9.1
Chapter 9
People, jobs and organization
Photodisc. Steve Cole
9.1
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.2
Layout and flow
Operations
strategy
Supply network design
Design
Layout
and flow
Process
technology
Improvement
Planning and
control
People, jobs
and
organization
Product/service
design
9.2
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.3
Key operations questions
In Chapter 9 – People, jobs and organization – Slack et al.
identify the following key questions:
• Why are people issues so important in operations
management?
• How do operations managers contribute to human resource
strategy?
• What forms can organization designs take?
• How do we go about designing jobs?
• How are work times allocated?
9.3
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.4
9.4
The elements of job design
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.5
Operations in practice – W. L. Gore
• How does W.L. Gore’s approach to managing its human resources
seem to differ from more conventional companies?
• What do you think are the advantages and disadvantages of W.L.
Gore’s approach?
9.5
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.6
People on operations
Contribute to
human resource
strategy
Allocate work
times
Understand
organization
design
People, jobs
and
organization
Design the
working
environment
Design individuals’
and groups’ jobs
9.6
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.7
Human resource strategy
Alignment with business strategy (Strategic partner)
The operation
Assisting in
resolving operating
issues (Employee
champion)
Recruit
Managing
transformation and
change (Change
agent)
Develop
Deploy
HR processes and procedures (Administrative expert)
9.7
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.8
Human resource strategy (Continued)
Human
What it involves
resources
(HR) role
Strategic Aligning HR and business strategy:
partner ‘organizational diagnosis’, manpower
planning, environmental monitoring,
etc.
Administ- Running the organization’s HR
rative
processes and ‘shared services’:
expert payroll, appraisal, selection and
recruitment, communication, etc.
Relevance to operations management (OM)
OM integrates Operations and HR strategy. OM
specifies skills requirements and relies on HR
to develop them informed by labour market
forecasts, succession planning, etc.
OM is largely an ‘internal customer’ for HR’s
processes. OM must be clear in its
requirements with agreed service levels
mutually negotiated.
Employee Listening and responding to
champion employees: ‘providing resources to
employees’, conciliation, career
advice, grievance procedures, etc.
Change
agent
9.8
OM and HR must develop a good working
relationship and clear procedures to deal with
any ‘emergency’ issues that arise. Also OM
must be sensitive to feedback from HR on how
it manages day-to-day operations.
Managing transformation and
OM and HR are jointly responsible for
change: ‘ensuring capacity for
operations improvement activities. HR has a
change’, management development, vital role in all the cultural, developmental, and
performance appraisal, organization evaluation activities associated with
development, etc.
improvement.
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.9
Is it ‘googley’?
How did Google’s approach to recruitment reflect it’s
human resources strategy?
9.9
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.10
Causes of stress at work and what could be done
Causes of stress
Staff can become overloaded if they cannot
cope with the amount of work or type of work
they are asked to do
Staff can feel disaffected and perform poorly if
they have no control or say over how and
when they do their work
Staff feel unsupported: levels of sick absence
often rise if employees feel they cannot talk to
managers about issues that are troubling them
A failure to build relationships based on good
behaviour and trust can lead to problems
related to discipline, grievances and bullying
Staff will feel anxious about their work and the
organization if they don't know their role and
what is expected of them
Change can lead to huge uncertainty and
insecurity
9.10
What can be done about it
Change the way the job is designed, training
needs and whether it is possible for employees
to work more flexible hours
Actively involve staff in decision making, the
contribution made by teams, and how
reviewing performance can help identify
strengths and weaknesses
Give staff the opportunity to talk about the
issues causing stress, be sympathetic and
keep them informed
Check the organization's policies for handling
grievances, unsatisfactory performance, poor
attendance and misconduct, and for tackling
bullying and harassment
Review the induction process, work out an
accurate job description and maintain a close
link between individual targets and
organizational goals
Plan ahead so change is not unexpected.
Consult with employees so they have a real
input, and work together to solve problems
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.11
U-form organizations give prominence to functional groupings
of resources
Group
headquarters
Marketing
Operations
Dept.A
Dept.A
9.11
Dept.B
Dept.C
Dept.B
Finance
Dept.C
Dept.A
Dept.B
Dept.C
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.12
The M form separates the organization’s resources into
separate divisions
Group
headquarters
Division A
Marketing
etc.
