1. Chapter 4 Workforce Focus
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 10E, © 2017 Cengage Publishing,

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. Workforce
…everyone who is actively involved in accomplishing the work of an organization. This encompasses paid employees as well as volunteers and contract employees, and includes team leaders, supervisors, and managers at all levels.
Many companies refer to their employees as “associates” or “partners” to signify the importance that people have in driving business performance.

4. Workforce Focus in ISO 9000
Personnel performing work affecting product quality shall be competent on the basis of appropriate education, training, skills, and experience.
Organizations should determine the level of competence that employees need, provide training or other means to ensure competency, evaluate the effectiveness of training or other actions taken, ensure that employees are aware of how their work contributes to quality objectives, and maintain appropriate records of education, training, and experience.
The standards address the work environment from the standpoint of providing buildings, workspace, utilities, equipment, and supporting services needed to achieve conformity to product requirements, as well as determining and managing the work environment, including safety, ergonomics, and environmental factors.

5. Key Workforce-Focused Practices for Performance Excellence (1 of 2)
Understand the key factors that drive workforce engagement, satisfaction, and motivation.
Design and manage work and jobs to promote effective communication, cooperation, skill sharing, empowerment, innovation, and the ability to benefit from diverse ideas and thinking of employees and develop an organizational culture conducive to high performance and motivation.
Make appropriate investments in development and learning, both for the workforce and the organization’s leaders.
Create an environment that ensures and improves workplace health, safety, and security, and supports the workforce via policies, services, and benefits.

6. Key Workforce-Focused Practices for Performance Excellence (2 of 2)
Develop a performance management system based on compensation, recognition, reward, and incentives that supports high performance work and workforce engagement.
Assess workforce engagement and satisfaction and use results for improvement.
Assess workforce capability and capacity needs and use the results to capitalize on core competencies, address strategic challenges, recruit and retain skilled and competent people, and accomplish the work of the organization.
Manage career progression for the entire workforce and succession planning for management and leadership positions.

7. Quality Profile: VACSP
The Veterans Affairs Cooperative Studies Program (VACSP) Clinical Research Pharmacy Coordinating Center (the Center) is a federal government organization that supports clinical trials targeting current health issues for America’s veterans.
The Center sees engagement as the single most important criterion for workforce satisfaction.
Excellence in the workplace, superior customer service, and personal involvement in organizational improvement are rewarded through the Center’s performance management system with visible, tangible benefits.

8. Quality Profile: PRO-TEC Coating Company
A joint venture between United States Steel Corporation and Kobe Steel Ltd. of Japan, providing coated sheet steel primarily to the U.S. automotive industry.
Culture centered around three fundamental concepts—ownership, responsibility, and accountability.
Associates work in self-directed teams and are empowered, innovative leaders who fix problems as they are identified.

9. Evolution of Workforce Management
Taylor system and scientific management
Improved productivity
Changed manufacturing work into series of mundane and mindless tasks
Promulgated adversarial relationships between labor and management
Failed to exploit the knowledge and creativity of the workforce

10. Workforce Management
Workforce management (which has also been widely known as human resource management, or HRM) consists of those activities designed to provide for and coordinate the people of an organization.
determining the organization’s workforce needs;
assisting in the design of work systems;
recruiting, selecting, training and developing, counseling, motivating, and rewarding employees;
acting as a liaison with unions and government organizations; and
handling other matters of employee well-being.

11. Strategic Human Resource Management
… concerned with the contributions HR strategies make to organizational effectiveness, and how these contributions are accomplished.
It involves designing and implementing a set of internally consistent policies and practices to ensure that an organization’s human capital (employees’ collective knowledge, skills, and abilities) contributes to overall business objectives.

12. High Performance Work Culture
Performance - the extent to which an individual contributes to achieving the goals and objectives of an organization.
High-performance work - work approaches used to systematically pursue ever-higher levels of overall organizational and human performance.
Characterized by:
flexibility
innovation
knowledge and skill sharing
alignment with organizational directions, customer focus, and rapid response to changing business needs and marketplace requirements

13. “Conditions of Collaboration” in a High Performance Work Culture
Respect
Aligned values
Shared purpose
Communication
Trust

14. Workforce Engagement
… the extent of workforce commitment, both emotional and intellectual, to accomplishing the work, mission, and vision of the organization. Engaged workers
find personal meaning and motivation in their work,
have a strong emotional bond to their organization, are actively involved in and committed to their work,
feel that their jobs are important, know that their opinions and ideas have value, and
often go beyond their immediate job responsibilities for the good of the organization.

16. Advantages of Workforce Engagement
Replaces the adversarial mentality with trust and cooperation
Develops the skills and leadership capability of individuals, creating a sense of mission and fostering trust
Increases employee morale and commitment to the organization
Fosters creativity and innovation, the source of competitive advantage
Helps people understand quality principles and instills these principles into the corporate culture
Allows employees to solve problems at the source immediately
Improves quality and productivity

17. Top Drivers of Workforce Engagement
1. Commitment to organizational values. 2. Knowing that customers are satisfied with products and services. 3. Belief that opinions count. 4. Clearly understanding work expectations. 5. Understanding of how personal contributions help meet customer needs. 6. Being recognized and rewarded fairly. 7. Knowing that senior leaders value the workforce. 8. Being treated equally with respect. 9. Being able to concentrate on the job and work processes. 10. Alignment of personal work objectives to work plans.

