Carlo Scodanibbio presents: Total Employee Involvement · 1 Total Employee Involvement Carlo...
Transcript of Carlo Scodanibbio presents: Total Employee Involvement · 1 Total Employee Involvement Carlo...
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Total Employee Total Employee
InvolvementInvolvement
Carlo Carlo ScodanibbioScodanibbio presents:presents:
””the real and only secret for achieving the real and only secret for achieving
Flow Production isFlow Production is PEOPLEPEOPLE””
a training event organised by:a training event organised by:
in all business operationsin all business operations
…….so, you would like your people to be:.so, you would like your people to be:
ResponsibleResponsible
EfficientEfficient
Serious and reliableSerious and reliable
Dedicated to their workDedicated to their work
Committed to improvementCommitted to improvement…………
CostCost--consciousconsciousAccountableAccountable
????????
????????????
????????
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…….so, you would like your people to be:.so, you would like your people to be:
Efficient Efficient –– Responsible Responsible -- CostCost--
conscious conscious -- Dedicated to their work Dedicated to their work --
Serious and reliable Serious and reliable –– Accountable Accountable ––
Committed to improvementCommitted to improvement………… --
???? ???? -- ????? ????? -- ??????????????????????????
..in a nutshell: you would like your people to..in a nutshell: you would like your people to
performperform
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This is possible: it can be achievedThis is possible: it can be achieved……
…….it depends on you, .it depends on you,
entrepreneurs and managersentrepreneurs and managers……....
..it..it’’s just your choice..s just your choice..
But:But: there are 3 necessary stepsthere are 3 necessary steps……
…….you would like your people to be: responsible .you would like your people to be: responsible –– accountable accountable ––
efficient efficient -- dedicated to their work dedicated to their work –– committed to improvementcommitted to improvement…………
THE 3 NECESSARY STEPSTHE 3 NECESSARY STEPS
1) Understand the environmental 1) Understand the environmental
change and manage itchange and manage it
2) Be prepared to abandon the 2) Be prepared to abandon the
““formulaformula””
3) Have a clear direction and tell 3) Have a clear direction and tell
people about itpeople about it……..
4) 4) …….and something more.and something more……....
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STEP 1)STEP 1)
Understand the environmental Understand the environmental
change and manage itchange and manage it
….the world has changed….
Key-Words: lean, manufacturing, power, point, presentation, value, waste, client, service, industry, perform, performance, world, class,
operations, adding, management, productive, process, flow, processing, production, 5S, creativity, people, method, kaizen, improvement, hr,
human, resources, strategy, strategies, tei, employee, involvement, responsibilities, course, carlo, scodanibbio, objectives, mbo, mboII, job,
enrichment, team, work, group, accountability, situational, leadership, Mc Gregor, x-y theory, pigmalion, effect, personnel, labour, division,
smith, taylor, brick, wall, brickwall, description
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COMPLEXITYCOMPLEXITY
clients are monstersclients are monsters……..
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STEP 2)STEP 2)
Be prepared to abandon the Be prepared to abandon the
““formulaformula””
the the ““formulaformula””::
the the ““CampariCampari”” syndromesyndrome
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the the ““formulaformula””The “secrets” of success
The do’s and don’ts
The “taboo” and “holy cows”
The “how to do things”
The areas of “influence”
The “who and what is to be respected”
The “institutionalised” values and principles
The rules
The policies
The procedures
The “descriptions” (jobs, tasks…..)
…………..
the the ““formulaformula””
EMPHASIS
On 3 key departments:
DESIGN/ENGINEERING
TECHNOLOGY/OPERATIONS
MARKETING/SALES
Emphasis on Structure, Organisation, Hierarchy,
Departments & “Compartments”
Emphasis on Control (the “Controller”…..)
Emphasis on Efficiency
Emphasis on Stability
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protect the protect the ““formulaformula””!!
The Formula must be protected, because it has
generated success for many years:
---- > resistance to change!> resistance to change!
Protection = Vertical ControlProtection = Vertical Control
preserve its integrity!preserve its integrity!
the GUARDIANSthe GUARDIANS’’ function:function:
Vetting/Approving amendments to the
formula or to its main parameters
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effects of the effects of the ““formulaformula””
Top and mid level managers, with time, get used to the
Formula, and learn how to stick to it.
At lower levels (supervisors, shop-floor workers),
unwritten, similar rules filter down and become
applied.
FlexibilityFlexibility
ReactivityReactivity
InnovationInnovation
little….. (or none)
The Enterprise becomes The Enterprise becomes ““closedclosed””
People become People become ““staticstatic””
the the ““formulaformula”” (after midnight(after midnight……))
If some indicators start showing signals of serious
inadequacy of the Formula all that may happen is a
“reshuffle” of the old status-quo:
CostCost--cutting exercisescutting exercises
Increase in efficiency of less Increase in efficiency of less
powerful department/areaspowerful department/areas
And/or: technological revampingAnd/or: technological revamping
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the obsession to change the obsession to change (the (the ““formulaformula”…”…))
The Formula is The Formula is ““blockedblocked””, and the whole , and the whole
Organisation is Organisation is slowslow and and ““reluctant to learnreluctant to learn””
If signals show very poor performance, If signals show very poor performance,
the need to restructure the Formula and to the need to restructure the Formula and to
change may become an obsessionchange may become an obsession
BUT:BUT: in the end things remain the same.....in the end things remain the same.....
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homework?homework?
..oh, yes!!!..oh, yes!!!spot the spot the ““formulaformula””
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STEP 3)STEP 3)
Have a clear direction in your Have a clear direction in your
mindmind…….. .. (and tell people about it(and tell people about it…….).)
the visionthe vision
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TELL YOUR PEOPLE ABOUT TELL YOUR PEOPLE ABOUT ““LEANLEAN””
BUT, before doing so: some checkBUT, before doing so: some check--points!!points!!
“…“…is everybody in your enterprise is everybody in your enterprise –– at at
top/middle level top/middle level -- convinced that people make convinced that people make
the difference between failure and success?the difference between failure and success?””
“…“…is the vision shared at top/middle level?is the vision shared at top/middle level?””
“…“…is the is the ““integrationintegration”” concept clear and concept clear and
understood at top/middle level?understood at top/middle level?””
This is a “pass the Rubiconpass the Rubicon” situation
– there is no come back – it must go
right. So, make your checks “before”!
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PEOPLE PERFORMANCEPEOPLE PERFORMANCE
““TRADITIONALTRADITIONAL”” ENTERPRISESENTERPRISES
Preliminary analysis of main parameters
associated with people performance:
Quality - Productivity - Responsibility
and Accountability - Creativity -
Challenge
Why frustration and Why frustration and
dede--motivation can reach so motivation can reach so
high levels in work forces?high levels in work forces?
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why people donwhy people don’’t t ““performperform””......…….the root causes of poor performance date .the root causes of poor performance date
back to over 2 centuries agoback to over 2 centuries ago……....
…….we have gone into the .we have gone into the
21st century, with 21st century, with
enterprises designed in the enterprises designed in the
18th and 19th centuries to 18th and 19th centuries to
perform well in the 20thperform well in the 20th……....
why people donwhy people don’’t t ““performperform””......
Effects of Labour DivisionEffects of Labour Division
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Why money doesnWhy money doesn’’t solve the t solve the
problem of poor performance..problem of poor performance..
Interesting/satisfying job
Job security
Understanding of and support for own personal problems
Promotion and growth with Enterprise
Good wages/salary
Top Management’s loyalty and fairness towards Employees
To be fully considered and appreciated for own work
A non-severe/not-too-rigid discipline
To feel involved in own work
Good working conditions
MW/ESentence
WHAT DO WORKERS AND EMPLOYEES EXPECT WHAT DO WORKERS AND EMPLOYEES EXPECT
FROM THEIR WORK?FROM THEIR WORK?
Why do all traditional HR management and Why do all traditional HR management and
motivational techniques somehow fail?motivational techniques somehow fail?
Management by Objectives, Effective Leadership, Diversification,
Z Theory, Situational Leadership, Effective Communication, Zero-
based-Budgeting, Decentralisation, Team Building, Management
by Exception, Dale Carnegie techniques, Interpersonal Skills,
Quality Circles, Excellence, Restructuring, Portfolio Management,
Interactive Management, Matrix Organisational Structure, Total
Quality Management, ISO 9000..... and One-Minute Managing......
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Why is communication so difficult in Why is communication so difficult in
many many ““traditionaltraditional”” enterprises?enterprises?
Why isWhy is real, nonreal, non--spurious improvement so spurious improvement so
difficult to achievedifficult to achieve in many enterprises?in many enterprises?
Why Why ““functioningfunctioning”” well is so awkward in well is so awkward in
many many ““traditionaltraditional”” enterprises?enterprises?
..we have to look at organisational structures..we have to look at organisational structures……
Why do enterprises struggle both when they Why do enterprises struggle both when they
expand and when they are compelled to expand and when they are compelled to
shrink?shrink?
……..that support an effective ..that support an effective
Employee Involvement scheme Employee Involvement scheme
and allow higher levels of and allow higher levels of
PerformancePerformance
ORGANISATIONAL ORGANISATIONAL
STRUCTURESSTRUCTURES
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ORGANISATIONAL STRATEGIES
cultural values• typical of the "technology" era with a strong "Tayloristic” belief
• Credo: "...products and/or technology make business..."
• Competitiveness = costs reduction
relationship with clients• Client is an “entity” that buys our products (and sometimes gives
us a lot of hassles...)
