Operations
Management
Human Resources and
Job Design
Chapter 10
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© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Outline
 GLOBAL COMPANY PROFILE: SOUTHWEST
AIRLINES
 HUMAN RESOURCE STRATEGY FOR
COMPETITIVE ADVANTAGE

Constraints on Human Resource Strategy
 LABOR PLANNING
Employment-Stability Policies
 Work Schedules
 Job Classifications and Work Rules

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Outline - Continued
 JOB DESIGN
Labor Specialization
 Job Expansion
 Psychological Components of Job Design
 Self-Directed Teams
 Motivation and Incentive Systems
 Ergonomics and Work Methods

 THE VISUAL WORKPLACE
 LABOR STANDARDS
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Learning Objectives
When you complete this chapter, you should be
able to :
Identify or Define:







Job design
Job specialization
Job expansion
Tools of methods analysis
Ergonomics
Labor standards
Andon
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Learning Objectives - Continued
When you complete this chapter, you should be
able to :
Describe or explain:


Requirements of good job design
The visual workplace
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10-5
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Southwest Airlines
 Profitable for 26 years while United, Northwest,
and USAir lost billions.
 Strategy: Human resources
Culture of caring for people in the totality of their lives,
not just at work.
 Spends more to recruit and train than any other airline

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Southwest Airlines
 Empowered employees
 Wages higher than industry average
 Stock options for some employees
 Employees treated like customers
 Everybody understands what everybody else’s
problems are
 No gimmicks!
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10-7
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Objective of Human Resource
Strategy
To manage labor and design jobs so people are
effectively and efficiently utilized
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People and Work System Goals
Use people efficiently
within constraints
Provide reasonable
quality of work life
© 1995 Corel Corp.
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10-9
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Constraints on Human Resource
Strategy
Product strategy
- Skills needed
- Talents needed
- Materials used
- Safety
Schedule
- Time of day
- Time of year
(seasonal)
- Stability of schedules
Process strategy
- Technology
- Machinery and
equipment used
- Safety
Human
Resource
Strategy
Layout strategy
- Fixed position
- Process
- Assembly line
- Work cell
- Product
Location strategy
- Climate
- Temperature
- Noise
- Light
- Air quality
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Who
Individual differences
- Strength and fatigue
- Information processing
and response
10-10
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People and Work System Aspects
Job
Design
Labor
Standards
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Labor Planning/Stability Policies
 Follow demand exactly
keeps direct labor costs tied
closely to production
 incurs costs of

hiring/firing
 unemployment insurance
 labor wage premium

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 Hold employment
constant
maintains a trained
workforce
 incurs costs of

idle time when demand is
low
 meeting increased
demand when demand is
high

10-12
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Productivity in Relation to Annual
Turnover Rate
>20%
$120,000
16-20%
$125,000
11-15%
$130,000
6-10%
$150,000
3-5%
$153,000
<3%
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$200,000
10-13
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Determining Policies of Labor
Stability
Employer policies are partly determined by
management’s view of labor costs – as a fixed
cost, or as a variable cost.
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Work Schedules
 Standard work schedule

five eight-hour days
 Flex-time

allows employees, within prescribed limits, to determine
their own schedules
 Flexible work week

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
 Specify
who can do what
 when they can do it


under 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
 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
 Job specialization
 Job expansion
 Psychological components
 Self-directed teams
 Motivation and incentive systems
 Ergonomics and work methods
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Job Specialization
 Involves


Breaking jobs into small component parts
Assigning specialists to do each part
 First noted by Adam Smith (1776)

Observed how workers in pin factory divided
tasks into smaller components
 Found in manufacturing &
service industries
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© 1995
Corel
Corp.
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Job Specialization Often Reduces
Cost
 Greater dexterity & faster learning
 Less lost time changing jobs or tools
 Use of more specialized tools
 Pay only for needed skills
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10-20
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Job Expansion
 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 Enlargement/Job Enrichment
Enriched Job
Planning
Enlarged Job
Task #2
Present
Job
Task #3
Control
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Job Enlargement/Job Enrichment
Planning
Participate in a crossfunction qualityimprovement team
Enriched job
Task #3
Present job
Task #2
Lock printed circuit into
fixture for next
operation
Manually insert and
solder six resistors
Adhere labels to
printed circuit board
Control
Enlarged job
Test circuits after
assembly
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Job Rotation
Pediatrics
Maternity
© 1995
Corel Corp.
© 1995 Corel
Corp.
© 1995
Corel
Corp.
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10-24
Geriatrics
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Employee Empowerment
Employee Empowerment
Decision-Making
Control
Planning
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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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Hawthorne Studies
 Conducted in late 1920’s
 Western Electric Hawthorne plant
 Showed importance of the individual
in the workplace
 Showed the presence of a social
system in the workplace
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Hawthorne Studies: Workplace
Lighting
 Originally intended to examine effects of lighting
on productivity

