evans & lindsay (2008) managing for quality and performance excellence, 7e · 2/4/2011 1...

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Chapter 6Chapter 6Human Resource

Practices

Evans & Lindsay (2008) MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e

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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

Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008Dr. Owlia, Yazd University

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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.”

Key Idea

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


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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

i ti t hi t t i bj ti


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organization to achieve strategic objectives and adapt to change.

Key Activities in HRM

Determine organization’s HR needs to build a high-performance workplaceAssist in design of work systemsR it l t t i & d l l


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Recruit, select, train & develop, counsel, motivate, and reward employeesAct as liaison with unions & governmentHandle other matters of employeewell-being

Leading Practices (1 of 2)

Promote cooperation and skill sharing across work units and locationsDesign work and jobs to promote cooperation, initiative, empowerment, innovation, and organizational culture


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organizational culture Empower individuals and teams to make decisions that affect quality and customer satisfactionDevelop 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 progressionMake extensive investments in training and educationMotivate employees to develop and use their full


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Motivate employees to develop and use their full potentialMaintain a work environment conducive to the well-being and growth of all employeesMonitor extent and effectiveness of HR practices and measure employee satisfaction

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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accountable

Types of Teams

Management teamsNatural work teamsSelf managed teamsVi t l t


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Virtual teams Quality circlesProblem solving teamsProject 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


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identify, analyze, and solve quality and productivity problems.

Functions of Teams

Implementsolutions

Identifyproblems Select

problem

CollectDevelop

Identify


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Collectdata

Focus attention

Find causesDevelop

solutions

Pick bestsolution

Developfollow-up

planSolve

Analyze

Key Idea

The key stages of a team’s life cycle are called forming, storming, norming, performing, and adjourning.


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performing, and adjourning.

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Ingredients for Successful Teams (1 of 2 )

Clarity in team goalsImprovement plan


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p pClearly defined rolesClear communicationBeneficial team behaviors

Ingredients for Successful Teams (2 of 2)

Well-defined decision proceduresBalanced participation


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Established ground rulesAwareness of group processUse of scientific approach

Six Sigma Project TeamsChampions – senior managers who promote Six SigmaMaster Black Belts – highly trained experts responsible for strategy, training, mentoring, deployment, and results.Black Belts Experts who perform technical


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Black Belts – Experts who perform technical analyses Green Belts – functional employees trained in introductory Six Sigma toolsTeam Members – Employees who support specific projects

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High Performance Work Systems

Work and Job Design

Compensation and recognition

Health and

Flexibility

Innovation

Knowledge and skill


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Employee Involvement

Suggestion systems

Empowerment

Training and Education

Teamwork and Cooperation

Health and safety

gsharing

Organizational alignment

Customer focus

Rapid response

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


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Job design responsibilities and tasks assigned to individuals

Key Idea

The design of work should provide individuals with both the intrinsic and extrinsic motivation to achieve quality and


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extrinsic motivation to achieve quality and operational performance objectives.

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Enhancing Work Design

Job enlargement – expanding workers’ jobsJob rotation ha ing orkers learn


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Job rotation – having workers learn several tasks and rotate among them Job enrichment – granting more authority, responsibility, and autonomy

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


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objectives of tapping the creative energies of all employees and improving their motivation

Key Idea

EI approaches can range from simple sharing of information or providing input on work-related issues and making


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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 EIReplaces adversarial mentality with trust and cooperationDevelops skills and

Helps people understand quality principles and instilling them into the organization’s culture


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leadership abilitiesIncreases morale and commitmentFosters creativity and innovation

organization s cultureAllows employees to solve problems at the sourceImproves quality and productivity

Empowerment

Giving people authority to make decisions based on what they feel is right, to have control over their work, to


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take risks and learn from mistakes, and to promote change.

“A sincere belief and trust in people.”

Successful Empowerment

Provide education, resources, and encouragementRemove restrictive policies/proceduresFoster an atmosphere of trustShare information freely


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Share information freelyMake work valuableTrain managers in “hands-off” leadershipTrain 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


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people whose skills and attitudes will support and enhance the organization’s objectives.

Training and Education

Quality awarenessLeadership Project managementCommunications

Meeting customer requirementsProcess analysisProcess simplification


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Communications Teamwork Problem solvingInterpreting and using data

Process simplificationWaste reductionCycle time reductionError proofing

Key Idea

Customer needs and strategic directions should drive training strategies.


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Compensation and Recognition

CompensationMerit versus capability/performance based plansG


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GainsharingRecognition

Monetary or non-monetaryFormal or informalIndividual or group

Key Idea

Recognition provides a visible means of promoting quality efforts and telling employees that the organization values


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employees that the organization values their efforts, which stimulates their motivation to improve.

Effective Recognition and Reward Strategies

Give both individual and team awardsInvolve everyoneTie rewards to quality


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q yAllow peers and customers to nominate and recognize superior performancePublicize extensivelyMake recognition fun

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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


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people work can either seriously impede motivation or enhance it.

Performance Appraisal

How you are measured is how you perform!Conventional appraisal systems

Focus on short-term results and individual


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behavior; fail to deal with uncontrollable factors New approaches

Focus on company goals such as quality and behaviors like teamwork360-degree feedback; mastery descriptions

Key Idea

Performance appraisals are most effective when they are based on the objectives that support the strategic directions of the


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that support the strategic directions of the organization, best practices, and continuous improvement.

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Measuring Employee Satisfaction and Effectiveness

SatisfactionQuality of worklife, teamwork, communications, training, leadership,

ti b fit i t l li


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compensation, benefits, internal suppliers and customers

EffectivenessTeam and individual behaviors; cost, quality, and productivity improvements; employee turnover; suggestions; training effectiveness

Key Idea

HR measures allow companies to predict customer satisfaction, identify those issues that have the greatest impact on


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issues that have the greatest impact on business performance, and allocate appropriate resources.

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evans & lindsay (2008) managing for quality and performance excellence, 7e · 2/4/2011 1...

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