• We do not know much about our Clients (we are mainly
concerned with their “liquidity”...)
relationship with market• Market: unsaturated (demand > offer) and "stable"
• Market's needs: established by "technologists", who decide on
validity and "value" of products
• Products are literally "thrown" into the market (PRODUCT-OUT)
FUNCTIONALFUNCTIONAL--TAYLORISTIC PRODUCTTAYLORISTIC PRODUCT--OUT OUT
(operations oriented - product/organisation oriented)
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organisation & management• "Mechanical" (Scientific) system
• Organisation structured in great details, and generally "static"
• Decision-making process: top-down
• Max attention to efficiency
• Professionalism: specialised ("technical" positions are the most
essential and rewarded)
• Work: fragmented
• Management: specialised, "per function", bureaucratic
• Budget = basic tool - great attention to "real/estimated"
comparisons/analysis and to "deltas"
• Max control (inspection, supervision)
• Max cost control (per "cost centre")
FUNCTIONALFUNCTIONAL--TAYLORISTIC PRODUCTTAYLORISTIC PRODUCT--OUT OUT
(operations oriented - product/organisation oriented)
relationship with employees• Man = productive resource executing planned activities
• Max control (inspection, supervision)
• Employees are generally performing a series of simple and/or well defined
tasks
FUNCTIONALFUNCTIONAL--TAYLORISTIC PRODUCTTAYLORISTIC PRODUCT--OUT OUT
(operations oriented - product/organisation oriented)
procurement & relationship with suppliers• Buy at the lowest possible price (utilising high contractual power)
• "Paternalistic" style of relationship with ("subordinate") suppliers
manufacturing and operational strategy• Max productive volumes (limited only by financial constraints)
• Max productive efficiency with high attention to costs
• Investments: ----> Improvements of organisation and technology ----> R & D
(product and technology)
• "Make" rather than "buy"
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ORGANISATIONAL STRATEGIES
cultural values•typical of the "marketing" era
•Motto: Max exploitation of the Market
•Logics: Max yearly results (economic - short/medium term strategy)
•Credo: Business is made exploiting opportunities
MARKETINGMARKETING--ORIENTED PRODUCTORIENTED PRODUCT--IN IN
(market oriented - product/organisation oriented)
relationship with market•Market: saturated (offer > demand) - “consumer” - not "mature" - somewhat
unstable - fierce Competition
•Marketing force/abilities indispensable to locate opportunities and generate new
needs in the market
•Sales force/abilities indispensable to enhance competitiveness
•Products developed (functional specs ---> technical specs --->
industrial/manufacturing specs) by locating market needs (PRODUCT-IN)
relationship with clients•Client can and must be known more/well
•Client can be persuaded to buy our products - we have marketing and sales
dept./s that take care of that.....
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organisation & management"Mechanical" (Scientific) system
•Organisation structured in great details, but somewhat dynamic
•Same organisational principles as in model A), with new, predominant
functions (Sales, Marketing), and a new predominant position: the "Controller"
•Decision-making process: top-down
•Inter-functional management (featuring meetings, committees, inter-functional
project teams....)
•MBO - Management by Objectives
•Very sophisticated budgeting/control system (with EDP/IT aid)
MARKETINGMARKETING--ORIENTED PRODUCTORIENTED PRODUCT--IN IN
(market oriented - product/organisation oriented)
relationship with employees•New parameters at shop-floor level: job rotation, job enlargement, job
enrichment..
•MBO - Management by Objectives
•Tasks performed according to well structured “job descriptions”
manufacturing and operational strategy•Linked to the logics of max turnover and max profit
•Short/medium term strategies driven by market researches
•Product diversification
•Fragmentation into business units (divisions, product lines.....)
•Tendency to commercialisation "only"
MARKETINGMARKETING--ORIENTED PRODUCTORIENTED PRODUCT--IN IN
(market oriented - product/organisation oriented)
procurement & relationship with suppliers•Considerable decentralisation (buy rather than make: to cope with market demand and
peaks, differentiated in volumes and mix)
•Alternative, competing suppliers (in order to achieve cost efficiency and to cope with
demand peaks) - suppliers "in parallel"
•Generation of high competitiveness among suppliers
•Max exploitation of suppliers -----> "disposable" suppliers - turnover of suppliers
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ORGANISATIONAL STRATEGIES
cultural values•typical of the "quality challenge" era
•Motto: Client's satisfaction ("....client is the king...")
•Logics: Long-term strategy based on the Total Quality approach
•Credo: Business is made improving continuously and systematically the whole
productive process in a "client-driven" mode
relationship with market•Market: saturated (offer > demand) - somewhat less “consumer” - "mature" (capable of
understanding and rewarding quality) - unstable/turbulent
•Market's needs: already established (by western industries) - product lines are well
defined (cars, consumer electronics.....)
•Extensive use of QFD (Quality Function Deployment) techniques for effective/fast
product development
•Market sets productive parameters (quality, delivery, cost) - "...the ocean pulls the
river..."
relationship with clients•Client is “King” and Client’s satisfaction is top priority
•Client’s needs and expectations (explicit and implied) must be fulfilled
INVOLVEMENT PROCESSINVOLVEMENT PROCESS--IMPROVEMENT IMPROVEMENT
(operations oriented process/people oriented )
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organisation & management•"Organic" system
•From "product" culture (models A and B) to "process" culture and
organisation
•"Macro" organisation, process-related to main productive parameters:
quality - delivery – cost
•"Micro" organisation, also process-related to all other parameters
•Decentralisation of responsibilities, authorities and management activities
•Multi-skilled and multi-function management ("entrepreneurial"
management)
•Decision-making process: rather bottom-up
•Profit-centres rather than cost-centres
•Cost control system: from standard-oriented (models A + B) -----> to target-
oriented (with performance indicators) (Model C)
•Kaizen (continuous & systematic process improvement). From "Static"
standards (models A + B) -----> to "dynamic" standards (model C). High
employees involvement
INVOLVEMENT PROCESSINVOLVEMENT PROCESS--IMPROVEMENT IMPROVEMENT
(operations oriented process/people oriented )
relationship with employees•Decentralisation of responsibilities and authorities up to shop floor level - some form of
“empowerment” (total delegation of responsibilities and max autonomy within own scope
of work)
•Considerable/high employee involvement at all levels (in problem solving, decision
making, and improvement activities in general)
manufacturing and operational strategy•Linked to the logics of "turnover consolidation & strengthening" (large volumes-
lower costs-larger volumes)
•Driving philosophies: CWQC (Company-Wide-Quality-Control) – TQM (Total
Quality Management) - TP (Total Productivity: JIT – Process Improvement &
Management) - TPM (Total Productive Maintenance)
•Pilot tool: SEW (Systematic Elimination of Waste)
•Considerable/high decentralisation of production (and responsibilities
associated with design, if applicable, and production) and high "integration" with
suppliers
•Internal client = external client
INVOLVEMENT PROCESSINVOLVEMENT PROCESS--IMPROVEMENT IMPROVEMENT
(operations oriented process/people oriented )
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procurement & relationship with suppliers•Extensive decentralisation of production (make produce rather
than make) and associated (global) responsibilities
•Creation of own, long-term suppliers network [suppliers: limited in
number, well selected, "dedicated", "married", highly involved in
the improvement of common processes, ideally on the same level
of professionalism and maturity] - Motto: "let's improve together"
INVOLVEMENT PROCESSINVOLVEMENT PROCESS--IMPROVEMENT IMPROVEMENT
(operations oriented process/people oriented )
ORGANISATIONAL STRATEGIES
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cultural values•typical of the "World-Class" era
•Motto: Total Satisfaction (client, employees, shareholders, suppliers.....)
•Logics: Long-term strategy based on the VAM (Value Adding Management)
philosophy (and the "value-chain" concept of M. E. Porter: "..be in the right
chain with valid/competitive partners..")
•Credo: Business is made by increasing continuously and systematically the
overall value of the vendor-vendee system and by consistent innovation
VENTURE MARKETVENTURE MARKET--ININ(market oriented process/people oriented )
relationship with clients•Exasperation of the “Client is King” concept --- > “...Client is our Partner in business....”
relationship with market•Market: rich (opulent) - very mature - featuring complexity and economic
turbulence - very high competition - rapidly changing
•Market's needs: extremely personalised (mass-production coma ?)
•Extrapolation/exasperation of the "market sets productive parameters"
concept -----> "market sets business parameters"
organisation & management•Flat Hierarchy (Horizontal Organisation)
•Business/entrepreneurial culture and organisation
•Total decentralisation of responsibilities in respect of overall results –
extensive Process Re-Engineering
•Organic system featuring high level of internal "supplier/client" relationship -
"inter-function" and "matrix“ type organisational structures with high flexibility -
value-adding “(re-)engineered” processes
•Profit centres (ABA - Activity Based Accounting)
•VENTURE = entrepreneurial management (global management + risk
management), highly market-oriented (in real time), with "intra-preneurial"
examples
•From MBO (Management by Objectives) -----> to MBP (Management by
Policies)
•Extensive bottom-up drive
•Top management function: co-ordination - homogenisation - internal
consultancy/coaching
VENTURE MARKETVENTURE MARKET--ININ(market oriented process/people oriented )
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relationship with employees•Extensive bottom-up drive (both in decision-making and in design/change of
organisational parameters)
•Empowerment and beyond: “....employees are partners in business...” - considerable
entrepreneurial and “intra-prenerial” phenomena within the Organisation – result-based
merit-o-cratic system, with examples of profit-sharing and share-holding type of rewards
for employees
VENTURE MARKETVENTURE MARKET--ININ(market oriented process/people oriented )
manufacturing and operational strategy•Linked to the logics of "profit in the medium-long term" maintaining and developing the
enterprise's overall value
•Protagonist: TBI (Total Business integration) [GWQC (Group-Wide-Quality-Control) -
TP (Total Productivity) and all LEAN approaches/disciplines – Value Stream
Management - TPM (Total Productive Maintenance) – 6 Sigma Methodologies - PPD
(Product-Process Development), with QFD (Quality Function Deployment) - CIM
(Computer Integrated Manufacturing) - SEW (Systematic Elimination of Waste) (Group-
wide) - TEI (Total Employee Involvement) (Group-wide) - COMAKERSHIP]
•Accent on total flexibility and extreme attention to all lead-times: time-to-market
(development - engineering) - start-up time - P-time - set-up time - distribution time -
information time ........ with vendors as co-protagonists
procurement & relationship with suppliers•Vendor-Vendee relationship are seen as a starting point (rather than as a
target)
•Driving philosophies: Value-chain - GWQC – Comakership
•Permanent logistic networks integrating vendors and vendees
•Few, selected, reliable, integrated suppliers - high degree of reciprocal trust -
joint improvement programs – "open" enterprises
VENTURE MARKETVENTURE MARKET--ININ(market oriented process/people oriented )
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REAL ENTITIESREAL ENTITIES
effective Human Resourceseffective Human Resources
Management StrategiesManagement Strategies
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EFFECTIVE HR MANAGEMENT STRATEGIESEFFECTIVE HR MANAGEMENT STRATEGIES
EFFECTIVE HR MANAGEMENT STRATEGIESEFFECTIVE HR MANAGEMENT STRATEGIES
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EFFECTIVE HR MANAGEMENT STRATEGIESEFFECTIVE HR MANAGEMENT STRATEGIES
EFFECTIVE HR MANAGEMENT STRATEGIESEFFECTIVE HR MANAGEMENT STRATEGIES
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EFFECTIVE HR MANAGEMENT STRATEGIESEFFECTIVE HR MANAGEMENT STRATEGIES
EFFECTIVE HR MANAGEMENT STRATEGIESEFFECTIVE HR MANAGEMENT STRATEGIES
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““...the worst thing that could possibly ...the worst thing that could possibly
happen to an enterprise and its employees happen to an enterprise and its employees
is the adoption of an ineffective H R is the adoption of an ineffective H R
Management strategy......Management strategy......””