Operations
9.12
Division B
Marketing
etc.
Operations
Division C
Marketing
etc.
Operations
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.13
Matrix form structures the organization’s resources so that
they have two (or more) levels of responsibility
Group
headquarters
Division
A
Division
B
Division C
Marketing
Operations
Human resources
Finance
9.13
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.14
N form organizations form loose networks internally and
externally
Organization
A
headquarters
Org D
Org B
Group A
Group F
Org E
Org C
Group E
Group B
Group D
Group C
9.14
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.15
9.15
The main influences on job design, work time allocation and the
design of the working environment
‘Scientific’
management
Flexible
working
Ergonomics
Allocate work
times
Design individuals’
and groups’ jobs
Design the
working
environment
Division of
labour
‘Behavioural’
approaches
Team working
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.16
The objectives of job design
quality
speed
dependability
Job
design
impacts on
flexibility
cost
health and safety
quality of working life
9.16
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.17
Division of labour
Dividing the total task down into smaller parts, each of which
is accomplished by a single person or team.
Promotes faster learning.
Advantages
Makes automation easier.
Ensures that non-productive work is reduced.
Leads to monotony.
Disadvantages
Can result in physical injury.
Is not particularly robust.
Can reduce flexibility.
9.17
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.18
Work study
Work study
A generic term for those techniques, particularly method study and work
measurement, which are used in the examination of human work in all its
contexts, and which lead systematically to the investigation of all the factors
which affect the efficiency and economy of the situations being reviewed in
order to effect improvement.
Method study
Method study is the systematic
recording and critical examination
of existing and proposed methods
of doing work, as a means of
developing and applying easier
and more effective methods and
reducing costs.
9.18
Work measurement
The application of techniques
designed to establish the time
for a qualified worker to carry
out a specified job at a defined
level of performance.
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.19
Standard performance
Standard performance is the rate
of output which qualified workers will
achieve without over-exertion as an
average over the working day provided
they are motivated to apply themselves
to their work.
9.19
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.20
Qualified worker
A qualified worker is one who is
accepted as having the necessary
physical attributes, intelligence, skill,
education and knowledge to perform the
task to satisfactory standards of safety,
quality and quantity.
9.20
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.21
Process charting
Activity
Oper
ation
Move
ment
Delay
Inspec Storage
tion
D
D
D
D
D
D
D
D
D
D
D
9.21
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.22
Flow process charts for processing expense reports
1
2
3
4
5
6
Description of activity
Report arrives
1
Wait for processing
Check expenses report
Stamp and date report
2
3
4
Send cash to receipt desk
Wait for processing
5
6
Check advance payment
7
8 Send to accounts receivable
9
Wait for processing
10
Check employee record
11
Send to account payable
Attach payment voucher
12
13
14
15
16
17
18
19
20
21
22
23
7
8
9
Description of activity
Report arrives
Stamp and date report
Check expenses report
Attach payment voucher
Wait for batching
Collect retorts into batch
Batch to audit desk
Wait for processing
Check reports and vouchers
Reports to batch control
10
11
Batch control number
Copy
of reports to filing
12
Reports filed
13
14 Payment voucher to keying
Log report
Check against rules
Wait for batching
Collect retorts into batch
15
Confirm payment
Totals
Batch to audit desk
Wait for processing
5 5 2 2 1
Batch of reports logged
Check payment voucher
Before
Reports to batch control
Batch control number
After
Copy of reports to filing
24
Reports filed
25 Payment voucher to keying
26
Confirm payment
Totals
9.22
7 8 5 5 1
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.23
Resources and flow: job design
Method study: SREDIM
Method study seeks to improve methods of production –
it embraces layout, environment, material and labour
and usage.
Select task to be studied
Record present method – using 5 charting symbols
Examine the facts critically
Develop best method
Install the new method
Maintain by regular checks.
9.23
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.24
Work measurement
Standard times are the building blocks of process
design – they represent the time needed for a qualified
worker to carry out specific jobs at defined levels of
performance.
Basic time + allowances = standard time
9.24
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© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.25
Rating scales
Standard
performance
100
80
‘Incentive’
75
60
‘Normal’
British standard
I.L.O.
