McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved. Chapter 7 Design of Work Systems

7-2 Quality of Work Life Quality of work life affects workers’ overall sense of well-being and contentment, but also their productivity Important aspects of quality of work life: –How a worker gets along with co-workers –Quality of management –Working conditions –compensation

7-3 Working Conditions Temperature & Humidity Noise & VibrationVentilation Illumination

7-4 Working Conditions (contd.) Work Time & Work Breaks Ethical IssuesOccupational Healthcare Safety

7-5 Compensation It is important for organizations to develop suitable compensation plans for their employees Compensation approaches –Time-based systems –Output-based systems –Incentive systems –Knowledge-based systems

7-6 Compensation Systems Time-based system –Compensation based on time an employee has worked during the pay period Output-based (incentive) system –Compensation based on amount of output an employee produced during the pay period

7-7 Incentive Plan Success To obtain maximum benefit from an incentive plan, it should be 1.Accurate 2.Easy to apply 3.Consistent 4.Easy to understand 5.Fair There should also be an obvious relationship between effort and reward, and no limit on earnings

7-8 Individual and Group Incentive Plans Individual incentive plans –Straight piecework Worker’s pay is a direct linear function of his or her output Minimum wage legislation has reduced their popularity –Base rate + bonus Worker is guaranteed a base rate, tied to an output standard, that serves as a minimum A bonus is paid for output above the standard Group incentive plans –Tend to stress sharing of productivity gains with employees

7-9 Knowledge-Based Pay Systems Knowledge-based pay –A pay system used by organizations to reward workers who undergo training that increases their skills –Three dimensions: Horizontal skills –Reflect the variety of tasks the worker is capable of performing Vertical skills –Reflect the managerial skills the worker is capable of Depth skills –Reflect quality and productivity results

7-10 Job Design Job design –The act of specifying the contents and methods of jobs What will be done in a job Who will do the job How the job will be done Where the job will be done –Objectives Productivity Safety Quality of work life

7-11 Job Design Success Job design success factors: –Carried out by personnel with appropriate training and background –Consistent with the goals of the organization –In written form –Understood and agreed to by both management and employees

7-12 Designing Work Systems Efficiency vs. Behavioral approaches to job design –Specialization Motivation Teams Ergonomics Methods analysis Motion studies Working conditions

7-13 Efficiency vs. Behavioral Job Design Efficiency School –Emphasizes a systematic, logical approach to job design –A refinement of Frederick Winslow Taylor’s scientific management concepts Behavioral School –Emphasizes satisfaction of needs and wants of employees

7-14 Specialization in Business: Advantages Low education and skill requirements responsibilities Little mental effort ForManagement: 1. Simplifies training 2. High productivity 3. Low wage costs ForLabor: Minimum 3. needed Specialization Work that concentrates on some aspect of a product or service

7-15 Specialization in Business: Disadvantages 1. Monotonous work 2. Limited opportunities for advancement 3. Little control over work 4. Little opportunity for ForManagement: 1. Difficult to motivate quality 2. Worker dissatisfaction, possibly resulting in absenteeism, high turnover, disruptive tactics, poor attention to quality ForLabor: self-fulfillment

7-16 Job Expansion  Adding more variety to jobs  Intended to reduce boredom associated with labor specialization  Job enlargement  Job rotation  Job enrichment  Employee empowerment

7-17 Job Enlargement Source: Heizer/Render,Operations Management, 8e, Source: Heizer/Render,Operations Management, 8e, Prentice Hall, Inc. Task #3 (lock printed circuit board into fixture for next operation) Present job (manually insert and solder six resistors) Task #2 (adhere labels to printed circuit board) Enlarged job Enriched job Planning (participating in a cross- function quality- improvement team) Control (Test circuits after assembly)

7-18 Motivation Motivation is a key factor in many aspects of work life –Influences quality and productivity –Contributes to the work environment Trust between workers and managers is an important factor that affects motivation

7-19 Core Job Characteristics  Skill variety- requiring the worker to use a variety of skills and talents  Job identity- allowing the worker to perceive the job as a whole and recognize a start and a finish  Job significance- providing a sense that the job has an impact on the organisation and society  Autonomy- offering freedom, independence and discretion  Feedback- providing clear, timely information about performance Jobs should include the following characteristics (by Hackman & Oldham) Source: Heizer/Render,Operations Management, 8e, Source: Heizer/Render,Operations Management, 8e, Prentice Hall, Inc.

