1

Human Resources and Job Design

2

Outline GLOBAL COMPANY PROFILE: SOUTHWEST

AIRLINES HUMAN RESOURCE STRATEGY FOR

COMPETITIVE ADVANTAGE Constraints on Human Resource Strategy

LABOR PLANNING Employment-Stability Policies Work Schedules Job Classifications and Work Rules

3

Outline - Continued JOB DESIGN

Labor Specialization Job Expansion Psychological Components of Job Design Self-Directed Teams Motivation and Incentive Systems Ergonomics and Work Methods

THE VISUAL WORKPLACE LABOR STANDARDS

4

Learning Objectives

When you complete this chapter, you should be able to :

Identify or Define: Job design Job specialization Job expansion Tools of methods analysis Ergonomics Labor standards Andon

5

Learning Objectives - Continued

When you complete this chapter, you should be able to :

Describe or explain: Requirements of good job design The visual workplace

6

Southwest Airlines Profitable for 26 years while United,

Northwest, and USAir lost billions. Strategy: Human resources

Culture of caring for people in the totality of their lives, not just at work.

Spends more to recruit and train than any other airline

7

Southwest Airlines

Empowered employees Wages higher than industry average Stock options for some employees Employees treated like customers Everybody understands what everybody

else’s problems are No gimmicks!

8

Objective of Human Resource Strategy

To manage labor and design jobs so people are effectively and efficiently utilized

9

People and Work System Goals

Use people efficiently within constraints

Provide reasonable quality of work life

© 1995 Corel Corp.

10

Constraints on Human Resource Strategy

Product strategy- Skills needed- Talents needed- Materials used- Safety

Location strategy- Climate- Temperature- Noise- Light- Air quality

Schedule- Time of day- Time of year(seasonal)- Stability of schedules

Individual differences- Strength and fatigue- Information processing and response

Layout strategy- Fixed position- Process- Assembly line- Work cell- Product

Process strategy- Technology- Machinery and equipment used- Safety

Human Resource Strategy

What

Where How

Who

Procedure

When

11

People and Work System Aspects

Job Design

Job Design

Labor Standards

Labor Standards

12

Labor Planning/Stability Policies Follow demand exactly

keeps direct labor costs tied closely to production

incurs costs of hiring/firing unemployment

insurance labor wage premium

Hold employment constant maintains a trained

workforce incurs costs of

idle time when demand is low

meeting increased demand when demand is high

13

Productivity in Relation to Annual Turnover Rate

$200,000

$153,000

$150,000

$130,000

$125,000

$120,000

<3%

3-5%

6-10%

11-15%

16-20%

>20%

14

Determining Policies of Labor Stability

Employer policies are partly determined by management’s view of labor costs – as a

fixed cost, or as a variable cost.

15

Work Schedules Standard work schedule

five eight-hour days

Flex-time allows employees, within prescribed limits, to determine

their own schedules

Flexible work week four 10-hour days

Part-time less than eight hours per day, or an irregular schedule

16

Job Classifications and Work Rules

Specify who can do what when they can do it

under what conditions they can do it

Often result of union pressure Restricts flexibility in assignments;

consequently restricts efficiency of production

17

Job Design

Specifying the tasks that make up a job for an individual or group

Involves determining What is to be done (i.e., responses) How it is to be done (i.e., tools etc.) Why it is to be done (i.e., purpose)

Results in job description Shows nature of job in task-related behaviors

18

Components of Job Design

Job specialization Job expansion Psychological components Self-directed teams Motivation and incentive systems Ergonomics and work methods

19

Job Specialization

InvolvesBreaking jobs into small component parts Assigning specialists to do each partFirst noted by Adam Smith (1776)Observed how workers in pin factory

divided tasks into smaller componentsFound in manufacturing &

service industries

© 1995 Corel Corp.

