Human Resource Practices Chapter 6 Human Resource Practices

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.”

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

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

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

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

Strategic Perspective HR plans should be linked to business strategy and aligned with business needs Key choices Planning Staffing Appraising Compensating Training and development

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Compensation and Recognition 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

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

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

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

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

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

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