EXAMPLES OF EXAMPLES OF ““MISMIS--MATCHMATCH””
E2 M2
M1
E1
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EFFECTIVE HR MANAGEMENT STRATEGIESEFFECTIVE HR MANAGEMENT STRATEGIES
every enterprise has a HR strategy, even if not every enterprise has a HR strategy, even if not
well defined, structured and formalisedwell defined, structured and formalised……
��Is it inIs it in--line with the overall Organisational & line with the overall Organisational &
Operational Strategy (Operational Strategy (EffectivenessEffectiveness)?)?
��Or only partially coherent (Or only partially coherent (Partial EffectivenessPartial Effectiveness)?)?
��Or, is it clashing (Or, is it clashing (IneffectivenessIneffectiveness)?)?
key questions:key questions:
EFFECTIVE HR MANAGEMENT STRATEGIESEFFECTIVE HR MANAGEMENT STRATEGIES
��Does such strategy show continuity ?Does such strategy show continuity ?
��Or, is it irregular Or, is it irregular -- scattered scattered -- ““jumping to jumping to
extremesextremes”” ??
��Is such strategy Is such strategy ““globalglobal”” ((companycompany--widewide), or), or
��fragmented fragmented ““per departmentper department”” ((hybrid situationhybrid situation) ?) ?
every enterprise has a HR strategy, even if not every enterprise has a HR strategy, even if not
well defined, structured and formalisedwell defined, structured and formalised……
key questions:key questions:
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homework?homework?
..oh, yes!!!..oh, yes!!!understand your organisational strategiesunderstand your organisational strategies
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SCANNING AN ORGANISATIONAL STRUCTURESCANNING AN ORGANISATIONAL STRUCTURE
area: cultural valuesarea: cultural values• typical of the "technology" era with a strong "Tayloristic” belief
• Credo: "...products and/or technology make business..."
• Competitiveness = costs reduction
• typical of the "marketing" era
• Motto: Max exploitation of the Market
• Logics: Max yearly results (economic - short/medium term strategy)
• Credo: Business is made exploiting opportunities
• typical of the "quality challenge" era
• Motto: Client's satisfaction ("....client is the king...")
• Logics: Long-term strategy based on the Total Quality approach
• Credo: Business is made improving continuously and systematically the whole productive
process in a "client-driven" mode
• typical of the "World-Class" era
• Motto: Total Satisfaction (client, employees, shareholders, suppliers.....)
• Logics: Long-term strategy based on the VAM (Value Adding Management) philosophy (and the
"value-chain" concept of M. E. Porter: "..be in the right chain with valid/competitive
partners..")
• Credo: Business is made by increasing continuously and systematically the overall value of the
vendor-vendee system and by consistent innovation
area: relationship with marketarea: relationship with market
• Market: unsaturated (demand > offer) and "stable"
• Market's needs: established by "technologists", who decide on validity and "value" of products
• Products are literally "thrown" into the market (PRODUCT-OUT)
• Market: saturated (offer > demand) - “consumer” - not "mature" - somewhat unstable -
fierce Competition
• Marketing force/abilities indispensable to locate opportunities and generate new needs in the market
• Sales force/abilities indispensable to enhance competitiveness
• Products developed (functional specs ---> technical specs ---> industrial/manufacturing specs) by locating
market needs (PRODUCT-IN)
• Market: saturated (offer > demand) - somewhat less “consumer” - "mature" (capable of
understanding and rewarding quality) - unstable/turbulent
•Market's needs: already established (by western industries) - product lines are well defined
(cars, consumer electronics.....)
•Extensive use of QFD (Quality Function Deployment) techniques for effective/fast product development
•Market sets productive parameters (quality, delivery, cost) - "...the ocean pulls the river..."
• Market: rich (opulent) - very mature - featuring complexity and economic turbulence - very
high competition - rapidly changing
• Market's needs: extremely personalised (mass-production coma ?)
• Extrapolation/exasperation of the "market sets productive parameters" concept -----> "market sets
business parameters"
SCANNING AN ORGANISATIONAL STRUCTURESCANNING AN ORGANISATIONAL STRUCTURE
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area: relationship with clientsarea: relationship with clients
• Client is an “entity” that buys our products (and sometimes gives us a
lot of hassles...)
• We do not know much about our Clients (we are mainly concerned with
their “liquidity”...)
• Client can and must be known more/well
• Client can be persuaded to buy our products - we have marketing and
sales dept./s that take care of that.....
• Client is “King” and Client’s satisfaction is top priority
• Client’s needs and expectations (explicit and implied) must be fulfilled
• Exasperation of the “Client is King” concept --- > “..Client is our
Partner in business....”
SCANNING AN ORGANISATIONAL STRUCTURESCANNING AN ORGANISATIONAL STRUCTURE
area: organisation & managementarea: organisation & management
• "Mechanical" (Scientific) system
• Organisation structured in great details, and generally "static"
• Decision-making process: top-down
• Max attention to efficiency
• Professionalism: specialised ("technical" positions are the most essential and rewarded)
• Work: fragmented
• Management: specialised, "per function", bureaucratic
• Budget = basic tool. Great attention to "real/estimated" comparisons/analysis and to "deltas"
• Max control (inspection, supervision)
• Max cost control (per "cost centre")
• "Mechanical" (Scientific) system
• Organisation structured in great details, but somewhat dynamic
• Same organisational principles as in model (A), with new, predominant functions
(Sales, Marketing), and a new predominant position: the "Controller"
• Decision-making process: top-down
• Inter-functional management (featuring meetings, committees, inter-functional project teams....)
• MBO - Management by Objectives
• Very sophisticated budgeting/control system (with EDP/IT aid)
SCANNING AN ORGANISATIONAL STRUCTURESCANNING AN ORGANISATIONAL STRUCTURE
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area: organisation & managementarea: organisation & management
• "Organic" system
• From "product" culture (models A and B) to "process" culture and organisation
• "Macro" organisation, process-related to main productive parameters: quality - delivery – cost
• "Micro" organisation, also process-related to all other parameters
• Decentralisation of responsibilities, authorities and management activities
• Multi-skilled and multi-function management ("entrepreneurial" management)
• Decision-making process: rather bottom-up
• Profit-centres rather than cost-centres
• Cost control system: from standard-oriented (models A + B) -----> to target-oriented (with performance
indicators) (Model C)
• Kaizen (continuous & systematic process improvement). From "Static" standards (models A + B) -----> to
"dynamic" standards (model C). High employees involvement
• Flat Hierarchy (Horizontal Organisation)
• Business/entrepreneurial culture and organisation
• Total decentralisation of responsibilities in respect of overall results – extensive
Process Re-Engineering
• Organic system featuring high level of internal "supplier/client" relationship - "inter-function" and "matrix“ type
organisational structures with high flexibility - value-adding “(re-)engineered” processes
• Profit centres (ABA - Activity Based Accounting)
• VENTURE = entrepreneurial management (global management + risk management), highly market-oriented
(in real time), with "intra-preneurial" examples
• From MBO (Management by Objectives) -----> to MBP (Management by Policies)
• Extensive bottom-up drive
• Top management function: co-ordination - homogenisation - internal consultancy/coaching
SCANNING AN ORGANISATIONAL STRUCTURESCANNING AN ORGANISATIONAL STRUCTURE
area: relationship with employeesarea: relationship with employees
• Man = productive resource executing planned activities
• Max control (inspection, supervision)
• Employees are generally performing a series of simple and/or well defined tasks
• New parameters at shop-floor level: job rotation, job enlargement, job enrichment
• MBO - Management by Objectives
• Tasks performed according to well structured “job descriptions”
• Decentralisation of responsibilities and authorities up to shop floor level - some
form of “empowerment” (total delegation of responsibilities and max
autonomy within own scope of work)
• Considerable/high employee involvement at all levels (in problem solving, decision
making, and improvement activities in general)
• Extensive bottom-up drive (both in decision-making and in design/change
of organisational parameters)
• Empowerment and beyond: “....employees are partners in business...” -
considerable entrepreneurial and “intra-preneurial” phenomena within the
Organisation – result-based merit-o-cratic system, with examples of profit-sharing
and share-holding type of rewards for employees
SCANNING AN ORGANISATIONAL STRUCTURESCANNING AN ORGANISATIONAL STRUCTURE
37
area: manufacturing and operational strategyarea: manufacturing and operational strategy
• Max productive volumes (limited only by financial constraints)
• Max productive efficiency with high attention to costs
• Investments: ----> Improvements of organisation and technology ----> R & D (product and technology)
• "Make" rather than "buy"
• Linked to the logics of max turnover and max profit
• Short/medium term strategies driven by market researches
• Product diversification
• Fragmentation into business units (divisions, product lines.....)
