People, jobs and organization Chapter 9 People, jobs and organization Photodisc. Steve Cole

Layout and flow Operations strategy Process design Design Improvement Supply network design Layout and flow Process technology People, jobs and organization Product/service design Planning and control

Key operations questions In Chapter 9 – People, jobs and organization – Slack et al. identify the following key questions: Why are people issues so important in operations management? How do operations managers contribute to human resource strategy? What forms can organization designs take? How do we go about designing jobs? How are work times allocated?

The elements of job design

Operations in practice – W. L. Gore How does W.L. Gore’s approach to managing its human resources seem to differ from more conventional companies? What do you think are the advantages and disadvantages of W.L. Gore’s approach?

People on operations Understand organization design Contribute to human resource strategy Understand organization design People, jobs and organization Design the working environment Allocate work times Design individuals’ and groups’ jobs

Human resource strategy Alignment with business strategy (Strategic partner) The operation Assisting in resolving operating issues (Employee champion) Managing transformation and change (Change agent) HR processes and procedures (Administrative expert) Recruit Develop Deploy

Human resource strategy (Continued) Human resources (HR) role What it involves Relevance to operations management (OM) Strategic partner Aligning HR and business strategy: ‘organizational diagnosis’, manpower planning, environmental monitoring, etc. OM integrates Operations and HR strategy. OM specifies skills requirements and relies on HR to develop them informed by labour market forecasts, succession planning, etc. Administ- rative expert Running the organization’s HR processes and ‘shared services’: payroll, appraisal, selection and recruitment, communication, etc. OM is largely an ‘internal customer’ for HR’s processes. OM must be clear in its requirements with agreed service levels mutually negotiated. Employee champion Listening and responding to employees: ‘providing resources to employees’, conciliation, career advice, grievance procedures, etc. OM and HR must develop a good working relationship and clear procedures to deal with any ‘emergency’ issues that arise. Also OM must be sensitive to feedback from HR on how it manages day-to-day operations. Change agent Managing transformation and change: ‘ensuring capacity for change’, management development, performance appraisal, organization development, etc. OM and HR are jointly responsible for operations improvement activities. HR has a vital role in all the cultural, developmental, and evaluation activities associated with improvement.

Is it ‘googley’? How did Google’s approach to recruitment reflect it’s human resources strategy?

What can be done about it Causes of stress at work and what could be done Causes of stress What can be done about it Staff can become overloaded if they cannot cope with the amount of work or type of work they are asked to do Change the way the job is designed, training needs and whether it is possible for employees to work more flexible hours Staff can feel disaffected and perform poorly if they have no control or say over how and when they do their work Actively involve staff in decision making, the contribution made by teams, and how reviewing performance can help identify strengths and weaknesses Staff feel unsupported: levels of sick absence often rise if employees feel they cannot talk to managers about issues that are troubling them Give staff the opportunity to talk about the issues causing stress, be sympathetic and keep them informed A failure to build relationships based on good behaviour and trust can lead to problems related to discipline, grievances and bullying Check the organization's policies for handling grievances, unsatisfactory performance, poor attendance and misconduct, and for tackling bullying and harassment Staff will feel anxious about their work and the organization if they don't know their role and what is expected of them Review the induction process, work out an accurate job description and maintain a close link between individual targets and organizational goals Change can lead to huge uncertainty and insecurity Plan ahead so change is not unexpected. Consult with employees so they have a real input, and work together to solve problems

U-form organizations give prominence to functional groupings of resources Group headquarters Marketing Operations Finance Dept.A Dept.C Dept.B

The M form separates the organization’s resources into separate divisions Division A Division B Division C Group headquarters Marketing etc. Operations

Matrix form structures the organization’s resources so that they have two (or more) levels of responsibility Group headquarters Division A Division B Division C Marketing Operations Human resources Finance

Organization A headquarters N form organizations form loose networks internally and externally Organization A headquarters Org D Org B Group A Group F Org E Org C Group B Group E Group D Group C

The main influences on job design, work time allocation and the design of the working environment ‘Scientific’ management Flexible working Ergonomics Design individuals’ and groups’ jobs Design the working environment Allocate work times Division of labour ‘Behavioural’ approaches Team working

The objectives of job design quality of working life quality speed dependability flexibility cost health and safety Job impacts on design

Division of labour Dividing the total task down into smaller parts, each of which is accomplished by a single person or team. Promotes faster learning. Advantages Makes automation easier. Ensures that non-productive work is reduced. Leads to monotony. Can result in physical injury. Disadvantages Is not particularly robust. Can reduce flexibility.

Work study Work study A generic term for those techniques, particularly method study and work measurement, which are used in the examination of human work in all its contexts, and which lead systematically to the investigation of all the factors which affect the efficiency and economy of the situations being reviewed in order to effect improvement. Method study Work measurement Method study is the systematic recording and critical examination of existing and proposed methods of doing work, as a means of developing and applying easier and more effective methods and reducing costs. The application of techniques designed to establish the time for a qualified worker to carry out a specified job at a defined level of performance. 9

Standard performance Standard performance is the rate of output which qualified workers will achieve without over-exertion as an average over the working day provided they are motivated to apply themselves to their work.

