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.

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

Irwin/McGraw-Hill 3

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

Irwin/McGraw-Hill 4

Behavioral Considerations in Job Design

Degree of Specialization

Job Enrichment (vs. Enlargement)

Irwin/McGraw-Hill 5

Sociotechnical Systems

ProcessTechnologyNeeds

Worker/GroupNeeds

Skill VarietyFeedbackTask IdentityTask Autonomy

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

Irwin/McGraw-Hill 7

Work Methods

Workers Interacting with Other Workers

A ProductionProcess

Worker at a Fixed Workplace

Worker Interacting with Equipment

UltimateJob

Design

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

Irwin/McGraw-Hill 9

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

Irwin/McGraw-Hill 10

Determining Standard Times

Calculate them yourself

Use elemental standard-time data

Use pre-determined motion-time data systems

Irwin/McGraw-Hill 11

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?

Irwin/McGraw-Hill 12

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

Irwin/McGraw-Hill 13

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.

Irwin/McGraw-Hill 14

Basic Compensation Systems

Hourly Pay

Straight Salary

Piece Rate

Commissions

Irwin/McGraw-Hill 15

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

Irwin/McGraw-Hill 16

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

Irwin/McGraw-Hill 17

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?

Irwin/McGraw-Hill 18

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

Irwin/McGraw-Hill 19

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.

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?

Irwin/McGraw-Hill 21

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

Irwin/McGraw-Hill 22

The Reengineering Process (1 of 2)

1. State a Case for Action

2. Identify the Process for Reengineering

3. Evaluate Enablers of Reengineering

Irwin/McGraw-Hill 23

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)

Irwin/McGraw-Hill 24

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

Irwin/McGraw-Hill 25

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

Irwin/McGraw-Hill 26

A System of Process Improvement:Continuous Improvement & Reengineering

time

Productivity

Irwin/McGraw-Hill 27

Re-engineering: Current Situation

B

Specialization

Lots of handoffs(“white space”)

Lots of opportunity for defects

A

C

DE

F

G

Irwin/McGraw-Hill 28

The Re-engineered Process

Ownership

Reduced handoffs

Reduced cycle time and defects

F

A

C

G

B D

E

Irwin/McGraw-Hill 29

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

Irwin/McGraw-Hill 30

Six Sigma: DMAIC vs. DMADV

Define

Measure

Analyze

Design

Validate

Improve

Control

Continuous Improvement Reengineering