chapter 10 – human resources and job design · pdf filechapter 10 – human...

© 2008 Prentice Hall, Inc. 10 – 1

Operations ManagementOperations ManagementChapter 10 Chapter 10 ––Human Resources Human Resources and Job Designand Job Design

PowerPoint presentation to accompanyPowerPoint presentation to accompanyHeizer/Render Heizer/Render Principles of Operations Management, 7ePrinciples of Operations Management, 7eOperations Management, 9e Operations Management, 9e


OutlineOutlineGlobal Company Profile: Rusty Global Company Profile: Rusty WallaceWallace’’s NASCAR Racing Teams NASCAR Racing TeamHuman Resource StrategyHuman Resource StrategyFor Competitive Advantage For Competitive Advantage

Constraints on Human Resource StrategyConstraints on Human Resource Strategy

Labor PlanningLabor PlanningEmploymentEmployment--Stability PoliciesStability PoliciesWork SchedulesWork SchedulesJob Classifications and Work RulesJob Classifications and Work Rules


Outline Outline –– ContinuedContinued

Job DesignJob DesignLabor SpecializationLabor SpecializationJob ExpansionJob ExpansionPsychological Components of Job Psychological Components of Job DesignDesignSelfSelf--Directed TeamsDirected TeamsMotivation and Incentive SystemsMotivation and Incentive Systems


Outline Outline –– ContinuedContinued

Ergonomics and Work MethodsErgonomics and Work MethodsMethods AnalysisMethods AnalysisThe Visual WorkplaceThe Visual WorkplaceEthics and the Work EnvironmentEthics and the Work EnvironmentLabor StandardsLabor Standards


Learning ObjectivesLearning ObjectivesWhen you complete this chapter you When you complete this chapter you should be able to:should be able to:

1.1. Describe labor planning policiesDescribe labor planning policies2.2. Identify the major issues in job designIdentify the major issues in job design3.3. Identify major ergonomic and work Identify major ergonomic and work

environment issuesenvironment issues4.4. Use the tools of methods analysisUse the tools of methods analysis5.5. Understand the contribution of the Understand the contribution of the

visual workplacevisual workplace


Rusty WallaceRusty Wallace’’s NASCAR s NASCAR Racing TeamRacing Team

NASCAR racing became very NASCAR racing became very popular in the 1990s with huge popular in the 1990s with huge sponsorship and prize moneysponsorship and prize moneyHigh performance pit crews are a High performance pit crews are a key element of a successful race key element of a successful race teamteamPit crew members can earn Pit crew members can earn $100,000 per year $100,000 per year –– for changing for changing tires!tires!


Rusty WallaceRusty Wallace’’s NASCAR s NASCAR Racing TeamRacing Team

Each position has very specific Each position has very specific work standardswork standardsPit crews are highly organized Pit crews are highly organized and go though rigorous physical and go though rigorous physical trainingtrainingPit stops are videotaped to look Pit stops are videotaped to look for improvementsfor improvements


Human Resource StrategyHuman Resource StrategyThe objective of a human resource The objective of a human resource

strategy is to manage labor and strategy is to manage labor and design jobs so people are effectively design jobs so people are effectively

and efficiently utilizedand efficiently utilized1.1. People should be effectively utilized People should be effectively utilized

within the constraints of other within the constraints of other operations management decisionsoperations management decisions

2.2. People should have a reasonable quality People should have a reasonable quality of work life in an atmosphere of mutual of work life in an atmosphere of mutual commitment and trustcommitment and trust


Constraints on Human Constraints on Human Resource StrategyResource Strategy

Figure 10.1Figure 10.1

HUMAN RESOURCE STRATEGY

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

WhatWhat

Schedules• Time of day• Time of year

(seasonal)• Stability of

schedules

WhenWhen

Location strategy• Climate• Temperature• Noise• Light• Air quality

Where

Where

Process strategy• Technology• Machinery and

equipment used• SafetyPro

cedure

Proce

dure

Individual differences• Strength and

fatigue• Information

processing and response

WhoWho

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

HowHow


Labor PlanningLabor Planning

1.1. Follow demand exactlyFollow demand exactlyMatches direct labor costs to Matches direct labor costs to productionproductionIncurs costs in hiring and Incurs costs in hiring and termination, unemployment termination, unemployment insurance, and premium wagesinsurance, and premium wagesLabor is treated as a variable costLabor is treated as a variable cost