• Tendency to commercialisation "only"
• Linked to the logics of "turnover consolidation & strengthening" (large volumes- lower costs-larger volumes)
• Driving philosophies: CWQC (Company-Wide-Quality-Control) – TQM (Total Quality Management) – TP (Total
Productivity: JIT – Process Improvement & Management) - TPM (Total Productive Maintenance)
• Pilot tool: SEW (Systematic Elimination of Waste)
• Considerable/high decentralisation of production (and responsibilities associated with design, if applicable, and production)
and high "integration" with suppliers
• Internal client = external client
• Linked to the logics of "profit in the medium-long term" maintaining and developing the enterprise's overall value
• Protagonist: TBI (Total Business integration) [GWQC (Group-Wide-Quality-Control) - TP (Total Productivity) and
all LEAN approaches/disciplines – Value Stream Management - TPM (Total Productive Maintenance)
– 6 Sigma Methodologies - PPD (Product-Process Development), with QFD (Quality Function Deployment) -
CIM (Computer Integrated Manufacturing) - SEW (Systematic Elimination of Waste) (Group-wide) -
TEI (Total Employee Involvement) (Group-wide) and TEP - COMAKERSHIP]
• Emphasis on total flexibility and extreme attention to all lead-times: time-to-market (development - engineering) - start-up time -
P-time - set-up time - distribution time - information time ........ with vendors as co-protagonists
SCANNING AN ORGANISATIONAL STRUCTURESCANNING AN ORGANISATIONAL STRUCTURE
area: procurement & relationship with suppliersarea: procurement & relationship with suppliers
SCANNING AN ORGANISATIONAL STRUCTURESCANNING AN ORGANISATIONAL STRUCTURE
• Buy at the lowest possible price (utilising high contractual power)
• "Paternalistic" style of relationship with ("subordinate") suppliers
• Considerable decentralisation (buy rather than make: to cope with market demand and
peaks, differentiated in volumes and mix)
• Alternative, competing suppliers (in order to achieve cost efficiency and to cope with
demand peaks) - suppliers "in parallel"
• Generation of high competitiveness among suppliers
• Max exploitation of suppliers -----> "disposable" suppliers - turnover of suppliers
• Extensive decentralisation of production (make produce rather than make) and associated
(global) responsibilities
• Creation of own, long-term suppliers network [suppliers: limited in number, well selected,
"dedicated", "married", highly involved in the improvement of common processes, ideally on
the same level of professionalism and maturity] - Motto: "let's improve together"
• Vendor-Vendee relationship are seen as a starting point (rather than as a target)
• Driving philosophies: Value-chain - GWQC – Comakership
• Permanent logistic networks integrating vendors and vendees
• Few, selected, reliable, integrated suppliers - high degree of reciprocal trust - joint improvement programs –
"open" enterprises
38
finally:finally:
a a ““traditionaltraditional”” enterprise is like a lawn mowerenterprise is like a lawn mower……
People 20 years agoPeople 20 years ago
People todayPeople today
and
39
Personnel Selection & EvaluationPersonnel Selection & Evaluation
(before (before ““midnightmidnight””))
ABILITY:ABILITY:
Knowledge and skills necessary Knowledge and skills necessary
to perform a job to perform a job
= WORKING MATURITY= WORKING MATURITY
MOTIVATION:MOTIVATION:
willingness and commitment willingness and commitment
= PSYCHOL. MATURITY= PSYCHOL. MATURITY
Personnel ManagementPersonnel Management
EMPLOYEE (before EMPLOYEE (before ““midnightmidnight””))
M1 = IMMATURE PERSONM1 = IMMATURE PERSON
M2 = POTENTIAL PERSONM2 = POTENTIAL PERSON
M3 = DEM3 = DE--MOTIVATED PERSONMOTIVATED PERSON
M4 = MATURE PERSONM4 = MATURE PERSON
PROFESSIONAL MATURITY =PROFESSIONAL MATURITY =
WORKING MATURITY + WORKING MATURITY +
PSYCHOLOGICAL MATURITYPSYCHOLOGICAL MATURITY
40
Personnel ManagementPersonnel Management
EMPLOYEE (before EMPLOYEE (before ““midnightmidnight””) ) –– THE TARGETTHE TARGET
Personnel ManagementPersonnel Management
MANAGER (before MANAGER (before ““midnightmidnight””))
OPERATIONAL BEHAVIOUROPERATIONAL BEHAVIOUR
Direction Direction –– Control Control –– Attention to Attention to
Operational affairs (productionOperational affairs (production……))
RELATIONAL BEHAVIOURRELATIONAL BEHAVIOUR
Intensity of social/emotional Intensity of social/emotional
support support –– Attention to peopleAttention to people
41
Personnel ManagementPersonnel Management
(before (before ““midnightmidnight””) ) –– Leadership StylesLeadership Styles
S1 S1 –– DIRECTSDIRECTS
Gives orders/instructions Gives orders/instructions –– Sets targets/objectives Sets targets/objectives
–– Defines tasks & duties Defines tasks & duties –– Controls/evaluatesControls/evaluates
S2 S2 –– SELLSSELLS (COACHES, GUIDES, SUPPORTS)(COACHES, GUIDES, SUPPORTS)
Guides and supports psychologically Guides and supports psychologically
collaborators collaborators –– makes them makes them ““purchasepurchase”” the the
wanted behaviourswanted behaviours
S3 S3 –– SUPPORTSSUPPORTS
22--ways communication with collaborators ways communication with collaborators ––
attention to collaboratorsattention to collaborators’’ problems problems –– high high
““relationalrelational”” supportsupport
S4 S4 –– DELEGATESDELEGATES
Sets targets and constraints Sets targets and constraints –– Gives high D/M and Gives high D/M and
operational autonomy operational autonomy -- monitors (background)monitors (background)
Personnel ManagementPersonnel Management
(before (before ““midnightmidnight””) ) ––
Situational LeadershipSituational Leadership
“…“…the most the most
effective leadership/ effective leadership/
management style management style
in each and every in each and every
situationsituation……....””
D
GNI
TC
ER
I
GN
IL
L
ESGN
IT
RO
PP
US
GN
IT
AG
ELED
42
Personnel Selection & EvaluationPersonnel Selection & Evaluation
(after (after ““midnightmidnight””))FROMFROM
TOTO
PROFESSIONAL MATURITY PROFESSIONAL MATURITY
==
WORKING MATURITY WORKING MATURITY
+ +
PSYCHOLOG. MATURITY PSYCHOLOG. MATURITY
++
CULTURAL MATURITYCULTURAL MATURITY
Personnel Selection & EvaluationPersonnel Selection & Evaluation
(after (after ““midnightmidnight””))
43
Cultural MaturityCultural Maturity
(after (after ““midnightmidnight””))
Understanding of Understanding of ““valuevalue”” -- Orientation to Orientation to ““valuevalue””
Attitude and opening to learnAttitude and opening to learn
Opening to innovationOpening to innovation
Understanding of change Understanding of change -- Opening to change Opening to change -- Ability to changeAbility to change
Attitude to creative thinkingAttitude to creative thinking
Interest for workInterest for work
Participation Participation -- InvolvementInvolvement
Understanding of EnterpriseUnderstanding of Enterprise’’s goals s goals -- Alignment with themAlignment with them
Spirit of initiative Spirit of initiative –– entrepreneuringentrepreneuring
Attitude to work in teamAttitude to work in team
####### #######
employ a personemploy a person……..
EXERCISE????EXERCISE????
……oh, yes!!!!oh, yes!!!!
44
““magneticmagnetic”” organisational structureorganisational structure
(before (before ““midnightmidnight””))
the solution?the solution?
teamteam--workwork
teamteam--workwork
45
TeamTeam--work work –– the solution?the solution?
The principle of working in team to tackle The principle of working in team to tackle
all sorts of organisational and technical all sorts of organisational and technical
issues has been discovered several issues has been discovered several
decades agodecades ago……..
Project TeamsProject Teams
……and and MeetingsMeetings: Board Meetings : Board Meetings -- Management Management
Meetings Meetings –– Department Meetings Department Meetings –– InterInter--functional functional
Meetings Meetings –– Production Planning Meetings Production Planning Meetings –– etc. etc.etc. etc.
BUT:BUT:
InterInter--functional Teamsfunctional TeamsImprovement TeamsImprovement Teams
ReRe--engineering Teamsengineering TeamsQuality CirclesQuality Circles
Kaizen TeamsKaizen Teams
6 Sigma Teams6 Sigma Teams……SelfSelf--Directed Work GroupsDirected Work Groups
…….do you recall at least one .do you recall at least one
meeting from which you (or meeting from which you (or
someone else) came out someone else) came out unun--
satisfiedsatisfied? or a bit ? or a bit frustratedfrustrated? or ? or
possibly possibly stressedstressed??
TeamTeam--work work –– the solution?the solution?
……not to mentionnot to mention
confusedconfusedirritatedirritated
annoyedannoyed
intimidatedintimidated
perturbedperturbed bored to deathbored to death
humiliatedhumiliated
angryangry
horrifiedhorrified
exhaustedexhausted terrorisedterrorised……..???..???
BUT:BUT:
46
Meetings and teamMeetings and team--work are work are
not necessarily associated not necessarily associated
with high involvement and with high involvement and
effective improvement nor do effective improvement nor do
represent the sole/best answer represent the sole/best answer
to performance improvement...to performance improvement...
TeamTeam--work work –– the solution?the solution?
……oh, yes !!!!oh, yes !!!!
industrial espionage industrial espionage
TeamTeam--work work –– the solution?the solution?
EXERCISE????EXERCISE????
47
From the suggestion box From the suggestion box
scheme to total participationscheme to total participation
…….so: what are the secret, missing ingredients that will give .so: what are the secret, missing ingredients that will give
the correct shape to highthe correct shape to high--employeeemployee--involvement structures?involvement structures?
..that will contribute to generate people interest and ..that will contribute to generate people interest and
participation, directed to produce genuine value?participation, directed to produce genuine value?
48
EMPLOYEE INVOLVEMENTEMPLOYEE INVOLVEMENT
4 Key Factors affecting the degree of involvement:
KNOWLEDGEKNOWLEDGE: that enables Employees to understand the
Organisation and contribute to its performance
POWERPOWER: to make decisions that influence organisational
strategies, policies, processes and practices
INFORMATION (FEEDINFORMATION (FEED--BACK)BACK): about Organisation's
performance/Process/es’ performance
REWARDREWARD: based on Organisation's/Process’ performance
and individuals' contributions
the more the 4 factors are shifted downward in the hierarchy the more the 4 factors are shifted downward in the hierarchy
ladder, the more involvement may be generatedladder, the more involvement may be generated
All Industrial Models have attempted to generate
Employee Involvement.
4 different levels and 4 different approaches:
1. Parallel Suggestion Involvement1. Parallel Suggestion Involvement
2. Job Involvement2. Job Involvement
3. MBOII (Management by Objectives II)3. MBOII (Management by Objectives II)
4. High (Total) Involvement4. High (Total) Involvement
EMPLOYEE INVOLVEMENTEMPLOYEE INVOLVEMENT
49
1. PARALLEL SUGGESTION INVOLVEMENT1. PARALLEL SUGGESTION INVOLVEMENT
flash concepts:flash concepts:
A Reward SystemReward System is normally associated (generally:
nominal rewards).
Employees are asked to solve problems (corrective corrective
suggestionssuggestions) and produce ideas (improvement improvement
suggestionssuggestions) that “may” or “should” influence
Organisation's operational performance.
