11/10/02SJSU Bus David Bentley1 Chapter 6 – Human Resource Practices Key activities, Leading practices, Work design, Job design, Employee involvement, Empowerment, Training and education, Teams, Compensation and recognition, Motivation, Performance appraisal, Baldrige criteria

Rev. 04/10/06SJSU Bus David Bentley2 Toyota Georgetown, KY “We’ve got nothing, technology-wise, that anyone else can’t have. There’s no secret Toyota Quality Machine out there. The quality machine is the workforce -- the team members on the paint line, the suppliers, the engineers -- everybody who has a hand in production here takes the attitude that we’re making world-class vehicles.” 4 time winner of J.D. Power Gold Plant Quality Award THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM Mod. 11/18/02 DAB

11/10/02SJSU Bus David Bentley3 Human Resource Paradigms Old Thinking New Thinking People are part of the process Process requires external control Managers have to control what people do People design and improve processes Workers who run the process control it Managers must obtain commitment of workers THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM

11/10/02SJSU Bus David Bentley4 Key Activities in HRM Determine organization’s HR needs to build a high-performance workplace Assist in design of work systems Recruit, select, train & develop, counsel, motivate, and reward employees Act as liaison with unions & government Handle other matters of employee well-being THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM

11/10/02SJSU Bus David Bentley5 Leading Practices (1 of 2) Integrate HR plans with overall strategic objectives and action plans Design work and jobs to promote organizational learning, innovation, and flexibility Develop effective performance management systems, compensation, and reward and recognition approaches Promote cooperation and collaboration through teamwork THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM

11/10/02SJSU Bus David Bentley6 Leading Practices (2 of 2) Empower individuals and teams to make decisions that affect quality and customer satisfaction Make extensive investments in training and education Maintain a work environment conducive to the well-being and growth of all employees Monitor extent and effectiveness of HR practices and measure employee satisfaction THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM

Rev. 04/10/06SJSU Bus David Bentley7 Strategic Perspective HR plans should be linked to business strategy and aligned with business needs Key choices on a continuum (see Table 6.3, page 272) Planning Staffing Appraising Compensating Training and development THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM Mod. 11/18/02 DAB

11/10/02SJSU Bus David Bentley8 High Performance Work Systems Work and Job Design Employee Involvement Suggestion systems Empowerment Training and Education Teamwork and Cooperation Compensation and recognition Health and safety Flexibility Innovation Knowledge and skill sharing Organizational alignment Customer focus Rapid response THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM

11/10/02SJSU Bus David Bentley9 Designing High Performance Work Systems Work design - how employees are organized in formal and informal units (departments, teams, etc.) Job design - responsibilities and tasks assigned to individuals THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM

11/10/02SJSU Bus David Bentley10 Work Design Issues Performer/job level: initiative and motivation Process level: cooperation and teamwork Organizational level: well-being; link to strategy THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM

Rev. 11/18/02SJSU Bus David Bentley11 Hackman/Oldham Work Design Model Core job characteristics Critical psychological states Outcomes Skill variety Task identity Task significance Experienced meaningfulness of work Autonomy Feedback from job Experienced responsibility Knowledge of actual results High motivation High satisfaction High work effectiveness Moderators THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM Mod. 11/18/02 DAB

11/10/02SJSU Bus David Bentley12 Employee Involvement Employee Involvement - any activity by which employees participate in work-related decisions and improvement activities, with the objectives of tapping the creative energies of all employees and improving their motivation THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM

11/10/02SJSU Bus David Bentley13 Levels of Employee Involvement 1. Information sharing 2. Dialogue 3. Special problem solving 4. Intra-group problem solving 5. Inter-group problem solving 6. Focused problem solving 7. Limited self-direction 8. Total self-direction THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM

11/10/02SJSU Bus David Bentley14 Advantages of EI Replaces adversarial mentality with trust and cooperation Develops skills and leadership abilities Increases morale and commitment Fosters creativity and innovation Helps people understand quality principles and instilling them into the organization’s culture Allows employees to solve problems at the source Improves quality and productivity THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM

11/10/02SJSU Bus David Bentley15 Empowerment Giving people authority to make decisions based on what they feel is right, to have control over their work, to take risks and learn from mistakes, and to promote change. “A sincere belief and trust in people.” THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM

11/10/02SJSU Bus David Bentley16 Successful Empowerment Provide education, resources, and encouragement Remove restrictive policies/procedures Foster an atmosphere of trust Share information freely Make work valuable Train managers in “hands-off” leadership Train employees in allowed latitude THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM

11/10/02SJSU Bus David Bentley17 Training and Education Quality awareness Leadership Project management Communications Teamwork Problem solving Interpreting and using data Meeting customer requirements Process analysis Process simplification Waste reduction Cycle time reduction Error proofing THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM

11/10/02SJSU Bus David Bentley18 Teams Team - a small number of people with complementary skills who are committed to a common purpose, set of performance goals, and approach for which they hold themselves mutually accountable Effective teams are goal-centered, independent, open, supportive, and empowered THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM

Rev. 04/12/06SJSU Bus David Bentley19 Types of Teams Quality circles Problem solving teams Management teams Natural work teams Project teams [Quality Improvement Teams (QITs) or Process Improvement Teams (PITs)] Virtual teams Six Sigma teams THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM

11/10/02SJSU Bus David Bentley20 Functions of Teams Implement solutions Identify problems Select problem Collect data Focus attention Find causes Develop solutions Pick best solution Develop follow-up plan Solve Identify Analyze THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM

04/12/06SJSU Bus David Bentley21 Six Sigma Project Teams Champions – senior managers who promote Six Sigma Master Black Belts – highly trained experts responsible for strategy, training, mentoring, deployment, and results. Black Belts – Experts who perform technical analyses Green Belts – functional employees trained in introductory Six Sigma tools Team Members – Employees who support specific projects THE MANAGEMENT AND CONTROL OF QUALITY, 6e, © 2005 South-Western/Thomson LearningTM

11/10/02SJSU Bus David Bentley22 Self-Managed Teams Empowered Plan, control, improve work processes Set own goals and inspect own work Schedule & review performance Prepare budgets & coordinate work Order materials, keep inventory, & deal with suppliers Acquire any needed training Hire replacements or discipline members Take responsibility for quality THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM

11/10/02SJSU Bus David Bentley23 Ingredients for Successful Teams (1 of 2 ) Clarity in team goals Improvement plan Clearly defined roles Clear communication Beneficial team behaviors THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM

11/10/02SJSU Bus David Bentley24 Ingredients for Successful Teams (2 of 2) Well-defined decision procedures Balanced participation Established ground rules Awareness of group process Use of scientific approach THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM

11/10/02SJSU Bus David Bentley25 Compensation and Recognition Compensation Merit versus capability/performance based plans Gainsharing Recognition Monetary or non-monetary Formal or informal Individual or group THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM

11/18/02SJSU Bus David Bentley26 Compensation What’s fair? Everyone paid the same By amount of time worked (hours) By job content (job classification / ranking) By output (quantity) By knowledge (education, experience) By supply and demand By demonstrated skills

11/10/02SJSU Bus David Bentley27 Effective Recognition and Reward Strategies Give both individual and team awards Involve everyone Tie rewards to quality Allow peers and customers to nominate and recognize superior performance Publicize extensively Make recognition fun THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM

11/10/02SJSU Bus David Bentley28 Managing HR in a TQ Environment Recruitment and Career Development Motivation Performance Appraisal Measuring Employee Satisfaction and HRM Effectiveness THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM

Rev. 11/18/02SJSU Bus David Bentley29 Motivation An individual’s response to a felt need Theories Content Theories: Maslow; MacGregor; Herzberg – static, how & why Process Theories: Vroom; Porter & Lawler – dynamic, situational Environmentally-based Theories: Skinner; Adams; Bandura, Snyder & Williams – integrate multiple theories THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM Mod. 11/18/02 DAB

11/10/02SJSU Bus David Bentley30 Performance Appraisal How you are measured is how you perform! Conventional appraisal systems Focus on short-term results and individual behavior; fail to deal with uncontrollable factors New approaches Focus on company goals such as quality and behaviors like teamwork 360-degree feedback; mastery descriptions THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM

11/10/02SJSU Bus David Bentley31 Measuring Employee Satisfaction and Effectiveness Satisfaction Quality of work life, teamwork, communications, training, leadership, compensation, benefits, internal suppliers and customers Effectiveness Team and individual behaviors; cost, quality, and productivity improvements; employee turnover; suggestions; training effectiveness THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM

11/10/02SJSU Bus David Bentley32 TQ and Labor Relations Union-management cooperation National Labor Relations Board (NLRB) rulings on employee participation programs Current legislative proposals and actions THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM

11/10/02SJSU Bus David Bentley33 Human Resources in the Baldrige Award Criteria The Human Resource Focus Category examines how an organization motivates and enables employees to develop and utilize their full potential in alignment with the organization’s overall objectives and action plans. Also examined are the organization’s efforts to build and maintain a work environment and an employee support climate conducive to performance excellence and to personal and organizational growth. 5.1 Work Systems 5.2 Employee Education, Training, and Development 5.3 Employee Well-Being and Satisfaction a. Work Environment b. Employee Support and Satisfaction THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM