Human Resource Practices presentation1 - · PDF fileHuman Resource Practices. ... HRM...

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 1

Chapter 6Chapter 6

Human Resource Practices


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 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.”


Human Resource Paradigms

Old Thinking New Thinking

People are part of the

process

Process requires

external control

Managers have to

control what

people do

People design and

improve processes

Workers who run the

process control it

Managers must obtain

commitment of workers


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 employeewell-being


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


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


Strategic Perspective

• HR plans should be linked to business

strategy and aligned with business needs

• Key choices

– Planning

– Staffing

– Appraising

– Compensating

– Training and development


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


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


Work Design Issues

• Performer/job level: initiative and

motivation

• Process level: cooperation and

teamwork

• Organizational level: well-being; link

to strategy


Hackman/Oldham Model

Core job

characteristics

Critical

psychological

states

Outcomes

Skill variety

Task identity

Task significance

Experienced

meaningfulness

of work

Autonomy

Feedback

from job

Experienced

responsibility

Knowledge of

actual results

High motivation

High satisfaction

High workeffectiveness

Moderators


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


Levels of Employee Involvement

1. Information sharing

2. Dialogue

3. Special problem

solving

4. Intra-group problem

solving

5. Inter-group problem

solving

6. Focused problem

solving

7. Limited self-direction

8. Total self-direction


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


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.”


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


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


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


Types of Teams

• Quality circles

• Problem solving teams

• Management teams

• Work teams

• Project teams

• Virtual teams


Functions of Teams

Implement

solutions

Identify

problems Select

problem

Collect

data

Focus

attention

Find

causesDevelop

solutions

Pick best

solution

Develop

follow-up

planSolve

Identify

Analyze


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


Ingredients for

Successful Teams (1 of 2 )

• Clarity in team goals

• Improvement plan

• Clearly defined roles

• Clear communication

• Beneficial team behaviors


Ingredients for

Successful Teams (2 of 2)

• Well-defined decision procedures

• Balanced participation

• Established ground rules

• Awareness of group process

• Use of scientific approach


Compensation and Recognition

• Compensation

– Merit versus capability/performance based plans

– Gainsharing

• Recognition

– Monetary or non-monetary

– Formal or informal

– Individual or group


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


Managing HR

in a TQ Environment

• Recruitment and Career Development

• Motivation

• Performance Appraisal

• Measuring Employee Satisfaction and

HRM Effectiveness


Motivation

• An individual’s response to a felt need

• Theories

– Content Theories: Maslow; MacGregor;

Herzberg

– Process Theories: Vroom; Porter & Lawler

– Environmentally-based Theories: Skinner;

Adams; Bandura, Snyder & Williams


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


Measuring Employee

Satisfaction and Effectiveness

• Satisfaction

– Quality of worklife, 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


TQ and Labor Relations

• Union-management cooperation

• National Labor Relations Board

(NLRB) rulings on employee

participation programs

• Current legislative proposals and

actions


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 Systems

5.2 Employee Education, Training, and Development

5.3 Employee Well-Being and Satisfaction

a. Work Environment

b. Employee Support and Satisfaction

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