Employment Stability PoliciesEmployment Stability Policies


Labor PlanningLabor Planning

2.2. Hold employment constantHold employment constantMaintains trained workforceMaintains trained workforceMinimizes hiring, termination, and Minimizes hiring, termination, and unemployment costsunemployment costsEmployees may be underutilized Employees may be underutilized during slack periodsduring slack periodsLabor is treated as a fixed costLabor is treated as a fixed cost

Employment Stability PoliciesEmployment Stability Policies


Work SchedulesWork Schedules

Standard work scheduleStandard work scheduleFive eightFive eight--hour dayshour days

FlexFlex--timetimeAllows employees, within limits, to Allows employees, within limits, to determine their own schedulesdetermine their own schedules

Flexible work weekFlexible work weekFewer but longer daysFewer but longer days

PartPart--timetimeFewer, possibly irregular, hoursFewer, possibly irregular, hours


Job Classification and Job Classification and Work RulesWork Rules

Specify who can do whatSpecify who can do whatSpecify when they can do itSpecify when they can do itSpecify under what conditions they Specify under what conditions they can do it can do it Often result of union contractsOften result of union contractsRestricts flexibility in assignments Restricts flexibility in assignments and consequently efficiency of and consequently efficiency of productionproduction


Job DesignJob Design

Specifying the tasks that constitute Specifying the tasks that constitute a job for an individual or a groupa job for an individual or a group1.1. Job specializationJob specialization2.2. Job expansionJob expansion3.3. Psychological componentsPsychological components4.4. SelfSelf--directed teamsdirected teams5.5. Motivation and incentive systemsMotivation and incentive systems


Labor SpecializationLabor SpecializationThe division of labor into unique tasksThe division of labor into unique tasksFirst suggested by Adam Smith in 1776First suggested by Adam Smith in 1776

1.1. Development of dexterity and faster Development of dexterity and faster learninglearning

2.2. Less loss of timeLess loss of time3.3. Development of specialized toolsDevelopment of specialized tools

Later Charles Babbage (1832) added Later Charles Babbage (1832) added another considerationanother consideration

4.4. Wages exactly fit the required skillWages exactly fit the required skill


Job ExpansionJob Expansion

Adding more variety to jobsAdding more variety to jobsIntended to reduce boredom Intended to reduce boredom associated with labor specializationassociated with labor specialization

Job enlargementJob enlargementJob rotation Job rotation Job enrichmentJob enrichmentEmployee empowermentEmployee empowerment


Job EnlargementJob Enlargement


Task #3(Lock printed circuit board into fixture for

next operation)

Present job(Manually insert and solder six resistors)

Task #2(Adhere labels

to printed circuit board)

Enlarged job

Enriched jobPlanning

(Participate in a cross-function quality

improvement team)

Control(Test circuits after

assembly)


Psychological Components Psychological Components of Job Designof Job Design

Human resource strategy requires Human resource strategy requires consideration of the psychological consideration of the psychological components components of job designof job design


Hawthorne StudiesHawthorne Studies

They studied light levels, but discovered They studied light levels, but discovered productivity improvement was productivity improvement was independent from lighting levelsindependent from lighting levelsIntroduced psychology into the workplaceIntroduced psychology into the workplaceThe workplace social system and distinct The workplace social system and distinct roles played by individuals may be more roles played by individuals may be more important than physical factorsimportant than physical factorsIndividual differences may be dominant in Individual differences may be dominant in job expectation and contributionjob expectation and contribution


Core Job CharacteristicsCore Job Characteristics

Skill varietySkill varietyJob identityJob identityJob significanceJob significanceAutonomyAutonomyFeedbackFeedback

Jobs should include the following Jobs should include the following characteristicscharacteristics


Job Design ContinuumJob Design Continuum

Specialization

Enlargement

Self-directed teams

Empowerment

Enrichment

Figure 10.3Figure 10.3Job expansionJob expansion

Increasing Increasing reliance on reliance on employeeemployee’’s s contribution contribution and and increasing increasing responsibility responsibility accepted by accepted by employeeemployee


SelfSelf--Directed TeamsDirected TeamsGroup of empowered individuals Group of empowered individuals working together to reach a working together to reach a common goalcommon goalMay be organized for longMay be organized for long--term or term or shortshort--term objectivesterm objectivesEffective becauseEffective because

