WORKFORCE FOCUS WEEK10_MANMGT2 TOYOTA GEORGETOWN WORKFORCE FOCUS PRACTICE • “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.” 2 WORKFORCE • …everyone who is actively involved in accomplishing the work of an organization. This encompasses paid employees as well as volunteers and contract employees, and includes team leaders, supervisors, and managers at all levels. • Many companies refer to their employees as “associates” or “partners” to signify the importance that people have in driving business performance. 3 WORKFORCE FOCUS IN ISO 9000 • Personnel performing work affecting product quality shall be competent on the basis of appropriate education, training, skills, and experience. • Organizations should determine the level of competence that employees need, provide training or other means to ensure competency, evaluate the effectiveness of training or other actions taken, ensure that employees are aware of how their work contributes to quality objectives, and maintain appropriate records of education, training, and experience. • The standards address the work environment from the standpoint of providing buildings, workspace, utilities, equipment, and supporting services needed to achieve conformity to product requirements, as well as determining and managing the work environment, including safety, ergonomics, and environmental factors. 4 KEY WORKFORCE-FOCUSED PRACTICES FOR PERFORMANCE EXCELLENCE (1 OF 2) • Understand the key factors that drive workforce engagement, satisfaction, and motivation. • Design and manage work and jobs to promote effective communication, cooperation, skill sharing, empowerment, innovation, and the ability to benefit from diverse ideas and thinking of employees and develop an organizational culture conducive to high performance and motivation. • Make appropriate investments in development and learning, both for the workforce and the organization’s leaders. • Create an environment that ensures and improves workplace health, safety, and security, and supports the workforce via policies, services, and benefits. 5 KEY WORKFORCE-FOCUSED PRACTICES FOR PERFORMANCE EXCELLENCE (1 OF 2) • Develop a performance management system based on compensation, recognition, reward, and incentives that supports high performance work and workforce engagement. • Assess workforce engagement and satisfaction and use results for improvement. • Assess workforce capability and capacity needs and use the results to capitalize on core competencies, address strategic challenges, recruit and retain skilled and competent people, and accomplish the work of the organization. • Manage career progression for the entire workforce and succession planning for management and leadership positions. 6 QUALITY PROFILE: PRO-TEC COATING COMPANY • A joint venture between United States Steel Corporation and Kobe Steel Ltd. of Japan, providing coated sheet steel primarily to the U.S. automotive industry. • Culture centered around three fundamental concepts—ownership, responsibility, and accountability. • Associates work in self-directed teams and are empowered, innovative leaders who fix problems as they are identified. 7 EVOLUTION OF WORKFORCE MANAGEMENT • Taylor system and scientific management • Improved productivity • Changed manufacturing work into series of mundane and mindless tasks • Promulgated adversarial relationships between labor and management • Failed to exploit the knowledge and creativity of the workforce 8 EVOLUTION OF WORKFORCE MANAGEMENT TRANSACTIONAL VS TRANSFORMATIONAL LEADERSHIP Transactional leadership relies more on a "give and take" understanding, whereby subordinates have a sense of duty to the leader in exchange for some reward. Transformational leadership, on the other hand, involves a committed relationship between the leader and his followers. In 1985, industrial psychologist Bernard Bass identified and wrote about four basic elements that underlie transformational leadership. 9 ELEMENTS OF TRANSFOMATIONAL LEADERSHIP Idealized Influence Transformational leaders act as role models and display a charismatic personality that influences others to want to become more like the leader. Idealized influence can be most expressed through a transformational leader's willingness to take risks and follow a core set of values, convictions and ethical principles in the actions he takes. It is through this concept of idealized influence that the leader builds trust with his followers and the followers, in turn, develop confidence in their leader. 