Examples: Suggestion Box Schemes - Quality Circles
1. PARALLEL SUGGESTION INVOLVEMENT1. PARALLEL SUGGESTION INVOLVEMENT
ProPro’’ss: Enterprise benefits from suggestions, and
Employees have the opportunity to participate in
problem-solving and improvement schemes.
ConCon’’s & Limitationss & Limitations:
i) Employees may run out of suggestions because they
do not have enough expertise to solve more complex
problems or tackle more sophisticated improvements.
ii) Suggestion schemes that are not supported by
an adequate reward system may loose momentum
and disappear.
iii) “Fake” involvement/suggestions (due to
lack of direction)
flash concepts:flash concepts:
50
1. PARALLEL SUGGESTION INVOLVEMENT1. PARALLEL SUGGESTION INVOLVEMENT
the the ““fakefake”” improvement listimprovement list
2. JOB INVOLVEMENT2. JOB INVOLVEMENT
Work is designed in such a way that it will motivate
better one’s job performance, differently from traditional,
standardised, simplified work.
Two alternatives:
2.1 Job Enrichment2.1 Job Enrichment:
• focuses on creating individual tasks that give people
feedback
• increases their influence over how the work is done
• requires them to use a variety of skills
• and gives them a "whole piece" of work(Hackman & Oldham, 1980)
flash concepts:flash concepts:
51
2. JOB INVOLVEMENT2. JOB INVOLVEMENT
2.2 Work Groups or Teams2.2 Work Groups or Teams:
It takes the work-group as the primary unit of
involvement, with similar features.
(Examples: Autonomous Work Groups - Self-Managing
Groups - Work Teams)
Individuals or groups are given new skills and
knowledge, more feedback, additional decision making
space, and may be rewarded differently.
The Team approach has, obviously, higher effect.
Involvement is not a special activity, but it is simply
the way of doing business.
flash concepts:flash concepts:
2. JOB INVOLVEMENT2. JOB INVOLVEMENT
ProPro’’s & Advantagess & Advantages:
More consistent than in the Parallel Suggestion
Involvement.
ConCon’’s & Limitationss & Limitations:
• Lost opportunities. The involvement is limited to
immediate work decisions, and the Employees' or
Groups' tendency is primarily to optimise their
own performance, without paying a great deal of
attention to the overall Organisation's
performance.
• Job Enrichment schemes may simply be “imposed”
• Inadequacies typical of Team-Work.
flash concepts:flash concepts:
52
3 3 -- PARTICIPATIVE MANAGEMENT (MBOII)PARTICIPATIVE MANAGEMENT (MBOII)
a mida mid--way compromise in Employee Involvementway compromise in Employee Involvement
EMPLOYEES RESPONSIBILITIESEMPLOYEES RESPONSIBILITIES:
Work together to achieve mutual goals consistent
with the objectives of the Organisation
• analysing process and work-related problems
• making team decisions about schedules, priorities,
and quality and costs issues
• being responsible, accountable, and committed to
the team and the objectives
• providing peer support, development, and
feedback in achieving objectives
flash concepts:flash concepts:
3 3 -- PARTICIPATIVE MANAGEMENT (MBOII)PARTICIPATIVE MANAGEMENT (MBOII)
a mida mid--way compromise in Employee Involvementway compromise in Employee InvolvementMANAGERS/SUPERVISORS RESPONSIBILITIESMANAGERS/SUPERVISORS RESPONSIBILITIES:
• Provide support in the form of commitment and
leadership
• Provide clear and reasonable visions/objectives
• Provide information, processes, resources and
methods as required, to meet the objectives
• Provide training, equitable rewards, and team
facilitation
• Provide continuous support, and recognition for
accomplishments
In MBOII great care is to be taken to ensure that people and jobIn MBOII great care is to be taken to ensure that people and jobs matchs match
flash concepts:flash concepts:
53
3 3 -- PARTICIPATIVE MANAGEMENT (MBOII)PARTICIPATIVE MANAGEMENT (MBOII)
ConCon’’s & Limitationss & Limitations:
MBOII is generally adopted by large Organisations
Bureaucracy is the biggest obstacle to MBOII.
Bureaucracy inhibits people from making decisions and
acting.
Bureaucracy feeds on itself by creating a need for a
hierarchy to manage decisions, and consequently slows
down the decision making process.
When approvals are required too high up by people who
don't understand the process, a backlog of doubt and
indecision grows and progress slows - sometimes stops.
flash concepts:flash concepts:
3 3 -- PARTICIPATIVE MANAGEMENT (MBOII)PARTICIPATIVE MANAGEMENT (MBOII)
ConCon’’s & Limitationss & Limitations:
Major task and strategy of Participative Management is
the elimination of Bureaucracy and the enhancement of
individuals'/teams' decisions, by providing adequate
decision making space.
With this approach, people/teams become more self-
sufficient and self-managed, and capable of assuring
that they will not do anything or much wrong.
This leads to less need for supervision and control.
The overall Reward structure must be revised
accordingly.
flash concepts:flash concepts:
54
TOTAL EMPLOYEE TOTAL EMPLOYEE
INVOLVEMENTINVOLVEMENT
55
4. HIGH (TOTAL) INVOLVEMENT4. HIGH (TOTAL) INVOLVEMENT
• they knowknow about it and have the skillsskills and expertiseexpertise to
contribute to it (KNOWLEDGE*KNOWLEDGE*)
• they are able to influenceinfluence it because they have the necessary
spacespace and sufficient POWER*POWER* to do so
• they get FEEDFEED--BACK*BACK* on their own and the Organisation’s
Performance and adequate REWARD*REWARD*
It structures an Organisation in such a way that people,
even at the lowest levels, will have a sense of
involvement, not just in how they do their jobs or how
effectively their group performs, but also in the
performance of the total Organisationperformance of the total Organisation, for which they
carecare because:
4. HIGH (TOTAL) INVOLVEMENT4. HIGH (TOTAL) INVOLVEMENT
Employees need to have expertise at least in: creative creative
problemproblem--solvingsolving – creative search for opportunitiescreative search for opportunities -
decision makingdecision making techniques - self and time self and time
managementmanagement - process engineeringprocess engineering (basics) - specific
tools and techniques – etc.
This simply means extensive, continuous training.
They also need to be cross-trained, so that they
understand the entire work process in theirs and
surrounding work areas.
56
4. HIGH (TOTAL) INVOLVEMENT4. HIGH (TOTAL) INVOLVEMENT
MOST IMPORTANT:
they must be made
knowledgeable about the
Value Adding ManagementValue Adding Management
and LeanLean ThinkingThinking philosophies
and their main principles!
ProPro’’s & Advantagess & Advantages: extremely more consistent and
effective than in previous approaches.
LimitationsLimitations:
Getting relevant business information to all Employees,
according to their involvement status, becomes a key
challenge.
Structuring such an Organisation is clearly a hard and
delicate task, especially in a western industrial
environment.
4. HIGH (TOTAL) INVOLVEMENT4. HIGH (TOTAL) INVOLVEMENT
57
As people's best motivations come from their As people's best motivations come from their own own
ideasideas, TEI stimulates people to release, in a , TEI stimulates people to release, in a
channelled mode, their channelled mode, their own creative energyown creative energy
for the benefit of the Customers, the Organisation's for the benefit of the Customers, the Organisation's
and their ownand their own
TEI is TEI is everyoneeveryone in the Organisation deeply involved, in the Organisation deeply involved,
using own using own brain powerbrain power, in , in problemproblem--solvingsolving, , learning, ,
continuous improvementcontinuous improvement activities, and systematic activities, and systematic
search for opportunitiessearch for opportunities
in a nutshell
4. HIGH (TOTAL) INVOLVEMENT4. HIGH (TOTAL) INVOLVEMENT
TEI is a system for organisational and people's TEI is a system for organisational and people's
changechange. .
It is a system that improves people's working It is a system that improves people's working
conditions by their own actions.conditions by their own actions.
TEI is a system for direct participation of people to TEI is a system for direct participation of people to
Organisation's success, by letting them take Organisation's success, by letting them take
responsibilitiesresponsibilities. .
TEI wants people to be responsible for their own TEI wants people to be responsible for their own
motivation and their own improvement: simply by motivation and their own improvement: simply by
letting them know the letting them know the scorescore........
4. HIGH (TOTAL) INVOLVEMENT4. HIGH (TOTAL) INVOLVEMENT
in a nutshell
58
TEI is a system that TEI is a system that
stimulates people to stimulates people to
become become responsibleresponsible agentagent
for their own for their own securitysecurity..
HIGH (TOTAL) INVOLVEMENTHIGH (TOTAL) INVOLVEMENT
in a nutshell
…….responsible.responsible agentagent for for
their own their own securitysecurity……..
the worm
59
TEI represents a continuous TEI represents a continuous
challengechallenge to people, by letting them to people, by letting them
set the path to their set the path to their fulfilmentfulfilment at at
work, work, enjoyingenjoying the very process......the very process......
4. HIGH (TOTAL) INVOLVEMENT4. HIGH (TOTAL) INVOLVEMENT
in a nutshell
Obviously, to get there, we need the Obviously, to get there, we need the
right HR strategies and tacticsright HR strategies and tactics……..
HUMAN RESOURCES HUMAN RESOURCES
MANAGEMENT MANAGEMENT
TACTICSTACTICS
FOR A HIGH FOR A HIGH
INVOLVEMENT INVOLVEMENT
ENVIRONMENTENVIRONMENT
60
encourage people to look creatively for ways encourage people to look creatively for ways
to work "smarter", with a corresponding to work "smarter", with a corresponding
reduction in stress and frustration, a higher reduction in stress and frustration, a higher
level of accountability, increased flexibility level of accountability, increased flexibility
and adaptability to (continuous) change, and adaptability to (continuous) change,
higher productivity/performance, higher productivity/performance,
and improved levels of customers' and and improved levels of customers' and
employees' satisfactionemployees' satisfaction
HOW?HOW?
THE TARGET FOR H.R. MANAGEMENTTHE TARGET FOR H.R. MANAGEMENT
11--develop peopledevelop people
22--break the brickbreak the brick--wallwall
33--go LEAN!!go LEAN!!
a) The traditional a) The traditional ““match jobs and peoplematch jobs and people”…”…..
11--MAKE PEOPLE GROWMAKE PEOPLE GROWtipstips
OKOK
OKOKFEAR
FRUSTRATION
(I am worth nothing….)
(They are trying to get
rid of me…)
BUTBUT……..
