THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 1 Chapter 6 Human Resource Practices

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 2 Toyota Georgetown “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.”

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 3 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 4 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 5 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 6 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 7 Strategic Perspective HR plans should be linked to business strategy and aligned with business needs Key choices –Planning –Staffing –Appraising –Compensating –Training and development

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 8 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 9 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 10 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 11 Hackman/Oldham 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 12 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 13 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 14 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 15 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 16 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 17 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 18 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 19 Types of Teams Quality circles Problem solving teams Management teams Work teams Project teams Virtual teams

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 20 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 21 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 22 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 23 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 24 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 25 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 26 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 27 Motivation An individual’s response to a felt need Theories –Content Theories: Maslow; MacGregor; Herzberg –Process Theories: Vroom; Porter & Lawler –Environmentally-based Theories: Skinner; Adams; Bandura, Snyder & Williams

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 28 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 29 Measuring Employee Satisfaction and Effectiveness Satisfaction –Quality of worklife, 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 30 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 31 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