Chapter 6
Human Resource Practices
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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.”
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Human Resource Paradigms
Old Thinking
New Thinking
People are part of the
process
People design and
improve processes
Process requires
external control
Workers who run the
process control it
Managers have to
control what
people do
Managers must obtain
commitment of workers
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Strategic Perspective
• HR plans should be linked to business
strategy and aligned with business needs
• Key choices
–
–
–
–
–
Planning
Staffing
Appraising
Compensating
Training and development
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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High Performance Work Systems
Work and Job
Design
Flexibility
Innovation
Health and safety
Suggestion
systems
Knowledge and skill
sharing
Empowerment
Organizational
alignment
Customer focus
Training and
Education
Compensation
and
recognition
Rapid response
Employee
Involvement
Teamwork and Cooperation
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Hackman/Oldham Model
Core job
characteristics
Skill variety
Task identity
Task significance
Autonomy
Feedback
from job
Critical
psychological
states
Outcomes
Experienced
High motivation
meaningfulness
of work
High satisfaction
Experienced
responsibility
High work
effectiveness
Knowledge of
actual results
Moderators
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Levels of Employee Involvement
1. Information sharing
5. Inter-group problem
2. Dialogue
3. Special problem
solving
4. Intra-group problem
solving
solving
6. Focused problem
solving
7. Limited self-direction
8. Total self-direction
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
Work teams
Project teams
Virtual teams
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Functions of Teams
Identify
problems
Implement
solutions
Select
problem
Identify
Develop
follow-up
plan
Collect
data
Solve
Analyze
Pick best
solution
Develop
solutions
Focus
attention
Find
causes
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Ingredients for
Successful Teams (1 of 2 )
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•
•
•
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Clarity in team goals
Improvement plan
Clearly defined roles
Clear communication
Beneficial team behaviors
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Ingredients for
Successful Teams (2 of 2)
•
•
•
•
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Well-defined decision procedures
Balanced participation
Established ground rules
Awareness of group process
Use of scientific approach
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Effective Recognition
and Reward Strategies
•
•
•
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Managing HR
in a TQ Environment
•
•
•
•
Recruitment and Career Development
Motivation
Performance Appraisal
Measuring Employee Satisfaction and
HRM Effectiveness
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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 Systems
5.2 Employee Education, Training, and Development
5.3 Employee Well-Being and Satisfaction
a. Work Environment
b. Employee Support and Satisfaction
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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