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Human Resources Human Resources

Chapter 8 Chapter 8

Operations Management - 6

^th

Edition Operations Management - 6

^th

Edition

Roberta Russell & Bernard W. Taylor, III Roberta Russell & Bernard W. Taylor, III

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Lecture Outline Lecture Outline

Human Resources and Quality Management Changing Nature of Human Resources

Management

Contemporary Trends in Human Resources Management

Employee Compensation

Managing Diversity in Workplace Job Design

Job Analysis

Learning Curves

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Human Resources and Quality Management

Employees play important role in quality management Malcolm Baldrige National

Quality Award winners have

Employees have power to make decisions that will improve quality and

customer service Quality Award winners have

a pervasive human resource focus

Employee training and education are recognized as necessary long-term investments

customer service

Strategic goals for quality and customer satisfaction require teamwork and group participation

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Changing Nature of Human Resources Management

Scientific management

Breaking down jobs into elemental activities and simplifying job design

Assembly-line

Production meshed with principles of scientific management

simplifying job design

Jobs

Comprise a set of tasks, elements, and job

motions (basic physical movements)

In a piece-rate wage system , pay is based on output

management

Advantages of task specialization

High output, low costs, and minimal training

Disadvantages of task specialization

Boredom, lack of

motivation, and physical and mental fatigue

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Employee Motivation Employee Motivation

Motivation Motivation

willingness to work hard

because that effort satisfies an employee need

Improving Motivation

Improving Motivation (cont.)

design of jobs to fit employee

work responsibility

Improving Motivation

positive reinforcement and feedback

effective organization and discipline

fair treatment of people

satisfaction of employee needs

setting of work-related goals

empowerment

restructuring of jobs when necessary

rewards based on company as well as individual

performance

achievement of company goals

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Evolution of Theories of Employee Motivation

Abraham Maslow’s Pyramid of Human

Needs

Douglas McGregor’s Theory X and Theory Y

•Theory X Employee

• Dislikes work

• Must be coerced

Frederick Herzberg’s Hygiene/Motivation

Theories

•Hygiene Factors

• Company policies

• Supervision

Self-

actualization Esteem Social

Safety/Security

Physiological (financial)

• Must be coerced

• Shirks responsibility

• Little ambition

• Security top motivator

•Theory Y Employee

• Work is natural

• Self-directed

• Controlled

• Accepts responsibility

• Makes good decisions

• Supervision

• Working conditions

• Interpersonal relations

• Salary, status, security

•Motivation Factors

• Achievement

• Recognition

• Job interest

• Responsibility

• Growth

• Advancement

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Contemporary Trends in

Human Resources Management

Job training

extensive and varied

two of Deming’s 14

points refer to employee education and training

Empowerment

giving employees authority to make decisions

education and training

Cross Training

an employee learns more than one job

Job rotation

horizontal movement between two or more jobs according to a plan

decisions

Teams

group of employees work on problems in their immediate work area

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Contemporary Trends in Human Resources Management (cont.)

Job enrichment Job enrichment

vertical enlargement

allows employees control over their work

Alternative workplace

nontraditional work location

Telecommuting

horizontal enlargement

an employee is assigned a complete unit of work with defined start and end

Flexible time

part of a daily work schedule in which

employees can choose time of arrival and

departure

employees work

electronically from a location they choose

Temporary and part- time employees

mostly in fast-food and restaurant chains, retail companies, package delivery services, and financial firms

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Employee Compensation

Types of pay

hourly wage

the longer someone works, the more s/he is paid

individual incentive or piece rate

employees are paid for the number of units they produce during the workday

straight salary

common form of payment for management

commissions

usually applied to sales and salespeople

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Gainsharing

an incentive plan joins

employees in a common effort

Employee Compensation (cont.)

employees in a common effort to achieve company goals in which they share in the gains

Profit sharing

sets aside a portion of profits

for employees at year’s end

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Managing Diversity in Managing Diversity in Workplace

Workplace

Workforce has become more diverse Workforce has become more diverse

4 out of every 10 people entering workforce 4 out of every 10 people entering workforce during the decade from 1998 to 2008 will be during the decade from 1998 to 2008 will be during the decade from 1998 to 2008 will be during the decade from 1998 to 2008 will be members of minority groups

members of minority groups

In 2000 U.S. Census showed that some In 2000 U.S. Census showed that some

minorities, primarily Hispanic and Asian, are minorities, primarily Hispanic and Asian, are becoming majorities

becoming majorities

Companies must develop a strategic Companies must develop a strategic approach to managing diversity

approach to managing diversity

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Affirmative Actions vs.

