Slide 7.1

Chapter 7Chapter 7

Human Resource DevelopmentHuman Resource Development

and Management and Management

Human Resources ManagementHuman Resources Management

Human Resource Management:Human Resource Management:

Activities designed to provide for and Activities designed to provide for and coordinate the people of an organizationcoordinate the people of an organization

HR in TQ organization: supports the HR in TQ organization: supports the organization’s TQ approaches and organization’s TQ approaches and deploymentdeployment

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Human Resource ParadigmsHuman Resource Paradigms

Old Thinking New Thinking

People are part of the process

Process requires external control

Managers have tocontrol whatpeople do

People design andimprove processes

Workers who run theprocess control it

Managers must obtaincommitment of workers

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Key Activities in HRMKey Activities in HRM

Determine organization’s HR needsDetermine organization’s HR needs Assist in design of work systemsAssist in design of work systems Recruit, select, train & develop, counsel, Recruit, select, train & develop, counsel,

motivate, and reward employeesmotivate, and reward employees Act as liaison with unions & governmentAct as liaison with unions & government Handle other matters of employeeHandle other matters of employee

well-beingwell-being

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Leading Practices Leading Practices (1 of 2)(1 of 2)

Integrate HR plans with overall quality Integrate HR plans with overall quality and operational performance plansand operational performance plans

Involve all employees at all levels and in Involve all employees at all levels and in all functionsall functions

Use suggestion and recognition systems Use suggestion and recognition systems effectively to promote involvement and effectively to promote involvement and motivate employeesmotivate employees

Emphasize and support teamwork Emphasize and support teamwork throughout organizationthroughout organization

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Leading Practices Leading Practices (2 of 2)(2 of 2)

Empower individuals and teams to make Empower individuals and teams to make decisionsdecisions

Make extensive investments in training and Make extensive investments in training and educationeducation

Maintain a work environment conducive to Maintain a work environment conducive to the well-being and growth of employeesthe well-being and growth of employees

Monitor extent and effectiveness of HR Monitor extent and effectiveness of HR practices & measure employee satisfactionpractices & measure employee satisfaction

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Strategic HR ManagementStrategic HR Management

HR plans should be linked with HR plans should be linked with business strategybusiness strategy

HR traditionally thought of as a HR traditionally thought of as a support functionsupport function

Progressive firms recognize role of Progressive firms recognize role of HRM in developing viable competitive HRM in developing viable competitive strategystrategy

HR EffectivenessHR Effectiveness

The following constitute methods for The following constitute methods for measuring the effectiveness of human measuring the effectiveness of human resources practices:resources practices:– Employee satisfaction servicesEmployee satisfaction services– Grievance levelsGrievance levels– Safety performanceSafety performance

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High Performance Work SystemsHigh Performance Work Systems

Work design - how employees are Work design - how employees are organized in formal and informal units organized in formal and informal units (departments, teams, etc.)(departments, teams, etc.)

Job design - responsibilities and Job design - responsibilities and tasks assigned totasks assigned toindividualsindividuals

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Employee InvolvementEmployee Involvement

Employee InvolvementEmployee Involvement - - any activity by which any activity by which employees participate in work-related decisions employees participate in work-related decisions and improvement activities, with the objectives and improvement activities, with the objectives of tapping the creative energies of all of tapping the creative energies of all employees and improving their motivationemployees and improving their motivation– Making business decisionsMaking business decisions

– Setting goalsSetting goals

– Solving problemsSolving problems

Employee InvolvementEmployee Involvement

Lincoln Electric Company was an early Lincoln Electric Company was an early initiator of Employee Involvementinitiator of Employee Involvement

The foundations of EI are participation and The foundations of EI are participation and teamworkteamwork

EI begins with a commitment to quality at the EI begins with a commitment to quality at the personal levelpersonal level

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Levels of Employee Levels of Employee InvolvementInvolvement

1. Information sharing1. Information sharing

2. Dialogue2. Dialogue

3. Special problem3. Special problem solving solving

4. Intra-group problem4. Intra-group problem solving solving

5. Inter-group problem5. Inter-group problem solving solving

6. Focused problem6. Focused problem solving solving

7. Limited self-direction7. Limited self-direction

8. Total self-direction8. Total self-direction

Suggestion SystemsSuggestion Systems Suggestion SystemSuggestion System – a management tool for – a management tool for

the submission, evaluation, and the submission, evaluation, and implementation of an employee’s idea to implementation of an employee’s idea to improve the organizationimprove the organization

Toyota employees generate 3 million Toyota employees generate 3 million suggests a year (60 per employee)suggests a year (60 per employee)

Many employees withhold ideas because:Many employees withhold ideas because:– Lack of timeLack of time– Unorganized suggestion systemUnorganized suggestion system– Fear of losing jobFear of losing job

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EmpowermentEmpowerment

Empowerment –Empowerment – giving people authority to make giving people authority to make decisions; a sincere belief and trust in people.decisions; a sincere belief and trust in people.

