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Irwin/McGraw-Hill 1

What is Job Design?

Job designis the function of specifyingthe work activities of an individual or

group in an organizational setting.

The objective of job design is todevelop jobs that meet the requirements

of the organization and its technology andthat satisfy the jobholders personal andindividual requirements.

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Irwin/McGraw-Hill 2

Decisions in Job Design

Mental and

physical

characteristicsof the

work force

Tasks to be

performed

Geographic

locale of the

organization;location of

work areas

Time of day;

time of

occurrence in

the work flow

Organizational

rationale for

the job; object-

ives and mot-

ivation of the

worker

Method of

performance

and

motivation

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Irwin/McGraw-Hill 3

Trends in Job Design1. Quality control as part of the worker's job

2. Cross-training workers to perform multiskilled jobs

3. Employee involvement and team approaches to

designing and organizing work4. "Informating" ordinary workers through

telecommunication networks and computers

5. Extensive use of temporary workers

6. Automation of heavy manual work

7. Organizational commitment to providing meaningfuland rewarding jobs for all employees

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Behavioral Considerations inJob Design

Degree of Specialization

Job Enrichment (vs. Enlargement)

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Irwin/McGraw-Hill 5

Sociotechnical Systems

ProcessTechnologyNeeds

Worker/GroupNeeds

Skill Variety

Feedback

Task Identity

Task Autonomy

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Irwin/McGraw-Hill 6

Physical Considerations

Attitude isnt everything

Can a worker perform physically?

Work Physiology

Sets work-rest cycles based on energy

expenditure

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Work Methods

Workers Interacting

with Other Workers

A Production

Process

Worker at a Fixed

Workplace

Worker Interacting

with Equipment

Ultimate

Job

Design

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8/30Irwin/McGraw-Hill 8Operations Strategy/Process

Analysis

Work Measurement:Why do We Need to Set Work Standards?

1. To schedule work and allocate capacity

2. To provide an objective basis for motivatingthe workforce and measuring theirperformance

3. To bid for new contracts and to evaluateperformance on existing ones

4. To provide benchmarks for improvement

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Time Study:The Search for Measurable Job Elements

Short in duration--but long enough to time

Separate worker actions from machineactions

Define any delays by the operator orequipment into separate elements

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Determining Standard Times

Calculate them yourself

Use elemental standard-time data

Use pre-determined motion-time data

systems

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Time Study Example Problem

You want to determine the standard time for a job.The employee selected for the time study hasproduced 20 units of product in 8 working hours.

Your observations made the employee nervous andyou estimate that the employee worked about 10percent faster than what is a normal pace for the

job. Allowances for the job represent 25 percent of

the normal time.

Question: What are the normal and standardtimes for this job?

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Work Sampling

Use inference to make statements aboutwork activity based on a sample of the

activity.

Output of Work Sampling:

Performance Measurement Time Standards

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Advantage of Work Samplingover Time Study

Several work sampling studies may be conductedsimultaneously by one observer.

The study may be temporarily delayed at any time.

The observer need not be a trained analyst unlessdetermining a time standard.

No timing devices are required.

Work of a long cycle time may be studied with a fewerobserver hours.

Minimizes effects of short-period variations andinfluence by the operator or worker.

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Basic Compensation Systems

Hourly Pay

Straight Salary

Piece Rate

Commissions

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Financial Incentive Plans

Individual and Small-Group Plans Output measures

Quality measures

Pay for knowledge

Organization-wide Plans Profit sharing

Gainsharing Bonus based on controllable costs or units of

output

May be part of participative management

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Scanlon PlanBasic Elements

Ratio =Total labor cost

Sales value of production The ratio

Standard for judging business performance

The bonus

Depends on reduction in costs below the presetratio

The production committee

The screening committee

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Levis Jeans Case

Moved away from piece rates.

Team concept put in place in theirfactories.

Brought in consultants to reengineerteam process.

Questions What went wrong with the team process? What should have been done differently?

Was the final result inevitable?

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Business ProcessReengineering

Reengineering is the fundamentalrethinking and radicalredesign ofbusinessprocessesto achievedramaticimprovements in critical,contemporary measures of

performance such as cost, quality,service, and speed.

Source: Hammer, Michael and James Champy (1993) Reengineering the Corporation: A Manifesto forBusiness Revolution. New York: Harper

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Key Words

Fundamental

Whydo we do what we do?

Radical

Business reinventionvs. business improvement

Dramatic

Reengineering should be brought in when a need

exists for heavy blasting. Business Process

a collection of activities that takes inputs andcreates an output that is of value to a customer.

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Business Process Reengineering

SeniorManagement

Middle

Management

SupervisoryManagement

Workers

Decide What Business

We Are In

Eliminate AnExisting Process

Replace AnExisting Process

Improve AnExisting Process

ContinuousImprovement

OrReengineering?

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Principles of Reengineering

Organize around outcomes, not tasks

Put the decision point where the work isperformed, and build control into the process

Merge information-processing work into thework that produces the information

Treat geographically dispersed resources asthough they were centralized

Link parallel activities instead of integratingtheir results

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The Reengineering Process(1 of 2)

1. State a Case for Action

2. Identify the Process for Reengineering

3. Evaluate Enablers of Reengineering

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4. Create a New Process Design

5. Understand the Current Process

(high level only)

6. Implement the Reengineered Process

The Reengineering Process(2 of 2)

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Reengineering & Continuous Improvement

Source: Reprinted by permission of Harvard Business School Press from Process Innovation

Reengineering Work Through Information Technology by Thomas H. Davenport. Boston: 1993

p. 51. Copyright 1993 by The President and Fellows of Harvard College.

Reengineering Continuous Improvement

Similarities

Basis of analysis Process ProcessPerformance measurement Rigorous RigorousOrganizational change Significant Significant

Behavioral change Significant SignificantTime investment Substantial Substantial

Differences

Level of change Radical IncrementalStarting point Clean slate Existing processParticipation Top-down Bottom-up

Typical scope Broad, cross-functional Narrow, within functionsRisk High ModeratePrimary enabler Information technology Statistical controlType of change Cultural and Structural Cultural

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Integrating Reengineering andContinuous Improvement

Sequence Change Initiatives

Create a Portfolio of Process Change Programs

Limit the Scope of Work Design

Undertake Improvement through Innovation

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A System of Process Improvement:Continuous Improvement & Reengineering

time

Productivity

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Re-engineering:Current Situation

B

Specialization

Lots of handoffs(white space)

Lots of opportunityfor defects

A

C

DE

F

G

Th R i d P

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The Re-engineered Process

Ownership

Reducedhandoffs

Reduced cycletime anddefects F

A

C

G

B D

E

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Why is it that we accept a 4 week

wait to see a doctor, but in themortgage business, the consumerdictates the closing dates to the

mortgage company?

The Reengineering Process

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Six Sigma: DMAIC vs. DMADV

Define

Measure

Analyze

Design

Validate

Improve

Control

Continuous Improvement Reengineering

Mba 8155 Slides 4

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