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Human resources best practices

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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 1 Human Resource Practices
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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

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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 26

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


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