1. POM - J. Galván 1 PRODUCTION AND OPERATIONS MANAGEMENT Ch. 11: Human Resources and Job Design

2. POM - J. Galván 2 Learning Objectives Define job design Define job design Describe job design components Describe job design components Explain motivation theories & studies Explain motivation theories & studies Define work measurement Define work measurement Describe work measurement techniques Describe work measurement techniques Calculate standard time Calculate standard time

3. POM - J. Galván 3 Objective of Human Resource Strategy To manage labor and design jobs so people are effectively and efficiently utilized To manage labor and design jobs so people are effectively and efficiently utilized

4. POM - J. Galván 4 People and Work System Goals Use people efficiently within constraints Provide reasonable quality of work life © 1995 Corel Corp.

5. POM - J. Galván 5 People and Work System Aspects Job Design Labor Standards

6. POM - J. Galván 6 People & Work Design Location strategy Schedules Product strategy Layout strategy Process strategy Individual differences © 1995 Corel Corp. People and Work System Constraints

7. POM - J. Galván 7 Labor Planning/Stability Policies Follow demand exactly Follow demand exactly keeps direct labor costs tied closely to production keeps direct labor costs tied closely to production incurs costs of incurs costs of hiring/firing hiring/firing unemployment insurance unemployment insurance labor wage premium labor wage premium Hold employment constant Hold employment constant maintains a trained workforce incurs costs of idle time when demand is low meeting increased demand when demand is high

8. POM - J. Galván 8 Work Schedules Standard work schedule Standard work schedule five eight-hour days five eight-hour days Flex-time Flex-time allows employees, within prescribed limits, to determine their own schedules allows employees, within prescribed limits, to determine their own schedules Flexible work week Flexible work week four 10-hour days four 10-hour days Part-time Part-time less than eight hours per day, or an irregular schedule less than eight hours per day, or an irregular schedule

9. POM - J. Galván 9 Job Classifications and Work Rules Specify Specify who can do what who can do what when they can do it when they can do it under what conditions they can do it under what conditions they can do it Often result of union pressure Often result of union pressure Restricts flexibility in assignments; consequently restricts efficiency of production Restricts flexibility in assignments; consequently restricts efficiency of production

10. POM - J. Galván 10 Job Design Specifying the tasks that make up a job for an individual or group Specifying the tasks that make up a job for an individual or group Involves determining Involves determining What is to be done (i.e., responses) What is to be done (i.e., responses) How it is to be done (i.e., tools etc.) How it is to be done (i.e., tools etc.) Why it is to be done (i.e., purpose) Why it is to be done (i.e., purpose) Results in job description Results in job description Shows nature of job in task-related behaviors Shows nature of job in task-related behaviors

11. POM - J. Galván 11 Components of Job Design Job specialization Job specialization Job expansion Job expansion Psychological components Psychological components Self-directed teams Self-directed teams Motivation and incentive systems Motivation and incentive systems Ergonomics and work methods Ergonomics and work methods

12. POM - J. Galván 12 o Involves o Breaking jobs into small component parts o Assigning specialists to do each part o First noted by Adam Smith (1876) o Observed how workers in pin factory divided tasks into smaller components o Found in manufacturing & service industries Labor Specialization

13. POM - J. Galván 13 ¨Greater dexterity & faster learning ¨Less lost time changing jobs or tools ¨Use more specialized tools ¨Pay only for needed skills Labor Specialization Often Reduces Cost

14. POM - J. Galván 14 Job Expansion Process of adding more variety to jobs Process of adding more variety to jobs Intended to reduce boredom associated with labor specialization Intended to reduce boredom associated with labor specialization Methods Methods Job enlargement Job enlargement Job enrichment Job enrichment Job rotation Job rotation Employee empowerment Employee empowerment

15. POM - J. Galván 15 Job Expansion/Enrichment Present Job ControlControl PlanningPlanning Enriched Job Task #3 Task #2 Enlarged Job

16. POM - J. Galván 16 Higher capital cost Higher capital cost Workers’ preferences Workers’ preferences Example: Some people prefer simple jobs Example: Some people prefer simple jobs Higher wages required Higher wages required Smaller labor pool Smaller labor pool Increased accident rates Increased accident rates Lack of technology Lack of technology Job Expansion Constraints

17. POM - J. Galván 17 Job Rotation Geriatrics © 1995 Corel Corp. Pediatrics Maternity

18. POM - J. Galván 18 Employee Empowerment Control Decision-Making Planning

19. POM - J. Galván 19 Job Design Continuum Specialization Enlargement Enrichment Empowerment Self-directed Teams Increasing reliance on employees contribution and increasing acceptance of responsibility by employee

