Human Resources in Human Resources in Operations ManagementOperations Management

Kusdhianto SetiawanKusdhianto Setiawan

HR in Strategic Planning HR in Strategic Planning ProcessProcess•Employees--the people who work Employees--the people who work

in an organization--are in an organization--are "resources," as important as "resources," as important as other company resources !other company resources !

•How should we process themHow should we process them??•Process them to be what?Process them to be what?•How to align employees visions How to align employees visions

with company’s vision?with company’s vision?

Traditional View...Traditional View...

• The traditional view of employeesThe traditional view of employees or or labor was not so much as a valuable labor was not so much as a valuable resource, but as a replaceable part of the resource, but as a replaceable part of the productive process that productive process that must be closely must be closely directed and controlleddirected and controlled

• EmployeesEmployees are given are given precise directionprecise direction to achieve narrowly defined individual to achieve narrowly defined individual objectivessobjectivess

• They are rewarded with They are rewarded with merit based paymerit based pay

HR in modern Operations HR in modern Operations Strategy View...Strategy View...

• TQMTQM, , emphasized that good employees who are always improving are emphasized that good employees who are always improving are the key to successful quality management and a company's ultimate the key to successful quality management and a company's ultimate survivalsurvival– the company must treat employees as part of its family--a cultural the company must treat employees as part of its family--a cultural

perspective more common to Europe and Japan than to the United perspective more common to Europe and Japan than to the United States. What about in Indonesia?States. What about in Indonesia?

• Shifting of industrial economy to service economyShifting of industrial economy to service economy; ; Since Since services tend to be more people intensive than capital intensive, services tend to be more people intensive than capital intensive, human resources are becoming a more important competitive factor human resources are becoming a more important competitive factor for service companiesfor service companies

• The Development of Information TechnologyThe Development of Information Technology; ; services need services need employees who are skilled with computers, software, and networks. employees who are skilled with computers, software, and networks. They also need They also need flexible employeesflexible employees who can apply their computing who can apply their computing skills to a variety of tasks, and who are continuously trained to keep up skills to a variety of tasks, and who are continuously trained to keep up with rapid advances in information technology. with rapid advances in information technology.

• Technological advances in equipment and machineryTechnological advances in equipment and machinery; Employees ; Employees are required to be better educated, have greater skill levels, and have are required to be better educated, have greater skill levels, and have greater technical expertise, and greater technical expertise, and are expected to take on greater are expected to take on greater responsibilityresponsibility. .

The Changing Nature of The Changing Nature of Human Resource ManagementHuman Resource Management• Scientific Management – breaking down Scientific Management – breaking down

jobs into elemental activities and jobs into elemental activities and simplifying job design; specialists need !simplifying job design; specialists need !– Measure of efficiency: TIME !Measure of efficiency: TIME !– Piece-rate wage systemPiece-rate wage system

• The Assembly Line – the continuance of The Assembly Line – the continuance of scientific management, but scientific scientific management, but scientific management was not adopted in Japan.management was not adopted in Japan.– Upper Limit: high output, low costs, minimal Upper Limit: high output, low costs, minimal

trainingtraining– Lower Limit: boredom, lack of motivation, Lower Limit: boredom, lack of motivation,

physical & mental fatiguephysical & mental fatigue

The Changing Nature of The Changing Nature of Human Resource ManagementHuman Resource Management

• Behavioral influence on Job DesignBehavioral influence on Job Design– Horizontal job enlargement; expanding Horizontal job enlargement; expanding

the scope of a job to include more taskthe scope of a job to include more task– Vertical job enlargement; give more Vertical job enlargement; give more

responsibility ! Responsibility for quality.responsibility ! Responsibility for quality.– Job Rotation; intended to remove Job Rotation; intended to remove

boredom and increase communication boredom and increase communication between workersbetween workers

Contemporary Trend...Contemporary Trend...• Job FlexibilityJob Flexibility• Responsibility and EmpowermentResponsibility and Empowerment• Increased Skill and ability levelsIncreased Skill and ability levels• Employee involvement; from design to Employee involvement; from design to

delivery of product/servicedelivery of product/service• Employee compensation; servicing internal Employee compensation; servicing internal

customer !customer !– Profit sharingProfit sharing– Bonus, etc.Bonus, etc.

• Technology and Automation; broadened Technology and Automation; broadened the scope of job designthe scope of job design

• Temporary EmployeesTemporary Employees• Job SatisfactionJob Satisfaction

The Elements of Job DesignThe Elements of Job Design

• Task Analysis; how tasks (tugas) fit Task Analysis; how tasks (tugas) fit together to form a job (jabatan)together to form a job (jabatan)

• Worker Analysis; determining worker Worker Analysis; determining worker capabilities and responsibility for a jobcapabilities and responsibility for a job

• Job environment; the physical Job environment; the physical characteristics and location of a jobcharacteristics and location of a job

• Table 8.1.Table 8.1.

Job AnalysisJob Analysis

• To study the method used in the To study the method used in the work included in the job to see how it work included in the job to see how it should be done (work method)should be done (work method)

• Tools:Tools:– Process FlowchartProcess Flowchart– Worker-Machine ChartWorker-Machine Chart– Motion StudyMotion Study

Work MeasurementWork Measurement

• Old paradigm: standard time; is the time Old paradigm: standard time; is the time required by an average worker to perform required by an average worker to perform a job once.a job once.– Stop watch time studyStop watch time study

• Time Study Observation SheetTime Study Observation Sheet• Example see page 346Example see page 346

– Elemental Time FilesElemental Time Files– Predetermined Motion TimesPredetermined Motion Times

• Work Sampling: determines the proportion Work Sampling: determines the proportion of time a worker spends on activitiesof time a worker spends on activities

• Learning CurveLearning Curve