Managing Diversity Managing Diversity

Affirmative action

an outgrowth of laws and regulations

government initiated and mandated

Managing diversity

process of creating a work environment in

which all employees can contribute to their full

mandated

contains goals and

timetables designed to increase level of

participation by women and minorities to attain parity levels in a

company’s workforce

not directly concerned with increasing company success or increasing profits

contribute to their full potential in order to achieve a company’s goals

voluntary in nature, not mandated

seeks to improve

internal communications and interpersonal

relationships, resolve conflict, and increase product quality,

productivity, and efficiency

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Diversity Management Programs

Education

Awareness

Communication Fairness

Commitment

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Global Diversity Issues

Cultural, language, geography

significant barriers to managing a globally diverse workforce

E-mails, faxes, Internet, phones, air travel

make managing a global workforce possible but not necessarily effective

How to deal with diversity?

identify critical cultural elements

learn informal rules of communication

use a third party who is better able to bridge cultural gap

become culturally aware and learn foreign language

teach employees cultural norm of organization

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Attributes of Good Job Design Attributes of Good Job Design

An appropriate degree of repetitiveness

An appropriate degree of attention and mental

Goals and achievement feedback

A perceived

contribution to a useful of attention and mental

absorption

Some employee responsibility for decisions and discretion

Employee control over their own job

contribution to a useful product or service

Opportunities for

personal relationships and friendships

Some influence over the way work is carried out in groups

Use of skills

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Factors in Job Design Factors in Job Design

Task analysis Task analysis

how tasks fit together to form a jobhow tasks fit together to form a job

Worker analysis Worker analysis

determining worker capabilities and responsibilities determining worker capabilities and responsibilities

determining worker capabilities and responsibilities determining worker capabilities and responsibilities for a job

for a job

Environment analysis Environment analysis

physical characteristics and location of a jobphysical characteristics and location of a job

Ergonomics Ergonomics

fitting task to person in a work environmentfitting task to person in a work environment

Technology and automation Technology and automation

broadened scope of job designbroadened scope of job design

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Elements of Job Design

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Job Analysis Job Analysis

Method Analysis (work methods) Method Analysis (work methods)

Study methods used in the work included Study methods used in the work included in the job to see how it should be done

in the job to see how it should be done

in the job to see how it should be done in the job to see how it should be done

Primary tools are a variety of charts that Primary tools are a variety of charts that illustrate in different ways how a job or illustrate in different ways how a job or work process is done

work process is done

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Process Flowchart Symbols Process Flowchart Symbols

Operation:

An activity directly contributing to product or service An activity directly contributing to product or service

Inspection:

Transportation:

Moving the product or service from one location to another Moving the product or service from one location to another

Storage:

Store of the product or service Store of the product or service

Inspection:

Examining the product or service for completeness, Examining the product or service for completeness, irregularities, or quality

irregularities, or quality

Delay:

Process having to wait Process having to wait

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Process Flowchart Process Flowchart