20. POM - J. Galván 20 Higher capital cost Higher capital cost Many individuals prefer simple jobs Many individuals prefer simple jobs Higher wages are required since the worker must utilize a higher level of skill Higher wages are required since the worker must utilize a higher level of skill A smaller labor pool exists of persons able and willing to perform enriched or enlarged jobs A smaller labor pool exists of persons able and willing to perform enriched or enlarged jobs Increased accident rates may occur Increased accident rates may occur Current technology in some industries does not lend itself to job enlargement and enrichment Current technology in some industries does not lend itself to job enlargement and enrichment Limitations to Job Enlargement/Job Enrichment

21. POM - J. Galván 21 Psychological Components of Job Design ¨Individuals have values, attitudes, and emotions that affect job results ¨ Example: Work is a social experience that affects belonging needs ¨Effective worker behavior comes mostly from within the individual ¨ Scientific management argued for external financial rewards ¨First examined in ‘Hawthorne studies’

22. POM - J. Galván 22 Core Job Characteristics Skill variety Skill variety Job identify Job identify Job significance Job significance Autonomy Autonomy Feedback Feedback

23. POM - J. Galván 23 Motivation Worker performance depends on Worker performance depends on Motivation Motivation Ability Ability Work environment Work environment Motivation is the set of forces that compel behavior Motivation is the set of forces that compel behavior Money may serve as a psychological & financial motivator Money may serve as a psychological & financial motivator

24. POM - J. Galván 24 Motivation and Money Taylor’s scientific management (1911) Taylor’s scientific management (1911) Workers are motivated mainly by money Workers are motivated mainly by money Suggested piece-rate system Suggested piece-rate system Maslow’s theory (1943) Maslow’s theory (1943) People are motivated by hierarchy of needs, which includes money People are motivated by hierarchy of needs, which includes money Herzberg (1959) Herzberg (1959) Money either dissatisfies or is neutral in its effect Money either dissatisfies or is neutral in its effect

25. POM - J. Galván 25 Monetary Incentives Bonuses: Cash & stock options Bonuses: Cash & stock options Profit sharing: Distribution of profits Profit sharing: Distribution of profits Gain sharing: Reward for company performance (e.g., cost reduction) Gain sharing: Reward for company performance (e.g., cost reduction) Scanlon plan is most popular (cost reduction.) Scanlon plan is most popular (cost reduction.) Incentive systems Incentive systems Measured daywork: Pay based on std. time Measured daywork: Pay based on std. time Piece rate: Pay based on pieces done Piece rate: Pay based on pieces done

26. POM - J. Galván 26 Maslow’s Hierarchy of Needs Self-Actualization Use of abilities Self-fulfillment Social Group Interaction Job Status Ego Self Respect Safety Physical Safety Job Security Physiology Food Shelter

27. POM - J. Galván 27 Herzberg’s Motivation/Hygiene Factors ©Achievement ©Recognition ©Advancement ©Work itself ©Responsibility ©Personal growth ©Company policies and administration ©Supervision - technical ©Working conditions ©Interpersonal relations - supervision ©Status ©Job security ©Salary Job Dissatisfiers (Hygiene) Job Satisfiers (Motivators)

28. POM - J. Galván 28 Job Characteristics ¨Motivation ¨Satisfaction ¨Job performance ¨Absenteeism & turnover Core Job Characteristics Psychological States Personal & Work Outcomes Hackman & Oldham (1980)

29. POM - J. Galván 29 Self-Directed Teams Group of empowered individuals working together for a common goal Group of empowered individuals working together for a common goal May be organized for short-term or long-term objectives May be organized for short-term or long-term objectives Reasons for effectiveness Reasons for effectiveness Provide employee empowerment Provide employee empowerment Provide core job characteristics Provide core job characteristics Meet psychological needs (e.g., belonging) Meet psychological needs (e.g., belonging)

30. POM - J. Galván 30 Ergonomics and Work Methods Worker performance depends on Worker performance depends on Motivation Motivation Ability Ability Work environment Work environment Foundation laid by Frederick Taylor Foundation laid by Frederick Taylor Match employees to task Match employees to task Develop work methods Develop work methods Establish work standards Establish work standards

31. POM - J. Galván 31 Ergonomics Study of work Study of work Also called ‘human factors’ Also called ‘human factors’ Involves human-machine interface Involves human-machine interface Examples Examples Mouse Mouse Keyboard Keyboard

32. POM - J. Galván 32 Methods Analysis Focuses on how task is performed Focuses on how task is performed Used to analyze Used to analyze Movement of body, people, or material Movement of body, people, or material Activities of people & machines Activities of people & machines Tools Tools Process chart Process chart Flow diagram Flow diagram Activity chart Activity chart Operations chart (right-hand, left-hand) Operations chart (right-hand, left-hand)

33. POM - J. Galván 33 Process Chart SUBJECT: Request tool purchase Dist (ft)Time (min)SymbolDescription Write order On desk 75To buyer Examine  = operation;  = transport;  = inspect; D = delay; Ñ = storage DÑ DÑ DÑ DÑ