20

Greater dexterity & faster learningLess lost time changing jobs or toolsUse of more specialized toolsPay only for needed skills

Job Specialization Often Reduces Cost

21

Job Expansion

Process of adding more variety to jobs Intended to reduce boredom associated with

labor specialization Methods

Job enlargement Job enrichment Job rotation Employee empowerment

22

Job Enlargement/Job Enrichment

Present Job

ControlControl

PlanningPlanningEnriched Job

Task #3Task #3Task #2Task #2Enlarged Job

23

Job Enlargement/Job Enrichment

Present job

Manually insert and solder six resistors

Task #3

Lock printed circuit into fixture for next

operation

Task #2

Adhere labels to printed circuit board

Control

Test circuits after assembly

Planning

Participate in a cross-function quality-

improvement team

Enriched job

Enlarged job

24

Job Rotation

Geriatrics© 1995 Corel Corp.

Pediatrics

© 1995 Corel Corp.

Maternity

© 1995 Corel Corp.

25

Employee Empowerment

Employee Empowerment

Control

Decision-Making

Planning

26

Psychological Components of Job Design

Individuals have values, attitudes, and emotions that affect job results

Example: Work is a social experience that affects belonging needs

Effective worker behavior comes mostly from within the individual

Scientific management argued for external financial rewards

First examined in ‘Hawthorne studies’

27

Hawthorne Studies

Conducted in late 1920’sWestern Electric Hawthorne plantShowed importance of the individual in

the workplaceShowed the presence of a social system

in the workplace

28

Originally intended to examine effects of lighting on productivity Scientific management proposed that physical conditions

affect productivity

Result: Productivity increased regardless of lighting level

Conclusion: Increased productivity was due to workers’ receiving attention

Hawthorne Studies: Workplace Lighting

29

Examined effects of group piecework pay system on productivity

Workers under piecework system should produce as much as possible

Scientific management assumes that people are motivated only by money

Result: Production less than maximumConclusion: Social pressure caused workers to

produce at group-norm level

Hawthorne Studies: Piecework Pay

30

Self-Directed Teams

Group of empowered individuals working together for a common goal

May be organized for short-term or long-term objectives

Reasons for effectiveness Provide employee empowerment Provide core job characteristics Meet psychological needs (e.g., belonging)

31

Job Design Continuum

Increasing reliance on employees’ contribution and increasing acceptance of responsibility by employee

Specialization

Enlargement

Enrichment

Empowerment

Self-directed Teams

Job Expansion

32

Core Job Characteristics

Skill variety Job identify Job significance Autonomy Feedback

33

Higher capital cost Many individuals prefer simple jobs Higher wages are required since the worker must

utilize a higher level of skill A smaller labor pool exists of persons able and

willing to perform enriched or enlarged jobs Increased accident rates may occur Current technology in some industries does not

lend itself to job enlargement and enrichment

Limitations to Job Enlargement/Job Enrichment

34

Motivation

Worker performance depends on Motivation Ability Work environment

Motivation is the set of forces that compel behavior

Money may serve as a psychological & financial motivator

35

Motivation and Money Taylor’s scientific management (1911)

Workers are motivated mainly by money Suggested piece-rate system

Maslow’s theory (1943) People are motivated by hierarchy of needs,

which includes money

Herzberg (1959) Money either dissatisfies or is neutral in its

effect

36

Monetary Incentives

Bonuses: Cash & stock options Profit sharing: Distribution of profits Gain sharing: Reward for company

performance (e.g., cost reduction) Scanlon plan is most popular (cost reduction.)

Incentive systems Measured daywork: Pay based on standard time Piece rate: Pay based on pieces done

37

Maslow’s Hierarchy of NeedsSelf-Actualization

Use of abilities Self-fulfillment

SocialGroup Interaction

Job Status

Safety Physical Safety

Job SecurityPhysiology

Food Shelter

Ego Self Respect

38

Herzberg’s Motivation/Hygiene Factors

Achievement

Recognition

Advancement

Work itself

Responsibility

Personal growth

Company policies and administration

Supervision - technical

Working conditions

Interpersonal relations - supervision

Status

Job security

Salary

Job Dissatisfiers (Hygiene)

Job Satisfiers (Motivators)