61
a) match jobs and people: leta) match jobs and people: let’’s analyse furthers analyse further
11--MAKE PEOPLE GROWMAKE PEOPLE GROW
highhigh
LowLow
HighLow
LowHigh
BehaviourAttitudeBehaviourAttitudeResultAbilities
& Skills
Job
Difficulty
bossboss collaboratorcollaboratorcollabcollab..
FEARFEAR Anxious
DepressedAlternating Anxious
DepressedSubjection Subjection
SlaverySlavery
FRUSTRATIONFRUSTRATION Anxious
Persecutory
Sovereignity
Dominance
Anxious
PersecutoryRebellion Rebellion
EscapeEscape
OK??OK?? Apathy Public Servant Apathy GovernmentGovernment’’s s
faultfault……..
OK!!OK!! Stimulating Delegation Dynamic SatisfactionSatisfaction
SOSO……..
b) donb) don’’t get trapped into Petert get trapped into Peter’’s principles principle……..
11--MAKE PEOPLE GROWMAKE PEOPLE GROW
ANDAND……..
tipstips
62
11--MAKE PEOPLE GROWMAKE PEOPLE GROW
c) ..develop your collaborators c) ..develop your collaborators
through modern Situational through modern Situational
Leadership principlesLeadership principles……
tipstips
Develop: Develop:
Working Maturity, Working Maturity,
Psychological Psychological
Maturity Maturity ANDAND
Cultural Maturity! Cultural Maturity!
PERSUADE PEOPLE TO CHANGE, TO BREAK PERSUADE PEOPLE TO CHANGE, TO BREAK
THE BRICKTHE BRICK--WALL, OVERCOMING WALL, OVERCOMING
RELUCTANCE AND RESISTANCERELUCTANCE AND RESISTANCE
THE MANAGEMENT CHALLENGE OF THE YEARS 2000THE MANAGEMENT CHALLENGE OF THE YEARS 2000
22--BREAK THE BRICKBREAK THE BRICK--WALLWALL
63
the syndrome the syndrome
of the of the ““wasted wasted
yearsyears””......
MANAGEMENT CHALLENGE OF THE YEARS 2000MANAGEMENT CHALLENGE OF THE YEARS 2000
go go ““LEANLEAN””
33--EXPLAIN THE EXPLAIN THE ““DIRECTIONDIRECTION””
64
LEAN THINKING: THE ORIGIN 1LEAN THINKING: THE ORIGIN 1Maybe you fish itMaybe you fish it……....
……maybe you farm itmaybe you farm it……....
LEAN THINKING: THE ORIGIN 1LEAN THINKING: THE ORIGIN 1
65
……maybe you mine itmaybe you mine it……....
LEAN THINKING: THE ORIGIN 1LEAN THINKING: THE ORIGIN 1
……maybe you breed itmaybe you breed it……....
LEAN THINKING: THE ORIGIN 1LEAN THINKING: THE ORIGIN 1
66
……maybe you mill itmaybe you mill it……....
LEAN THINKING: THE ORIGIN 1LEAN THINKING: THE ORIGIN 1
……maybe you brew itmaybe you brew it……....
LEAN THINKING: THE ORIGIN 1LEAN THINKING: THE ORIGIN 1
67
……maybe you manufacture itmaybe you manufacture it……....
LEAN THINKING: THE ORIGIN 1LEAN THINKING: THE ORIGIN 1
……maybe you construct itmaybe you construct it……....
LEAN THINKING: THE ORIGIN 1LEAN THINKING: THE ORIGIN 1
68
……maybe you simply sell itmaybe you simply sell it……....
LEAN THINKING: THE ORIGIN 1LEAN THINKING: THE ORIGIN 1
or maybe you dance itor maybe you dance it……....
LEAN THINKING: THE ORIGIN 1LEAN THINKING: THE ORIGIN 1
69
LEAN THINKING: THE ORIGIN 1LEAN THINKING: THE ORIGIN 1
You catch it, you farm it, You catch it, you farm it,
you mine it, you breed it, you mine it, you breed it,
you mill it, you brew it, you mill it, you brew it,
you manufacture it, you you manufacture it, you
construct it, you simply construct it, you simply
sell it or you dance itsell it or you dance it……
……no matter what you do no matter what you do -- you must generateyou must generate……..
LEAN THINKING: THE ORIGIN 1LEAN THINKING: THE ORIGIN 1
VALUEVALUEfor your customersfor your customers
70
LEAN THINKING: THE ORIGIN 2LEAN THINKING: THE ORIGIN 2
Everyone that works in your organization is doing one of three tEveryone that works in your organization is doing one of three things:hings:
1. They are generating value for your customers 1. They are generating value for your customers -- oror
2. They are creating or reshuffling waste 2. They are creating or reshuffling waste –– oror
3. They are doing absolutely nothing3. They are doing absolutely nothing
The market leaders will always The market leaders will always
have the majority of their people have the majority of their people
dedicated to the first of thesededicated to the first of these
……in an office (or a bank, or a travel agent, orin an office (or a bank, or a travel agent, or…….) the floor .) the floor
cleaner may be adding more value than most employees..cleaner may be adding more value than most employees..
71
LPMLean
Project
Mangmt
FPFlow
Process
72
VAMVAM
VALUE ADDING VALUE ADDING
MANAGEMENTMANAGEMENT
the VAM approach to the productive processthe VAM approach to the productive process
process process
time time
analysisanalysis
73
SEWSEWSYSTEMATIC SYSTEMATIC
ELIMINATION OF WASTEELIMINATION OF WASTE
VALUE!VALUE!
74
spot the waste!spot the waste!
labour misuse: handlinglabour misuse: handling
75
spot the waste!spot the waste!the the ““prepre--preparationpreparation”” syndromesyndrome
WASTE WASTE –– THE TABLE OF EXCUSES THE TABLE OF EXCUSES -- OLDOLD1) That's the way we have always done it1) That's the way we have always done it
12) I wasn't hired to do that12) I wasn't hired to do that
11) I thought I told you11) I thought I told you
10) I'm so busy I just can't get around to it10) I'm so busy I just can't get around to it
9) I didn't think it was very important9) I didn't think it was very important
8) I forgot8) I forgot
7) Wait till the boss comes back & ask him7) Wait till the boss comes back & ask him
6) That's his job 6) That's his job -- not minenot mine
5) I am waiting for an OK5) I am waiting for an OK
4) No one told me to go ahead4) No one told me to go ahead
3) That's not in my department3) That's not in my department
2) I didn't know you were in a hurry for it2) I didn't know you were in a hurry for it
76
WASTE WASTE –– THE TABLE OF EXCUSES THE TABLE OF EXCUSES -- NEWNEW1) That's the way we have always done it1) That's the way we have always done it
12) All machines eventually give problems12) All machines eventually give problems
11) We must control quality or clients will complain11) We must control quality or clients will complain
10) Set10) Set--up time cannot be reduced furtherup time cannot be reduced further……..
9) We need stock: it9) We need stock: it’’s a good investments a good investment
8) Impossible8) Impossible
7) You mean we are stupid the way we do it???7) You mean we are stupid the way we do it???
6) Managers and consultants6) Managers and consultants……. Only able to mess us up. Only able to mess us up
5) We have tried in the past, and it didn5) We have tried in the past, and it didn’’t workt work……
4) Why change? We are already so busy4) Why change? We are already so busy……..
3) This way we know it works3) This way we know it works……..
2) There is no better way, believe me2) There is no better way, believe me……..
Implementation Strategies for TEIImplementation Strategies for TEI
Getting Getting startedstarted……....
……and taking the and taking the ““LeanLean”” wayway
77
The role of Lean Disciplines in The role of Lean Disciplines in
developing Employee Involvementdeveloping Employee Involvement
The role of The role of
Lean Lean
Disciplines in Disciplines in
developing developing
Employee Employee
InvolvementInvolvement
78
the the ““SOCOSOCO”” (5S) approach(5S) approach
how to insert people in how to insert people in
valuevalue--generating processesgenerating processes
how to evolve from simple how to evolve from simple
tasks to simple processestasks to simple processes
79
EXERCISE????EXERCISE????
……oh, yes!!!!oh, yes!!!!a hiccup processa hiccup process……
COMPLEX PROCESSES, INVOLVING SEVERAL PERSONS COMPLEX PROCESSES, INVOLVING SEVERAL PERSONS
or DEPARTMENTS, OFTEN ORIGINATE ERRORS or DEPARTMENTS, OFTEN ORIGINATE ERRORS
IMPROVING PERFORMANCE: IMPROVING PERFORMANCE:
THE LEAN KAIZEN APPROACHTHE LEAN KAIZEN APPROACH
the bottomthe bottom--up approach to Performance Improvement has a name:up approach to Performance Improvement has a name:
80
systematic and methodical approach, topsystematic and methodical approach, top--
driven, codriven, co--ordinated and supported, ordinated and supported,
to continuous improvement towards an to continuous improvement towards an
"excellent, lean status" target in various "excellent, lean status" target in various
organisational and operational areas;organisational and operational areas;
in a "stepin a "step--byby--step" fashion;step" fashion;
and with deep, active involvement of those and with deep, active involvement of those
concerned in each improvement areaconcerned in each improvement area
today's KAIZENtoday's KAIZEN
increase in effectiveness increase in effectiveness
and/or efficiency of processesand/or efficiency of processes
(all the rest might be spurious, fictitious (all the rest might be spurious, fictitious
improvement)improvement)
IMPROVEMENTIMPROVEMENT
��PREVENTIVE ACTIONSPREVENTIVE ACTIONS
��CORRECTIVE ACTIONSCORRECTIVE ACTIONS
throughthrough
81
the piers the piers
of Kaizenof Kaizen
82
KAIZEN & TEIKAIZEN & TEI
.....if he only knew how.....!.....if he only knew how.....!
.....the person doing the job .....the person doing the job
knows far more than anyone knows far more than anyone
else as to the best way of else as to the best way of
doing that job, and therefore is doing that job, and therefore is
the one person best fitted to the one person best fitted to
improve it....improve it....
