Job Design and Work Measurement

Southwest Airlines Human Resources Strategy: Culture of caring for people in the totality of their lives, not just at work. Spends more to recruit and train than any other airline Empowered employees Wages higher than industry average Stock options for some employees

Southwest Airlines Employees treated like customers Everybody understands what everybody else’s problems are No gimmicks! Profitable for 26 years while United, Northwest,and USAir lost billions.

Objective of Human Resource Strategy To manage labor and design jobs so people are effectively and efficiently utilized As the objective of human resources strategy is stated, what do the words “effectively” and “efficiently” mean? How does this relate to workers’ need for a reasonable quality of life? What does it say about the employment of people to perform jobs embodying significant risk?

People and Work System Goals Use people efficiently within constraints Provide reasonable quality of work life © 1995 Corel Corp. Students should be asked to consider: - If one is a manager of a firm the goal of which is to make a profit, does he/she look upon these goals as being in some way incompatible? - How does the increased use of information technology (pagers, computers, cellular phones, etc.) impact an individual’s quality of life?

Constraints on Human Resource Strategy Product strategy - Skills needed - Talents needed - Materials used - Safety Location strategy - Climate - Temperature - Noise - Light - Air quality Schedule - Time of day - Time of year (seasonal) - Stability of schedules Individual differences - Strength and fatigue - Information processing and response Layout strategy - Fixed position - Process - Assembly line - Work cell - Product Process strategy - Technology - Machinery and equipment used Human Resource Strategy What Where How Who Procedure When This slide lists some of the constraints within which operations managers must develop human resource policy. One should point out to the students that while these constraints “sound” industrial, they apply to service operations as well.

What is Job Design? Job Design involves: specifying the content of jobs (what will be done?) specifying the methods of doing the jobs (how will be done?) designing the work environment (where will be done?) Students may find it obvious that job design involve “what” is to be done, and “how” it is to be done, but why do we need to know the reason (why) the job is being done? You might also ask students how they believe job descriptions will change in the future. (There are those who argue that job descriptions in the future will be more outcome-, and less task- or behavior-based; and that one will have a greater role in writing his/her job description.)

What is the Objective of Job Design? The objective of job design is to develop jobs that meet the requirements of the organization and its technology and that satisfy the jobholder’s personal and individual requirements

Job Design Decisions Ultimate Job Structure How Why When Where What Who Mental and physical characteristics of the work force Tasks to be performed Geographic locale of the organization; location of work areas Time of day; time of occurrence in the work flow Organizational rationale for the job, objectives and motivation of the worker Method Ultimate Job Structure

Trends in Job Design Quality control as part of the worker's job Cross-training workers to perform multi-skilled jobs. Employee involvement and team approaches to designing and organizing work "Informating" ordinary workers

Trends in Job Design (Continued) Extensive use of temporary workers Automation of heavy manual work Organizational commitment to providing meaningful and rewarding jobs for all employees

Specification of the Job Content

Old Story 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.’ Church of the Holy Family (Barcelona) © 1995 Corel Corp.

Job Specialization Involves First noted by Adam Smith (1776) Breaking jobs into small component parts Assigning specialists to do each part First noted by Adam Smith (1776) Observed how workers in pin factory divided tasks into smaller components Found in manufacturing & service industries Job specialization certainly has some benefits. As students to suggest some of the drawbacks? © 1995 Corel Corp.

Job Specialization Often Reduces Cost Greater dexterity & faster learning Less lost time changing jobs or tools Use of more specialized tools Pay only for needed skills The benefits of job specialization may be obvious - students should be asked about the drawbacks. Under what conditions is job specialization the most useful?

Specialization in Business: Advantages For Management: 1. Simplifies training 2. High productivity 3. Low wage costs Labor: 1 . Low education and skill requirements 2. Minimum responsibilities 3. Little mental effort needed

Disadvantages For Management: Labor: 1. 1. Monotonous work Difficult to motivate quality 2. Worker dissatisfaction, possibly resulting in absenteeism, high turnover, disruptive tactics, poor attention to quality Labor: 1. Monotonous work 2. Limited opportunities for advancement 3. Little control over work 4. Little opportunity for self-fulfillment

Job Expansion Process of adding more variety to jobs Intended to reduce boredom associated with labor specialization Methods Job enlargement Job enrichment Job rotation Employee empowerment In discussing job expansion with your students, it is important to distinguish between boredom from performing the same task in the same way over and over again with the same results, and a general lack of challenge. Job enlargement and job rotation attack the boredom; job enrichment and employee empowerment attack the general lack of challenge.

