Operation management 6e by russel and taylor ch08

Chapter 8
Human Resources
Operations
Operations Management
Management -- 66thth Edition
Edition
Roberta Russell & Bernard W. Taylor, III

Copyright 2009 John Wiley & Sons, Inc.

Beni Asllani
University of Tennessee at Chattanooga


Lecture Outline
 Human Resources and Quality Management
 Changing Nature of Human Resources
Management
 Contemporary Trends in Human Resources
Management
 Employee Compensation
 Managing Diversity in Workplace
 Job Design
 Job Analysis
 Learning Curves
Copyright 2009 John Wiley & Sons, Inc.

8-2


Human Resources and Quality

Management
 Employees play important
role in quality management
 Malcolm Baldrige National
Quality Award winners have a
pervasive human resource
focus
 Employee training and
education are recognized as
necessary long-term
investments

 Employees have power to
make decisions that will
improve quality and customer
service
 Strategic goals for quality and
customer satisfaction require
teamwork and group
participation

Copyright 2009 John Wiley & Sons, Inc.

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Changing Nature of Human
Resources Management
 Scientific management


Breaking down jobs into
elemental activities and
simplifying job design

 Jobs


 Assembly-line

Comprise a set of tasks,
elements, and job motions
(basic physical
movements)

 In a piece-rate wage
system, pay is based on
output



Production meshed with
principles of scientific
management

 Advantages of task
specialization


High output, low costs,

and minimal training

 Disadvantages of task
specialization

Copyright 2009 John Wiley & Sons, Inc.



Boredom, lack of
motivation, and physical
and mental fatigue
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Employee Motivation
Motivation


Improving Motivation (cont.)

willingness to work hard because
that effort satisfies an employee
need

Improving Motivation
positive reinforcement and
feedback
 effective organization and
discipline

 fair treatment of people
 satisfaction of employee needs
 setting of work-related goals


Copyright 2009 John Wiley & Sons, Inc.

design of jobs to fit employee
 work responsibility
 empowerment
 restructuring of jobs when
necessary
 rewards based on company as
well as individual performance
 achievement of company goals


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Evolution of Theories of
Employee Motivation
Abraham Maslow’s
Pyramid of Human
Needs

Douglas McGregor’s
Theory X and Theory Y
•Theory X Employee

Selfactualization
Esteem
Social
Safety/Security

• Dislikes work
• Must be coerced
• Shirks responsibility
• Little ambition
• Security top motivator

•Theory Y Employee
• Work is natural
• Self-directed
• Controlled
• Accepts responsibility
• Makes good decisions

Physiological (financial)
Copyright 2009 John Wiley & Sons, Inc.

Frederick Herzberg’s
Hygiene/Motivation
Theories
•Hygiene Factors
• Company policies
• Supervision
• Working conditions
• Interpersonal relations
• Salary, status, security

•Motivation Factors
• Achievement
• Recognition
• Job interest
• Responsibility
• Growth
• Advancement

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Contemporary Trends in
Human Resources Management
 Job training



extensive and varied
two of Deming’s 14 points
refer to employee
education and training

 Cross Training


 Empowerment


 Teams

an employee learns more
than one job

 Job rotation


giving employees
authority to make
decisions

horizontal movement
between two or more jobs
according to a plan

Copyright 2009 John Wiley & Sons, Inc.



group of employees work
on problems in their
immediate work area

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Contemporary Trends in Human
Resources Management (cont.)
 Job enrichment


vertical enlargement




allows employees control
over their work



an employee is assigned a
complete unit of work with
defined start and end

 Flexible time

nontraditional work location

 Telecommuting


horizontal enlargement




 Alternative workplace

employees work
electronically from a

location they choose

 Temporary and part-time
employees

part of a daily work
schedule in which
employees can choose
time of arrival and
departure

Copyright 2009 John Wiley & Sons, Inc.



mostly in fast-food and
restaurant chains, retail
companies, package delivery
services, and financial firms

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Employee Compensation
 Types of pay


hourly wage




individual incentive or piece rate




employees are paid for the number of units they produce
during the workday

straight salary




the longer someone works, the more s/he is paid

common form of payment for management

commissions


usually applied to sales and salespeople

Copyright 2009 John Wiley & Sons, Inc.

8-9


Employee Compensation (cont.)

 Gainsharing


an incentive plan joins employees
in a common effort to achieve
company goals in which they
share in the gains

 Profit sharing


sets aside a portion of profits for
employees at year’s end

Copyright 2009 John Wiley & Sons, Inc.

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Managing Diversity in
Workplace
 Workforce has become more diverse




4 out of every 10 people entering workforce during
the decade from 1998 to 2008 will be members of
minority groups
In 2000 U.S. Census showed that some minorities,

primarily Hispanic and Asian, are becoming
majorities

 Companies must develop a strategic approach
to managing diversity
Copyright 2009 John Wiley & Sons, Inc.

