Module 3

Human Resources and

Job Design
 Outline

♦ GLOBAL COMPANY PROFILE: SOUTHWEST

AIRLINES
♦ HUMAN RESOURCE STRATEGY FOR
COMPETITIVE ADVANTAGE
♦ Constraints on Human Resource Strategy
♦ LABOR PLANNING
♦ Employment-Stability Policies
♦ Work Schedules
♦ Job Classifications and Work Rules
 Outline - Continued
♦ JOB DESIGN
♦ Labor Specialization
♦ Job Expansion
♦ Psychological Components of Job Design
♦ Self-Directed Teams
♦ Motivation and Incentive Systems
♦ Ergonomics and Work Methods
♦ THE VISUAL WORKPLACE
♦ LABOR STANDARDS
 Learning Objectives
When you complete this chapter, you should be
able to :
Identify or Define:
♦ Job design
♦ Job specialization
♦ Job expansion
♦ Tools of methods analysis
♦ Ergonomics
♦ Labor standards
♦ Andon
 Learning Objectives - Continued
When you complete this chapter, you should be
able to :
Describe or explain:
♦ Requirements of good job design
♦ The visual workplace
 Southwest Airlines
♦ Profitable for 26 years while United, Northwest,
and USAir lost billions.
♦ Strategy: Human resources
♦ Culture of caring for people in the totality of their lives,
not just at work.
♦ Spends more to recruit and train than any other airline
 Southwest Airlines
♦ Empowered employees
♦ Wages higher than industry average
♦ Stock options for some employees
♦ Employees treated like customers
♦ Everybody understands what everybody else’s
problems are
♦ No gimmicks!
 Objective of Human Resource
Strategy

To manage labor and design jobs so people are

effectively and efficiently utilized
 People and Work System Goals

Use people efficiently Provide reasonable

within constraints quality of work life

© 1995 Corel Corp.

 Constraints on Human Resource
Strategy
Product strategy Process strategy
- Skills needed - Technology
- Talents needed - Machinery and
- Materials used Wha
o c e dure equipment used
- Safety t Pr - Safety

Schedule Human Individual differences

- Time of day - Strength and fatigue
- Time of year When Resource Who - Information processing
(seasonal) and response
- Stability of schedules Strategy

Location strategy Layout strategy

- Climate
- Temperature W here Ho
w
- Fixed position
- Process
- Noise - Assembly line
- Light - Work cell
- Air quality - Product
People and Work System Aspects

Job Labor
Design Standards
 Labor Planning/Stability Policies
♦ 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
 Productivity in Relation to Annual
Turnover Rate
>20% $120,000

16-20% $125,000

11-15% $130,000

6-10% $150,000

3-5% $153,000

<3% $200,000
Determining Policies of Labor
Stability
Employer policies are partly determined by
management’s view of labor costs – as a fixed
cost, or as a variable cost.
 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
 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
 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
 Components of Job Design
♦ Job specialization
♦ Job expansion
♦ Psychological components
♦ Self-directed teams
♦ Motivation and incentive systems
♦ Ergonomics and work methods
 Job Specialization
♦ Involves
♦ Breaking jobs into small component parts
♦ Assigning specialists to do each part
♦ First noted by Adam Smith (1776)
♦ Observed how workers in pin factory divided
tasks into smaller components
♦ Found in manufacturing & © 1995

service industries
Corel
Corp.
 Job Specialization Often Reduces
Cost

♦ Greater dexterity & faster learning

♦ Less lost time changing jobs or tools
♦ Use of more specialized tools
♦ Pay only for needed skills
 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
 Job Enlargement/Job Enrichment
Enriched Job
Planning
Planning

Enlarged Job
Task
Task#2
#2 Present Task
Task#3
#3
Job

Control
Control
 Job Enlargement/Job Enrichment
Planning
Participate in a cross- Enriched job
function quality-
improvement team

Task #3 Present job Task #2

Lock printed circuit into Manually insert and Adhere labels to
fixture for next solder six resistors printed circuit board
operation

Control Enlarged job

Test circuits after
assembly
 Job Rotation
Pediatrics
Maternity

© 1995
Corel Corp.

© 1995 Corel
Corp.

© 1995
Geriatrics
Corel
Corp.
Employee Empowerment

Employee Empowerment

Decision-Making
Control

Planning
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’
 Hawthorne Studies

♦ Conducted in late 1920’s

♦ Western Electric Hawthorne plant
♦ Showed importance of the individual
in the workplace
♦ Showed the presence of a social
system in the workplace
 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
 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
 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)
 Job Design Continuum
Self-directed
Teams

Increasing
Empowerment
reliance on
employees’
contribution and
Enrichment
increasing
acceptance of
Enlargement responsibility by
employee

Specialization
Job Expansion
 Core Job Characteristics

♦ Skill variety
♦ Job identify
♦ Job significance
♦ Autonomy
♦ Feedback
 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
 Motivation
♦ Worker performance depends on
♦ Motivation
♦ Ability
♦ Work environment
♦ Motivation is the set of forces that compel
behavior
♦ Money may serve as a psychological & financial
motivator
 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
 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 standard time
♦ Piece rate: Pay based on pieces done
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
 Herzberg’s Motivation/Hygiene
Factors
Job Dissatisfiers Job Satisfiers
(Hygiene) (Motivators)
ŽCompany policies and administration ŽAchievement
ŽSupervision - technical ŽRecognition
ŽWorking conditions ŽAdvancement
ŽInterpersonal relations - supervision ŽWork itself
ŽStatus ŽResponsibility
ŽJob security ŽPersonal growth
ŽSalary
 Job Characteristics

Core Job Characteristics ♦ Motivation

♦ Satisfaction
♦ Job performance
Psychological States
♦ Absenteeism & turnover

Personal & Work

Hackman & Oldham
Outcomes
 Ergonomics and 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
 Ergonomics

♦ Study of work
♦ Also called ‘human factors’
♦ Involves human-machine interface
♦ Examples
♦ Mouse
♦ Keyboard
Recommended Levels of Illumination
Task Condition Type of Task Illumination Level Type of
or Area (Ft-C) Illumination
Small detail; Sewing, 100 Overhead ceiling
Extreme inspecting lights and desk
accuracy dark materials lamp
Normal detail, Reading, parts 20-50 Overhead ceiling
prolonged assembly, general
lights
periods office work
Good contrast, Recreational 5-10
fairly large Overhead ceiling
facilities lights
objects
Large objects Restaurants, 2-5
stairways, Overhead ceiling
warehouses lights
 Decibel levels for Various Sounds
Environmental Noises Common Noise Sources Decibels
Jet takeoff (200 ft) 120 Ear
protection
Casting shakeout area Riveting machine 110 required
Electric furnace area Pneumatic peen hammer, 100 Very
textile weaving plant annoying
Printing press plant Subway train 90
Pneumatic drill 80 Ear
Inside sports car (50 mph) Freight train protection
Vacuum cleaner (10 ft) 70 required if
Near freeway (auto traffic) Speech (1 ft) exposed 8
hours or
more
Large store 60 Intrusive
Private business office
Light traffic (100ft) Large transformer (200ft) 50 Quiet
Minimum levels, residential 40
areas in Chicago at night Soft whisper
30 Very quiet
 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)
 Methods Analysis Used to Study

♦ Movement of individuals or materials (Flow

diagrams or process charts)
♦ Activity of human and machine and crew activity
(Activity charts)
♦ Body movement (primarily hands) (Micro-motion
charts)
 Process Chart

SUBJECT: Request tool purchase

Dist (ft) Time (min) Symbol Description
{ ⇒ † D ∇ Write order
{ ⇒ † D ∇ On desk
75 { ⇒ † D ∇ To buyer
{ ⇒ † D ∇ Examine
{ = operation; ⇒ = transport; † = inspect; D = delay; ∇ = storage
 Flow Diagram

Buyer

75 ft.

You
Flow Diagram and Process Chart of
Axle-Stand Production Line
Activity Chart for Two-Person
Oil-Change Crew
 Operations Chart
(Left Hand/Right Hand)
 Activity Chart
Subject: Semi-Auto Machine Present
Time Operator Machine

1 Load machine Being loaded

2
3
Idle Run
4
5
6 Unload Being Unloaded
 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
The Visual Workplace
 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
 Uses of Labor Standards

♦ Costing labor content of products

♦ Planning staffing needs
♦ Cost & time estimates for bids
♦ Planning production
♦ Wage-incentive plans
♦ Employee efficiency
 Sources of Labor Standards

♦ Historical experience
♦ Time studies
♦ Predetermined time standards (MTM)
♦ Work sampling
 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.
 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

© 1995 Corel Corp.