1. Human Resource Practices
Chapter 6
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. 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

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)
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

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

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

8. 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

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

10. Work Design Issues Performer/job level: initiative and motivation
Process level: cooperation and teamwork
Organizational level: well-being; link to strategy

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
responsibility
Knowledge of
actual results
High motivation
High satisfaction
High work
effectiveness
Moderators

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

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

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

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
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

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

19. Types of Teams Quality circles Problem solving teams Management teams
Work teams
Project teams
Virtual teams

20. 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

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

22. Ingredients for Successful Teams (1 of 2 )
Clarity in team goals
Improvement plan
Clearly defined roles
Clear communication
Beneficial team behaviors

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

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

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

26. Managing HR in a TQ Environment
Recruitment and Career Development
Motivation
Performance Appraisal
Measuring Employee Satisfaction and HRM Effectiveness

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

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

29. 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

30. TQ and Labor Relations Union-management cooperation
National Labor Relations Board (NLRB) rulings on employee participation programs
Current legislative proposals and actions

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