1. Principles of Operations Management
People & Work Systems Chapter 7

2. Learning Objectives Define job design Describe job design components
Explain motivation theories & studies

3. People & Work Systems Goals
Use people efficiently within constraints
Provide reasonable quality of work life
© 1995 Corel Corp.

4. People & Work Systems Constraints
People & Work Design
Product strategy
Process strategy
Location strategy
Layout strategy
Schedules
Individual differences
© 1995 Corel Corp.

5. People & Work Systems Aspects
Job Design
Labor Standards

6. Job Design
Specifying the tasks that make up a job for an individual or group
Involves determining
What is to be done (i.e., responses)
How it is to be done (i.e., tools etc.)
Why it is to be done (i.e., purpose)
Results in job description
Shows nature of job in task-related behaviors

7. Job Design Components Labor specialization Job expansion
Psychological components
Self-directed teams
Motivation & incentive systems
Ergonomics & work methods

8. Labor Specialization Involves First noted by Adam Smith (1876)
Breaking jobs into small component parts
Assigning specialists to do each part
First noted by Adam Smith (1876)
Observed how workers in pin factory divided tasks into smaller components
Found in manufacturing & service industries
© 1995 Corel Corp.

9. Labor Specialization Often Reduces Costs
Greater dexterity & faster learning
Less lost time changing jobs or tools
Using more specialized tools
Paying only for needed skills

10. 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

11. Job Expansion Constraints
Higher capital cost
Workers’ preferences
Example: Some people prefer simple jobs
Higher wages required
Smaller labor pool
Increased accident rates
Lack of technology

12. Psychological Components
Individuals have values, attitudes, & emotions that affect job results
Example: Work is a social experience that affects belonging needs
Effective worker behavior comes mostly from within the individual
Scientific management argued for external financial rewards
First examined in ‘Hawthorne studies’

13. Hawthorne Studies Conducted in late 1920’s
General Electric Hawthorne plant
Showed the importance of the individual in the workplace
Showed the presence of a social system in the workplace

14. Hawthorne Studies: Workplace Lighting
Originally intended to examine effects of lighting on productivity
Scientific management proposed that physical conditions affect productivity
Result: Productivity increased regardless of lighting level
Conclusion: Increased productivity was due to workers’ receiving attention

15. Hawthorne Studies: Piecework Pay
Examined effects of group piecework pay system on productivity
Workers under piecework system should produce as much as possible
Scientific management assumes that people are motivated only by money
Result: Production less than maximum
Conclusion: Social pressure caused workers to produce at group-norm level

16. Self-Directed Teams
Group of empowered individuals working together for a common goal
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)

17. Motivation Worker performance depends on
Ability
Work environment
Motivation is the set of forces that compel behavior
Money may serve as a psychological & financial motivator

18. Motivation & Money Taylor’s scientific management (1911)
Workers are motivated mainly by money
Suggested piece-rate system
Maslow’s theory (1943)
People are motivated by sequence of needs, which includes money
Herzberg (1959)
Money either dissatisfies or is neutral in its effect

19. Monetary Incentives Bonuses: Cash & stock options
Profit sharing: Distribution of profits
Gain sharing: Reward for company performance (e.g., cost reduction)
Scanlon plan is most popular (cost reduct.)
Incentive systems
Measured daywork: Pay based on std. time
Piece rate: Pay based on pieces done

20. Ergonomics & Work Methods
Worker performance depends on
Motivation
Ability
Work environment
Foundation laid by Frederick Taylor
Match employees to task
Develop work methods
Establish work standards

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

22. Methods Analysis Focuses on how task is performed Used to analyze
Movement of body, people, or material
Activities of people & machines
Tools
Process chart
Flow diagram
Activity chart
Operations chart (right-hand, left-hand)

23. Conclusion Defined job design Described job design components
Explained motivation theories & studies