Chapter 6 - Human resource practices. The main goals of this chapter are to: Describe the roles that HR plays in firms today and the categories of HRM activities, discuss how the HR function can define its mission and market, explain the approaches to evaluating the effectiveness of HR practices,...
Chapter 6 Human Resource Practices Toyota Georgetown “We’ve got nothing, technologywise, 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 worldclass vehicles.” Key Idea Introduction Businesses are learning that to satisfy customers, they must first satisfy employees Impact of Fredrick Taylor & Scientific Management Objectives of HRM To build a highperformance workplace and maintain an environment for quality excellence to enable employees and the organization to achieve strategic objectives and adapt to change Key Activities in HRM Determine organization’s HR needs to build a highperformance workplace Assist in design of work systems Recruit, select, train & develop, counsel, motivate, and reward employees Act as liaison with unions & government Handle other matters of employee wellbeing Leading Practices (1 of 2) Design work and jobs to promote cooperation, initiative, empowerment, innovation, and organizational culture Promote teamwork and skill sharing across work units and locations Empower individuals and teams to make decisions that affect quality and customer satisfaction Develop effective performance management systems, compensation, and reward and recognition approaches Leading Practices (2 of 2) Effective processes for hiring and career progression Make extensive investments in training and education Motivate employees to develop and use their full potential Maintain a work environment conducive to the wellbeing and growth of all employees Monitor extent and effectiveness of HR practices and measure employee satisfaction 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 Teams Cooperation vs. competition among employees Teams represent a fundamental shift in how work is done Teams lead to higher employee satisfaction and improvement in quality Types of Teams Management teams Natural work teams Self managed teams Virtual teams Quality circles Problem solving teams Project teams 10 Empowerment Leaders and managers must relinquish some of the power and authority Management fear and resistance Advantages of EI It is not for everyone Key Idea Recruitment Meeting and exceeding customer expectations begins with hiring the right people whose skills and attitudes will support and enhance the organization’s objectives 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 Key Idea Training and Education Customer needs and strategic directions should drive training strategies It is an essential requirement It is one of the largest initial cost in a TQ initiative Compensation The objective of a good compensation system should be attract, retain and not demotivate employees Always a sticky issue Compensation and Recognition Compensation – Merit versus capability/performance based plans – Gainsharing Recognition – Monetary or nonmonetary – Formal or informal – Individual or group 33 Key Idea Recognition Recognition provides a visible means of promoting quality efforts and telling employees that the organization values their efforts, which stimulates their motivation to improve 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 Publicize extensively Make recognition fun 35 Motivation Motivation an individual’s response to a felt need Theories – Content Theories (Maslow; MacGregor; Herzberg) – Process Theories (Vroom; Porter & Lawler) – Environmentallybased Theories (Skinner; Adams; Bandura, Snyder, & Williams) Key Idea Motivation There is no such thing as an unmotivated employee, but the system within which people work can either seriously impede motivation or enhance it Performance Appraisal How you are measured is how you perform! Conventional appraisal systems – Focus on shortterm results and individual behavior; fail to deal with uncontrollable factors New approaches – Focus on company goals such as quality and behaviors like teamwork – 360degree feedback; mastery descriptions Key Idea Performance Appraisal Performance appraisals are most effective when they are based on the objectives that support the strategic directions of the organization, best practices, and continuous improvement 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 Key Idea Measuring employee … HR measures allow companies to predict customer satisfaction, identify those issues that have the greatest impact on business performance, and allocate appropriate resources Human Resources in the Baldrige Award Criteria The Human Resource Focus Category examines how an organization’s work systems and employee learning and motivation enable employees to develop and utilize their full potential in alignment with the organization ’s overall objectives and action plans, and how the organization builds and maintains a work environment and an employee support climate conducive to performance excellence and to personal and organizational growth 5.1 Work Systems a. Organization and Management of Work b. Employee Performance Management System c. Hiring and Career Progression 5.2 Employee Learning and Motivation a. Employee Education, Training, and Development b. Motivation and Career Development 5.3 Employee WellBeing and Satisfaction a. Work Environment 42 b. Employee Support and Satisfaction ... 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 ... customer satisfaction, identify those issues that have? ?the? ?greatest impact on business performance,? ?and? ?allocate appropriate resources Human? ?Resources in? ?the? ?Baldrige Award Criteria The? ?Human? ?Resource? ?Focus Category examines how an organization’s work ... Job design responsibilities? ?and? ?tasks assigned to individuals 18 Key Idea Work? ?and? ?Job Design The? ?design? ?of? ?work should provide individuals with both? ?the? ?intrinsic? ?and? ? extrinsic motivation to achieve? ?quality? ?and? ?