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Chapter 6 – Human Resource Practices

Key activities, Leading practices, Work design, Job design, Employee

involvement, Empowerment, Training and education, Teams, Compensation and recognition,

Motivation, Performance appraisal, Baldrige criteria

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Toyota Georgetown, KY “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 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.”

4 time winner of J.D. Power Gold Plant Quality Award

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Human Resource Paradigms

Old Thinking New ThinkingPeople are part of the

process

Process requires external control

Managers have tocontrol whatpeople do

People design andimprove processes

Workers who run theprocess control it

Managers must obtaincommitment of workers

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Key Activities in HRM

Determine organization’s HR needs to build a high-performance workplace

Assist in design of work systems Recruit, select, train & develop, counsel,

motivate, and reward employees Act as liaison with unions & government Handle other matters of employee

well-being

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Leading Practices (1 of 2)

Integrate HR plans with overall strategic objectives and action plans

Design work and jobs to promote organizational learning, innovation, and flexibility

Develop effective performance management systems, compensation, and reward and recognition approaches

Promote cooperation and collaboration through teamwork

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Leading Practices (2 of 2)

Empower individuals and teams to make decisions that affect quality and customer satisfaction

Make extensive investments in training and education

Maintain a work environment conducive to the well-being and growth of all employees

Monitor extent and effectiveness of HR practices and measure employee satisfaction

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Strategic Perspective

HR plans should be linked to business strategy and aligned with business needs

Key choices on a continuum (see Table 6.3, page 272) Planning Staffing Appraising Compensating Training and development

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High Performance Work Systems

Work and Job Design

Employee Involvement

Suggestion systems

Empowerment

Training and Education

Teamwork and Cooperation

Compensation and recognition

Health and safety

Flexibility

Innovation

Knowledge and skill sharing

Organizational alignment

Customer focus

Rapid response

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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 to individuals

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Work Design Issues Performer/job level: initiative

and motivation Process level: cooperation and

teamwork Organizational level: well-

being; link to strategy

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Hackman/Oldham Work Design Model

Core jobcharacteristics

Criticalpsychological states

Outcomes

Skill varietyTask identityTask significance

Experiencedmeaningfulness of work

Autonomy

Feedbackfrom job

Experiencedresponsibility

Knowledge of actual results

High motivation

High satisfaction

High workeffectiveness

Moderators

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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 all employees and improving their motivation

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Levels of Employee Involvement

1. Information sharing

2. Dialogue3. Special problem

solving4. Intra-group

problem solving

5. Inter-group problem solving

6. Focused problem solving

7. Limited self-direction

8. Total self-direction

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Advantages of EI Replaces

adversarial mentality with trust and cooperation

Develops skills and leadership abilities

Increases morale and commitment

Fosters creativity and innovation

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

Allows employees to solve problems at the source

Improves quality and productivity

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Empowerment Giving people authority to make

decisions based on what they feel is right, to have control over their work, to take risks and learn from mistakes, and to promote change.

“A sincere belief and trust in people.”

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Successful Empowerment

Provide education, resources, and encouragement

Remove restrictive policies/procedures Foster an atmosphere of trust Share information freely Make work valuable Train managers in “hands-off” leadership Train employees in allowed latitude

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Training and Education Quality awareness Leadership Project

management Communications Teamwork Problem solving Interpreting and

using data

Meeting customer requirements

Process analysis Process

simplification Waste reduction Cycle time

reduction Error proofing

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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

Effective teams are goal-centered, independent, open, supportive, and empowered

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Types of Teams

Quality circles Problem solving teams Management teams Natural work teams Project teams [Quality Improvement Teams

(QITs) or Process Improvement Teams (PITs)] Virtual teams Six Sigma teams

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Functions of Teams

Implement solutions

Identifyproblems Select

problem

Collect data

Focus attention

Find causesDevelop

solutions

Pick best solution

Developfollow-up plan

Solve

Identify

Analyze

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Six Sigma Project Teams Champions – senior managers who promote

Six Sigma Master Black Belts – highly trained experts

responsible for strategy, training, mentoring, deployment, and results.

Black Belts – Experts who perform technical analyses

Green Belts – functional employees trained in introductory Six Sigma tools

Team Members – Employees who support specific projects

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Self-Managed Teams Empowered Plan, control,

improve work processes

Set own goals and inspect own work

Schedule & review performance

Prepare budgets & coordinate work

Order materials, keep inventory, & deal with suppliers

Acquire any needed training

Hire replacements or discipline members

Take responsibility for quality

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Ingredients for Successful Teams (1 of 2 )

Clarity in team goals Improvement plan Clearly defined roles Clear communication Beneficial team behaviors

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Ingredients for Successful Teams (2 of 2)

Well-defined decision procedures Balanced participation Established ground rules Awareness of group process Use of scientific approach

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Compensation and Recognition

Compensation Merit versus

capability/performance based plans

Gainsharing Recognition

Monetary or non-monetary Formal or informal Individual or group

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Compensation What’s fair?

Everyone paid the same By amount of time worked (hours) By job content (job classification /

ranking) By output (quantity) By knowledge (education, experience) By supply and demand By demonstrated skills

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Effective Recognition and Reward Strategies

Give both individual and team awards Involve everyone Tie rewards to quality Allow peers and customers to nominate

and recognize superior performance Publicize extensively Make recognition fun

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Managing HR in a TQ Environment

Recruitment and Career Development

Motivation Performance Appraisal Measuring Employee Satisfaction

and HRM Effectiveness

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Motivation An individual’s response to a felt need Theories

Content Theories: Maslow; MacGregor; Herzberg – static, how & why

Process Theories: Vroom; Porter & Lawler – dynamic, situational

Environmentally-based Theories: Skinner; Adams; Bandura, Snyder & Williams – integrate multiple theories

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Performance Appraisal How you are measured is how you

perform! Conventional appraisal systems

Focus on short-term results and individual behavior; fail to deal with uncontrollable factors

New approaches Focus on company goals such as quality and

behaviors like teamwork 360-degree feedback; mastery descriptions

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Measuring Employee Satisfaction and Effectiveness

Satisfaction Quality of work life, teamwork,

communications, training, leadership, compensation, benefits, internal suppliers and customers

Effectiveness Team and individual behaviors; cost,

quality, and productivity improvements; employee turnover; suggestions; training effectiveness

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TQ and Labor Relations Union-management cooperation National Labor Relations Board

(NLRB) rulings on employee participation programs

Current legislative proposals and actions

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Human Resources in the Baldrige Award Criteria

The Human Resource Focus Category examines how an organization motivates and enables employees to develop and utilize their full potential in alignment with the organization’s overall objectives and action plans. Also examined are the organization’s efforts to build and maintain a work environment and an employee support climate conducive to performance excellence and to personal and organizational growth.

5.1 Work Systems5.2 Employee Education, Training, and Development5.3 Employee Well-Being and Satisfaction

a. Work Environmentb. Employee Support and Satisfaction

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