10 ELEMENTS OF TRANSFOMATIONAL LEADERSHIP Inspirational Motivation Inspirational motivation refers to the leader's ability to inspire confidence, motivation and a sense of purpose in his followers. The transformational leader must articulate a clear vision for the future, communicate expectations of the group and demonstrate a commitment to the goals that have been laid out. This aspect of transformational leadership requires superb communication skills as the leader must convey his messages with precision, power and a sense of authority. Other important behaviors of the leader include his continued optimism, enthusiasm and ability to point out the positive. 11 ELEMENTS OF TRANSFOMATIONAL LEADERSHIP Intellectual Stimulation Transformational leadership values creativity and autonomy among the leader's followers. The leader supports his followers by involving them in the decisionmaking process and stimulating their efforts to be as creative and innovative as possible to identify solutions. To this end, the transformational leader challenges assumptions and solicits ideas from followers without criticizing. She helps change the way followers think about and frame problems and obstacles. The vision the leader conveys helps followers see the big picture and succeed in their efforts. 12 ELEMENTS OF TRANSFOMATIONAL LEADERSHIP Individualized Consideration Each follower or group member has specific needs and desires. For example, some are motivated by money while others by change and excitement. The individualized consideration element of transformational leadership recognizes these needs. The leader must be able to recognize or determine --- through eavesdropping or observation --- what motivates each individual. Through oneon-one coaching and mentoring, the transformational leader provides opportunities for customized training sessions for each team member. These activities allow team members to grow and become fulfilled in their positions. 13 WORKFORCE MANAGEMENT • Workforce management (which has also been widely known as human resource management, or HRM) consists of those activities designed to provide for and coordinate the people of an organization. • determining the organization’s workforce needs; • assisting in the design of work systems; • recruiting, selecting, training and developing, counseling, motivating, and rewarding employees; • acting as a liaison with unions and government organizations; and • handling other matters of employee well-being. 14 STRATEGIC HUMAN RESOURCE MANAGEMENT • … concerned with the contributions HR strategies make to organizational effectiveness, and how these contributions are accomplished. • It involves designing and implementing a set of internally consistent policies and practices to ensure that an organization’s human capital (employees’ collective knowledge, skills, and abilities) contributes to overall business objectives. 15 HIGH PERFORMANCE WORK CULTURE • Performance - the extent to which an individual contributes to achieving the goals and objectives of an organization. • High-performance work - work approaches used to systematically pursue ever-higher levels of overall organizational and human performance. • Characterized by: • flexibility • innovation • knowledge and skill sharing • alignment with organizational directions, customer focus, and rapid response to changing business needs and marketplace requirements 16 “CONDITIONS OF COLLABORATION” IN A HIGH PERFORMANCE WORK CULTURE • Respect • Aligned values • Shared purpose • Communication • Trust 17 WORKFORCE ENGAGEMENT … the extent of workforce commitment, both emotional and intellectual, to accomplishing the work, mission, and vision of the organization. Engaged workers • find personal meaning and motivation in their work, • have a strong emotional bond to their organization, are actively involved in and committed to their work, • feel that their jobs are important, know that their opinions and ideas have value, and • often go beyond their immediate job responsibilities for the good of the organization. 18 ADVANTAGES OF WORKFORCE ENGAGEMENT • Replaces the adversarial mentality with trust and cooperation • Develops the skills and leadership capability of individuals, creating a sense of mission and fostering trust • Increases employee morale and commitment to the organization • Fosters creativity and innovation, the source of competitive advantage • Helps people understand quality principles and instills these principles into the corporate culture • Allows employees to solve problems at the source immediately • Improves quality and productivity 19 TOP DRIVERS OF WORKFORCE ENGAGEMENT 1. Commitment to organizational values. 2. Knowing that customers are satisfied with products and services. 3. Belief that opinions count. 4. Clearly understanding work expectations. 5. Understanding of how personal contributions help meet customer needs. 6. Being recognized and rewarded fairly. 7. Knowing that senior leaders value the workforce. 8. Being treated equally with respect. 