1. Human Resource Practices

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.”

3. Objectives of HRM
To build a high-performance workplace and maintain an environment for quality excellence to enable employees and the organization to achieve strategic objectives and adapt to change.

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

5. Leading Practices (1 of 2)
Design, organize, and manage work and jobs to promote cooperation, initiative, empowerment, innovation, and organizational culture
Promote teamwork and skill sharing across work units and locations
Empower individuals and teams to make decisions that affect quality and customer satisfaction
Develop effective performance management systems, compensation, and reward and recognition approaches

6. Leading Practices (2 of 2)
Effective processes for hiring and career progression
Make extensive investments in training and education
Motivate employees to develop and use their full potential
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

7. 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

8. Functions of Teams Solve Analyze Implement solutions Identify problems
Select
problem
Collect
data
Focus
attention
Find
causes
Develop
Pick best
solution
follow-up
plan
Solve
Analyze

9. Ingredients for Successful Teams
Balanced participation
Established ground rules
Awareness of group process
Use of scientific approach
Clarity in team goals
Improvement plan
Clearly defined roles
Clear communication
Beneficial team behaviors
Well-defined decision procedures

10. High Performance Work Systems
Compensation and recognition
Work and Job Design
Flexibility
Innovation
Knowledge and skill sharing
Organizational alignment
Customer focus
Rapid response
Health and safety
Empowerment
Suggestion systems
Employee Involvement
Training and Education
Teamwork and Cooperation

11. 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

12. Enhancing Work Design Job enlargement – expanding workers’ jobs
Job rotation – having workers learn several tasks and rotate among them
Job enrichment – granting more authority, responsibility, and autonomy

13. 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

14. Advantages of EI
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
Replaces adversarial mentality with trust and cooperation
Develops skills and leadership abilities
Increases morale and commitment
Fosters creativity and innovation

15. Empowerment “A sincere belief and trust in people.”
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.”

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

17. Training and Education
Meeting customer requirements
Process analysis
Process simplification
Waste reduction
Cycle time reduction
Error proofing
Quality awareness
Leadership
Project management
Communications
Teamwork
Problem solving
Interpreting and using data

18. Compensation and Recognition
Merit versus capability/performance based plans
Gainsharing
Recognition
Monetary or non-monetary
Formal or informal
Individual or group

19. 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

20. 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

21. Measuring Employee Satisfaction and Effectiveness
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