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PRODUCTION AND OPERATIONS MANAGEMENT. Ch. 11: Human Resources and Job Design. Learning Objectives. Define job design Describe job design components Explain motivation theories & studies Define work measurement Describe work measurement techniques Calculate standard time.
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PRODUCTION AND OPERATIONS MANAGEMENT Ch. 11: Human Resources and Job Design POM - J. Galván
Learning Objectives • Define job design • Describe job design components • Explain motivation theories & studies • Define work measurement • Describe work measurement techniques • Calculate standard time POM - J. Galván
Objective of Human Resource Strategy • To manage labor and design jobs so people are effectively and efficiently utilized POM - J. Galván
Use people efficiently within constraints People and Work System Goals Provide reasonable quality of work life © 1995 Corel Corp. POM - J. Galván
Job Design Labor Standards People and Work System Aspects POM - J. Galván
Product strategy Process strategy Location strategy Layout strategy Schedules Individual differences People and Work System Constraints People & Work Design © 1995 Corel Corp. POM - J. Galván
Follow demand exactly keeps direct labor costs tied closely to production incurs costs of hiring/firing unemployment insurance labor wage premium Hold employment constant maintains a trained workforce incurs costs of idle time when demand is low meeting increased demand when demand is high Labor Planning/Stability Policies POM - J. Galván
Work Schedules • Standard work schedule • five eight-hour days • Flex-time • allows employees, within prescribed limits, to determine their own schedules • Flexible work week • four 10-hour days • Part-time • less than eight hours per day, or an irregular schedule POM - J. Galván
Job Classifications and Work Rules • Specify • who can do what • when they can do it • under what conditions they can do it • Often result of union pressure • Restricts flexibility in assignments; consequently restricts efficiency of production POM - J. Galván
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 POM - J. Galván
Components of Job Design • Job specialization • Job expansion • Psychological components • Self-directed teams • Motivation and incentive systems • Ergonomics and work methods POM - J. Galván
Labor Specialization • Involves • 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 POM - J. Galván
Labor Specialization Often Reduces Cost • Greater dexterity & faster learning • Less lost time changing jobs or tools • Use more specialized tools • Pay only for needed skills POM - J. Galván
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 POM - J. Galván
Enriched Job Planning Enlarged Job Task #2 Task #3 Control Job Expansion/Enrichment PresentJob POM - J. Galván
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 POM - J. Galván
Pediatrics Maternity © 1995 Corel Corp. © 1995 Corel Corp. Geriatrics © 1995 Corel Corp. Job Rotation POM - J. Galván
Decision-Making Control Planning Employee Empowerment Employee Empowerment POM - J. Galván
Job Design Continuum Self-directed Teams Increasing reliance on employees contribution and increasing acceptance of responsibility by employee Empowerment Enrichment Enlargement Specialization POM - J. Galván
Limitations to Job Enlargement/Job Enrichment • Higher capital cost • Many individuals prefer simple jobs • Higher wages are required since the worker must utilize a higher level of skill • A smaller labor pool exists of persons able and willing to perform enriched or enlarged jobs • Increased accident rates may occur • Current technology in some industries does not lend itself to job enlargement and enrichment POM - J. Galván
Psychological Components of Job Design • Individuals have values, attitudes, and 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’ POM - J. Galván
Core Job Characteristics • Skill variety • Job identify • Job significance • Autonomy • Feedback POM - J. Galván
Motivation • Worker performance dependson • Motivation • Ability • Workenvironment • Motivationisthe set of forcesthatcompelbehavior • Money mayserve as a psychological & financialmotivator POM - J. Galván
Motivation and Money • Taylor’s scientific management (1911) • Workers are motivated mainly by money • Suggested piece-rate system • Maslow’s theory (1943) • People are motivated by hierarchy of needs, which includes money • Herzberg (1959) • Money either dissatisfies or is neutral in its effect POM - J. Galván
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 reduction.) • Incentive systems • Measured daywork: Pay based on std. time • Piece rate: Pay based on pieces done POM - J. Galván
Maslow’s Hierarchy of Needs Self-Actualization Use of abilities Self-fulfillment Ego Self Respect Social Group Interaction Job Status Safety Physical Safety Job Security Physiology Food Shelter POM - J. Galván
