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Human Resources and Job Design
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Outline GLOBAL COMPANY PROFILE: SOUTHWEST
AIRLINES HUMAN RESOURCE STRATEGY FOR
COMPETITIVE ADVANTAGE Constraints on Human Resource Strategy
LABOR PLANNING Employment-Stability Policies Work Schedules Job Classifications and Work Rules
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Outline - Continued JOB DESIGN
Labor Specialization Job Expansion Psychological Components of Job Design Self-Directed Teams Motivation and Incentive Systems Ergonomics and Work Methods
THE VISUAL WORKPLACE LABOR STANDARDS
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Learning Objectives
When you complete this chapter, you should be able to :
Identify or Define: Job design Job specialization Job expansion Tools of methods analysis Ergonomics Labor standards Andon
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Learning Objectives - Continued
When you complete this chapter, you should be able to :
Describe or explain: Requirements of good job design The visual workplace
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Southwest Airlines Profitable for 26 years while United,
Northwest, and USAir lost billions. Strategy: Human resources
Culture of caring for people in the totality of their lives, not just at work.
Spends more to recruit and train than any other airline
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Southwest Airlines
Empowered employees Wages higher than industry average Stock options for some employees Employees treated like customers Everybody understands what everybody
else’s problems are No gimmicks!
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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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People and Work System Goals
Use people efficiently within constraints
Provide reasonable quality of work life
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Constraints on Human Resource Strategy
Product strategy- Skills needed- Talents needed- Materials used- Safety
Location strategy- Climate- Temperature- Noise- Light- Air quality
Schedule- Time of day- Time of year(seasonal)- Stability of schedules
Individual differences- Strength and fatigue- Information processing and response
Layout strategy- Fixed position- Process- Assembly line- Work cell- Product
Process strategy- Technology- Machinery and equipment used- Safety
Human Resource Strategy
What
Where How
Who
Procedure
When
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People and Work System Aspects
Job Design
Job Design
Labor Standards
Labor Standards
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Labor Planning/Stability Policies Follow demand exactly
keeps direct labor costs tied closely to production
incurs costs of hiring/firing unemployment
insurance labor wage premium
Hold employment constant maintains a trained
workforce incurs costs of
idle time when demand is low
meeting increased demand when demand is high
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Productivity in Relation to Annual Turnover Rate
$200,000
$153,000
$150,000
$130,000
$125,000
$120,000
<3%
3-5%
6-10%
11-15%
16-20%
>20%
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Determining Policies of Labor Stability
Employer policies are partly determined by management’s view of labor costs – as a
fixed cost, or as a variable cost.
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Work Schedules Standard work schedule
five eight-hour days
Flex-time allows employees, within prescribed limits, to determine
their own schedules
Flexible work week four 10-hour days
Part-time less than eight hours per day, or an irregular schedule
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Job Classifications and Work Rules
Specify who can do what when they can do it
under what conditions they can do it
Often result of union pressure Restricts flexibility in assignments;
consequently restricts efficiency of production
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Job Design
Specifying the tasks that make up a job for an individual or group
Involves 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)
Results in job description Shows nature of job in task-related behaviors
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Components of Job Design
Job specialization Job expansion Psychological components Self-directed teams Motivation and incentive systems Ergonomics and work methods
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Job Specialization
InvolvesBreaking jobs into small component parts Assigning specialists to do each partFirst noted by Adam Smith (1776)Observed how workers in pin factory
divided tasks into smaller componentsFound in manufacturing &
service industries
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Greater dexterity & faster learningLess lost time changing jobs or toolsUse of more specialized toolsPay only for needed skills
Job Specialization Often Reduces Cost
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Job Expansion
Process of adding more variety to jobs Intended to reduce boredom associated with
labor specialization Methods
Job enlargement Job enrichment Job rotation Employee empowerment
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Job Enlargement/Job Enrichment
Present Job
ControlControl
PlanningPlanningEnriched Job
Task #3Task #3Task #2Task #2Enlarged Job
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Job Enlargement/Job Enrichment
Present job
Manually insert and solder six resistors
Task #3
Lock printed circuit into fixture for next
operation
Task #2
Adhere labels to printed circuit board
Control
Test circuits after assembly
Planning
Participate in a cross-function quality-
improvement team
Enriched job
Enlarged job
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Job Rotation
Geriatrics© 1995 Corel Corp.
Pediatrics
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Maternity
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Employee Empowerment
Employee Empowerment
Control
Decision-Making
Planning
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Psychological Components of Job Design
Individuals have values, attitudes, and emotions that affect job results
Example: Work is a social experience that affects belonging needs
Effective worker behavior comes mostly from within the individual
Scientific management argued for external financial rewards
First examined in ‘Hawthorne studies’
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Hawthorne Studies
Conducted in late 1920’sWestern Electric Hawthorne plantShowed importance of the individual in
the workplaceShowed the presence of a social system
in the workplace
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Originally intended to examine effects of lighting on productivity Scientific management proposed that physical conditions
affect productivity
Result: Productivity increased regardless of lighting level
Conclusion: Increased productivity was due to workers’ receiving attention
Hawthorne Studies: Workplace Lighting
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Examined effects of group piecework pay system on productivity
Workers under piecework system should produce as much as possible
Scientific management assumes that people are motivated only by money
Result: Production less than maximumConclusion: Social pressure caused workers to
produce at group-norm level
Hawthorne Studies: Piecework Pay
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Self-Directed Teams
Group of empowered individuals working together for a common goal
May be organized for short-term or long-term objectives
Reasons for effectiveness Provide employee empowerment Provide core job characteristics Meet psychological needs (e.g., belonging)
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Job Design Continuum
Increasing reliance on employees’ contribution and increasing acceptance of responsibility by employee
Specialization
Enlargement
Enrichment
Empowerment
Self-directed Teams
Job Expansion
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Core Job Characteristics
Skill variety Job identify Job significance Autonomy Feedback
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Higher capital cost Many individuals prefer simple jobs Higher wages are required since the worker must
utilize a higher level of skill A smaller labor pool exists of persons able and
willing to perform enriched or enlarged jobs Increased accident rates may occur Current technology in some industries does not
lend itself to job enlargement and enrichment
Limitations to Job Enlargement/Job Enrichment
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Motivation
Worker performance depends on Motivation Ability Work environment
Motivation is the set of forces that compel behavior
Money may serve as a psychological & financial motivator
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Motivation and Money Taylor’s scientific management (1911)
Workers are motivated mainly by money Suggested piece-rate system
Maslow’s theory (1943) People are motivated by hierarchy of needs,
which includes money
Herzberg (1959) Money either dissatisfies or is neutral in its
effect
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Monetary Incentives
Bonuses: Cash & stock options Profit sharing: Distribution of profits Gain sharing: Reward for company
performance (e.g., cost reduction) Scanlon plan is most popular (cost reduction.)