Examples:Examples:– Provide education, resources, and encouragementProvide education, resources, and encouragement– Remove restrictive policies/proceduresRemove restrictive policies/procedures– Foster an atmosphere of trustFoster an atmosphere of trust– Share information freelyShare information freely– Make work valuableMake work valuable– Train managers in “hands-off” leadershipTrain managers in “hands-off” leadership– Train employees in allowed latitudeTrain employees in allowed latitude

Training & EducationTraining & Education

Quality leaders Deming, Juran, & Crosby Quality leaders Deming, Juran, & Crosby actively promoted quality training & actively promoted quality training & educationeducation

Training is commonly one of the highest Training is commonly one of the highest initial costs of a quality initiative (ROI)initial costs of a quality initiative (ROI)

Example:Example:– Xerox invested more than $125 million in Xerox invested more than $125 million in

quality trainingquality training

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TeamsTeams TeamTeam - a small number of people with - a small number of people with

complementary skills who are committed to complementary skills who are committed to a common purpose, set of performance a common purpose, set of performance goals, and approach for which they hold goals, and approach for which they hold themselves mutually accountablethemselves mutually accountable

Effective teams are goal-centered, Effective teams are goal-centered, independent, open, supportive, and independent, open, supportive, and empoweredempowered

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Types of TeamsTypes of Teams Quality circlesQuality circles – team of workers and supervisors – team of workers and supervisors

from the same work center that meet regularly to from the same work center that meet regularly to address problemsaddress problems

Problem solving teamsProblem solving teams – team whose members – team whose members gather to solve a specific problem and then disbandgather to solve a specific problem and then disband

Management teamsManagement teams – team members from various – team members from various functional areas that are all managersfunctional areas that are all managers

Work teamsWork teams – teams organized to perform entire job – teams organized to perform entire job

Project teamsProject teams – team to develop something new – team to develop something new (New Mustang)(New Mustang)

Virtual teamsVirtual teams – team members communicate by – team members communicate by computercomputer

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Functions of TeamsFunctions of Teams

Implement solutions

Identifyproblems Select

problem

Collect data

Focus attention

Find causesDevelop

solutions

Pick best solution

Developfollow-up plan

Solve

Identify

Analyze

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Self-Managed TeamsSelf-Managed Teams

EmpoweredEmpowered Plan, control, improve Plan, control, improve

work processeswork processes Set own goals and Set own goals and

inspect own workinspect own work Schedule & review Schedule & review

performanceperformance Prepare budgets & Prepare budgets &

coordinate workcoordinate work

Order materials, keep Order materials, keep inventory, & deal with inventory, & deal with supplierssuppliers

Acquire any needed Acquire any needed trainingtraining

Hire replacements or Hire replacements or discipline membersdiscipline members

Take responsibility for Take responsibility for qualityquality

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Ingredients for Successful Ingredients for Successful Teams Teams (1 of 2 )(1 of 2 )

Clarity in team goalsClarity in team goals Improvement planImprovement plan Clearly defined rolesClearly defined roles Clear communicationClear communication Beneficial team behaviorsBeneficial team behaviors

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Ingredients for Successful Ingredients for Successful Teams Teams (2 of 2)(2 of 2)

Well-defined decision proceduresWell-defined decision procedures Balanced participationBalanced participation Established ground rulesEstablished ground rules Awareness of group processAwareness of group process Use of scientific approachUse of scientific approach

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Recognition and RewardsRecognition and Rewards

Monetary or non-monetaryMonetary or non-monetary– Money is a motivator when people Money is a motivator when people

are at the bottom of Maslow’s are at the bottom of Maslow’s Hierarchy of needsHierarchy of needs

theorytheory

Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs Theory Theory

Physiological needsPhysiological needs – achieving adequate food, – achieving adequate food, water, sleepwater, sleep

Safety needsSafety needs – the need for shelter – the need for shelter

Love/Belonging needsLove/Belonging needs – need for companionship – need for companionship (friend, family)(friend, family)

Esteem needsEsteem needs – respect/recognition from others – respect/recognition from others

Self-actualizationSelf-actualization – making the most out of unique – making the most out of unique ability (Poet, song writer, etc…)ability (Poet, song writer, etc…)

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Practices Leading to Effective Practices Leading to Effective Recognition and RewardsRecognition and Rewards

Give both individual and team awardsGive both individual and team awards Involve everyoneInvolve everyone Tie rewards to qualityTie rewards to quality Allow peers and customers to nominate Allow peers and customers to nominate

and recognize superior performanceand recognize superior performance Publicize extensivelyPublicize extensively Make recognition funMake recognition fun