Qualified worker A qualified worker is one who is accepted as having the necessary physical attributes, intelligence, skill, education and knowledge to perform the task to satisfactory standards of safety, quality and quantity.

D Process charting Activity Operation Movement Delay Inspection Storage

Flow process charts for processing expense reports Send to accounts receivable Reports to batch control Reports filed Confirm payment Report arrives Stamp and date report Send cash to receipt desk Wait for processing Check expenses report Check employee record Check advance payment Send to account payable Attach payment voucher Collect retorts into batch Check against rules Batch control number Check payment voucher Log report Batch to audit desk Wait for batching Batch of reports logged Copy of reports to filing Description of activity Totals 8 1 2 4 5 6 7 9 10 3 18 11 12 14 15 16 17 19 20 13 26 22 23 24 25 21 Payment voucher to keying Before Reports to batch control Reports filed Payment voucher to keying Confirm payment Report arrives Stamp and date report Check expenses report Wait for processing Check reports and vouchers Attach payment voucher Collect retorts into batch Batch control number Batch to audit desk Wait for batching Copy of reports to filing Description of activity Totals 8 1 2 4 5 6 7 9 10 3 11 12 14 15 13 After

Resources and flow: job design Method study: SREDIM Method study seeks to improve methods of production –it embraces layout, environment, material and labour and usage. Select task to be studied Record present method – using 5 charting symbols Examine the facts critically Develop best method Install the new method Maintain by regular checks.

Basic time + allowances = standard time Work measurement Standard times are the building blocks of process design – they represent the time needed for a qualified worker to carry out specific jobs at defined levels of performance. Basic time + allowances = standard time

Rating scales British standard I.L.O. American standard Standard performance 100 80 ‘Incentive’ 75 60 ‘Normal’ British standard I.L.O. American standard

The stages in work measurement Observed time for element Basic time for element Basic time Observed Rating Standard rating = X ‘Rating’ to adjust for effort

The stages in work measurement (Continued) Basic time Standard time = Allowances + Basic time for element Standard time for element ‘Allowances’ for relaxation, etc. Standard time for job

Build up of standard times Element Basic time Allowances Standard time % mins A 0.6 17 0.10 0.70 B 0.4 12 0.05 0.45 C 0.8 10 0.08 0.88 D 0.3 17 0.05 0.35 2.1 0.28 2.38 Basic time 2.10 Allowance 0.28 Standard time = 2.38

The ‘standard’ unit of work A standard unit of work, e.g. 1 standard minute Light job 90% work 10% relaxation Average job 84% work 16% relaxation Heavy job 68% work 32% relaxation

Ergonomics Ergonomics is concerned primarily with the physiological aspects of job design – i.e., with the human body and how it fits into its surroundings. Ergonomics How the person interfaces with the physical aspects of his or her workplace. How the person interfaces with the environmental conditions prevalent in his or her immediate working area.

Ergonomics (Continued) Using anthropometric data, ergonomics can guide how people interface with their workplace.

Ergonomics (Continued) Ergonomics in the office environment Forearms approximately horizontal Seat back adjustability Good lumbar support Seat height adjustability No excess pressure on underside of thighs and backs of knees Space for postural change, no obstacles under desk Leg room and clearance to allow postural changes Foot support if needed

Ergonomics (Continued) Ergonomics in the office environment Screen: stable image, adjustable, readable glare/reflection free Adequate lighting Adequate contrast, no glare or distracting reflections Window covering Keyboard usable, adjustable, detachable, legible Software appropriate to task, adapted to user, no undisclosed monitoring Work surfaces: allow flexible arrangements, spacious, glare free Distracting noise minimized

Ergonomics (Continued) Ergonomics – How the person interfaces with the environmental conditions prevalent in his or her immediate working area. For example, people working in extreme conditions.

Behavioural approaches – Hackman and Oldham’s model of job design Techniques of job design Core job characteristics Mental states Performance and personal outcomes Forming natural Combining tasks work units Establishing client relationships Vertical loading Opening feedback channels Skill variety Task identity Task significance Autonomy Feedback Experienced meaningfulness of the work Experienced responsibility for outcomes of the work Knowledge of the actual results of the work activity Low absenteeism and turnover High satisfaction with the work High internal work motivation High quality work performance

More tasks of the same type Behavioural approaches – Job enlargement and enrichment Job enrichment More tasks which give increased responsibility autonomy or decision-making Original job tasks Job enlargement More tasks of the same type

Team working Team working – where staff, often with overlapping skills, collectively perform a defined task and have a high degree of discretion over how they actually perform the task. For example – a team of nurses sharing the responsibility to care for patients

Empowerment Empowerment means more than autonomy. It means giving staff the ability to change how they do their jobs and the authority to make changes to the job itself, as well as how it is performed.

Empowerment (Continued) Empowerment – McDonald’s lets families share jobs. It allows family members to cover each others jobs. Members of the same family working in the same outlet are able to work each others shifts without giving any prior notice or getting a manager’s permission.

Flexible working Flexible working – Increasingly some people are expected to do their jobs while traveling, with only occasional visits to their ‘home’ location.

Control versus commitment Emphasis on commitment and engagement of staff Emphasis on managerial control Staff treated as a resource Staff treated as a cost Division of labour Scientific management Self-managed method study Ergonomics Behavioural approaches Empowerment Team working Flexible working