Human Resources and Job Design

Human Resources and Job Design

OutlineOutline Global Company Profile: Southwest Global Company Profile: Southwest

AirlinesAirlines Human Resource Strategy For Human Resource Strategy For

Competitive AdvantageCompetitive Advantage Constraints on Human Resource StrategyConstraints on Human Resource Strategy

Labor PlanningLabor Planning Employment-Stability PoliciesEmployment-Stability Policies Work SchedulesWork Schedules Job Classifications and Work RulesJob Classifications and Work Rules

Outline – ContinuedOutline – Continued Job DesignJob Design

Labor SpecializationLabor Specialization Job ExpansionJob Expansion Psychological Components of Job Psychological Components of Job

DesignDesign Self-Directed TeamsSelf-Directed Teams Motivation and Incentive SystemsMotivation and Incentive Systems Ergonomics and Work MethodsErgonomics and Work Methods

Outline – ContinuedOutline – Continued

The Visual WorkplaceThe Visual Workplace Ethics and the Work EnvironmentEthics and the Work Environment Labor StandardsLabor Standards

Learning ObjectivesLearning ObjectivesWhen you complete this chapter, you When you complete this chapter, you should be able to:should be able to:Identify or Define:Identify or Define:

Job designJob design Job specializationJob specialization Job expansionJob expansion Tools of methods analysisTools of methods analysis ErgonomicsErgonomics Labor standardsLabor standards AndonAndon

Learning ObjectivesLearning ObjectivesWhen you complete this chapter, you When you complete this chapter, you should be able to:should be able to:Describe or Explain:Describe or Explain:

Requirements of good job designRequirements of good job design The visual workplaceThe visual workplace Ethical issues in human resourcesEthical issues in human resources

Southwest AirlinesSouthwest Airlines

Profitable for over 30 years while Profitable for over 30 years while United, Northwest, Delta, and United, Northwest, Delta, and USAir lost billionsUSAir lost billions

Key strategy is human resourcesKey strategy is human resources Culture of caring for people in the Culture of caring for people in the

totality of their lives, not just at totality of their lives, not just at workwork

Spends more to recruit and train Spends more to recruit and train than any other airlinethan any other airline

Southwest AirlinesSouthwest Airlines

Empowered employeesEmpowered employees Wages higher than industry averageWages higher than industry average Stock options for some employeesStock options for some employees Employees treated like customersEmployees treated like customers Success comes from people, not Success comes from people, not

gimmicks or special equipmentgimmicks or special equipment

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

schedule

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 exactly Matches direct labor costs to Matches direct labor costs to

productionproduction Incurs costs in hiring and Incurs costs in hiring and

termination, unemployment termination, unemployment insurance, and premium wagesinsurance, and premium wages

Labor 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 constant Maintains trained workforceMaintains trained workforce Minimizes hiring, termination, and Minimizes hiring, termination, and

unemployment costsunemployment costs Employees may be underutilized Employees may be underutilized

during slack periodsduring slack periods Labor is treated as a fixed costLabor is treated as a fixed cost

Employment Stability PoliciesEmployment Stability Policies

Work SchedulesWork Schedules Standard work scheduleStandard work schedule

Five eight-hour daysFive eight-hour days Flex-timeFlex-time

Allows employees, within limits, to Allows employees, within limits, to determine their own schedulesdetermine their own schedules

Flexible work weekFlexible work week Fewer but longer daysFewer but longer days

Part-timePart-time Fewer, possibly irregular, hoursFewer, possibly irregular, hours

Job Classification and Job Classification and Work RulesWork Rules

Specify who can do whatSpecify who can do what Specify when they can do itSpecify when they can do it Specify under what conditions Specify under what conditions

they can do it they can do it Often result of union pressureOften result of union pressure Restricts 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. Self-directed teamsSelf-directed teams5.5. Motivation and incentive systemsMotivation and incentive systems6.6. Ergonomics and work methodsErgonomics and work methods7.7. Visual workplaceVisual workplace

Labor SpecializationLabor Specialization The division of labor into unique tasksThe division of labor into unique tasks First 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 jobs Intended to reduce boredom Intended to reduce boredom

associated with labor specializationassociated with labor specialization Job enlargementJob enlargement Job rotation Job rotation Job enrichmentJob enrichment Employee 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

(participating 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 of job designcomponents of 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 levels

Introduced psychology into the workplaceIntroduced psychology into the workplace The 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 factors

Individual 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 variety Job identityJob identity Job significanceJob significance AutonomyAutonomy FeedbackFeedback

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 employee’s employee’s contribution contribution and and increasing increasing responsibility responsibility accepted by accepted by employeeemployee