Provide employee empowermentProvide employee empowermentEnsure core job characteristicsEnsure core job characteristicsMeet individual psychological needsMeet individual psychological needs


SelfSelf--Directed TeamsDirected Teams

Ensure those who have legitimate Ensure those who have legitimate contributions are on the teamcontributions are on the teamProvide management supportProvide management supportEnsure the necessary trainingEnsure the necessary trainingEndorse clear objectives and goalsEndorse clear objectives and goalsFinancial and nonFinancial and non--financial rewardsfinancial rewardsSupervisors must release controlSupervisors must release control

To maximize effectiveness, managers shouldTo maximize effectiveness, managers should


Benefits of Teams and Benefits of Teams and Expanded Job DesignsExpanded Job Designs

Improved quality of work lifeImproved quality of work lifeImproved job satisfactionImproved job satisfactionIncreased motivationIncreased motivationAllows employees to accept more Allows employees to accept more responsibilityresponsibilityImproved productivity and qualityImproved productivity and qualityReduced turnover and absenteeismReduced turnover and absenteeism


1.1. Higher capital cost Higher capital cost 2.2. Individuals may prefer simple jobsIndividuals may prefer simple jobs3.3. Higher wages rates for greater skillsHigher wages rates for greater skills4.4. Smaller labor pool Smaller labor pool 5.5. Higher training costsHigher training costs

Limitations of Job Limitations of Job ExpansionExpansion


1.1. Higher capital cost Higher capital cost 2.2. Individuals may prefer simple jobsIndividuals may prefer simple jobs3.3. Higher wages rates for greater skillsHigher wages rates for greater skills4.4. Smaller labor pool Smaller labor pool 5.5. Higher training costsHigher training costs

Limitations of Job Limitations of Job ExpansionExpansion

Average Annual Training Hours/

Employee

U.S. 7

Sweden 170

Japan 200


Motivation and Incentive Motivation and Incentive SystemsSystems

Bonuses Bonuses -- cash or stock optionscash or stock optionsProfitProfit--sharing sharing -- profits for distribution to profits for distribution to employeesemployeesGain sharing Gain sharing -- rewards for improvementsrewards for improvementsIncentive plans Incentive plans -- typically based on typically based on production ratesproduction ratesKnowledgeKnowledge--based systems based systems -- reward for reward for knowledge or skillsknowledge or skills


Ergonomics and the Work Ergonomics and the Work EnvironmentEnvironment

Ergonomics is the study of the Ergonomics is the study of the interface between man and interface between man and machinemachine

Often called Often called human factorshuman factors

Operator input Operator input to machinesto machines


Ergonomics and Work Ergonomics and Work MethodsMethods

Feedback to operatorsFeedback to operatorsThe work environmentThe work environment

IlluminationIlluminationNoiseNoiseTemperatureTemperatureHumidityHumidity


Job Design and KeyboardsJob Design and Keyboards



Levels of IlluminationLevels of Illumination

Overhead Overhead ceiling lightsceiling lights

22--55Restaurants, Restaurants, stairways, stairways, warehouseswarehouses

Large objectsLarge objects


55--1010Recreational Recreational facilitiesfacilities

Good contrast, Good contrast, fairly large fairly large objectsobjects


2020--5050Reading, parts Reading, parts assembly, assembly, general office general office workwork

Normal detail, Normal detail, prolonged prolonged periodsperiods

Overhead Overhead ceiling lights ceiling lights and desk lampand desk lamp

100100Sewing, inspecting Sewing, inspecting dark materialsdark materials

Small detail, Small detail, extreme extreme accuracyaccuracy

Type of Type of IlluminationIllumination

Illumination Illumination LevelLevel

Type of Task Type of Task or Areaor Area

Task ConditionTask Condition

Table 10.2Table 10.2


Decibel LevelsDecibel LevelsEnvironmentEnvironment Common NoiseCommon Noise

NoisesNoises SourcesSources DecibelsDecibels

Jet takeoff (200 ft)Jet takeoff (200 ft) 120120||

Electric furnace areaElectric furnace area Pneumatic hammerPneumatic hammer 100100 Very annoyingVery annoying||

Printing press plantPrinting press plant Subway train (20 ft)Subway train (20 ft) 9090||

Pneumatic drill (50 ft)Pneumatic drill (50 ft) 8080 Ear protectionEar protectionInside sports car (50 mph)Inside sports car (50 mph) || required ifrequired if

