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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
Adz/UiTMK/Chapter 6
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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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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%
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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