Self-Directed TeamsSelf-Directed Teams Group of empowered individuals Group of empowered individuals

working together to reach a working together to reach a common goalcommon goal

May be organized for long-term or May be organized for long-term or short-term objectives short-term objectives

Effective becauseEffective because Provide employee empowermentProvide employee empowerment Ensure core job characteristicsEnsure core job characteristics Meet individual psychological needsMeet individual psychological needs

Self-Directed TeamsSelf-Directed Teams

Ensure those who have legitimate Ensure those who have legitimate contributions are on the teamcontributions are on the team

Provide management supportProvide management support Ensure the necessary trainingEnsure the necessary training Endorse clear objectives and goalsEndorse clear objectives and goals Financial and non-financial rewardsFinancial and non-financial rewards Many teams have definite life cyclesMany teams have definite life cycles

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 life Improved job satisfactionImproved job satisfaction Increased motivationIncreased motivation Allows employees to accept more Allows employees to accept more

responsibilityresponsibility Improved productivity and qualityImproved productivity and quality Reduced turnover and absenteeismReduced turnover and absenteeism

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. Increased accident ratesIncreased accident rates6.6. Current technology may not lend itself Current technology may not lend itself

to job expansionto job expansion

Motivation and Incentive Motivation and Incentive SystemsSystems

Bonuses - cash or stock optionsBonuses - cash or stock options Profit-sharing - profits for distribution to Profit-sharing - profits for distribution to

employeesemployees Gain sharing - rewards for improvementsGain sharing - rewards for improvements Incentive plans - typically based on Incentive plans - typically based on

production ratesproduction rates Knowledge-based systems - reward for Knowledge-based systems - reward for

knowledge or skillsknowledge or skills

Ergonomics and Work Ergonomics and Work MethodsMethods

Ergonomics is the study of the Ergonomics is the study of the interface between man and interface between man and machinemachine Often called human factorsOften called human factors

Operator input to machinesOperator input to machines Feedback to operatorsFeedback to operators

Ergonomics and Work Ergonomics and Work MethodsMethods

The work environmentThe work environment IlluminationIllumination NoiseNoise TemperatureTemperature HumidityHumidity

Job Design and KeyboardsJob Design and Keyboards


Levels of IlluminationLevels of IlluminationTask ConditionTask Condition Type of Task Type of Task

or Areaor AreaIllumination Illumination

LevelLevelType of Type of

IlluminationIllumination

Small detail, Small detail, extreme extreme accuracyaccuracy

Sewing, inspecting Sewing, inspecting dark materialsdark materials

100100 Overhead Overhead ceiling lights ceiling lights and desk lampand desk lamp

Normal detail, Normal detail, prolonged prolonged periodsperiods

Reading, parts Reading, parts assembly, assembly, general office general office workwork

20-5020-50 Overhead Overhead ceiling lightsceiling lights

Good contrast, Good contrast, fairly large fairly large objectsobjects

Recreational Recreational facilitiesfacilities


Large objectsLarge objects Restaurants, Restaurants, stairways, stairways, warehouseswarehouses


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 carInside sports car || required if required if (50 mph)(50 mph) Vacuum cleaner (10 ft)Vacuum cleaner (10 ft) 7070 exposed for 8 exposed for 8Near freewayNear freeway Speech (1 ft)Speech (1 ft) || or more hours or 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 performed Used to analyzeUsed to analyze

1.1. Movement of individuals or materialMovement of individuals or material Flow diagramsFlow diagrams

2.2. Activities of human and machine and Activities of human and machine and crew activitycrew activity Activity chartsActivity charts

3.3. Body movementBody movement Micro-motion chartsMicro-motion 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 low-cost visual devices to Use low-cost visual devices to

share information quickly and share information quickly and accuratelyaccurately

Displays and graphs replace Displays and graphs replace printouts and paperworkprintouts and paperwork

Able to provide timely information Able to provide timely information in a dynamic environmentin a dynamic environment

System should focus on System should focus on improvementimprovement

The Visual WorkplaceThe Visual Workplace

Present the big picturePresent the big picture PerformancePerformance HousekeepingHousekeeping

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 Visual utensil holder encourages holder encourages housekeepinghousekeeping

A “3-minute service” A “3-minute 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


The Visual WorkplaceThe Visual Workplace

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 design

Important 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 conditions

Helpful to work with government Helpful to work with government agencies, trade unions, insurers, agencies, trade unions, insurers, and employeesand employees

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 required

Labor 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 job

Accurate labor standards help Accurate labor standards help determine labor requirements, determine labor requirements, costs, and fair workcosts, and fair work

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Human Resources and Job Design