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. Key Idea Introduction
Businesses are learning that to satisfy customers, they must first satisfy employees.
Impact of Fredrick Taylor & Scientific Management

4. 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.

5. 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

6. Leading Practices (1 of 2)
Design 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

7. 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

8. 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

9. Teams Cooperation vs. competition among employees
Teams represent a fundamental shift in how work is done
Teams lead to higher employee satisfaction and improvement in quality

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

11. Key Idea Teams
The three basic functions of quality circles and problem-solving teams are to identify, analyze, and solve quality and productivity problems.

12. 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

13. Key Idea Building Effective Teams
The key stages of a team’s life cycle are called forming, storming, norming, performing, and adjourning.

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

15. Ingredients for Successful Teams (2 of 2)
Well-defined decision procedures
Balanced participation
Established ground rules
Awareness of group process
Use of scientific approach

16. Six Sigma Project Teams
Champions – senior managers who promote Six Sigma
Master Black Belts – highly trained experts responsible for strategy, training, mentoring, deployment, and results.
Black Belts – Experts who perform technical analyses
Green Belts – functional employees trained in introductory Six Sigma tools
Team Members – Employees who support specific projects

17. 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

18. 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

19. Key Idea Work and Job Design
The design of work should provide individuals with both the intrinsic and extrinsic motivation to achieve quality and operational performance objectives.

20. Hackman/Oldham Model Critical psychological states Core job
characteristics
Outcomes
Skill variety
Task identity
Task significance
Experienced
meaningfulness
of work
High motivation
High satisfaction
High work
effectiveness
Experienced
responsibility
Autonomy
Feedback
from job
Knowledge of
actual results
Moderators

21. 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

22. 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

23. Key Idea Employee Involvement
EI approaches can range from simple sharing of information or providing input on work-related issues and making suggestions to self-directed responsibilities such as setting goals,making business decisions, and solving problems, often in cross-functional teams.

24. 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

25. Suggestion System Toyota example
Employees generate nearly 3 million ideas each year, of which 85 percent are implemented by management.

26. 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.”

27. 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

28. Empowerment
Leaders and managers must relinquish some of the power and authority.
Management fear and resistance
Advantages of EI
It is not for everyone

29. Key Idea Recruitment
Meeting and exceeding customer expectations begins with hiring the right people whose skills and attitudes will support and enhance the organization’s objectives.

30. 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

31. Key Idea Training and Education
Customer needs and strategic directions should drive training strategies.
It is an essential requirement.
It is one of the largest initial cost in a TQ initiative.

32. Compensation
The objective of a good compensation system should be attract, retain and not demotivate employees.
Always a sticky issue.

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

34. Key Idea Recognition
Recognition provides a visible means of promoting quality efforts and telling employees that the organization values their efforts, which stimulates their motivation to improve.

35. 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

36. 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)

37. Key Idea Motivation
There is no such thing as an unmotivated employee, but the system within which people work can either seriously impede motivation or enhance it.

38. 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

39. Key Idea Performance Appraisal
Performance appraisals are most effective when they are based on the objectives that support the strategic directions of the organization, best practices, and continuous improvement.

40. 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

41. Key Idea Measuring employee …
HR measures allow companies to predict customer satisfaction, identify those issues that have the greatest impact on business performance, and allocate appropriate resources.

42. Human Resources in the Baldrige Award Criteria
The Human Resource Focus Category examines how an organization’s work systems and employee learning and motivation enable employees to develop and utilize their full potential in alignment with the organization ’s overall objectives and action plans, and how the organization builds and maintains a work environment and an employee support climate conducive to performance excellence and to personal and organizational growth.
5.1 Work Systems
a. Organization and Management of Work
b. Employee Performance Management System
c. Hiring and Career Progression
5.2 Employee Learning and Motivation
a. Employee Education, Training, and Development
b. Motivation and Career Development
5.3 Employee Well-Being and Satisfaction
a. Work Environment
b. Employee Support and Satisfaction