9. Being able to concentrate on the job and work processes. 10. Alignment of personal work objectives to work plans. 20 EMPLOYEE INVOLVEMENT (EI) • 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. 21 MOTIVATION • Motivation - an individual’s response to a felt need • Theories • Content Theories (Maslow; McGregor; Herzberg) • Process Theories (Vroom; Porter & Lawler) • Environmentally-based Theories (Skinner; Adams; Bandura, Snyder, & Williams) 22 MOTIVATION THEORIES 23 DESIGNING HIGH-PERFORMANCE WORK SYSTEMS • Work and Job Design • Empowerment • Teamwork • Work Environment • Workforce Learning and Development • Compensation and Recognition • Performance Management 24 WORK AND JOB DESIGN • Work design refers to how employees are organized in formal and informal units, such as departments and teams. • Job design refers to responsibilities and tasks assigned to individuals. 25 ENHANCING WORK DESIGN • Job enlargement – expanding workers’ jobs • Job rotation – having workers learn several tasks and rotate among them • Job enrichment – granting more authority, responsibility, and autonomy 26 HACKMAN-OLDHAM JOB DESIGN MODEL v The model proposes that five core characteristics of job design (task significance, task identity, skill variety, autonomy, and feedback from the job) v influence three critical psychological states (experienced meaningfulness, experienced responsibility, and knowledge of results), v which in turn, drive work outcomes (employee motivation, growth satisfaction, overall job satisfaction, and work effectiveness). 27 4 DIMENSIONS (JOB DESIGN): TASK CHARACTERISTICS • Focus on how work is accomplished and range and nature of job tasks. • Autonomy is freedom and independence an incumbent has for work assignment. • Task variety (amount given to incumbent) • Task significance is influence on others • Task identity (whole piece of work) • Feedback from others about performance 4 DIMENSIONS OF JOB DESIGN: KNOWLEDGE CHARACTERISTICS • Job complexity includes difficulty level. • Information processing (as well as data). • Problem solving includes unique ideas, diagnosing problems, and fixing errors. • Skill variety refers to using different skills. • Specialization refers to performing specialized tasks or possessing specialized skills and knowledge. 4 DIMENSIONS OF JOB DESIGN: SOCIAL CHARACTERISTICS • Amount of interaction with others in job • Social support —opportunity for advice and assistance from others • Interdependence is how much job depends on others and vice verse • Interaction outside the organization • Feedback from others—how much they provide information about performance 4 DIMENSIONS OF JOB DESIGN: CONTEXTUAL CHARACTERISTICS refers to setting or environment of job. • Ergonomics —how much job allows correct posture or movement. • Physical demands —level of physical activity required in job. • Work conditions —environmental factors such as health hazards, and temperature. • Equipment use —complexity of equipment. DEGREE OF MOTIVATION 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.” 33 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 34 DESCRIBE/ILLUSTRATE HOW THE FOUR JOB DIMENSIONS ARE USED IN HR STRATEGIC PLANS JOB ANALYSIS • Task: Job descriptions • Knowledge: Job requirements • Social: work relationships, flows of communication • Contextual: office furniture and machines assigned to employees 35 DESCRIBE/ILLUSTRATE HOW THE FOUR JOB DIMENSIONS ARE USED IN HR STRATEGIC PLANS ORGANIZATIONAL CHART (Master chart) • Task: Positions drawn in boxes • Knowledge: hierarchy, levels • Social: lines connecting boxes • Contextual: office furniture and machines assigned to employees 36 TEAMS • 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 37 TYPES OF TEAMS • Management teams • Natural work teams • Self managed teams • Virtual teams • Quality circles • Problem solving teams • Project teams 38 Examples of Teams at Baptist Hospital, Inc. 39 TEAM SKILL REQUIREMENTS • Conflict management and resolution • Team management • Leadership skills • Decision making • Communication • Negotiation • Cross-cultural training 40 Boeing A&T Team Development Process 41 LIFE CYCLE OF TEAMS • Forming takes place when the team is introduced, meets together, and explores issues of their new assignment. • Storming occurs when team members disagree on team roles and challenge the way that the team will function. • Norming takes place when the issues of the previous stage have been worked out, and team members agree on roles, ground rules, and acceptable behavior when doing the work of the team. • Performing characterizes the productive phase of the life cycle when team members cooperate to solve problems and complete the goals of their assigned work. • Adjourning is the phase in which the team wraps up the project, satisfactorily completes its goals, and prepares to disband or move on to another project. 