Job Enlargement: Giving a worker a larger portion of the total task by horizontal loading Job Enrichment: Increasing responsibility for planning, coordination and control by vertical loading

Job Enlargement/Job Enrichment Present Job Control Planning Enriched Job Task #3 Task #2 Enlarged Job Students should be asked which they would prefer - job enlargement or job enrichment - and why. They should also be asked to identify and discuss the negative aspects of the less preferred approach.

Job Enlargement/Job Enrichment Present job Manually insert and solder six resistors Task #3 Lock printed circuit into fixture for next operation Task #2 Adhere labels to printed circuit board Control Test circuits after assembly Planning Participate in a cross-function quality-improvement team Enriched job Enlarged job Students should be asked which they would prefer - job enlargement or job enrichment - and why. They should also be asked to identify and discuss the negative aspects of the less preferred approach.

Limitations to Job Enlargement/Job Enrichment Higher capital cost Many individuals prefer simple jobs 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 Increased accident rates may occur Current technology in some industries does not lend itself to job enlargement and enrichment

Job Rotation Pediatrics Maternity Geriatrics © 1995 Corel Corp. Pediatrics Maternity © 1995 Corel Corp. Students should be asked to discuss both the advantages and limitations of job rotation. How is job rotation related to job specialization? Is this another case which suggests that policies or practices which appear to benefit the workers are detrimental to high productivity? Students should be asked to consider the impact of job enrichment/enlargement on necessary employee skills.

Employee Empowerment Employee Empowerment Decision-Making Control Planning As previously noted, employee empowerment is one of the basic tenets of process reengineering. It implies moving decision making power as close to the problem as possible. Students should be asked about the benefits of this practice. Students should also be asked to consider under what conditions employee empowerment is not only helpful, but necessary. Finally, what are the pitfalls?

Self-Directed Teams Group of empowered individuals working together for a common goal. They are empowered to make certain changes in their work process May be organized for short-term or long-term objectives Reasons for effectiveness Provide employee empowerment Provide core job characteristics Meet psychological needs (e.g., belonging) Since self-directed teams are gaining in popularity, they do merit some discussion. You might ask students what conditions they believe to be required for the success of such teams.

Benefits of Teams Higher quality Higher productivity Greater worker satisfaction

Job Design Continuum Self-directed Teams Increasing reliance on employees’ contribution and increasing acceptance of responsibility by employee Specialization Enlargement Enrichment Empowerment Self-directed Teams Job Expansion This slide can be used to summarize some of the important issues raised so far in the job design discussion.

Core Job Characteristics Skill variety Job identify Job significance Autonomy Feedback

Sociotechnical Systems Consistent with the job enrichment philosophy but focusing more on the interaction between technology and the work group is the sociotechnical systems approach Attempts to develop jobs that adjust the needs of the production process technology to the needs of the worker and work group.

Sociotechnical Systems Focuses on the interaction between technology and the work group by looking at…. Task Variety Skill Variety Feedback Task Identity Task Autonomy Process Technology Needs Worker/Group Needs

Specification of the Work Methods

Methods Analysis Focuses on how task is performed Is done for both existing jobs and new jobs Used to analyze Movement of body, people, or material Activities of people & machines

Methods Analysis The need for methods analysis can come from a number of different sources: Changes in tools and equipment Changes in product design or new products Changes in materials or procedures Other factors (e.g. accidents, quality problems)

Methods Analysis Procedure Identify the operation to be studied If any, study and document current method Analyze the job Propose new methods Install new methods Follow-up to ensure improvements have been achieved

Tools of Methods Analysis Process charts Flow diagrams Activity (worker-machine) charts Operations charts (right-hand, left-hand charts)

Process Chart SUBJECT: Request tool purchase Dist (ft) Time (min)  = operation;  = transport;  = inspect; D = delay;  = storage SUBJECT: Request tool purchase Dist (ft) Time (min) Symbol Description Write order On desk 75 To buyer Examine    D 

Details of Method FLOW PROCESS CHART ANALYST D. Kolb PAGE 1 of 2 Job Requisition of petty cash Details of Method ANALYST D. Kolb PAGE 1 of 2 Operation Movement Inspection Delay Storage Requisition made by department head Put in “pick-up” basket To accounting department Account and signature verified Amount approved by treasurer Amount counted by cashier Amount recorded by bookkeeper Petty cash sealed in envelope Petty cash carried to department Petty cash checked against requisition Receipt signed Petty cash stored in safety box

Flow Diagram Buyer You 75 ft.

