OM 300 1nd Edition Lecture 29 Outline of Last Lecture I Production Order Quantity Model II Quantity Discount Model Outline of Current Lecture Human Resources Job Design Work Management I Human Resource Strategy II Labor Planning III Job Design and Classificaion IV Job Expansion V Ergonomics VI The visual workplace VII Time Studies Current Lecture Human Resource Strategy The objective of a human resource strategy is to manage labor and design jobs so people are effectively and efficiently utilized Ensure that people o Are effectively utilized within the constraints of other operations management decisions o Have a reasonable quality of work life in an atmosphere of mutual commitment and trust Labor Planning 1 Follow demand exactly a Matches direct labor costs to production b Incurs costs in hiring and termination unemployment insurance and premium wages c Labor is treated as a variable 2 Hold employment constant a Maintains trained workforce b Minimizes hiring layoff and unemployment costs c Employees may be underutilized during slack periods d Labor is treated as a fixed cost Work Scedules Standard work schedule 5 eight hour days Flextime allows employees within limits to determine their own schedules These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Flexible work week fewer but longer days Part time fewer possibly irregular hours Job Classification and Work Rules Specify who can do what Specify when they can do it Specify under what conditions they can do it Often result of union contracts Restrict flexibility in assignment and consequently efficiency of production Job Design specifying the tasks that constitute a job for an individual or a group 1 Job specialization 2 Job expansion 3 Psychological components 4 Self directed teams 5 Motivation and incentive systems Labor Specialization The division of labor into unique tasks First suggested by Adam Smith in 1776 1 Development of dexterity 2 Less loss of time 3 Development of specialized tools Later Charles Babbage 1832 added another consideration 4 Wages exactly fit the required skill required Job Expansion Adding more variety to jobs Intended to reduce boredom associated with labor specialization o Job enlargement o Job rotation o Job environment o Employee empowerment Psychological Components of Job Design human resource strategy requires consideration of the psychological components of job design Hawthorne Studies They studied light levels but discovered productivity improvement was independent from lighting levels Introduced psychology into the workplace The workplace social system and distinct roles played by individuals may be more important than physical factors Individual differences may be dominant in job expectation and contribution Core Job Characteristics Jobs should include the following characteristics 1 Skill variety 2 Job identity 3 Job significance 4 Autonomy 5 Feedback Self Directed Teams Group of empowered individuals working together to reach a common goal May be organized for long term or short term objectives Effective because o Provide employee empowerment o Ensure core job characteristics o Meet individual psychological needs To maximize effectiveness managers should o Ensure those who have legitimate contributions are on the team o Provide management support o Ensure the necessary training o Endorse clear objectives and goals o Financial and non financial rewards o Supervisors must release control Benefits of Teams and Expanded Job Designs Improved quality of work life Improved job satisfaction Increase motivation Allows employees to accept more responsibility Improved productivity and quality Reduced turnover and absenteeism Limitations of Job Expansion 1 Higher capital cost 2 Individuals may prefer simple jobs 3 Higher wage rates for greater skills 4 Smaller labor pool 5 Higher training costs Motivation and Incentive Systems Bonuses cash or stock options Profit Sharing profits for distribution to employees Gain Sharing rewards for improvements Incentive plans typically based on production rates Knowledge based systems rewards for knowledge or skills Ergonomics and the Work Environment Ergonomics is the study of the interface between man and machine o Often called human factors Operator input to machines Ergonomics and Work Methods Feedback to operators The work environment o o o o Illumination Noise Temperature Humidity Methods Analysis Focuses on how task is performed Used to analyze 1 Movement of individuals or material a Flow diagrams and process charts 2 Activities of human and machine and crew activity a Activity charts 3 Body movement a Operation charts The Visual Workplace Use low cost visual devices to share information quickly and accurately Displays and graphs replace printouts and paperwork Able to provide timely information in a dynamic environment System should focus on improvement Visual Signals can take many forms and serve many functions o Present the big picture o Performance o Housekeeping Labor Standards Effective manpower planning is dependent on a knowledge of the labor required Labor standards are the amount of time required to perform a job or part of a job Accurate labor standards help determine labor requirements costs and fair work Started early in the 20th century Important to both manufacturing and service organizations Necessary for determining staffing requirements Important to labor incentive Meaningful Standards Help Determine 1 Labor content of items produced 2 Staffing needs 3 Cost and time estimates 4 Crew size and work balance 5 Expected production 6 Basis of wage incentive plans 7 Efficiency of employees Labor Standards May be set in four ways 1 Historical experience 2 Time studies 3 Predetermined time standards 4 Work sampling Historical Experience How the task was performed last time Easy and inexpensive Data available from production records or time cards Data is not objective and may be inaccurate Not recommended Time Studies Involved timing a sample of a worker s performance and using it to set a standard Requires trained and experienced observers Cannot be set before the work is performed 1 Define the task to be studied 2 Divide the task into precise elements 3 Decide how many times to measure 4 Time and record element times and rating of performance 5 Compute average observed time 6 Determine performance rating and normal time 7 Add the normal times for