PRODUCTION AND
OPERATIONS MANAGEMENT
Ch. 11: Human Resources and
Job Design
POM - J. Galván
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Learning Objectives
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Define job design
Describe job design components
Explain motivation theories & studies
Define work measurement
Describe work measurement
techniques
Calculate standard time
POM - J. Galván
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Objective of Human Resource
Strategy

To manage labor and design jobs so
people are effectively and efficiently
utilized
POM - J. Galván
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People and Work System Goals
Use people efficiently
within constraints
Provide reasonable
quality of work life
© 1995 Corel Corp.
POM - J. Galván
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People and Work System
Aspects
Job
Design
Labor
Standards
POM - J. Galván
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People and
Work System Constraints
Product
strategy
People & Work
Design
Location
strategy
Process
strategy
Layout
strategy
Schedules
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POM - J. Galván
Individual
differences
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Labor Planning/Stability Policies

Follow demand
exactly
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keeps direct labor
costs tied closely to
production
• incurs costs of
•
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hiring/firing
unemployment
insurance
labor wage premium
POM - J. Galván
Hold
employment
constant
maintains a
trained workforce
• incurs costs of
•
 idle
time when
demand is low
 meeting increased
demand when
demand is high
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Work Schedules
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Standard work schedule
•
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Flex-time
•
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allows employees, within prescribed limits, to
determine their own schedules
Flexible work week
•
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five eight-hour days
four 10-hour days
Part-time
•
less than eight hours per day, or an irregular
schedule
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Job Classifications and
Work Rules
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Specify
who can do what
• when they can do it
•
• under
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what conditions they can do it
Often result of union pressure
Restricts flexibility in assignments;
consequently restricts efficiency of
production
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Job Design
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Specifying the tasks that make up
a job for an individual or group
Involves determining
•
•
•

What is to be done (i.e., responses)
How it is to be done (i.e., tools etc.)
Why it is to be done (i.e., purpose)
Results in job description
•
Shows nature of job in task-related
behaviors
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Components of Job Design
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Job specialization
Job expansion
Psychological components
Self-directed teams
Motivation and incentive systems
Ergonomics and work methods
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Labor Specialization
o Involves
Breaking jobs into small component
parts
o Assigning specialists to do each part
o
o First noted by Adam Smith (1876)
o
Observed how workers in pin factory
divided tasks into smaller
components
o Found in manufacturing &
service industries
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Labor Specialization
Often Reduces Cost
¨ Greater dexterity & faster
learning
¨ Less lost time changing jobs or
tools
¨ Use more specialized tools
¨ Pay only for needed skills
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Job Expansion
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Process of adding more variety to
jobs
Intended to reduce boredom
associated with labor specialization
Methods
Job enlargement
• Job enrichment
• Job rotation
• Employee empowerment
•
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Job Expansion/Enrichment
Enriched Job
Planning
Enlarged Job
Task #2
Present
Job
Task #3
Control
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Job Expansion Constraints
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Higher capital cost
Workers’ preferences
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Example: Some people prefer simple
jobs
Higher wages required
Smaller labor pool
Increased accident rates
Lack of technology
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Job Rotation
Pediatrics
Maternity
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Corel Corp.
© 1995 Corel
Corp.
© 1995
Corel
Corp.
POM - J. Galván
Geriatrics
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Employee Empowerment
Employee Empowerment
Decision-Making
Control
Planning
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Job Design Continuum
Self-directed
Teams
Empowerment
Enrichment
Enlargement
Increasing
reliance on
employees
contribution
and increasing
acceptance of
responsibility
by employee
Specialization
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Limitations to
Job Enlargement/Job
Enrichment
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Higher capital cost
Many individuals prefer simple jobs
Higher wages are required since the worker
must utilize a higher level of skill
A smaller labor pool exists of persons able and
willing to perform enriched or enlarged jobs
Increased accident rates may occur
Current technology in some industries does not
lend itself to job enlargement and enrichment
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Psychological Components of
Job Design
¨ Individuals have values, attitudes,
and emotions that affect job results
¨
Example: Work is a social experience
that affects belonging needs
¨ Effective worker behavior comes mostly from
within the individual
¨
Scientific management argued for external
financial rewards
¨ First examined in ‘Hawthorne studies’
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Core Job Characteristics
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Skill variety
Job identify
Job significance
Autonomy
Feedback
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Motivation
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Worker performance depends on
•
Motivation
• Ability
• Work environment
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Motivation is the set of forces that compel
behavior
Money may serve as a psychological &
financial motivator
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Motivation and Money