Flow Diagram and Process Chart of Axle-Stand Production Line

Activity Chart for Two-Person Oil-Change Crew

Operations Chart (Left Hand/Right Hand)

Activity Chart Subject: Semi-Auto Machine Operator Machine Time 1 2 3 4 5 6 Load machine Being loaded Idle Run Unload Being Unloaded Present

Motion Study Motion study is the systematic study of the human motions used to perform an operation.

Developing Work Methods By eliminating unnecessary motions By combining activities By the rearrangement of the work place By the redesign of tools and equipment

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

The Visual Workplace

Designing the Work Environment

Working Conditions

Working Conditions (cont’d) Noise & Vibration Causes of Accidents Safety Work Breaks

Ergonomics is a term used to describe the study of the physical arrangement of the work space together with tools used to perform a task. Fit the work to the body rather than forcing the body to conform to the work. Do Not Forget: Worker performance depends on Working Conditions

Ergonomics Study of work Also called ‘human factors’ Involves human-machine interface Examples Mouse Keyboard

Setting Time Standards Work Measurement: Setting Time Standards

What is Work Measurement? Work Measurement is a process of analyzing jobs for the purpose of setting time standards Provides labor standards Target amount of time required to perform a job under normal working conditions Work measurement is covered in much greater detail in the Supplement 10.

Standard time Standard time: The amount of time it should take a qualified worker to complete a specific task, working at a sustainable rate, using given methods, tools and equipment, raw materials, and workplace arrangement.

Uses of Labor Standards Costing labor content of products Planning staffing needs Estimating cost & time for bids Scheduling production Measuring and evaluating performance Providing benchmarks Basing wage incentive plans

Sources of Labor Standards Historical experience (Stopwatch)Time studies Predetermined time standards Work sampling You might discuss the conditions which suggest the use of one or another of these techniques.

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

Time Study (steps of) Define the task to be studied (after work methods analysis is conducted) Divide the task into precise elements Decide how many times to measure the task (the number of cycles or samples needed) Time and record elemental times and ratings of performance

Time Study (steps of)- Contd. Compute the average observed cycle time Determine performance rating Compute the normal time for each element Add the normal times for each element to develop a total normal time for the task Compute the standard time

Time Study Normal Time Formulas Normal time(NT)=Observed performance time per unit x (Performance rating)* *The Performance Rating is usually expressed in decimal form in these formulas. So a person working 10% faster than normal would have a Performance Rating of 1.10 or 110% of normal time. Working 10% slower, 0.90 or 90% of normal. NT= Time worked _ x (Performance rating)* Number of units produced 17

Time Study Standard Time Formulas Standard time = Normal time + (Allowances x Normal times) Standard time = NT(1 + Allowances) Standard time = NT . 1 - Allowances 17

Time Study Example Problem You want to determine the standard time for a job. The employee selected for the time study has produced 20 units of product in an 8 hour day. Your observations made the employee nervous and you estimate that the employee worked about 10 percent faster than what is a normal pace for the job. Allowances for the job represent 25 percent of the normal time. Question: What are the normal and standard times for this job? 17

Time Study Example Solution Normal time = Time worked x (Performance rating) Number of units produced = (480 minutes/20) x (1.10) = 26.4 minutes Standard time = NT . 1 – Allowances = (26.4)/(1-0.25) = 35.2 minutes 17

Compensation Time-based system Compensation based on time an employee has worked during a pay period Output-based (incentive) system Compensation based on the amount of output an employee produces during a pay period

Form of Incentive Plan Accurate Easy to apply Consistent Easy to understand Fair

Compensation Individual Incentive Plans Group Incentive Plans Knowledge-Based Pay System Management Compensation