39

Job Characteristics

Motivation

Satisfaction

Job performance

Absenteeism & turnover

Core Job CharacteristicsCore Job Characteristics

Psychological StatesPsychological States

Personal & Work Outcomes

Personal & Work Outcomes Hackman & Oldham

40

Ergonomics and Work Methods

Worker performance depends on Motivation Ability Work environment

Foundation laid by Frederick Taylor Match employees to task Develop work methods Establish work standards

41

Ergonomics

Study of work Also called ‘human factors’ Involves human-machine interface Examples

Mouse Keyboard

42

Recommended Levels of Illumination

Good contrast, fairly large

objects

Task Condition Illumination Level(Ft-C)

100

Normal detail,prolonged periods

20-50

5-10

Large objects 2-5

Type of Task or Area

Type of Illumination

Overhead ceilinglights and desk

lamp

Sewing,inspecting

dark materials

Small detail;Extremeaccuracy

Recreationalfacilities

Reading, partsassembly, general

office work

Restaurants,stairways,

warehouses

Overhead ceilinglights

Overhead ceilinglights

Overhead ceilinglights

43

Decibel levels for Various SoundsEnvironmental Noises Common Noise Sources Decibels

Jet takeoff (200 ft) 120Casting shakeout area Riveting machine 110Electric furnace area

Printing press plant

Pneumatic peen hammer,textile weaving plant

Subway train

100

90

Veryannoying

Inside sports car (50 mph)

Near freeway (auto traffic)

Pneumatic drillFreight trainVacuum cleaner (10 ft)

Speech (1 ft)

80

70

Earprotectionrequired ifexposed 8hours ormore

Large storePrivate business officeLight traffic (100ft) Large transformer (200ft)

60

50

Intrusive

QuietMinimum levels, residentialareas in Chicago at night Soft whisper

40

30 Very quiet

Earprotection required

44

Methods Analysis Focuses on how task is performed Used to analyze

Movement of body, people, or material Activities of people & machines

Tools Process chart Flow diagram Activity chart Operations chart (right-hand, left-hand)

45

Methods Analysis Used to Study

Movement of individuals or materials (Flow diagrams or process charts)

Activity of human and machine and crew activity (Activity charts)

Body movement (primarily hands) (Micro-motion charts)

46

Process Chart

= operation; = transport; = inspect; D = delay; = storage

SUBJECT: Request tool purchase

Dist (ft) Time (min) Symbol Description

Write order

On desk

75 To buyer

Examine

D

D

D

D

47

Flow Diagram

Buyer

You

75 ft.

48

Flow Diagram and Process Chart of Axle-Stand Production Line

49

Activity Chart for Two-Person Oil-Change Crew

50

Operations Chart (Left Hand/Right Hand)

51

Activity ChartSubject: Semi-Auto Machine

Operator MachineTime

1

2

3

4

5

6

Load machine Being loaded

Idle Run

Unload Being Unloaded

Present

52

The Visual Workplace

Uses low-cost visual devices to share information quickly and accurately.

Displays and graphs replace paper Provides real-time information System should focus on improvement, not

merely monitoring Can provide both production and financial

data

53

The Visual Workplace

54

What is Work Measurement?

Determining the amount of worker time required to generate one unit of output

Provides labor standards Target amount of time required to perform a

job under normal working conditions

55

Uses of Labor Standards

Costing labor content of products Planning staffing needs Cost & time estimates for bids Planning production Wage-incentive plans Employee efficiency

56

Sources of Labor Standards

Historical experience Time studies Predetermined time standards (MTM) Work sampling

57

Labor Standards - Historical Experience

Labor standards are based on how many labor-hours were needed in past

Least preferred method Advantages

Easy and inexpensive to obtain standard

Disadvantages Unknown accuracy due to unusual

occurrences, unknown pace etc.

58

A Final Thought

© 1995 Corel Corp.

Church of the Holy Family (Barcelona)

Two stonecutters were asked what they were doing. The first said, ‘I’m cutting this stone into blocks.’ The second one replied, ‘I’m on a team that’s building a cathedral.’

— Old Story