Herzberg’s Motivation/Hygiene Factors Job Dissatisfiers (Hygiene) Job Satisfiers (Motivators) • Company policies and administration • Supervision - technical • Working conditions • Interpersonal relations - supervision • Status • Job security • Salary • Achievement • Recognition • Advancement • Work itself • Responsibility • Personal growth POM - J. Galván
Psychological States Personal & Work Outcomes Job Characteristics Core Job Characteristics • Motivation • Satisfaction • Job performance • Absenteeism & turnover Hackman & Oldham (1980) POM - J. Galván
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) POM - J. Galván
Ergonomics and Work Methods • Worker performance depends on • Motivation • Ability • Work environment • Foundation laid by Frederick Taylor • Match employees to task • Developwork methods • Establish work standards POM - J. Galván
Ergonomics • Study of work • Also called ‘human factors’ • Involves human-machine interface • Examples • Mouse • Keyboard POM - J. Galván
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) POM - J. Galván
Þ ¡ o D Ñ Þ ¡ o D Ñ Þ ¡ o D Ñ Þ ¡ o D Ñ Process Chart ¡ = operation; Þ = transport; o = inspect; D = delay; Ñ = storage SUBJECT: Request tool purchase Dist (ft) Time (min) Symbol Description Write order On desk 75 To buyer Examine POM - J. Galván
Flow Diagram Buyer 75 ft. You POM - J. Galván
Activity Chart Subject: Semi-Auto Machine Present Time Operator Machine Load machine Being loaded 1 2 3 Run Idle 4 5 Unload Being Unloaded 6 POM - J. Galván
Þ ¡ o D Ñ Þ ¡ o D Ñ Þ ¡ o D Ñ Þ ¡ o D Ñ Þ ¡ o D Ñ Þ ¡ o D Ñ Þ ¡ o D Ñ Þ ¡ o D Ñ Operations Chart (Left Hand/Right Hand ¡ = operation; Þ = transport; o = inspect; D = delay; Ñ = storage Left Hand Right Hand Present Method Symbol Symbol Present Method 1 Reach for bolt Idle 2 Grasp bolt Idle 3 Hold bolt Reach for washer 4 Hold bolt Assemble POM - J. Galván
The Visual Workplace • Uses low-cost visual devices to share information quickly and accurately. • Displays and graphs replace paper • Provides real-time information • System should focus on improvement, not merely monitoring • Can provide both production and financial data POM - J. Galván
What is Work Measurement? • Determining the amount of worker time required to generate one unit of output • Provides labor standards • Target amount of time required to perform a job under normal working conditions POM - J. Galván
Uses of Labor Standards • Costing labor content of products • Planning staffing needs • Cost & time estimates for bids • Planning production • Wage-incentive plans • Employee efficiency POM - J. Galván
Sources of Labor Standards • Historical experience • Time studies • Predetermined time standards (MTM) • Work sampling POM - J. Galván
Labor Standards - Historical Experience • Labor standards are based on how many labor-hours were needed in past • Least preferred method • Advantages • Easy and inexpensive to obtain standard • Disadvantages • Unknown accuracy due to unusual occurrences, unknown pace etc. POM - J. Galván
Time Studies • Labor standards are based on observing worker doing task • Observe only a sample of work • Use average time & pace to set standard • Disadvantages • Require a trained & experienced analyst • Standard cannot be setbefore task is performed POM - J. Galván
Time Study Steps • Define task to be studied • Break task into elements • Determine number of cycles • Time each element • Determine pace (rating factor) • Compute labor standard POM - J. Galván
Time Study Equations Nonwork time = Allowance factor Total time N (Element times) Avg. element time = Number of cycles = × Normal time (Avg. element time) (Pace) Total normal time = Standard time - 1 Allowance factor Nonwork time = Personal, Fatigue, and Delay Time POM - J. Galván
Predetermined Time Standards • Labor standards are set from times in published tables (e.g., MTM Table) • Procedure • Divide manual work into basic elements • Look up basic element times in table; sum • Advantages • Times established in laboratory setting • Useful for planning tasks • Widely accepted by unions POM - J. Galván
Work Sampling • Labor standard is set using output & % of time worker spends on tasks • Involves observing worker at random times over a long period • Advantages • Less expensive than time studies • Observer requires little training • Disadvantages • Ineffective with short cycles POM - J. Galván
Work Sampling Steps • Take preliminary sample & estimate parameter value (e.g., percentage) • Compute sample size • Prepare observation schedule • Observe & record worker’s activities • Rate worker’s performance • Record number of units produced • Compute standard time per unit POM - J. Galván
Work Sampling Equations (%Working Rating) (Total Time) Normal Tim e = Units Produced Normal Tim e = Std Time (1 - Allowance) POM - J. Galván
A Final Thought Two stonecutters were asked what they were doing. The first said, ‘I’m cutting this stone into blocks.’ The second one replied, ‘I’m on a team that’s building a cathedral.’ — Old Story Church of the Holy Family (Barcelona) © 1995 Corel Corp. POM - J. Galván