Scientific management proposed that physical conditions
affect productivity
 Result: Productivity increased regardless of
lighting level
 Conclusion: Increased productivity was due to
workers’ receiving attention
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Hawthorne Studies: Piecework
Pay
 Examined effects of group piecework pay system on
productivity
 Workers under piecework system should produce as
much as possible

Scientific management assumes that people are motivated only
by money
 Result: Production less than maximum
 Conclusion: Social pressure caused workers to
produce at group-norm level
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Self-Directed Teams
 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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Job Design Continuum
Self-directed
Teams
Empowerment
Enrichment
Enlargement
Increasing
reliance on
employees’
contribution and
increasing
acceptance of
responsibility by
employee
Specialization
Job Expansion
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Core Job Characteristics
 Skill variety
 Job identify
 Job significance
 Autonomy
 Feedback
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Limitations to
Job Enlargement/Job Enrichment
 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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Motivation
 Worker performance depends on



Motivation
Ability
Work environment
 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)
Workers are motivated mainly by money
 Suggested piece-rate system

Maslow’s theory (1943)

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
 Bonuses: Cash & stock options
 Profit sharing: Distribution of profits
 Gain sharing: Reward for company performance
(e.g., cost reduction)

Scanlon plan is most popular (cost reduction.)
 Incentive systems
Measured daywork: Pay based on standard 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
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 Job performance
 Absenteeism & turnover
Hackman & Oldham
10-39
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Ergonomics and Work Methods
 Worker performance depends on
Motivation
 Ability
 Work environment

 Foundation laid by Frederick Taylor
Match employees to task
 Develop work methods
 Establish work standards

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Ergonomics
 Study of work
 Also called ‘human factors’
 Involves human-machine interface
 Examples
Mouse
 Keyboard

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Recommended Levels of Illumination
Task Condition
Type of Task
or Area
Illumination Level
(Ft-C)
Small detail;
Extreme
accuracy
Normal detail,
prolonged
periods
Good contrast,
fairly large
objects
Large objects
Sewing,
inspecting
dark materials
Reading, parts
assembly, general
office work
Recreational
facilities
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100
Overhead ceiling
lights and desk
lamp
20-50
Overhead ceiling
lights
5-10
Overhead ceiling
lights
2-5
Restaurants,
stairways,
warehouses
10-42
Type of
Illumination
Overhead ceiling
lights
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Decibel levels for Various Sounds
Environmental Noises
Casting shakeout area
Electric furnace area
Printing press plant
Inside sports car (50 mph)
Near freeway (auto traffic)
Large store
Private business office
Light traffic (100ft)
Minimum levels, residential
areas in Chicago at night
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Common Noise Sources
Decibels
Jet takeoff (200 ft)
Riveting machine
120
110
Pneumatic peen hammer,
textile weaving plant
Subway train
Pneumatic drill
Freight train
Vacuum cleaner (10 ft)
Speech (1 ft)
100
90
80
70
60
Large transformer (200ft)
Soft whisper
10-43
Ear
protection
required
Very
annoying
Ear
protection
required if
exposed 8
hours or
more
Intrusive
50
40
Quiet
30
Very quiet
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Methods Analysis
 Focuses on how task is performed
 Used to analyze
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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Methods Analysis Used to Study
 Movement of individuals or materials (Flow
diagrams or process charts)
 Activity of human and machine and crew activity
(Activity charts)
 Body movement (primarily hands) (Micro-motion
charts)
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Process Chart
SUBJECT: Request tool purchase
Dist (ft)
Time (min)
75
Symbol
Description
   D 
Write order
   D 
On desk
   D 
To buyer
   D 
Examine
 = operation;  = transport;  = inspect; D = delay;  = storage
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Flow Diagram
Buyer
75 ft.
You
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Flow Diagram and Process Chart of
Axle-Stand Production Line
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Activity Chart for Two-Person
Oil-Change Crew
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Operations Chart
(Left Hand/Right Hand)
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Activity Chart
Subject:
Time
1
2
3
4
5
6
Semi-Auto Machine
Operator
Machine
Load machine
Being loaded
Run
Idle
Unload
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Present
Being Unloaded
10-51
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The Visual Workplace
 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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The Visual Workplace
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What is Work Measurement?
 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
 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
 Historical experience
 Time studies
 Predetermined time standards (MTM)
 Work sampling
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Labor Standards - Historical
Experience
 Labor standards are based on how many laborhours 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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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
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Church of the
Holy Family
(Barcelona)
© 1995 Corel Corp.
© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458