Vacuum cleaner (10 ft)Vacuum cleaner (10 ft) 7070 exposed for 8exposed for 8Near freeway (auto traffic)Near freeway (auto traffic) Speech (1 ft)Speech (1 ft) || or more hoursor more hours

6060 IntrusiveIntrusivePrivate business officePrivate business office ||Light traffic (100 ft)Light traffic (100 ft) Large transformer (200 ft)Large transformer (200 ft) 5050 QuietQuiet

||Minimum levels, Chicago Minimum levels, Chicago 4040

residential areas at night residential areas at night Soft whisper (5 ft)Soft whisper (5 ft) ||Studio (speech)Studio (speech) 3030 Very quietVery quiet

Table 10.3Table 10.3


Methods AnalysisMethods Analysis

Focuses on how task is performedFocuses on how task is performedUsed to analyzeUsed to analyze1.1. Movement of individuals or materialMovement of individuals or material

Flow diagrams and process chartsFlow diagrams and process charts

2.2. Activities of human and machine and Activities of human and machine and crew activitycrew activity

Activity chartsActivity charts

3.3. Body movementBody movementMicroMicro--motion chartsmotion charts


Flow DiagramFlow Diagram

Storage binsStorage bins

Machine 1Machine 1

Mach. 2

Mach. 3 Mach. 4

From

press mach. Paint Paint

shopshop

WeldingWelding

Figure 10.5 (a)Figure 10.5 (a)


Storage bins

Machine 1

Machine 2

Machine 3

Machine 4

From press mach.

Paint Paint shopshop

WeldingWelding

Flow DiagramFlow Diagram

Figure 10.5 (b)Figure 10.5 (b)


Process Process ChartChart

Figure 10.5 (c)Figure 10.5 (c)


Activity ChartActivity Chart



Operation ChartOperation Chart



The Visual WorkplaceThe Visual Workplace

Use lowUse low--cost visual devices to cost visual devices to share information quickly and share information quickly and accuratelyaccuratelyDisplays and graphs replace Displays and graphs replace printouts and paperworkprintouts and paperworkAble to provide timely information Able to provide timely information in a dynamic environmentin a dynamic environmentSystem should focus on System should focus on improvementimprovement



Present the big picturePresent the big picturePerformancePerformanceHousekeepingHousekeeping

Visual signals can take many forms Visual signals can take many forms and serve many functionsand serve many functions


The Visual WorkplaceThe Visual WorkplaceVisual utensil holder Visual utensil holder encourages encourages housekeepinghousekeeping

A A ““33--minute serviceminute service””clock reminds employees clock reminds employees of the goalof the goal



The Visual WorkplaceThe Visual WorkplaceVisual signals at the Visual signals at the machine notify machine notify support personnelsupport personnel

Visual kanbans reduce Visual kanbans reduce inventory and foster JITinventory and foster JIT

AndonAndon

Line/machine Line/machine stoppagestoppage

Parts/ Parts/ maintenance maintenance neededneeded

All systems goAll systems go

Part APart A Part BPart B Part CPart C

Reorder Reorder pointpoint




Quantities in bins indicate Quantities in bins indicate ongoing daily requirements ongoing daily requirements and clipboards provide and clipboards provide information on schedule information on schedule changeschanges

Process specifications and Process specifications and operating procedures are operating procedures are posted in each work areaposted in each work area



Ethics and the Work Ethics and the Work EnvironmentEnvironment

Fairness, equity, and ethics are Fairness, equity, and ethics are important constraints of job designimportant constraints of job designImportant issues may relate to equal Important issues may relate to equal opportunity, equal pay for equal opportunity, equal pay for equal work, and safe working conditionswork, and safe working conditionsHelpful to work with government Helpful to work with government agencies, trade unions, insurers, and agencies, trade unions, insurers, and employeesemployees


Labor StandardsLabor Standards

Effective manpower planning is Effective manpower planning is dependent on a knowledge of the dependent on a knowledge of the labor requiredlabor requiredLabor standards are the amount of Labor standards are the amount of time required to perform a job or time required to perform a job or part of a jobpart of a jobAccurate labor standards help Accurate labor standards help determine labor requirements, determine labor requirements, costs, and fair workcosts, and fair work

chapter 10 – human resources and job design · pdf filechapter 10 – human...

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