High Performance Workforce Management Chapter 6 High Performance Workforce Management

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.”

Key Idea Organizations are learning that to satisfy customers, they must first satisfy employees.

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. Create an environment that ensures and improves workplace health, safety, and security, and supports the workforce via policies, services, and benefits. Develop a performance management system based on compensation, recognition, reward, and incentives that supports high performance work and workforce engagement.

Key Workforce-Focused Practices for Performance Excellence (2 of 2) 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. Make appropriate investments in development and learning, both for the workforce and the organization’s leaders. Manage career progression for the entire workforce and succession planning for management and leadership positions.

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

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.

Key Idea The objectives of an effective workforce management system are 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.

Workforce Engagement and Motivation A survey of 55,000 workers by the Gallup Organization found that four key employee attitudes, taken together, correlate strongly with higher profits: Workers feel they are given the opportunity to do what they do best every day. They believe their opinions count. They sense their fellow workers are committed to quality. They’ve made a direct connection between their work and the company’s mission.

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.

Key Idea Organizations with high levels of workforce engagement are often characterized by high-performing work environments in which people are motivated to do their utmost for the benefit of their customers and for the success of the organization.

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

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.

Key Idea 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.

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)

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

Designing High-Performance Work Systems High-performance work refers to work approaches used to systematically pursue ever-higher levels of overall organizational and human performance. High-performance work is characterized by flexibility, innovation, knowledge and skill sharing, alignment with organizational directions, customer focus, and rapid response to changing business needs and marketplace requirements.

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.

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

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

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

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.”

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

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

Examples of Teams at Baptist Hospital, Inc.

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

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

Developing and Empowering Teams Teams are generally formed in organizational settings by direction from a manager, leader, or governing body. They are typically given a broad objective. The team may also be given a time frame and resource limits, if it is a project team.

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

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.

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

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

Workplace Environment Key factors: Health Safety Overall well-being

Engaging the Workforce in Process Excellence Develop a shared vision and behavioral skills Develop skills for team leaders: Conflict management and resolution, Team management, Leadership skills, Decision making, Communication, Negotiation, Cross-cultural training Develop skills for team members: Rules for effective meetings, Shared decision making

Key Idea Compared to the technical tools for gathering and analyzing data, the “soft skills”—those that involve people—such as project management and team facilitation, are more difficult to teach and learn.

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

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

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

Key Idea 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.

Assessing Workforce Engagement, Satisfaction and Effectiveness 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.

Assessing Workforce Engagement, Satisfaction and Effectiveness 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

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

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.

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

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

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 sustainability

Key Idea In a culture of performance excellence, employees need to understand the importance of customer satisfaction, to be given the training and responsibilities to achieve it, and to feel that they do indeed make a difference.

Example: Medrad Learning and Development Process

Workforce Focus in the Baldrige Award Criteria The Workforce Focus Category examines how an organization engages, manages, and develops the workforce to utilize its full potential in alignment with the organization’s mission, strategy. and action plans. It also addresses the ability to assess workforce capability and capacity needs and to build a high-performance work environment. 5.1 Workforce Engagement a. Workforce Enrichment b. Workforce and Leader Development c. Assessment of Workforce Engagement 5.2 Workforce Environment a. Workforce Capability and Capacity b. Workforce Climate

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.

Workforce Focus in Six Sigma Teams are an integral part of Six Sigma implementation. Selecting the right people to serve on teams, training and skill development, and reward and recognition approaches to drive behavior are vital to Six Sigma efforts. Understanding how changes affect people is a necessary issue that organizations must address after Six Sigma projects are completed.