9.25
American
standard
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.26
The stages in work measurement
Observed
time for
element
‘Rating’ to adjust for effort
Basic
time for
element
Basic
Observed
Rating
=
X
time
time
Standard rating
9.26
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.27
The stages in work measurement (Continued)
Standard
Basic
Allowances
=
+
time
time
Basic
time for
element
‘Allowances’ for relaxation, etc.
Standard
time for
element
Standard
time for job
9.27
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.28
Build up of standard times
Element
Basic time
A
B
C
D
0.6
0.4
0.8
0.3
2.1
Allowances
mins
%
17
12
10
17
0.10
0.05
0.08
0.05
0.28
Basic time
2.10
Standard
time
0.70
0.45
0.88
0.35
2.38
Allowance
0.28
Standard time = 2.38
9.28
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.29
The ‘standard’ unit of work
A standard unit of work,
e.g. 1 standard minute
Light job
90% work
10% relaxation
Average job
84% work
16% relaxation
Heavy job
68% work
32% relaxation
9.29
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.30
Ergonomics
Ergonomics is concerned primarily with the physiological
aspects of job design – i.e., with the human body and how it
fits into its surroundings.
Ergonomics
How the person
interfaces with the
physical aspects of
his or her
workplace.
9.30
How the person
interfaces with the
environmental conditions
prevalent in his or her
immediate working area.
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.31
Ergonomics (Continued)
Using anthropometric data, ergonomics can guide how people
interface with their workplace.
9.31
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.32
Ergonomics (Continued)
Ergonomics in the office environment
Forearms
approximately
horizontal
Seat back
adjustability
Good
lumbar
support
Seat height
adjustability
No excess pressure on
underside of thighs
and backs of knees
9.32
Leg room and
clearance to allow
postural changes
Foot
support
if needed
Space for
postural change,
no obstacles
under desk
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.33
Ergonomics (Continued)
Ergonomics in the office environment
Adequate
lighting
Adequate
contrast,
no glare or
distracting
reflections
Window
covering
Keyboard
usable,
adjustable,
detachable,
legible
Distracting
noise
minimized
9.33
Screen: stable
image,
adjustable,
readable
glare/reflection
free
Work surfaces:
allow flexible
arrangements,
spacious, glare free
Software appropriate to
task, adapted to user, no
undisclosed monitoring
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.34
Ergonomics (Continued)
Ergonomics – How the person interfaces with the
environmental conditions prevalent in his or her immediate
working area.
For example, people working in extreme conditions.
9.34
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© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.35
Behavioural approaches – Hackman and Oldham’s
model of job design
Techniques of
job design
Core job
characteristics
Combining
tasks
Skill variety
Forming natural
work units
Task identity
Establishing
client
relationships
Task significance
Autonomy
Mental
states
Experienced
meaningfulness
of the work
High internal
work
motivation
Experienced
responsibility for
outcomes of the
work
High quality
work
performance
Vertical loading
Opening
feedback
channels
9.35
Feedback
Performance
and personal
outcomes
Knowledge of
the actual
results of the
work activity
High satisfaction
with the work
Low absenteeism
and turnover
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.36
Behavioural approaches – Job enlargement and enrichment
More tasks
which give
increased
responsibility
autonomy or
decisionmaking
Job
enrichment
Original
job
tasks
Job
enlargement
More tasks of the
same type
9.36
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.37
Team working
Team working – where staff, often with overlapping skills,
collectively perform a defined task and have a high degree of
discretion over how they actually perform the task.
For example – a team of nurses sharing the responsibility to
care for patients
9.37
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.38
Empowerment
Empowerment means more than
autonomy. It means giving staff the ability to
change how they do their jobs and the
authority to make changes to the job itself,
as well as how it is performed.
9.38
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.39
Empowerment (Continued)
Empowerment – McDonald’s lets families share jobs. It
allows family members to cover each others jobs. Members
of the same family working in the same outlet are able to
work each others shifts without giving any prior notice or
getting a manager’s permission.
9.39
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© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.40
Flexible working
Flexible working – Increasingly
some people are expected to
do their jobs while traveling,
with only occasional visits to
their ‘home’ location.
9.40
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
9.41
Control versus commitment
Emphasis on
commitment and
engagement of staff
Emphasis on
managerial control
Staff treated
as a cost
Division of labour
Self-managed
method study
Scientific
management
Ergonomics
Behavioural
approaches
Empowerment
Team working
Staff treated
as a resource
9.41
Flexible working
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010