7-20 Job Design Continuum Specialization Enlargement Self-directed teams Empowerment Enrichment Job expansion Increasing reliance on employee’s contribution and increasing responsibility accepted by employee Source: Heizer/Render,Operations Management, 8e, Source: Heizer/Render,Operations Management, 8e, Prentice Hall, Inc.

7-21 Teams Teams take a variety of forms: –Short-term team Formed to collaborate on a topic or solve a problem –Long-term teams Self-directed teams –Groups empowered to make certain changes in their work processes

7-22 Teams Benefits of teams –Higher quality –Higher productivity –Greater worker satisfaction Team problems –Some managers feel threatened –Conflicts between team members

7-23 Ergonomics

7-24 Ergonomics Ergonomics (human factors) –The scientific discipline concerned with the understanding of interactions among human and other elements of a system –Incorporation of human factors in the design of the workplace Three domains of ergonomics –Physical (repetitive movements, layout, health, safety) –Cognitive (mental workload, decision making, HCI, and work stress) –Organizational (communication, teamwork, work design, and telework)

7-25 Methods Analysis –Analyzing how a job gets done –It begins with an analysis of the overall operation –It then moves from general to specific details of the job concentrating on 1.Movement of individuals or material  Flow diagrams 2.Activities of human and machine and crew activity  Activity charts 3.Body movement  Micro-motion charts

7-26 The Need for Methods Analysis The need for methods analysis can arise from a variety of sources –Changes in tools and equipment –Changes in product design or introduction of new products –Changes in materials and procedures –Accidents or quality problems

7-27 Methods Analysis Procedure 1.Identify the operation to be studied, and gather relevant data –tools, equipment, materials, etc. 2.Discuss the job with the operator and supervisor to get their input 3.Study and document the present methods using process charts 4.Analyze the job 5.Propose new methods 6.Install the new methods 7.Follow up implementation to assure improvements have been achieved

7-28 Guidelines for Selecting a Job to Study Consider jobs that: –Have a high labor content –Are done frequently –Are unsafe, tiring, unpleasant, and/or noisy –Are designated as problems Quality problems Processing bottlenecks etc.

7-29 Analyzing the Job: Flow Process Charts Flow process chart –Chart used to examine the overall sequence of an operation by focusing on movements of the operator or flow of materials

7-30 Movement Inspection FLOW PROCESS CHART Job Requisition of petty cash Details of Method 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 ANALYST D. Kolb PAGE 1 of 2 Operation Delay Storage

7-31 Analyzing the Job: Worker-Machine Chart Worker machine chart –Chart used to determine portions of a work cycle during which an operator and equipment are busy or idle

7-32 Motion Study Motion study –Systematic study of the human motions used to perform an operation –Evolved from work Frank Gilbreth Motion Study Techniques –Motion study principles– guidelines for designing motion-efficient work procedures - Analysis of therbligs– the name for one of a set of fundamental motions required for a worker to perform a manual operation or task. Example – Hold, Position,Assemble,Use,Disassemble, Inspect. –Micromotion study– use of motion pictures and slow motion to study motions that otherwise would be too rapid to analyze –Charts– activity or process charts, simo charts (simultaneous motions –left hand & right hand movements)

7-33 Developing Work Methods In developing work methods that are motion efficient, the analyst attempts to –Eliminate unnecessary motions –Combine activities –Reduce fatigue –Improve the arrangement of the workplace –Improve the design of tools and equipment

7-34 Work Measurement Work measurement is concerned with how long it should take to complete a job. It is not concerned with either job content or how the job is to be completed since these are considered as given when considering work measurement.

7-35 Work Measurement Commonly used work measurement techniques –Stopwatch time study –Historical times –Predetermined data –Work sampling

7-36 Standard Time Standard time –The amount of time it should take a qualified worker to complete a specified task, working at a sustainable rate, using given methods, tools and equipment, raw material inputs, and workplace arrangement. –Does not include rest breaks or personal delays