Incentive systems Measured daywork: Pay based on standard time Piece rate: Pay based on pieces done
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Maslow’s Hierarchy of NeedsSelf-Actualization
Use of abilities Self-fulfillment
SocialGroup Interaction
Job Status
Safety Physical Safety
Job SecurityPhysiology
Food Shelter
Ego Self Respect
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Herzberg’s Motivation/Hygiene Factors
Achievement
Recognition
Advancement
Work itself
Responsibility
Personal growth
Company policies and administration
Supervision - technical
Working conditions
Interpersonal relations - supervision
Status
Job security
Salary
Job Dissatisfiers (Hygiene)
Job Satisfiers (Motivators)
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Job Characteristics
Motivation
Satisfaction
Job performance
Absenteeism & turnover
Core Job CharacteristicsCore Job Characteristics
Psychological StatesPsychological States
Personal & Work Outcomes
Personal & Work Outcomes Hackman & Oldham
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Ergonomics and Work Methods
Worker performance depends on Motivation Ability Work environment
Foundation laid by Frederick Taylor Match employees to task Develop work methods Establish work standards
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Ergonomics
Study of work Also called ‘human factors’ Involves human-machine interface Examples
Mouse Keyboard
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Recommended Levels of Illumination
Good contrast, fairly large
objects
Task Condition Illumination Level(Ft-C)
100
Normal detail,prolonged periods
20-50
5-10
Large objects 2-5
Type of Task or Area
Type of Illumination
Overhead ceilinglights and desk
lamp
Sewing,inspecting
dark materials
Small detail;Extremeaccuracy
Recreationalfacilities
Reading, partsassembly, general
office work
Restaurants,stairways,
warehouses
Overhead ceilinglights
Overhead ceilinglights
Overhead ceilinglights
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Decibel levels for Various SoundsEnvironmental Noises Common Noise Sources Decibels
Jet takeoff (200 ft) 120Casting shakeout area Riveting machine 110Electric furnace area
Printing press plant
Pneumatic peen hammer,textile weaving plant
Subway train
100
90
Veryannoying
Inside sports car (50 mph)
Near freeway (auto traffic)
Pneumatic drillFreight trainVacuum cleaner (10 ft)
Speech (1 ft)
80
70
Earprotectionrequired ifexposed 8hours ormore
Large storePrivate business officeLight traffic (100ft) Large transformer (200ft)
60
50
Intrusive
QuietMinimum levels, residentialareas in Chicago at night Soft whisper
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30 Very quiet
Earprotection required
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Methods Analysis Focuses on how task is performed Used to analyze
Movement of body, people, or material Activities of people & machines
Tools Process chart Flow diagram Activity chart Operations chart (right-hand, left-hand)
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Methods Analysis Used to Study
Movement of individuals or materials (Flow diagrams or process charts)
Activity of human and machine and crew activity (Activity charts)
Body movement (primarily hands) (Micro-motion charts)
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Process Chart
= operation; = transport; = inspect; D = delay; = storage
SUBJECT: Request tool purchase
Dist (ft) Time (min) Symbol Description
Write order
On desk
75 To buyer
Examine
D
D
D
D
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Flow Diagram
Buyer
You
75 ft.
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Flow Diagram and Process Chart of Axle-Stand Production Line
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Activity Chart for Two-Person Oil-Change Crew
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Operations Chart (Left Hand/Right Hand)
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Activity ChartSubject: Semi-Auto Machine
Operator MachineTime
1
2
3
4
5
6
Load machine Being loaded
Idle Run
Unload Being Unloaded
Present
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The Visual Workplace
Uses low-cost visual devices to share information quickly and accurately.
Displays and graphs replace paper Provides real-time information System should focus on improvement, not
merely monitoring Can provide both production and financial
data
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The Visual Workplace
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What is Work Measurement?
Determining the amount of worker time required to generate one unit of output
Provides 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 products Planning staffing needs Cost & time estimates for bids Planning production Wage-incentive plans Employee efficiency
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Sources of Labor Standards
Historical experience Time studies Predetermined time standards (MTM) Work sampling
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Labor Standards - Historical Experience
Labor standards are based on how many labor-hours were needed in past
Least preferred method Advantages
Easy and inexpensive to obtain standard
Disadvantages Unknown accuracy due to unusual
occurrences, unknown pace etc.
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A Final Thought
© 1995 Corel Corp.
Church of the Holy Family (Barcelona)
Two stonecutters were asked what they were doing. The first said, ‘I’m cutting this stone into blocks.’ The second one replied, ‘I’m on a team that’s building a cathedral.’
— Old Story