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– 1 – 2 – 3

Key in customer data on card

Feed data card in

Position customer for photo Idle Idle

Accept card 2.6

0.4 1.0

Job Photo-Id Cards Date 10/14

Time Time

(min) Operator (min) Photo Machine

Worker Worker-- Machine Machine Chart Chart

– 4 – 5 – 6 – 7 – 8

Position customer for photo Take picture

Inspect card & trim edges Idle

Idle Idle

Photo/card processed Begin photo process 1.0

0.6

3.4

1.2

Chart

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Worker

Worker--Machine Chart: Summary Machine Chart: Summary

Summary

Operator Time % Photo Machine Time %

Work 5.8 63 4.8 52

Idle 3.4 37 4.4 48

Total 9.2 min 100% 9.2 Min 100%

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Motion Study Motion Study

Used to ensure efficiency of motion in Used to ensure efficiency of motion in a job

a job

Frank & Lillian Gilbreth Frank & Lillian Gilbreth

Find one “best way” to do task Find one “best way” to do task

Use videotape to study motions Use videotape to study motions

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General Guidelines for General Guidelines for Motion Study

Motion Study

Efficient Use Of Human Body Efficient Use Of Human Body

WorkWork

simplified, rhythmic and symmetricsimplified, rhythmic and symmetric

simplified, rhythmic and symmetricsimplified, rhythmic and symmetric Hand/arm motionsHand/arm motions

coordinated and simultaneouscoordinated and simultaneous

Employ full extent of physical capabilitiesEmploy full extent of physical capabilities Conserve energyConserve energy

use machines, minimize distances, use momentumuse machines, minimize distances, use momentum TasksTasks

simple, minimal eye contact and muscular effort, no simple, minimal eye contact and muscular effort, no unnecessary motions, delays or idleness

unnecessary motions, delays or idleness

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General Guidelines for General Guidelines for Motion Study

Motion Study

Efficient Arrangement of Workplace Efficient Arrangement of Workplace

Tools, material, equipment Tools, material, equipment -- designated, easily designated, easily accessible location

accessible location

Comfortable and healthy seating and work area Comfortable and healthy seating and work area Comfortable and healthy seating and work area Comfortable and healthy seating and work area

Efficient Use of Equipment Efficient Use of Equipment

Equipment and mechanized tools enhance worker Equipment and mechanized tools enhance worker abilities

abilities

Use foot Use foot--operated equipment to relieve hand/arm operated equipment to relieve hand/arm stress

stress

Construct and arrange equipment to fit worker use Construct and arrange equipment to fit worker use

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Learning Curves

Illustrates

improvement rate of workers as a job

Processing time per unitProcessing time per unit

is repeated

Processing time per unit decreases by a constant

percentage each time output

doubles

Units producedUnits produced

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Learning Curves (cont.) Learning Curves (cont.)

t

n

= t

1

n

^b

Time required for the

Time required for the n n

^th^th

unit = unit = t

n

= t

1

n

where:

t

_n

= time required for n

^th

unit produced t

1

= time required for first unit produced

n = cumulative number of units produced b =

where r is the learning curve percentage

(decimal coefficient) ln

ln 2 r

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Learning Curve Effect Learning Curve Effect

Contract to produce 36 computers.

tt

₁₁

= 18 hours, learning rate = 80% = 18 hours, learning rate = 80%

What is time for 9th, 18th, 36th units?

tt

₉₉

= (18)(9) = (18)(9)

ln(0.8)/ln 2 ln(0.8)/ln 2

= (18)(9) = (18)(9)

^--0.322^0.322

= (18)/(9)

^0.322^0.322

= (18)(0.493) = 8.874hrs = (18)(0.493) = 8.874hrs

tt

₁₈₁₈

= (18)(18) = (18)(18)

ln(0.8)/ln 2 ln(0.8)/ln 2

= (18)(0.394) = 7.092hrs = (18)(0.394) = 7.092hrs

tt

₃₆₃₆

= (18)(36) = (18)(36)

ln(0.8)/ln 2 ln(0.8)/ln 2

= (18)(0.315) = 5.674hrs = (18)(0.315) = 5.674hrs

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Learning Curve for Mass Learning Curve for Mass Production Job

Production Job

Standard Standard

time time

End of improvement End of improvement

Units produced Units produced

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Learning Curves (cont.) Learning Curves (cont.)

Advantages

planning labor

planning budget

Limitations

product modifications negate learning curve effect

planning budget

determining scheduling requirements

effect

improvement can derive from sources besides learning

industry-derived

learning curve rates

may be inappropriate

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