People and Work Systems

Human Resource and Job Design

Objective of Human Resource Strategy

o To manage labor and design jobs so people are effectively and
efficiently utilized
People and Work System Goals
o Use people efficiently within constraints
o Provide reasonable quality of work life
Constraints on Human Resource Strategy

People and Work System Aspects

o Job Design
o Labor Standards
Labor Planning/Stability Policies
1. Follow demand exactly
a. keeps direct labor costs tied closely to production
b. incurs costs of
i. hiring/firing
ii. unemployment insurance
iii. labor wage premium
2. Hold employment constant
a. maintains a trained workforce
b. incurs costs of
i. idle time when demand is low
ii. meeting increased demand when demand is high

Determining Policies of Labor Stability

Employer policies are partly determined by managements view of labor costs as a
fixed cost, or as a variable cost
Work Schedules
Standard work schedule

 five eight-hour days

Flex-time
allows employees, within prescribed limits, to determine their own
schedules
Flexible work week
four 10-hour days
Part-time
less than eight hours per day, or an irregular schedule
Job Classifications and Work Rules
Specify
who can do what
when they can do it
under what conditions they can do it
Often result of union pressure
Restricts flexibility in assignments; consequently restricts efficiency of
production
Job Design
Specifying the tasks that make up
a job for an individual or group
Involves determining
What is to be done (i.e., responses)
How it is to be done (i.e., tools etc.)
Why it is to be done (i.e., purpose)
Results in job description
Shows nature of job in task-related behaviors
Components of Job Design
Job specialization
Job expansion
Psychological components
Self-directed teams
Motivation and incentive systems
Ergonomics and work methods
A. Job Specialization
-Involves
Breaking jobs into small component parts
Assigning specialists to do each part
-First noted by Adam Smith (1776)
-Observed how workers in pin factory divided tasks into smaller components
-Found in manufacturing & service industries
Job Specialization Often Reduces Cost
Greater dexterity & faster learning

 Less lost time changing jobs or tools

Use of more specialized tools
Pay only for needed skills
B. Job Expansion

Process of adding more variety to jobs

Intended to reduce boredom associated with labor specialization
Methods
Job enlargement-Giving a worker a larger portion of the total task by
horizontal loading
o Job enrichment-Increasing responsibility for planning and coordination tasks,
by vertical loading
o Job rotation-Workers periodically exchange jobs
o Employee empowerment

C. Psychological Components of Job Design

Individuals have values, attitudes, and emotions that affect job results
o Example: Work is a social experience that affects belonging needs
Effective worker behavior comes mostly from within the individual
o Scientific management argued for external financial rewards
First examined in Hawthorne studies

Hawthorne Studies
-Conducted in late 1920s
-Western Electric Hawthorne plant
-Showed importance of the individual in the workplace
-Showed the presence of a social system in the workplace
Workplace Lighting

Originally intended to examine effects of lighting on productivity

- Scientific management proposed that physical conditions affect
productivity

Result: Productivity increased regardless of lighting level

Conclusion: Increased productivity was due to workers receiving

attention
Piecework Pay
Examined effects of group piecework pay system on productivity
Workers under piecework system should produce as much as possible
o Scientific management assumes that people are motivated only by
money
Result: Production less than maximum
Conclusion: Social pressure caused workers to produce at group-norm level

D. Self-Directed Teams
Group of empowered individuals working together for a common goal
May be organized for short-term or
long-term objectives
Reasons for effectiveness
Provide employee empowerment
Provide core job characteristics
Meet psychological needs (e.g., belonging)
Job Design Continuum

Core
Job
Characteristics
Skill variety
Job identify
Job significance
Autonomy
Feedback
Limitations to Job Enlargement/Job Enrichment
Higher capital cost
Many individuals prefer simple jobs
Higher wages are required since the worker must utilize a higher level of skill
A smaller labor pool exists of persons able and willing to perform enriched or
enlarged jobs
Increased accident rates may occur
Current technology in some industries does not lend itself to job enlargement
and enrichment

E. Motivation
Worker performance depends on

Motivation

Ability

Work environment
Motivation is the set of forces that compel behavior
Money may serve as a psychological & financial motivator
Motivation and Money
Taylors scientific management (1911)
Workers are motivated mainly by money
Suggested piece-rate system
Maslows theory (1943)
People are motivated by hierarchy of needs, which includes money
Herzberg (1959)
Money either dissatisfies or is neutral in its effect
Monetary Incentives
Bonuses: Cash & stock options
Profit sharing: Distribution of profits
Gain sharing: Reward for company performance (e.g., cost reduction)
Scanlon plan is most popular (cost reduction.)
Incentive systems
Measured daywork: Pay based on standard time
Piece rate: Pay based on pieces done
Herzbergs Motivation/Hygiene Factors

Job Characteristics

Motivation
Satisfaction
Job performance
Absenteeism & turnover

F. Ergonomics and Work Methods

Worker performance depends on
Motivation
Ability
Work environment
Foundation laid by Frederick Taylor

Match employees to task

Develop work methods

Establish work standards

Ergonomics
Study of work
Also called human factors
Involves human-machine interface
Examples
Mouse
Keyboard
Methods Analysis
Focuses on how task is performed
Used to analyze
Movement of body, people, or material
Activities of people & machines
Tools
Process chart
Flow diagram
Activity chart
Operations chart (right-hand, left-hand)
Methods Analysis Used to Study
Movement of individuals or materials (Flow diagrams or process charts)
Activity of human and machine and crew activity (Activity charts)
Body movement (primarily hands) (Micro-motion charts)
The Visual Workplace
Uses low-cost visual devices to share information quickly and accurately.

Displays and graphs replace paper

Provides real-time information
System should focus on improvement, not merely monitoring
Can provide both production and financial data

What is Work Measurement?

Determining the amount of worker time required to generate one unit of
output
Provides labor standards

Target amount of time required to perform a job under normal working

conditions
Uses
a.
b.
c.
d.
e.
f.

of Labor Standards
Costing labor content of products
Planning staffing needs
Cost & time estimates for bids
Planning production
Wage-incentive plans
Employee efficiency

Sources of Labor Standards

a. Historical experience
Labor standards are based on how many labor-hours were needed in past
Least preferred method
Advantages
Easy and inexpensive to obtain standard
Disadvantages
Unknown accuracy due to unusual occurrences, unknown pace etc.
b. Time studies
c. Predetermined time standards (MTM)
d. Work sampling