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Chapter 6Chapter 6

Human Resource

Practices

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Toyota Georgetown

• “We’ve got nothing, technology-wise, that anyone else can’t have. There’s 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 we’re making world-class vehicles.”

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Key Idea

Businesses are learning that to satisfy customers, they must first satisfy employees.

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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 organization’s 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, organize, and manage 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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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 Idea

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

Implement solutions

Identifyproblems Select

problem

Collect data

Focus attention

Find causesDevelop

solutions

Pick best solution

Developfollow-up plan

Solve

Identify

Analyze

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Key Idea

The key stages of a team’s 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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Key Idea

High-performance work refers to work approaches used to systematically pursue ever-higher levels of overall organizational and human performance.

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High Performance Work Systems

Work and Job Design

Employee Involvement

Suggestion systems

Empowerment

Training and Education Teamwork and

Cooperation

Compensation and recognition

Health and safety

Flexibility

Innovation

Knowledge and skill sharing

Organizational alignment

Customer focus

Rapid response

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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 Idea

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

Core jobcharacteristics

Criticalpsychological states

Outcomes

Skill varietyTask identityTask significance

Experiencedmeaningfulness of work

Autonomy

Feedbackfrom job

Experiencedresponsibility

Knowledge of actual results

High motivation

High satisfaction

High workeffectiveness

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 Idea

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 organization’s culture

• Allows employees to solve problems at the source

• Improves quality and productivity

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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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Key Idea

Meeting and exceeding customer expectations begins with hiring the right people whose skills and attitudes will support and enhance the organization’s 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 Idea

Customer needs and strategic directions should drive training strategies.

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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 Idea

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 individual’s 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 Idea

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 Idea

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 Idea

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 organization’s 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 Systemsa. Organization and Management of Workb. Employee Performance Management Systemc. Hiring and Career Progression

5.2 Employee Learning and Motivationa. Employee Education, Training, and Developmentb. Motivation and Career Development

5.3 Employee Well-Being and Satisfactiona. Work Environmentb. Employee Support and Satisfaction