83
KAIZEN IS TEAMWORK!!!KAIZEN IS TEAMWORK!!!
verticallyvertically
horizontallyhorizontally
internallyinternally
externallyexternally
KAIZEN IS PROBLEMKAIZEN IS PROBLEM--SOLVINGSOLVING
THEORY AND PRACTICE THEORY AND PRACTICE
methodologies to approach methodologies to approach
problems and complexity:problems and complexity:��KK--T methodT method
��Brainstorming, Lateral Thinking & other Creative P/S Brainstorming, Lateral Thinking & other Creative P/S
techniquestechniques
��Critical Examination & other "global" ProblemCritical Examination & other "global" Problem--SolversSolvers
84
KAIZEN IS DECISIONKAIZEN IS DECISION--MAKING MAKING
ABILITY AND PRACTICE ABILITY AND PRACTICE
methodologies to approach the methodologies to approach the
decisiondecision--making process:making process:
��Archer methodArcher method
��optimisation methodsoptimisation methods
��elimination and evaluation chartselimination and evaluation charts
��decision trialdecision trial--balance methodbalance method
��matrix techniquesmatrix techniques
KAIZEN IS INTELLIGENT USE KAIZEN IS INTELLIGENT USE
OF THE OLD & NEW TOOLS FOR OF THE OLD & NEW TOOLS FOR
LEAN IMPROVEMENTLEAN IMPROVEMENT
��Data Collection Chart, Scatter Diagram, Control ChartsData Collection Chart, Scatter Diagram, Control Charts
��Graphs, Histograms, Pareto Diagram, ABC analysisGraphs, Histograms, Pareto Diagram, ABC analysis
��Cause and Effect (Ishikawa) Diagram, Relations Diagram Cause and Effect (Ishikawa) Diagram, Relations Diagram
Affinity Diagram, CEDAC, Arrow Diagram, FlowAffinity Diagram, CEDAC, Arrow Diagram, Flow--ChartsCharts
��Tree (Systematic) Diagram, Matrix Diagrams, PTree (Systematic) Diagram, Matrix Diagrams, P--M M
AnalysisAnalysis
��FMEA/FMECA MethodsFMEA/FMECA Methods
��Radar (Spider) ChartsRadar (Spider) Charts
��and all LEAN THINKING tools and techniquesand all LEAN THINKING tools and techniques
85
KAIZEN IS KAIZEN IS
CULTURAL CULTURAL
CHANGECHANGE
The The
implementation of implementation of
““LeanLean”” DisciplinesDisciplines
in a in a KaizenKaizen style style
means faster and means faster and
more effective more effective
jumps towards jumps towards
higher higher Professional Professional
MaturityMaturity levels of levels of
workers and workers and
employees!!employees!!
LEAN & KAIZEN LEAN & KAIZEN ““makemake”” TEI!!TEI!!
KAIZEN & TEIKAIZEN & TEI
86
lean practices & lean practices &
people involvementpeople involvement
VITAL!!!!VITAL!!!!KAIZENKAIZEN--STYLE STYLE
LEAN MASTER LEAN MASTER
PLANPLAN & &
MILESTONES MILESTONES
SCHEDULESCHEDULE
KAIZEN & THE LEAN DIRECTIONKAIZEN & THE LEAN DIRECTION
87
WHAT A WHAT A
DIFFERENCE, DIFFERENCE,
COMPARED TO A COMPARED TO A
TRADITIONAL TRADITIONAL
IMPROVEMENTS IMPROVEMENTS
LISTLIST……..
a marketing problema marketing problem
EXERCISE???EXERCISE???
……..oh, yes!!!..oh, yes!!!
KAIZEN IS KAIZEN IS ““THINKINGTHINKING””
88
a practical model for TEIa practical model for TEI
89
high involvementhigh involvement……..
high involvementhigh involvement……..
90
getting highly involvedgetting highly involved……..
involvement: special cases involvement: special cases
91
involvement: special cases involvement: special cases
Necessary rolesNecessary roles……. . with simple job descriptions (1 with simple job descriptions (1 –– 2 items)2 items)
Retailing personnelRetailing personnel
Service establishments personnelService establishments personnel
Public officialsPublic officials
BottomBottom--ofof--thethe--ladder personnelladder personnel
The IWT triumph!The IWT triumph!
92
from TEI to TEP: a jump into the future
In advanced worldIn advanced world--class enterprises, the class enterprises, the
TEI approach is no longer sufficientTEI approach is no longer sufficient……....
there, the second Industrial there, the second Industrial
Revolution has already startedRevolution has already started……....
having highly involved employees and not having highly involved employees and not
achieving adequate results in terms of achieving adequate results in terms of
performance is no big deal, is it?performance is no big deal, is it?
THE SECOND INDUSTRIAL REVOLUTIONTHE SECOND INDUSTRIAL REVOLUTION
……associated with every pair of associated with every pair of
arms there is a mindarms there is a mind……....
……why many workers abandon why many workers abandon
their best abilities and talents their best abilities and talents
outside the enterpriseoutside the enterprise’’s gate?s gate?
93
THE SECOND INDUSTRIAL REVOLUTIONTHE SECOND INDUSTRIAL REVOLUTION
Value-delivering, dynamic, flexible
flow processesflow processes built around clients' expectations and needs
main features:main features:
MultiMulti--functionfunction and multimulti--skillskillpersonnel
Global responsibilityresponsibility for the process and its output
Decision-making autonomy
THE SECOND INDUSTRIAL REVOLUTIONTHE SECOND INDUSTRIAL REVOLUTION
main features:main features:
TEI/TEP: job satisfactionjob satisfaction
FlatteningFlattening of organisational structures
Intelligent exploitation of technology
94
Reduction/elimination of
supervisionsupervision and controlcontrol
THE SECOND INDUSTRIAL REVOLUTIONTHE SECOND INDUSTRIAL REVOLUTION
main features:main features:
Management: from supervision,
to coachingcoaching
EmpowermentEmpowerment: making people conscious of their abilities and competence – giving them “areas of purposeareas of purpose”, “spacespace”, and powerpower to do - so that they can autonomously act within that space
efficiently and effectively.
THE SECOND INDUSTRIAL REVOLUTIONTHE SECOND INDUSTRIAL REVOLUTION
empowerment & coachingempowerment & coaching
Empowerment is always Empowerment is always integralintegral
transmission of transmission of ResponsibilitiesResponsibilities
95
CoachingCoaching: vision, training and support
THE SECOND INDUSTRIAL REVOLUTIONTHE SECOND INDUSTRIAL REVOLUTION
empowerment & coachingempowerment & coaching
Coaching makes people believe in Coaching makes people believe in
themselves so that they can give their bestthemselves so that they can give their best
Coaching enables people to understand their potential, their targets and their capacity to
progress
CoachingCoaching: symbols, mottos, logos, songs...
THE SECOND INDUSTRIAL REVOLUTIONTHE SECOND INDUSTRIAL REVOLUTION
empowerment & coachingempowerment & coaching
96
CoachingCoaching: symbols, mottos, logos, songs...
THE SECOND INDUSTRIAL REVOLUTIONTHE SECOND INDUSTRIAL REVOLUTION
fromfrom toto
internal attentioninternal attention attention to clientattention to client
attention to taskattention to task
simple taskssimple tasks
function unitsfunction units
attention to processattention to process
simple processessimple processes
process unitsprocess units
THE SECOND INDUSTRIAL REVOLUTIONTHE SECOND INDUSTRIAL REVOLUTION
97
Public Public enemyenemy n. 1:n. 1:
brain lazinessbrain laziness
……and thinkingand thinking
THE SECOND INDUSTRIAL REVOLUTIONTHE SECOND INDUSTRIAL REVOLUTION
thinking and other featuresthinking and other featuresbefore midnightbefore midnight
Business:
specialisationspecialisation-formatted
after midnightafter midnight
Business:
integrationintegration-formatted
Automatic ThinkingAutomatic Thinking
(associated to specialised
jobs)
and/or
ExternallyExternally--guided Thinkingguided Thinking
(from Management above)
Hard, creative thinking
Value-generating thinking
SelfSelf--integratedintegrated Thinking
Both lead to:
Reactive ThinkingReactive Thinking (reaction to
the ambient/work before the
person)
Leads to:
Projective/ProProjective/Pro--active Thinkingactive Thinking
(controls and manages the
ambient/work before the
person)
98
Based on brainbrain--lazinesslaziness :
needs external authorityexternal authority
to be governed
Based on own brainbrain--
powerpower : has the authority
internally
Suitable for fragmented
bits of work (work
formatted Adam Smith
style)
Suitable for
integrated flow of
work (a process)
before midnightbefore midnight after midnightafter midnight
thinking and other featuresthinking and other features
MaintainsMaintains only (it may even
destroy...)BuildsBuilds, achieves, generates
wealth
Keeps people busy at making
things going (deceiving
oneself to be working hard)
Makes people stick to value
generation (working hard for
production of Value)
Self-integrated Thinking
discouraged (dangerous !!)
Self-integrated Thinking
promoted (essential !!!)
before midnightbefore midnight after midnightafter midnight
PushPush functioning, top-
driven/imposedPullPull functioning, market/client-
driven
thinking and other featuresthinking and other features
99
COMPLEXITY: COMPLEXITY:
many people using specialised
thinking to control many
others using automatic and/or
externally-guided thinking.
Absurdity.
SIMPLICITYSIMPLICITY:
fewer people using hard,
integrated thinking,
empowered to manage value
generating processes - simply
controlled (in-process and in
real-time control through basic
indicators).
before midnightbefore midnight after midnightafter midnight
Based on “DELEGATIONDELEGATION"
which, in the majority of
cases, is not transmission of
responsibilities, but
evaporation of responsibilities
(fresh-air effect).
Based on EMPOWERMENTEMPOWERMENT
which is integral/total transfer
of responsibilities.
Empowering = transferring a
business mind to all bodies
concerned with value
generation
thinking and other featuresthinking and other features
Leads to stagnationstagnation (un-
integrated, cul-de-sac
responsibilities): people
stagnating into day-to-day
problems that get trapped with
Leads to wealthwealth (integrated
responsibilities & areas of
purpose): people
concentrating only onto value
generation
before midnightbefore midnight after midnightafter midnight
88--5 attitude5 attitude/mentality because
of little purpose or none at all Entrepreneurial attitudeEntrepreneurial attitude
because of areas of purpose
Personnel have little/no
purpose, therefore little/no
MOTIVATIONMOTIVATION. The typical
employee does not know,
does not feel, only has cul-de-
sac responsibilities....
