Human Resource Practices

1. Human Resource Practices Mehedi Hasan Md. Hefzur Rahman

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.”

3. Human Resource Paradigms Old Thinking New Thinking People are part of the process Process requires external control Managers have to control what people do People design and improve processes Workers who run the process control it Managers must obtain commitment of workers

4. Key Activities in HRM • Determine organization’s HR needs to build a high-performance 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 employeewell-being

5. 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 reward and recognition approaches • Promote cooperation and collaboration through teamwork

6. 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

7. Strategic Perspective • HR plans should be linked to business strategy and aligned with business needs • Key choices • Planning • Staffing • Appraising • Compensating • Training and development

8. High Performance Work Systems Compensation and recognition Work and Job Design Flexibility Innovation Knowledge and skill sharing Organizational alignment Customer focus Rapid response Health and safety Empowerment Suggestion systems Employee Involvement Training and Education Teamwork and Cooperation

9. 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

10. Work Design Issues • Performer/job level: initiative and motivation • Process level: cooperation and teamwork • Organizational level: well-being; link to strategy

11. Critical psychological states Core job characteristics Outcomes Skill variety Task identity Task significance Experienced meaningfulness of work High motivation High satisfaction High work effectiveness Experienced responsibility Autonomy Feedback from job Knowledge of actual results Moderators Hackman/Oldham Model

12. 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

13. 1. Information sharing 2. Dialogue 3. Special problem solving 4. Intra-group problem solving 5. Inter-group problem solving 6. Focused problem solving 7. Limited self-direction 8. Total self-direction Levels of Employee Involvement

14. 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 Advantages of EI

15. 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.”

16. 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

17. 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 Training and Education

18. 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

19. Types of Teams • Quality circles • Problem solving teams • Management teams • Work teams • Project teams • Virtual teams

20. Identify problems Implement solutions Select problem Identify Collect data Develop follow-up plan Solve Analyze Focus attention Pick best solution Find causes Develop solutions Functions of Teams

21. 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 Self-Managed Teams

22. Ingredients for Successful Teams (1 of 2 ) • Clarity in team goals • Improvement plan • Clearly defined roles • Clear communication • Beneficial team behaviors

23. Ingredients for Successful Teams (2 of 2) • Well-defined decision procedures • Balanced participation • Established ground rules • Awareness of group process • Use of scientific approach

24. Compensation and Recognition • Compensation • Merit versus capability/performance based plans • Gainsharing • Recognition • Monetary or non-monetary • Formal or informal • Individual or group

25. 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

26. Managing HR in a TQ Environment • Recruitment and Career Development • Motivation • Performance Appraisal • Measuring Employee Satisfaction and HRM Effectiveness

27. Motivation • An individual’s response to a felt need • Theories • Content Theories: Maslow; MacGregor; Herzberg • Process Theories: Vroom; Porter & Lawler • Environmentally-based Theories: Skinner; Adams; Bandura, Snyder & Williams

28. Performance Appraisal • How you are measured is how you perform! • Conventional appraisal systems • Focus on short-term results and individual behavior; fail to deal with uncontrollable factors • New approaches • Focus on company goals such as quality and behaviors like teamwork • 360-degree feedback; mastery descriptions

29. 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

30. TQ and Labor Relations • Union-management cooperation • National Labor Relations Board (NLRB) rulings on employee participation programs • Current legislative proposals and actions

31. Human Resources in the Baldrige Award Criteria The Human Resource FocusCategory examines how an organization motivates and enables employees to develop and utilize their full potential in alignment with the organization’s overall objectives and action plans. Also examined are the organization’s efforts to build and maintain a work environment and an employee support climate conducive to performance excellence and to personal and organizational growth. 5.1 Work Systems 5.2 Employee Education, Training, and Development 5.3 Employee Well-Being and Satisfaction a. Work Environment b. Employee Support and Satisfaction