Slide 7.1 Chapter 7 Human Resource Development and Management

Human Resources Management n Human Resource Management: Activities designed to provide for and coordinate the people of an organization n HR in TQ organization: supports the organization’s TQ approaches and deployment Slide 7.2

Slide 7.3 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

Slide 7.4 Key Activities in HRM n Determine organization’s HR needs n Assist in design of work systems n Recruit, select, train & develop, counsel, motivate, and reward employees n Act as liaison with unions & government n Handle other matters of employee well-being

Slide 7.5 Leading Practices (1 of 2) n Integrate HR plans with overall quality and operational performance plans n Involve all employees at all levels and in all functions n Use suggestion and recognition systems effectively to promote involvement and motivate employees n Emphasize and support teamwork throughout organization

Slide 7.6 Leading Practices (2 of 2) n Empower individuals and teams to make decisions n Make extensive investments in training and education n Maintain a work environment conducive to the well-being and growth of employees n Monitor extent and effectiveness of HR practices & measure employee satisfaction

Slide 7.7 Strategic HR Management n HR plans should be linked with business strategy n HR traditionally thought of as a support function n Progressive firms recognize role of HRM in developing viable competitive strategy

HR Effectiveness n The following constitute methods for measuring the effectiveness of human resources practices: –Employee satisfaction services –Grievance levels –Safety performance Slide 7.8

Slide 7.9 High Performance Work Systems n Work design - how employees are organized in formal and informal units (departments, teams, etc.) n Job design - responsibilities and tasks assigned to individuals

Slide 7.10 Employee Involvement n 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 –Making business decisions –Setting goals –Solving problems

Employee Involvement n Lincoln Electric Company was an early initiator of Employee Involvement n The foundations of EI are participation and teamwork n EI begins with a commitment to quality at the personal level Slide 7.11

Slide 7.12 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

Suggestion Systems n Suggestion System – a management tool for the submission, evaluation, and implementation of an employee’s idea to improve the organization n Toyota employees generate 3 million suggests a year (60 per employee) n Many employees withhold ideas because: –Lack of time –Unorganized suggestion system –Fear of losing job Slide 7.13

Slide 7.14 Empowerment n Empowerment – giving people authority to make decisions; a sincere belief and trust in people. n Examples: –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 & Education n Quality leaders Deming, Juran, & Crosby actively promoted quality training & education n Training is commonly one of the highest initial costs of a quality initiative (ROI) n Example: –Xerox invested more than $125 million in quality training Slide 7.15

Slide 7.16 Teams n 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 n Effective teams are goal-centered, independent, open, supportive, and empowered

Slide 7.17 Types of Teams n Quality circles – team of workers and supervisors from the same work center that meet regularly to address problems n Problem solving teams – team whose members gather to solve a specific problem and then disband n Management teams – team members from various functional areas that are all managers n Work teams – teams organized to perform entire job n Project teams – team to develop something new (New Mustang) n Virtual teams – team members communicate by computer

Slide 7.18 Functions of Teams Implement solutions Identify problems Select problem Collect data Focus attention Find causes Develop solutions Pick best solution Develop follow-up plan Solve Identify Analyze

Slide 7.19 Self-Managed Teams n Empowered n Plan, control, improve work processes n Set own goals and inspect own work n Schedule & review performance n Prepare budgets & coordinate work n Order materials, keep inventory, & deal with suppliers n Acquire any needed training n Hire replacements or discipline members n Take responsibility for quality

Slide 7.20 Ingredients for Successful Teams (1 of 2 ) n Clarity in team goals n Improvement plan n Clearly defined roles n Clear communication n Beneficial team behaviors

Slide 7.21 Ingredients for Successful Teams (2 of 2) n Well-defined decision procedures n Balanced participation n Established ground rules n Awareness of group process n Use of scientific approach

Slide 7.22 Recognition and Rewards n Monetary or non-monetary –Money is a motivator when people are at the bottom of Maslow’s Hierarchy of needs theory theory

Maslow’s Hierarchy of Needs Theory n Physiological needs – achieving adequate food, water, sleep n Safety needs – the need for shelter n Love/Belonging needs – need for companionship (friend, family) n Esteem needs – respect/recognition from others n Self-actualization – making the most out of unique ability (Poet, song writer, etc…) Slide 7.23

Slide 7.24 Practices Leading to Effective Recognition and Rewards n Give both individual and team awards n Involve everyone n Tie rewards to quality n Allow peers and customers to nominate and recognize superior performance n Publicize extensively n Make recognition fun