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Affirmative Actions vs.
Managing Diversity
 Affirmative action








 Managing diversity

an outgrowth of laws and
regulations
government initiated and
mandated
contains goals and
timetables designed to
increase level of

participation by women
and minorities to attain
parity levels in a
company’s workforce
not directly concerned
with increasing company
success or increasing
profits

Copyright 2009 John Wiley & Sons, Inc.







process of creating a work
environment in which all
employees can contribute
to their full potential in
order to achieve a
company’s goals
voluntary in nature, not
mandated
seeks to improve internal
communications and
interpersonal
relationships, resolve
conflict, and increase

product quality,
productivity, and
efficiency
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Diversity Management Programs







Education
Awareness
Communication
Fairness
Commitment

Copyright 2009 John Wiley & Sons, Inc.

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Global Diversity Issues
 Cultural, language, geography


significant barriers to managing a globally diverse workforce

 E-mails, faxes, Internet, phones, air travel


make managing a global workforce possible but not
necessarily effective

 How to deal with diversity?






identify critical cultural elements
learn informal rules of communication
use a third party who is better able to bridge cultural gap
become culturally aware and learn foreign language
teach employees cultural norm of organization

Copyright 2009 John Wiley & Sons, Inc.

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Attributes of Good Job Design
 An appropriate degree of
repetitiveness
 An appropriate degree of
attention and mental

absorption
 Some employee
responsibility for
decisions and discretion
 Employee control over
their own job

 Goals and achievement
feedback
 A perceived contribution
to a useful product or
service
 Opportunities for
personal relationships
and friendships
 Some influence over the
way work is carried out
in groups
 Use of skills

Copyright 2009 John Wiley & Sons, Inc.

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Factors in Job Design
 Task analysis


how tasks fit together to form a job

 Worker analysis


determining worker capabilities and responsibilities for a
job

 Environment analysis


physical characteristics and location of a job

 Ergonomics


fitting task to person in a work environment

 Technology and automation


broadened scope of job design

Copyright 2009 John Wiley & Sons, Inc.

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Elements of Job Design

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Job Analysis
 Method Analysis (work methods)




Study methods used in the work included in
the job to see how it should be done
Primary tools are a variety of charts that
illustrate in different ways how a job or work
process is done

Copyright 2009 John Wiley & Sons, Inc.

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Process Flowchart Symbols
Operation:
An activity directly contributing to product or service

Transportation:
Moving the product or service from one location to another

Inspection:
Examining the product or service for completeness,

irregularities, or quality

Delay:
Process having to wait

Storage:
Store of the product or service

Copyright 2009 John Wiley & Sons, Inc.

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Process Flowchart

Copyright 2009 John Wiley & Sons, Inc.

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Job Photo-Id Cards
Time
(min)

–1

WorkerMachine
Chart

Operator

Date
Time
(min)

Photo Machine

2.6

Idle

–2

Key in customer data
on card

–3

Feed data card in

0.4

Accept card

–4
–5

10/14

Position customer for photo 1.0

Idle

Take picture

0.6

Begin photo process

Idle

3.4

Photo/card processed

Inspect card & trim edges

1.2

Idle

–6
–7
–8
–9

Copyright 2009 John Wiley & Sons, Inc.

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Worker-Machine Chart: Summary

Summary
Operator Time

%

Photo Machine Time

%

Work

5.8

63

4.8

52

Idle

3.4

37

4.4

48

Total

9.2 min

100%

9.2 Min

100%

Copyright 2009 John Wiley & Sons, Inc.

8-22


Motion Study
 Used to ensure efficiency of motion in
a job
 Frank & Lillian Gilbreth
 Find one “best way” to do task
 Use videotape to study motions

Copyright 2009 John Wiley & Sons, Inc.

8-23


General Guidelines for

Motion Study
 Efficient Use Of Human Body

 Work
simplified, rhythmic and symmetric
 Hand/arm motions
coordinated and simultaneous
 Employ full extent of physical capabilities
 Conserve energy
use machines, minimize distances, use momentum
 Tasks
simple, minimal eye contact and muscular effort, no
unnecessary motions, delays or idleness

Copyright 2009 John Wiley & Sons, Inc.

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General Guidelines for
Motion Study
 Efficient Arrangement of Workplace

 Tools, material, equipment - designated, easily
accessible location
 Comfortable and healthy seating and work area

 Efficient Use of Equipment

 Equipment and mechanized tools enhance worker

abilities
 Use foot-operated equipment to relieve hand/arm
stress
 Construct and arrange equipment to fit worker use

Copyright 2009 John Wiley & Sons, Inc.

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