Human Resources in Operations Management Kusdhianto Setiawan

HR in Strategic Planning Process Employees--the people who work in an organization--are "resources," as important as other company resources ! Employees--the people who work in an organization--are "resources," as important as other company resources ! How should we process them? How should we process them? Process them to be what? Process them to be what? How to align employees visions with company’s vision? How to align employees visions with company’s vision?

Traditional View... The traditional view of employees or labor was not so much as a valuable resource, but as a replaceable part of the productive process that must be closely directed and controlled The traditional view of employees or labor was not so much as a valuable resource, but as a replaceable part of the productive process that must be closely directed and controlled Employees are given precise direction to achieve narrowly defined individual objectivess Employees are given precise direction to achieve narrowly defined individual objectivess They are rewarded with merit based pay They are rewarded with merit based pay

HR in modern Operations Strategy View... TQM, emphasized that good employees who are always improving are the key to successful quality management and a company's ultimate survival TQM, emphasized that good employees who are always improving are the key to successful quality management and a company's ultimate survival –the company must treat employees as part of its family--a cultural perspective more common to Europe and Japan than to the United States. What about in Indonesia? Shifting of industrial economy to service economy; Since services tend to be more people intensive than capital intensive, human resources are becoming a more important competitive factor for service companies Shifting of industrial economy to service economy; Since services tend to be more people intensive than capital intensive, human resources are becoming a more important competitive factor for service companies The Development of Information Technology; services need employees who are skilled with computers, software, and networks. They also need flexible employees who can apply their computing skills to a variety of tasks, and who are continuously trained to keep up with rapid advances in information technology. The Development of Information Technology; services need employees who are skilled with computers, software, and networks. They also need flexible employees who can apply their computing skills to a variety of tasks, and who are continuously trained to keep up with rapid advances in information technology. Technological advances in equipment and machinery; Employees are required to be better educated, have greater skill levels, and have greater technical expertise, and are expected to take on greater responsibility. Technological advances in equipment and machinery; Employees are required to be better educated, have greater skill levels, and have greater technical expertise, and are expected to take on greater responsibility.

The Changing Nature of Human Resource Management Scientific Management – breaking down jobs into elemental activities and simplifying job design; specialists need ! Scientific Management – breaking down jobs into elemental activities and simplifying job design; specialists need ! –Measure of efficiency: TIME ! –Piece-rate wage system The Assembly Line – the continuance of scientific management, but scientific management was not adopted in Japan. The Assembly Line – the continuance of scientific management, but scientific management was not adopted in Japan. –Upper Limit: high output, low costs, minimal training –Lower Limit: boredom, lack of motivation, physical & mental fatigue

The Changing Nature of Human Resource Management Behavioral influence on Job Design Behavioral influence on Job Design –Horizontal job enlargement; expanding the scope of a job to include more task –Vertical job enlargement; give more responsibility ! Responsibility for quality. –Job Rotation; intended to remove boredom and increase communication between workers

Contemporary Trend... Job Flexibility Job Flexibility Responsibility and Empowerment Responsibility and Empowerment Increased Skill and ability levels Increased Skill and ability levels Employee involvement; from design to delivery of product/service Employee involvement; from design to delivery of product/service Employee compensation; servicing internal customer ! Employee compensation; servicing internal customer ! –Profit sharing –Bonus, etc. Technology and Automation; broadened the scope of job design Technology and Automation; broadened the scope of job design Temporary Employees Temporary Employees Job Satisfaction Job Satisfaction

The Elements of Job Design Task Analysis; how tasks (tugas) fit together to form a job (jabatan) Task Analysis; how tasks (tugas) fit together to form a job (jabatan) Worker Analysis; determining worker capabilities and responsibility for a job Worker Analysis; determining worker capabilities and responsibility for a job Job environment; the physical characteristics and location of a job Job environment; the physical characteristics and location of a job Table 8.1. Table 8.1. Table 8.1. Table 8.1.

Job Analysis To study the method used in the work included in the job to see how it should be done (work method) To study the method used in the work included in the job to see how it should be done (work method) Tools: Tools: –Process Flowchart Process FlowchartProcess Flowchart –Worker-Machine Chart Worker-Machine ChartWorker-Machine Chart –Motion Study Motion StudyMotion Study

Work Measurement Old paradigm: standard time; is the time required by an average worker to perform a job once. Old paradigm: standard time; is the time required by an average worker to perform a job once. –Stop watch time study Stop watch time studyStop watch time study Time Study Observation Sheet Time Study Observation Sheet Time Study Observation Sheet Time Study Observation Sheet Example see page 346 Example see page 346 –Elemental Time Files –Predetermined Motion Times Work Sampling: determines the proportion of time a worker spends on activities Work Sampling: determines the proportion of time a worker spends on activities Learning Curve Learning Curve