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Chapter 6

Chapter 6. Human Resource Practices. Toyota Georgetown.

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Chapter 6

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  1. Chapter 6 Human Resource Practices

  2. Toyota Georgetown • “We’ve got nothing, technology-wise, that anyone else can’t have. There’s no secret Toyota Quality Machine out there. The quality machine is the workforce -- the team members on the paint line, the suppliers, the engineers -- everybody who has a hand in production here takes the attitude that we’re making world-class vehicles.”

  3. Key IdeaIntroduction Businesses are learning that to satisfy customers, they must first satisfy employees. Impact of Fredrick Taylor & Scientific Management

  4. Objectives of HRM • To build a high-performance workplace and maintain an environment for quality excellence to enable employees and the organization to achieve strategic objectives and adapt to change.

  5. Key Activities in HRM • Determine organization’s HR needs to build a high-performance workplace • Assist in design of work systems • Recruit, select, train & develop, counsel, motivate, and reward employees • Act as liaison with unions & government • Handle other matters of employeewell-being

  6. Leading Practices (1 of 2) • Design work and jobs to promote cooperation, initiative, empowerment, innovation, and organizational culture • Promote teamwork and skill sharing across work units and locations • Empower individuals and teams to make decisions that affect quality and customer satisfaction • Develop effective performance management systems, compensation, and reward and recognition approaches

  7. Leading Practices (2 of 2) • Effective processes for hiring and career progression • Make extensive investments in training and education • Motivate employees to develop and use their full potential • Maintain a work environment conducive to the well-being and growth of all employees • Monitor extent and effectiveness of HR practices and measure employee satisfaction

  8. Teams • 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

  9. Teams • Cooperation vs. competition among employees • Teams represent a fundamental shift in how work is done • Teams lead to higher employee satisfaction and improvement in quality

  10. Types of Teams • Management teams • Natural work teams • Self managed teams • Virtual teams • Quality circles • Problem solving teams • Project teams

  11. Key IdeaTeams The three basic functions of quality circles and problem-solving teams are to identify, analyze, and solve quality and productivity problems.

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

  13. Key IdeaBuilding Effective Teams The key stages of a team’s life cycle are called forming, storming, norming, performing, and adjourning.

  14. Ingredients for Successful Teams (1 of 2 ) • Clarity in team goals • Improvement plan • Clearly defined roles • Clear communication • Beneficial team behaviors

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

  16. Six Sigma Project Teams • Champions – senior managers who promote Six Sigma • Master Black Belts – highly trained experts responsible for strategy, training, mentoring, deployment, and results. • Black Belts – Experts who perform technical analyses • Green Belts – functional employees trained in introductory Six Sigma tools • Team Members – Employees who support specific projects

  17. High Performance Work Systems Compensation and recognition Work and Job Design Flexibility Innovation Knowledge and skill sharing Organizational alignment Customer focus Rapid response Health and safety Empowerment Suggestion systems Employee Involvement Training and Education Teamwork and Cooperation

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

  19. Key IdeaWork and Job Design The design of work should provide individuals with both the intrinsic and extrinsic motivation to achieve quality and operational performance objectives.

  20. Hackman/Oldham Model Critical psychological states Core job characteristics Outcomes Skill variety Task identity Task significance Experienced meaningfulness of work High motivation High satisfaction High work effectiveness Experienced responsibility Autonomy Feedback from job Knowledge of actual results Moderators

  21. Enhancing Work Design • Job enlargement – expanding workers’ jobs • Job rotation – having workers learn several tasks and rotate among them • Job enrichment – granting more authority, responsibility, and autonomy

  22. Employee Involvement • 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

  23. Key IdeaEmployee Involvement EI approaches can range from simple sharing of information or providing input on work-related issues and making suggestions to self-directed responsibilities such as setting goals,making business decisions, and solving problems, often in cross-functional teams.

  24. Replaces adversarial mentality with trust and cooperation Develops skills and leadership abilities Increases morale and commitment Fosters creativity and innovation Helps people understand quality principles and instilling them into the organization’s culture Allows employees to solve problems at the source Improves quality and productivity Advantages of EI

  25. Suggestion System Toyota example Employees generate nearly 3 million ideas each year, of which 85 percent are implemented by management.

  26. Empowerment • Giving people authority to make decisions based on what they feel is right, to have control over their work, to take risks and learn from mistakes, and to promote change. “A sincere belief and trust in people.”

  27. Successful Empowerment • 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

  28. Empowerment • Leaders and managers must relinquish some of the power and authority. • Management fear and resistance • Advantages of EI • It is not for everyone

  29. Key IdeaRecruitment Meeting and exceeding customer expectations begins with hiring the right people whose skills and attitudes will support and enhance the organization’s objectives.

  30. Quality awareness Leadership Project management Communications Teamwork Problem solving Interpreting and using data Meeting customer requirements Process analysis Process simplification Waste reduction Cycle time reduction Error proofing Training and Education

  31. Key IdeaTraining and Education Customer needs and strategic directions should drive training strategies. It is an essential requirement. It is one of the largest initial cost in a TQ initiative.

  32. Compensation • The objective of a good compensation system should be attract, retain and not demotivate employees. • Always a sticky issue.

  33. Compensation and Recognition • Compensation • Merit versus capability/performance based plans • Gainsharing • Recognition • Monetary or non-monetary • Formal or informal • Individual or group

  34. Key IdeaRecognition Recognition provides a visible means of promoting quality efforts and telling employees that the organization values their efforts, which stimulates their motivation to improve.

  35. Effective Recognition and Reward Strategies • Give both individual and team awards • Involve everyone • Tie rewards to quality • Allow peers and customers to nominate and recognize superior performance • Publicize extensively • Make recognition fun

  36. Motivation • Motivation - an individual’s response to a felt need • Theories • Content Theories (Maslow; MacGregor; Herzberg) • Process Theories (Vroom; Porter & Lawler) • Environmentally-based Theories (Skinner; Adams; Bandura, Snyder, & Williams)

  37. Key IdeaMotivation There is no such thing as an unmotivated employee, but the system within which people work can either seriously impede motivation or enhance it.

  38. Performance Appraisal • How you are measured is how you perform! • Conventional appraisal systems • Focus on short-term results and individual behavior; fail to deal with uncontrollable factors • New approaches • Focus on company goals such as quality and behaviors like teamwork • 360-degree feedback; mastery descriptions

  39. Key IdeaPerformance Appraisal Performance appraisals are most effective when they are based on the objectives that support the strategic directions of the organization, best practices, and continuous improvement.

  40. Measuring Employee Satisfaction and Effectiveness • Satisfaction • Quality of worklife, teamwork, communications, training, leadership, compensation, benefits, internal suppliers and customers • Effectiveness • Team and individual behaviors; cost, quality, and productivity improvements; employee turnover; suggestions; training effectiveness

  41. Key IdeaMeasuring employee … HR measures allow companies to predict customer satisfaction, identify those issues that have the greatest impact on business performance, and allocate appropriate resources.

  42. Human Resources in the Baldrige Award Criteria The Human Resource FocusCategory examines how an organization’s work systems and employee learning and motivation enable employees to develop and utilize their full potential in alignment with the organization ’s overall objectives and action plans, and how the organization builds and maintains a work environment and an employee support climate conducive to performance excellence and to personal and organizational growth. 5.1 Work Systems a. Organization and Management of Work b. Employee Performance Management System c. Hiring and Career Progression 5.2 Employee Learning and Motivation a. Employee Education, Training, and Development b. Motivation and Career Development 5.3 Employee Well-Being and Satisfaction a. Work Environment b. Employee Support and Satisfaction

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