18. Employee Involvement (EI)
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.
Example: employee suggestion system - a management tool for the submission, evaluation, and implementation of an employee’s idea to save cost, increase quality, or improve other elements of work such as safety.

19. Motivation 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)

21. Designing High-Performance Work Systems
Work and Job Design
Empowerment
Teamwork
Work Environment
Workforce Learning and Development
Compensation and Recognition
Performance Management

22. Work and Job Design
Work design refers to how employees are organized in formal and informal units, such as departments and teams.
Job design refers to responsibilities and tasks assigned to individuals.

23. Hackman-Oldham Model
The model proposes that five core characteristics of job design (task significance, task identity, skill variety, autonomy, and feedback from the job) influence three critical psychological states (experienced meaningfulness, experienced responsibility, and knowledge of results), which in turn, drive work outcomes (employee motivation, growth satisfaction, overall job satisfaction, and work effectiveness).

24. 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

25. 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.”

26. 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

27. 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

28. Types of Teams Management teams Natural work teams Self managed teams
Virtual teams
Quality circles
Problem solving teams
Project teams

30. Team Skill Requirements
Conflict management and resolution
Team management
Leadership skills
Decision making
Communication
Negotiation
Cross-cultural training

32. Life Cycle of Teams
Forming takes place when the team is introduced, meets together, and explores issues of their new assignment.
Storming occurs when team members disagree on team roles and challenge the way that the team will function.
Norming takes place when the issues of the previous stage have been worked out, and team members agree on roles, ground rules, and acceptable behavior when doing the work of the team.
Performing characterizes the productive phase of the life cycle when team members cooperate to solve problems and complete the goals of their assigned work.
Adjourning is the phase in which the team wraps up the project, satisfactorily completes its goals, and prepares to disband or move on to another project.

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

34. Workplace Environment
Key factors:
Health
Safety
Overall well-being

35. Workforce Learning and Development
Research indicates that companies that spend heavily on training their workers outperform companies that spend considerably less, as measured on the basis of overall stock market returns.
Focus on both what people need to know as well as what things they need to know how to do.
Continual reinforcement of knowledge learned is essential.

37. Compensation and Recognition
Compensation and recognition refer to all aspects of pay and reward, including promotions, bonuses, and recognition, either monetary and nonmonetary or individual and group.
Compensation
Merit versus capability/performance based plans
Gainsharing
Recognition
Monetary or non-monetary
Formal or informal
Individual or group

38. 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

39. Performance Management
How you are measured is how you perform!
Conventional performance 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

41. Assessing Workforce Effectiveness, Satisfaction, and Engagement
Outcome Measures
number of teams, rate of growth, percentage of employees involved, number of suggestions implemented, time taken to respond to suggestions, employee turnover, absenteeism, and grievances; perceptions of teamwork and management effectiveness, engagement, satisfaction, and empowerment.

42. Assessing Workforce Effectiveness Satisfaction, and Engagement
Process Measures
number of suggestions that employees make, numbers of participants in project teams, participation in educational programs, average time it takes to complete a process improvement project, whether teams are getting better, smarter, and faster at performing improvements, improvements in team selection and planning processes, frequency of use of quality improvement tools, employee understanding of problem-solving approaches, and senior management involvement

43. Measuring Workforce Engagement
Gallup Q survey statements that Gallup found as those that best form the foundation of strong feelings of engagement. Factors include:
what is expected in one’s work
having the right materials and equipment to do the job
receiving recognition and feedback on progress and development
having opinions that count
feeling of importance of the job
opportunities to learn grow and develop

44. Gallup Engagement Index Classification
1. Engaged employees who work with passion and feel a profound connection to their company. They drive innovation and move the organization forward. 2. Not-engaged employees who are essentially “checked out.” They are sleepwalking through their workday. They are putting in time, but not enough energy or passion into their work. 3. Actively disengaged employees who aren’t just unhappy at work; they’re busy acting out their unhappiness. Every day, these workers undermine what their engaged coworkers accomplish.

45. Sustaining High-Performance Work Systems
Regular assessment of
workforce capability and capacity needs;
hiring, training and retention of employees; and
career progression and succession planning

46. Workforce Capability and Capacity
Workforce capability refers to an organization’s ability to accomplish its work processes through the knowledge, skills, abilities, and competencies of its people.
Workforce capacity refers to an organization’s ability to ensure sufficient staffing levels to accomplish its work processes and successfully deliver products and services to customers, including the ability to meet seasonal or varying demand levels.

48. Effective Hiring Practices
Determine key employee skills and competencies
Identify job candidates based on required skills and competencies
Screen job candidates to predict suitability and match to jobs

49. Succession Planning
Formal processes to identify, develop, and position future leaders
Mentoring, coaching, and job rotation
Career paths and progression for all employees
Succession planning is vital to long-term organizational sustainability