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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 1
Human Resource Practices
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 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.”
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 3
Human 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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Top 10 Highest Paying Jobs in the Philippines
1. Art director: P69,2862. Geologist: P64,8893. Aircraft pilot/navigator/flight engineer: P57,7894. Mining/metallurgical engineer: P55,6385. Computer programmer: P43,5736. Systems analyst/designer: P42,1127. Production supervisor/general foreman: P36,1338. Actuarian: P35,4809. Customer service associate: P35,42410. Statistician: P35,010
4
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Top 10 Most In-Demand Jobs in the Philippines on 2013
1. Computer Programmer
2. Call Center Agent
3. Accountant
4. Nurse
5. IT Specialist
6. Online Teacher
7. Systems Analyst
8. Social Media Manager
9. Civil Engineer
10. Web/ Java Developers
5
Source: JobOpenings.ph
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 6
Leading Practices (1 of 2)
• Integrate HR plans with overall strategic objectives and action plans
• Design work and jobs to promote organizational learning, innovation, and flexibility
• Develop effective performance management systems, compensation and recognition approaches
• Promote cooperation and collaboration through teamwork
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 7
Leading Practices (2 of 2)
• Empower individuals and teams to make decisions that affect quality and customer satisfaction
• Make extensive investments in training and education
• 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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Key Values to Consider
• Strategic Perspective• High Performance Work System• Employee Involvement• Empowerment• Open Communication• Training and Education• Collaboration• Compensation and Recognition• Performance Appraisal• Measuring Employee Satisfaction and Effectiveness
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 9
Strategic Perspective
• HR plans should be linked to business strategy and aligned with business needs
• Key choices– Planning– Staffing– Appraising– Compensating– Training and development
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 10
High Performance Work Systems
Work and Job Design
Employee Involvement
Suggestion systems
Empowerment
Training and Education
Teamwork and Cooperation
Compensation and recognition
Health and safety
Flexibility
Innovation
Knowledge and skill sharing
Organizational alignment
Customer focus
Rapid response
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 11
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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 12
Hackman/Oldham Model
Core jobcharacteristics
Criticalpsychological states
Outcomes
Skill varietyTask identityTask significance
Experiencedmeaningfulness of work
Autonomy
Feedbackfrom job
Experiencedresponsibility
Knowledge of actual results
High motivation
High satisfaction
High workeffectiveness
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 13
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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 14
Advantages of EI
• 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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
• Hold individuals accountable• Hire the best people you can• Don't promote people just for the sake of promoting
them• Keep teams small• Screw focus groups, make what you want
Source: http://www.businessinsider.com/
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 16
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.”
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 17
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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Open communication
Encourage innovative ideas
Learning program for high performers
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Sharing of success and opportunities
Solicit employee opinions
Source: www.coca-colacompany.com
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 19
Training and Education
• 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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 20
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
• Effective teams are goal-centered,
independent, open, supportive,
and empowered
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 21
Types of Teams
• Problem solving teams• Management teams• Work teams• Project teams• Virtual teams
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 22
Functions of Teams
Implement solutions
Identifyproblems Select
problem
Collect data
Focus attention
Find causesDevelop
solutions
Pick best solution
Developfollow-up plan
Solve
Identify
Analyze
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 23
Self-Managed Teams
• Empowered• Plan, control, improve
work processes• Set own goals and inspect
own work• Schedule & review
performance• Prepare budgets &
coordinate work
• Order materials, keep inventory, & deal with suppliers
• Acquire any needed training
• Hire replacements or discipline members
• Take responsibility for quality
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 24
Ingredients for Successful Teams (1 of 2 )
• Clarity in team goals• Improvement plan• Clearly defined roles• Clear communication• Beneficial team behaviors
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 25
Ingredients for Successful Teams (2 of 2)
• Well-defined decision procedures• Balanced participation• Established ground rules• Awareness of group process• Use of scientific approach
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 27
“Whatever we accomplish is due to the combined effort. The organization must be with you or you don’t get it done… In my organization there is respect for every individual, and we all have a keen respect for the public… Of all the things I’ve done, the most vital is coordinating those who work with me and aiming their efforts at a certain goal.”
-Walter Elias Disney
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 28
Compensation and Recognition
• Compensation–Merit versus capability/performance
based plans–Gainsharing
• Recognition–Monetary or non-monetary–Formal or informal– Individual or group
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 29
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• Make recognition fun
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 30
Performance Appraisal
• How you are measured is how you perform!• Conventional appraisal systems
– Focus on short-term results and individual behavior
New approaches– Focus on company goals such as quality and
behaviors like teamwork– 360-degree feedback
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 31
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