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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
Slide 7.2
Slide 7.3Slide 7.3
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
Slide 7.4Slide 7.4
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
Slide 7.5Slide 7.5
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
Slide 7.6Slide 7.6
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
Slide 7.7Slide 7.7
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
Slide 7.8
Slide 7.9Slide 7.9
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
Slide 7.10Slide 7.10
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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Slide 7.12Slide 7.12
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
Slide 7.13
Slide 7.14Slide 7.14
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
Slide 7.15
Slide 7.16Slide 7.16
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
Slide 7.17Slide 7.17
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
Slide 7.18Slide 7.18
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
Slide 7.19Slide 7.19
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
Slide 7.20Slide 7.20
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
Slide 7.21Slide 7.21
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
Slide 7.22Slide 7.22
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…)
Slide 7.23
Slide 7.24Slide 7.24
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