irwin/mcgraw-hill 1 what is job design? job design is the function of specifying the work activities...
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Irwin/McGraw-Hill 1
What is Job Design?
Job design is the function of specifying the work activities of an individual or group in an organizational setting.
The objective of job design is to develop jobs that meet the requirements of the organization and its technology and that satisfy the jobholder’s personal and individual requirements.
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Irwin/McGraw-Hill 2
Decisions in Job Design
UltimateJob
Structure
Who
Mental andphysicalcharacteristicsof the work force
What
Tasks to beperformed
Where
Geographiclocale of theorganization;location of work areas
When
Time of day;time of occurrence inthe work flow
Why
Organizationalrationale forthe job; object-ives and mot-ivation of theworker
How
Method of performanceandmotivation
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Trends in Job Design1. Quality control as part of the worker's job
2. Cross-training workers to perform multiskilled jobs
3. Employee involvement and team approaches to designing and organizing work
4. "Informating" ordinary workers through telecommunication networks and computers
5. Extensive use of temporary workers
6. Automation of heavy manual work
7. Organizational commitment to providing meaningful and rewarding jobs for all employees
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Irwin/McGraw-Hill 4
Behavioral Considerations in Job Design
Degree of Specialization
Job Enrichment (vs. Enlargement)
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Irwin/McGraw-Hill 5
Sociotechnical Systems
ProcessTechnologyNeeds
Worker/GroupNeeds
Skill VarietyFeedbackTask IdentityTask Autonomy
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Irwin/McGraw-Hill 6
Physical Considerations
Attitude isn’t everything Can a worker perform physically?
Work Physiology Sets work-rest cycles based on
energy expenditure
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Irwin/McGraw-Hill 7
Work Methods
Workers Interacting with Other Workers
A ProductionProcess
Worker at a Fixed Workplace
Worker Interacting with Equipment
UltimateJob
Design
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Operations Strategy/Process AnalysisIrwin/McGraw-Hill 8
Work Measurement:Why do We Need to Set Work Standards?
1. To schedule work and allocate capacity
2. To provide an objective basis for motivating the workforce and measuring their performance
3. To bid for new contracts and to evaluate performance on existing ones
4. To provide benchmarks for improvement
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Time Study:The Search for Measurable Job Elements
Short in duration--but long enough to time
Separate worker actions from machine actions
Define any delays by the operator or equipment into separate elements
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Determining Standard Times
Calculate them yourself
Use elemental standard-time data
Use pre-determined motion-time data systems
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Time Study Example Problem
You want to determine the standard time for a job. The employee selected for the time study has produced 20 units of product in 8 working hours.
Your observations made the employee nervous and you estimate that the employee worked about 10 percent faster than what is a normal pace for the job. Allowances for the job represent 25 percent of the normal time.
Question: What are the normal and standard times for this job?
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Work Sampling
Use inference to make statements about work activity based on a sample of the activity.
Output of Work Sampling: Performance Measurement Time Standards
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Advantage of Work Sampling over Time Study
Several work sampling studies may be conducted simultaneously by one observer.
The study may be temporarily delayed at any time.
The observer need not be a trained analyst unless determining a time standard.
No timing devices are required. Work of a long cycle time may be studied with a
fewer observer hours. Minimizes effects of short-period variations and
influence by the operator or worker.
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Irwin/McGraw-Hill 14
Basic Compensation Systems
Hourly Pay
Straight Salary
Piece Rate
Commissions
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Financial Incentive Plans Individual and Small-Group Plans
Output measures Quality measures Pay for knowledge
Organization-wide Plans Profit sharing Gainsharing
Bonus based on controllable costs or units of output
May be part of participative management
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Scanlon PlanBasic Elements
Ratio =Total labor cost
Sales value of production The ratio Standard for judging business
performance
The bonus Depends on reduction in costs below the
preset ratio
The production committee
The screening committee
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Levi’s Jeans Case Moved away from piece rates. Team concept put in place in their
factories. Brought in consultants to
“reengineer” team process. Questions
What went wrong with the team process? What should have been done differently? Was the final result inevitable?
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Business Process Reengineering
“Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality, service, and speed.”
Source: Hammer, Michael and James Champy (1993) Reengineering the Corporation: A Manifesto for Business Revolution. New York: Harper
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Key Words Fundamental
Why do we do what we do? Radical
Business reinvention vs. business improvement
Dramatic Reengineering should be brought in “when a
need exists for heavy blasting.” Business Process
a collection of activities that takes inputs and creates an output that is of value to a customer.
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Business Process Reengineering
SeniorManagement
MiddleManagement
SupervisoryManagement
Workers
Decide What Business We Are In
Eliminate AnExisting Process
Replace AnExisting Process
Improve AnExisting Process
ContinuousContinuousImprovementImprovement
OrOrReengineering?Reengineering?
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Principles of Reengineering
Organize around outcomes, not tasks Put the decision point where the work is
performed, and build control into the process
Merge information-processing work into the work that produces the information
Treat geographically dispersed resources as though they were centralized
Link parallel activities instead of integrating their results
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The Reengineering Process (1 of 2)
1. State a Case for Action
2. Identify the Process for Reengineering
3. Evaluate Enablers of Reengineering
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4. Create a New Process Design
5. Understand the Current Process (high level only)
6. Implement the Reengineered Process
The Reengineering Process (2 of 2)
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Reengineering & Continuous Improvement
Source: Reprinted by permission of Harvard Business School Press from Process Innovation Reengineering Work Through Information Technology by Thomas H. Davenport. Boston: 1993 p. 51. Copyright 1993 by The President and Fellows of Harvard College.
Reengineering Continuous ImprovementSimilaritiesBasis of analysis Process ProcessPerformance measurement Rigorous RigorousOrganizational change Significant SignificantBehavioral change Significant SignificantTime investment Substantial Substantial
DifferencesLevel of change Radical IncrementalStarting point Clean slate Existing processParticipation Top-down Bottom-upTypical scope Broad, cross-functional Narrow, within functionsRisk High ModeratePrimary enabler Information technology Statistical controlType of change Cultural and Structural Cultural
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Integrating Reengineering and Continuous Improvement
Sequence Change Initiatives
Create a Portfolio of Process Change Programs
Limit the Scope of Work Design
Undertake Improvement through Innovation
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A System of Process Improvement:Continuous Improvement & Reengineering
time
Productivity
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Re-engineering: Current Situation
B
Specialization
Lots of handoffs(“white space”)
Lots of opportunity for defects
A
C
DE
F
G
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The Re-engineered Process
Ownership
Reduced handoffs
Reduced cycle time and defects
F
A
C
G
B D
E
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Why is it that we accept a 4 week wait to see a doctor, but in the mortgage business, the consumer dictates the closing dates to the mortgage company?
The Reengineering Process
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Six Sigma: DMAIC vs. DMADV
Define
Measure
Analyze
Design
Validate
Improve
Control
Continuous Improvement Reengineering