42 INGREDIENTS FOR SUCCESSFUL TEAMS • Clarity in team goals • Improvement plan • Clearly defined roles • Clear communication • Beneficial team behaviors Well-defined decision procedures Balanced participation Established ground rules Awareness of group process Use of scientific approach 43 WORKPLACE ENVIRONMENT • Key factors: • Health • Safety • Overall well-being 44 WORKFORCE LEARNING AND DEVELOPMENT • Research indicates that companies that spend heavily on training their workers outperform companies that spend considerably less, as measured on the basis of overall stock market returns. • Focus on both what people need to know as well as what things they need to know how to do. • Continual reinforcement of knowledge learned is essential. 45 MEDRAD Learning and Development Process 46 COMPENSATION AND RECOGNITION • Compensation and recognition refer to all aspects of pay and reward, including promotions, bonuses, and recognition, either monetary and nonmonetary or individual and group. • Compensation • Merit versus capability/performance based plans • Gainsharing • Recognition • Monetary or non-monetary • Formal or informal • Individual or group 47 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 48 PERFORMANCE MANAGEMENT • How you are measured is how you perform! • Conventional performance 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 49 PREMIER PERFORMANCE MANAGEMENT PROCESS 50 ASSESSING WORKFORCE EFFECTIVENESS, SATISFACTION, AND ENGAGEMENT Outcome Measures • number of teams, rate of growth, percentage of employees involved, number of suggestions implemented, time taken to respond to suggestions, employee turnover, absenteeism, and grievances; perceptions of teamwork and management effectiveness, engagement, satisfaction, and empowerment. 51 ASSESSING WORKFORCE EFFECTIVENESS SATISFACTION, AND ENGAGEMENT Process Measures • number of suggestions that employees make, numbers of participants in project teams, participation in educational programs, average time it takes to complete a process improvement project, whether teams are getting better, smarter, and faster at performing improvements, improvements in team selection and planning processes, frequency of use of quality improvement tools, employee understanding of problem-solving approaches, and senior management involvement 52 ASSESSING WORKFORCE EFFECTIVENESS SATISFACTION, AND ENGAGEMENT EMPLOYEE QUALITY SURVEY –Marlow Industries (page 185) • • • • • • Management support Total quality system Organizational effectiveness Training Job satisfaction and morale involvement 53 MEASURING WORKFORCE ENGAGEMENT • Gallup Q12 - 12 survey statements that Gallup found as those that best form the foundation of strong feelings of engagement. Factors include: • what is expected in one’s work • having the right materials and equipment to do the job • receiving recognition and feedback on progress and development • having opinions that count • feeling of importance of the job • opportunities to learn grow and develop 54 GALLUP ENGAGEMENT INDEX CLASSIFICATION 1. Engaged employees who work with passion and feel a profound connection to their company. They drive innovation and move the organization forward. 2. Not-engaged employees who are essentially “checked out.” They are sleepwalking through their workday. They are putting in time, but not enough energy or passion into their work. 3. Actively disengaged employees who aren’t just unhappy at work; they’re busy acting out their unhappiness. Every day, these workers undermine what their engaged coworkers accomplish. 55 SUSTAINING HIGH-PERFORMANCE WORK SYSTEMS Regular assessment of • workforce capability and capacity needs; • hiring, training and retention of employees; and • career progression and succession planning 56 WORKFORCE CAPABILITY AND CAPACITY • Workforce capability refers to an organization’s ability to accomplish its work processes through the knowledge, skills, abilities, and competencies of its people. • Workforce capacity refers to an organization’s ability to ensure sufficient staffing levels to accomplish its work processes and successfully deliver products and services to customers, including the ability to meet seasonal or varying demand levels. 57 EFFECTIVE HIRING PRACTICES • Determine key employee skills and competencies • Identify job candidates based on required skills and competencies • Screen job candidates to predict suitability and match to jobs 58 SUCCESSION PLANNING • Formal processes to identify, develop, and position future leaders • Mentoring, coaching, and job rotation • Career paths and progression for all employees Succession planning is vital to long-term sustainability 59