward forknowledge or skills


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Ergonomics and the Work

EnvironmentErgonomics is the study of theinterface between man andmachine

Often calledhuman factors

Operator inputto machines


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Ergonomics and Work Methods

Feedback to operators

The workenvironment

Illumination

Noise

Temperature

Humidity


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WORK MEASUREMENT


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What is Work Measurement?Determining the amount of worker timerequired to generate one unit of outputProvides labor standards

Target amount of time required to perform a job under normal working conditions


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Uses of Labor Standards

Costing labor content of productsPlanning staffing needs

Cost & time estimates for bidsPlanning productionWage-incentive plans

Employee efficiency


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Sources of Labor Standards

Historical experienceTime studies

Predetermined time standards (MTM)Work sampling


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Cont

3. Work samplingEstimate the percent of time that a worker spendson a various tasks.Random observations are used to record theactivity that a worker is performing

The results are used to determine how employeesallocate their time among various activitiesKnowledge of this allocation may lead to staffingchanges, reassignment of duties, estimates of

activity cost and setting of delay allowances forlabor standards.


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The Five StepWork Sampling Procedure

1. Take a preliminary sample to obtain anestimate of the parameter value

2. Compute the sample size required

3. Prepare a schedule for observing theworker at appropriate times4. Observe and record worker activities; rate

worker performance5. Determine how workers spend their time

(usually as a percent)


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Work Sampling

Determining the sample size

n =z 2 p (1 - p )

h 2 where n = required sample size

z = standard normal deviate fordesired confidence level

p = estimated value of sampleproportion

h = acceptable error level in percent


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Cont 4. Time studies

Labor standards are based on observingworker doing task

- Involves timing a sample of a workers

performance and using it to set a standardDisadvantages

- Requires a trained & experienced analyst- Standard cannot be set before task is performed


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The Eight Steps to Conducting aTime Study

1. Define the task to be studied

2. Divide the task into precise elements

3. Decide how many times to measure thetask

4. Time and record element times andrating of performance

Adz/UiTMK/Chapter 6


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Cont

5. Compute average observed time

(element times adjusted for unusual influences)

Averageobserved

time

Sum of the times recorded toperform each element

Number of observations=

6. Determine performance rating and

normal timeNormal time = x

Averageobserved

time

Performancerating factor

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Cont.

7. Add the normal times for eachelement to develop the total normal

time for the task8. Compute the standard time

Standard time =Total normal time

1 - Allowance factor


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AllowancesPersonal time allowance - 4% - 7% of totaltime - use of restroom, water fountain, etc.Delay allowance - based upon actual

delays that occurFatigue allowance - to compensate forphysical or mental strain, noise level,

tediousness, heat and humidity,assumption of an abnormal position, etc.


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Cont. Allowances is included in the calculation ofstandard time because we cannot expectworkers to work non-stop without any break

Allowances help workers to improveperformance or at least continue to performaccording to standard

Formula:

Allowance factor = Non-work timeTotal time


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Example :

The basic time to assemble the bicycleframe is 1.33 min Allowances : personal time 40 min

unavoidable delay 15 min Area clean up 17 min

Find the standard time to assemble thebicycle frame(assume 8 hour workday)


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Exercise 1

The time study of work operation at RedLobster restaurant yielded an averageobserved time of 4.0 minutes. The analyst

rated the observed worker at 85%. The firmsuses a 13% allowance factor. Red Lobsterwants to compute the normal time andstandard time for this operation.


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Exercise 2

A work operations consisting of threeelements has been subjected to a stopwatchtime study. The recorded observations areshown in the following table. By unioncontract, the allowance time for the operationis personal time 5%, delay 5% and fatigue

10%. Determine the standard time for thework operation.


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Cont

Observations (minutes)Jobelement

1 2 3 4 5 6 Performancerating

A 0.1 0.3 0.2 8.9 0.2 0.1 90%

B 0.8 0.6 0.8 0.5 3.2 0.7 110%

C 0.5 0.5 0.4 0.5 0.6 0.5 80%

40 Adz/UiTMK/Chapter 6


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Time Studies - Sample Size

xhzs

n,sizeSample

h = accuracy level desired as percent of job element,expressed as a decimal (5% = 0.05)

z = number of standard deviations required for thedesired level of confidence

s = standard deviation of the initial sample

x = mean of the initial sample 1

2 n

xixs :Note


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Considerations in DeterminingSample Size

How accurate do you want to be? What level of confidence do you want yourmeasurements to have? How much variation exists within the jobelements?


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Determine Sample Size

Required sample size = n =2zs

h x

where h = accuracy level (acceptable error)desired in percent of the job elementexpressed as a decimal

z = number of standard deviations requiredfor the desired level of confidence

s = standard deviation of the initial samplex = mean of the initial samplen = required sample size


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Common z values

Desired Confidence Level (%)

Z Value

90.11 1.65

95.00 1.96

95.45 2.00

99.11 2.58

99.73 3.00 99.0


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END OF CHAPTER 6

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