Taylor’s scientific management (1911)
•
•
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Maslow’s theory (1943)
•
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Workers are motivated mainly by money
Suggested piece-rate system
People are motivated by hierarchy of needs,
which includes money
Herzberg (1959)
•
Money either dissatisfies or is neutral in its
effect
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Monetary Incentives
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Bonuses: Cash & stock options
Profit sharing: Distribution of profits
Gain sharing: Reward for company
performance (e.g., cost reduction)
•
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Scanlon plan is most popular (cost reduction.)
Incentive systems
•
•
Measured daywork: Pay based on std. time
Piece rate: Pay based on pieces done
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Maslow’s Hierarchy of Needs
Self-Actualization
Use of abilities
Self-fulfillment
Ego
Self Respect
Social
Group Interaction
Job Status
Safety
Physical Safety
Job Security
Physiology
Food
Shelter
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Herzberg’s Motivation/Hygiene
Factors
Job Dissatisfiers
(Hygiene)
Job Satisfiers
(Motivators)
Company policies and administration
Achievement
Supervision - technical
Recognition
Working conditions
Advancement
Interpersonal relations - supervision
Work itself
Status
Responsibility
Job security
Personal growth
Salary
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Job Characteristics
Core Job
Characteristics
¨ Motivation
¨ Satisfaction
Psychological
States
Personal & Work
Outcomes
¨ Job performance
¨ Absenteeism &
turnover
Hackman & Oldham (1980)
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Self-Directed Teams
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Group of empowered individuals
working together for a common goal
May be organized for short-term or
long-term objectives
Reasons for effectiveness
•
•
•
Provide employee empowerment
Provide core job characteristics
Meet psychological needs (e.g., belonging)
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Ergonomics and Work Methods
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Worker performance depends on
•
•
•
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Motivation
Ability
Work environment
Foundation laid by Frederick Taylor
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•
Match employees to task
Develop work methods
Establish work standards
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Ergonomics
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Study of work
Also called ‘human factors’
Involves human-machine interface
Examples
•
•
Mouse
Keyboard
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Methods Analysis
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Focuses on how task is performed
Used to analyze
•
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Movement of body, people, or material
Activities of people & machines
Tools
•
•
•
•
Process chart
Flow diagram
Activity chart
Operations chart (right-hand, left-hand)
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Process Chart
SUBJECT: Request tool purchase
Dist (ft)
75
Time (min)
Symbol
Description
  o D Ñ
Write order
  o D Ñ
On desk
  o D Ñ
To buyer
  o D Ñ
Examine
 = operation;  = transport; o = inspect; D = delay; Ñ =
storage
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Flow Diagram
Buyer
75 ft.
You
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Activity Chart
Subject: Semi-Auto Machine
Time
1
2
3
4
5
6
Operator
Load machine
Present
Machine
Being loaded
Run
Idle
Unload
Being Unloaded
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Operations Chart
(Left Hand/Right Hand
Left Hand
Right Hand
Present Method Symbol Symbol Present Method
1 Reach for bolt   o D Ñ
 oD Ñ
Idle
2 Grasp bolt
 oD Ñ  oD Ñ
Idle
3 Hold bolt
 oD Ñ  oD Ñ
Reach for washer
4 Hold bolt
 oD Ñ  oD Ñ
Assemble
 = operation;  = transport; o = inspect; D = delay; Ñ =
storage
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The Visual Workplace
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Uses low-cost visual devices to share
information quickly and accurately.
Displays and graphs replace paper
Provides real-time information
System should focus on
improvement, not merely monitoring
Can provide both production and
financial data
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What is Work Measurement?
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Determining the amount of worker
time required to generate one unit
of output
Provides labor standards
•
Target amount of time required to
perform a job under normal working
conditions
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Uses of Labor Standards
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Costing labor content of products
Planning staffing needs
Cost & time estimates for bids
Planning production
Wage-incentive plans
Employee efficiency
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Sources of Labor Standards
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Historical experience
Time studies
Predetermined time
standards (MTM)
Work sampling
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Labor Standards - Historical
Experience
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Labor standards are based on how
many labor-hours were needed in
past
Least preferred method
Advantages
• Easy

and inexpensive to obtain standard
Disadvantages
• Unknown
accuracy due to unusual
occurrences, unknown pace etc.
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Time Studies
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Labor standards are based on
observing worker doing task
•
•
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Observe only a sample of work
Use average time & pace to set standard
Disadvantages
•
•
Require a trained & experienced analyst
Standard cannot be set before task is
performed
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Time Study Steps
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Define task to be
studied
Break task into
elements
Determine number of
cycles
Time each element
Determine pace
(rating factor)
Compute labor standard
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Time Study Equations
Allowance factor =
Nonwork time
N
Avg. element time =
Total time
(Element times)
Number of cycles
Normal time = (Avg. element time) × (Pace)
Standard time =
Total normal time
1 - Allowance factor
Nonwork time = Personal, Fatigue, and Delay Time
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Predetermined Time Standards
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Labor standards are set from times in
published tables (e.g., MTM Table)
Procedure
•
•
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Divide manual work into basic elements
Look up basic element times in table; sum
Advantages
•
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Times established in laboratory setting
Useful for planning tasks
Widely accepted by unions
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Work Sampling
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Labor standard is set using output & %
of time worker spends on tasks
Involves observing worker at random
times over a long period
Advantages
•
•
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Less expensive than time studies
Observer requires little training
Disadvantages
•
Ineffective with short cycles
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Work Sampling Steps
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Take preliminary sample & estimate
parameter value (e.g., percentage)
Compute sample size
Prepare observation schedule
Observe & record worker’s activities
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Rate worker’s performance
Record number of units produced
Compute standard time per unit
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Work Sampling Equations
(Total Time) (%Working Rating)
Normal Tim e =
Units Produced
Std Time =
Normal Tim e
(1 - Allowance)
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A Final Thought
Two stonecutters were
asked what they were
doing. The first said, ‘I’m
cutting this stone into
blocks.’ The second one
replied, ‘I’m on a team
that’s building a
cathedral.’
— Old Story
POM - J. Galván
Church of
the Holy
Family
(Barcelona)
© 1995 Corel Corp.
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