Entrepreneur's attitude,
approach, MOTIVATIONMOTIVATION,
knowledge and sensations
because of areas of purpose
thinking and other featuresthinking and other features
100
Generally leads (in a
conscious or un-conscious
mode) to employees'
DISSATISFACTIONDISSATISFACTION - cul-de-
sac responsibilities are the
best guarantee of frustration,
stress and dissatisfaction
Generally leads to employees'
JOBJOB--SATISFACTIONSATISFACTION -
integrated responsibilities are
the essence of real values,
happiness and excitement
Motto: "...work is a necessary
evil..."
Motto: "...work is a gymnasium
in which people can practise,
test themselves, evolve,
develop, learn, grow, and be
happy and proud of the value
they produce..."
before midnightbefore midnight after midnightafter midnight
thinking and other featuresthinking and other features
Knowledge, associated to
specialised work, is the most
valuable asset: it must be
maintained, preserved and
protected
Knowledge is not as
important. The ability to
"learn" and the opening to
"learning" and perfecting
knowledge are most
important.
Traditional, static
Organisation
Dynamic, Learning
Organisation
before midnightbefore midnight after midnightafter midnight
thinking and other featuresthinking and other features
101
TOTAL EMPLOYEE TOTAL EMPLOYEE
PERFORMANCEPERFORMANCE
Beyond TEI
Why do all traditional HR management and Why do all traditional HR management and
motivational techniques somehow fail?motivational techniques somehow fail?
Management by Objectives, Effective Leadership, Diversification,
Z Theory, Situational Leadership, Effective Communication, Zero-
based-Budgeting, Decentralisation, Team Building, Management
by Exception, Dale Carnegie techniques, Interpersonal Skills,
Quality Circles, Excellence, Restructuring, Portfolio Management,
Interactive Management, Matrix Organisational Structure, Total
Quality Management, ISO 9000..... and One-Minute Managing......
TEI and beyond - TEP: TOTAL EMPLOYEE PERFORMANCE
102
“It is not a matter of applying
fine psychology, or of following
pipe-smoking top notch
consultants’ refined theories….
the philosophythe philosophy
TEI and beyond - TEP: TOTAL EMPLOYEE PERFORMANCE
…..it is just a matter of
understanding that time is due to
go back to basics: few, but clear,
core concepts - few, but well
identified, values – and, most of
all, simple, basic methods......
TEI and beyond - TEP: TOTAL EMPLOYEE PERFORMANCE
the philosophythe philosophy
103
Give a chance to people to perform, to be job-
satisfied, and to re-gain professional dignity,
by empowering them to be totally responsible
and accountable for a complete process, of
which they can understand the entity, the
parameters, the importance, the inputs, the
outputs, the client, the associated value, and
the performance measuring criteria.
TEI and beyond - TEP: TOTAL EMPLOYEE PERFORMANCE
the philosophythe philosophy
….give people a chance to be
craftsmen in their workshop,
or traders in their shop, in
strict contact with their
customers....
TEI and beyond - TEP: TOTAL EMPLOYEE PERFORMANCE
the philosophythe philosophy
104
…give people a chance to be
proud of the value they
generate, of the wealth they
create for themselves, and for
others......”
TEI and beyond - TEP: TOTAL EMPLOYEE PERFORMANCE
the philosophythe philosophy
Value ProducersValue Producers
…let people be responsible..
TEI and beyond - TEP: TOTAL EMPLOYEE PERFORMANCE
the philosophythe philosophy
105
Value ProducersValue Producers
…let people be responsible..
why worldwhy world--class enterprises class enterprises
do not suffer from the do not suffer from the
absenteeism plague? absenteeism plague?
open debateopen debate
106
a world-class
project-driven
enterprise
….shift
from: TGIF
to: TGIM!!to: TGIM!!
TEI and beyond - TEP: TOTAL EMPLOYEE PERFORMANCE
107
a practical model for TEP
108
are there any examples of are there any examples of
TEP actually operational?TEP actually operational?
is the TEP scenario only suited to small businesses?is the TEP scenario only suited to small businesses?
The growth of an Enterprise does not The growth of an Enterprise does not
increase the number of valueincrease the number of value--
generating processes nor the generating processes nor the
number of basic responsibilities. number of basic responsibilities.
It is the way we have changed and It is the way we have changed and
manipulated industry that has manipulated industry that has
created an enormous number of created an enormous number of
““dummydummy””, fictitious responsibilities , fictitious responsibilities
(and functions).......(and functions).......
109
If the business volume grows, there are If the business volume grows, there are
various ways of dealing with it rather various ways of dealing with it rather
than building pyramids. For instance:than building pyramids. For instance:
��a a ““company without a companycompany without a company””
��““parallelparallel””, horizontal processes, horizontal processes
��one or more one or more ““replicareplica”” of the original businessof the original business
a a ““company without a factorycompany without a factory””
110
““ReplicasReplicas””, , ““Parallel ProcessesParallel Processes””, ,
““Companies without a CompanyCompanies without a Company””, and , and
other similar, new business styles have other similar, new business styles have
one very important feature in common: one very important feature in common:
they are
untouchable by
Smith’s virus
HR MANAGEMENT HR MANAGEMENT
in a lean environmentin a lean environment
““simple is beautiful!simple is beautiful!””
““small is beautiful!small is beautiful!””
111
small is beautiful! small is beautiful! -- 11
PaulanerPaulaner BrBrääuhausuhaus
Clock TowerClock Tower
Cape Town WaterfrontCape Town Waterfront
112
113
114
small is beautiful! small is beautiful! -- 22
Bakeries todayBakeries today
115
116
small is beautiful! small is beautiful! -- 33
2 small SA enterprises2 small SA enterprises
117
small is beautiful! small is beautiful! -- 44
williamwilliam
williamwilliam
118
small is beautiful! small is beautiful! -- 55
edithedith
edithedith
119
…….so you would like your people to be: responsible .so you would like your people to be: responsible –– accountable accountable ––
efficient efficient -- dedicated to their work dedicated to their work –– committed to improvementcommitted to improvement…………
THE 3 NECESSARY STEPSTHE 3 NECESSARY STEPS
1) Understand the environmental 1) Understand the environmental
change and manage itchange and manage it
2) Be prepared to abandon the 2) Be prepared to abandon the
““formulaformula””
3) Have a clear direction and tell 3) Have a clear direction and tell
people about itpeople about it……..
4) 4) …….and something more.and something more……....
STEP 4) STEP 4) ((…….the something more.the something more……))
Believe in people and in theirBelieve in people and in their
capacity to grow, evolve and performcapacity to grow, evolve and perform
120
Mc Mc GregorGregor and the Xand the X--Y theoryY theoryHypotheses on human nature
5) People can be self-disciplined and
perform without much control…
5) In order to achieve operational targets, is
indispensable to control people (and often to
“force” them…..)
4) People motivational factors is a cocktail
that includes also social, esteem and self-
fulfilment needs
4) People motivation is restricted to the
satisfaction of physiological and security
needs (lower motivational factors)
3) The capacity of being creative is
potentially widely spread – possibly, it needs
to be “triggered”
3) Most individuals have little creative
capacity (or none at all), therefore they
cannot contribute to solve organisational
problems
2) Most individuals can self-manage and self-
control themselves, which is the basis of a
good performance
2) Most individuals are not ambitious, don’t
like responsibilities and prefer to be
“directed”
1) Working is natural and pleasant as
playing, if there are “favourable” conditions
1) For most individuals “working” is
unpleasant (…a necessary evil….)
Y TheoryY TheoryX TheoryX Theory
Mc Mc GregorGregor and the Xand the X--Y theoryY theory
The Manager:
• Co-ordinates
• Assigns responsibilities
• Delegates
The Manager:
• Directs
• Gives orders
• Controls
Y TheoryY TheoryX TheoryX Theory
121
Generally, for the majority of individuals, the “initial”
situation is “neutral”:
The individual (collaborator) may assume an X behaviour or The individual (collaborator) may assume an X behaviour or
a Y behaviour, depending upon the Managera Y behaviour, depending upon the Manager’’s behaviours behaviour
According to Mc Gregor, individuals with “dominant” X or Y
behaviours (“initially”) would represent the “exception”:
Mc Mc GregorGregor and the Xand the X--Y theoryY theory
Managers may rectify exceptional “initial” collaborators’
behaviours adopting counteracting behaviours:
Mc Mc GregorGregor and the Xand the X--Y theoryY theory
122
Managers may strengthen the X or Y features of
collaborators’ behaviours (initially in a “neutral” situation):
Mc Mc GregorGregor and the Xand the X--Y theoryY theory
the Pygmalion effectthe Pygmalion effect
BELIEVE IN BELIEVE IN
PEOPLE!PEOPLE!
Mc Mc GregorGregor and the Xand the X--Y theoryY theory
123
LegaLega del del filofilo dd’’orooro
http://www.legadelfilodoro.itNon-profit Organisation – Osimo – Italy
Assisting the blind, deaf and dumb.
Communication: MALOSSI
124
…….so you would like your people to be: responsible .so you would like your people to be: responsible –– accountable accountable ––
efficient efficient -- dedicated to their work dedicated to their work –– committed to improvementcommitted to improvement…………
THE CHOICE IS YOURSTHE CHOICE IS YOURS……
methods
traditional
responsibilities
limited
waste
involvement
high
little/none
Job Satisfaction??Job Satisfaction??
…….so you would like your people to be: responsible .so you would like your people to be: responsible –– accountable accountable ––
efficient efficient -- dedicated to their work dedicated to their work –– committed to improvementcommitted to improvement…………
THE CHOICE IS YOURSTHE CHOICE IS YOURS……
methods
lean
value added
high
responsibilities
high
involvement
Job Satisfaction!!Job Satisfaction!!
high
125
total employee total employee
involvementinvolvementA course presented by: Carlo A course presented by: Carlo ScodanibbioScodanibbio
Organised byOrganised by::
CREDITSCREDITS
The documentary material of this course is based on papers and wThe documentary material of this course is based on papers and works by:orks by:
and on personal experience and development by Carlo and on personal experience and development by Carlo ScodanibbioScodanibbio
Music by: Bach Music by: Bach –– Beethoven Beethoven –– Corelli Corelli –– HaydinHaydin –– Rossini Rossini –– Vivaldi Vivaldi –– RimskyRimsky--Korsakov Korsakov
& others& others
Copyright Copyright ©© Carlo Carlo ScodanibbioScodanibbio 20092009
total employee total employee
involvement involvement ““““““““a cultural revolutiona cultural revolutiona cultural revolutiona cultural revolutiona cultural revolutiona cultural revolutiona cultural revolutiona cultural revolution””””””””
126
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