34. POM - J. Galván 34 Buyer You Flow Diagram 75 ft.

35. POM - J. Galván 35 Activity Chart Subject: Semi-Auto Machine OperatorMachineTime 1 2 3 4 5 6 Load machineBeing loaded Idle Run Unload Being Unloaded Present

36. POM - J. Galván 36 Operations Chart (Left Hand/Right Hand Left HandRight Hand Present MethodSymbol Present Method 1 Reach for boltIdle 2 Grasp boltIdle 3 Hold boltReach for washer 4 Hold boltAssemble  = operation;  = transport;  = inspect; D = delay; Ñ = storage DÑ DÑ DÑ DÑ DÑ DÑ DÑ DÑ

37. POM - J. Galván 37 The Visual Workplace Uses low-cost visual devices to share information quickly and accurately. Uses low-cost visual devices to share information quickly and accurately. Displays and graphs replace paper Displays and graphs replace paper Provides real-time information Provides real-time information System should focus on improvement, not merely monitoring System should focus on improvement, not merely monitoring Can provide both production and financial data Can provide both production and financial data

38. POM - J. Galván 38 What is Work Measurement? Determining the amount of worker time required to generate one unit of output Determining the amount of worker time required to generate one unit of output Provides labor standards Provides labor standards Target amount of time required to perform a job under normal working conditions Target amount of time required to perform a job under normal working conditions

39. POM - J. Galván 39 Uses of Labor Standards Costing labor content of products Costing labor content of products Planning staffing needs Planning staffing needs Cost & time estimates for bids Cost & time estimates for bids Planning production Planning production Wage-incentive plans Wage-incentive plans Employee efficiency Employee efficiency

40. POM - J. Galván 40 Sources of Labor Standards Historical experience Historical experience Time studies Time studies Predetermined time standards (MTM) Predetermined time standards (MTM) Work sampling Work sampling

41. POM - J. Galván 41 Labor Standards - Historical Experience Labor standards are based on how many labor-hours were needed in past Labor standards are based on how many labor-hours were needed in past Least preferred method Least preferred method Advantages Advantages Easy and inexpensive to obtain standard Easy and inexpensive to obtain standard Disadvantages Disadvantages Unknown accuracy due to unusual occurrences, unknown pace etc. Unknown accuracy due to unusual occurrences, unknown pace etc.

42. POM - J. Galván 42 Time Studies Labor standards are based on observing worker doing task Labor standards are based on observing worker doing task Observe only a sample of work Observe only a sample of work Use average time & pace to set standard Use average time & pace to set standard Disadvantages Disadvantages Require a trained & experienced analyst Require a trained & experienced analyst Standard cannot be set before task is performed Standard cannot be set before task is performed

43. POM - J. Galván 43 Time Study Steps Define task to be studied Define task to be studied Break task into elements Break task into elements Determine number of cycles Determine number of cycles Time each element Time each element Determine pace (rating factor) Determine pace (rating factor) Compute labor standard Compute labor standard

44. POM - J. Galván 44 Time Study Equations Allowance factor Nonwork time Total time Avg. element time (Element times) Number of cycles Normal time(Avg. element time)(Pace) Standard time Total normal time Allowancefactor = = =× = - N 1 Nonwork time = Personal, Fatigue, and Delay Time

45. POM - J. Galván 45 Predetermined Time Standards Labor standards are set from times in published tables (e.g., MTM Table) Labor standards are set from times in published tables (e.g., MTM Table) Procedure Procedure Divide manual work into basic elements Divide manual work into basic elements Look up basic element times in table; sum Look up basic element times in table; sum Advantages Advantages Times established in laboratory setting Times established in laboratory setting Useful for planning tasks Useful for planning tasks Widely accepted by unions Widely accepted by unions

46. POM - J. Galván 46 Work Sampling Labor standard is set using output & % of time worker spends on tasks Labor standard is set using output & % of time worker spends on tasks Involves observing worker at random times over a long period Involves observing worker at random times over a long period Advantages Advantages Less expensive than time studies Less expensive than time studies Observer requires little training Observer requires little training Disadvantages Disadvantages Ineffective with short cycles Ineffective with short cycles

47. POM - J. Galván 47 Work Sampling Steps Take preliminary sample & estimate parameter value (e.g., percentage) Take preliminary sample & estimate parameter value (e.g., percentage) Compute sample size Compute sample size Prepare observation schedule Prepare observation schedule Observe & record worker’s activities Observe & record worker’s activities Rate worker’s performance Rate worker’s performance Record number of units produced Record number of units produced Compute standard time per unit Compute standard time per unit

48. POM - J. Galván 48 Work Sampling Equations Normal Time= (Total Time) (%Working Rating) Units Produced Std Time Normal Time = (1 - Allowance)

49. POM - J. Galván 49 A Final Thought © 1995 Corel Corp. Church of the Holy Family (Barcelona) Two stonecutters were asked what they were doing. The first said, ‘I’m cutting this stone into blocks.’ The second one replied, ‘I’m on a team that’s building a cathedral.’ — Old Story