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Human Resource Issues inOperations Management

© The McGraw-Hill Companies, Inc., 2003

chapter 10

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 10–2

Chapter ObjectivesChapter ObjectivesChapter ObjectivesChapter Objectives

• Describe the changing role of the manager from one of command and control to that of being a team leader and coach, and the additional skills required.

• Identify the emerging trends that are dramatically changing the way in which people work.

• Define the concept of employee empowerment and show how it impacts management and the organization.

• Distinguish between traditional work groups, self-managed teams, and cross-functional teams.

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 10–3

Chapter Objectives (cont’d)Chapter Objectives (cont’d)Chapter Objectives (cont’d)Chapter Objectives (cont’d)

• Present the various ways in which technology is affecting jobs and the workplace.

• Introduce both behavioral and physical factors that should be taken into consideration when designing jobs.

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 10–4

The New Managerial RoleThe New Managerial RoleThe New Managerial RoleThe New Managerial Role

• Coping with a rapidly changing environment (downsizing and restructuring).

• Identifying new and innovative ways to produce more with fewer workers and fewer organizational layers.

• Motivating employees who now feel less committed to organizations than in the past.

• Assisting workers in taking responsibility for their work.

• Managing the flow of information.

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 10–5

The New Managerial RoleThe New Managerial RoleThe New Managerial RoleThe New Managerial Role

• Overseeing the work of employees that work from remote locations.

• Managing diversity in the organization to:–Improve creativity and decision making.–Make the organization more responsive to a

wider variety of customers.–Reduce employee turnover,by preventing

conflicts, discrimination, communication breakdowns, and legal actions.

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 10–6

Expanded Managerial Skill SetExpanded Managerial Skill SetExpanded Managerial Skill SetExpanded Managerial Skill Set

• Being able to communicate verbally (including the ability to listen)

• Managing time and stress

• Managing individual decisions

• Recognizing, defining, and solving problems

• Motivating and influencing others

• Delegating• Setting goals and

articulating a vision• Being self-aware• Able to build teams• Managing conflict

Source: Kin Whetten and David Cameron, Developing Management Skills (New York: Harper Collins, 1995).

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 10–7

Eight Different Managerial Roles andEight Different Managerial Roles andTheir Required Core CompetenciesTheir Required Core Competencies

Eight Different Managerial Roles andEight Different Managerial Roles andTheir Required Core CompetenciesTheir Required Core Competencies

Exhibit 10.1aExhibit 10.1aSource: R.E. Quinn, S.R. Faerman, M.P. Thompson, and M. R. McGrath, Becoming a Master Manager: A Competency Framework (New York: John Wiley and Sons, 1996), p. 23.

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 10–8

Eight Different Managerial Roles andEight Different Managerial Roles andTheir Required Core Competencies Their Required Core Competencies

(cont’d)(cont’d)

Eight Different Managerial Roles andEight Different Managerial Roles andTheir Required Core Competencies Their Required Core Competencies

(cont’d)(cont’d)

Exhibit 10.1bExhibit 10.1bSource: R.E. Quinn, S.R. Faerman, M.P. Thompson, and M. R. McGrath, Becoming a Master Manager: A Competency Framework (New York: John Wiley and Sons, 1996), p. 23.

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 10–9

Managers: Then and NowManagers: Then and NowManagers: Then and NowManagers: Then and Now

• Then–Always had more

technical expertise–Could solve all

problems–Had the primary

responsibility for how their department worked

–Knew exactly what was going on in their department

• Now–Rarely knows it all

(and admits it!)–Doesn’t try to do it

all alone–Seldom tells other

exactly what to do–Includes others in

decisions about the department

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 10–10

Emerging Trends in the WorkplaceEmerging Trends in the WorkplaceEmerging Trends in the WorkplaceEmerging Trends in the Workplace

• Increasing Diversity in Workforce Demographics

• Increasing Use of Flexible Work Hours• Part-Time Work and Job Sharing• Increasing Use of Temporary Labor• The Impact of Technology

–Recruitment–Telecommuting–Increase in training and development

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 10–11

Emerging Trends in the Workplace Emerging Trends in the Workplace (cont’d)(cont’d)

Emerging Trends in the Workplace Emerging Trends in the Workplace (cont’d)(cont’d)

• Increasing Emphasis on Teamwork–Self-managed or self-directed work teams

• Autonomous teams responsible for identifying problems, and measuring outcomes.

–Cross-functional work teams• Teams within organizations that have

representatives from different areas of the firm

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 10–12

Employee TurnoverEmployee TurnoverEmployee TurnoverEmployee Turnover

• Employee Turnover Costs–Loss of knowledge–Loss of output–Hiring costs–Termination costs

• The Hiring Process–An effective hiring process reduces turnover by

screening out individuals that do not have the required characteristics or skills necessary for them to succeed on the job.

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 10–13

Job DesignJob DesignJob DesignJob Design

• Issues in Job Design–Quality as part of the worker’s job.–Cross-training workers for multi-skilled jobs.–Employee involvement and team approaches to

designing and organizing work.–“Informating” ordinary workers through

telecommunications network and computers.–Any time, any place production.–Automation of heavy manual work.–Organizational commitment to providing.

meaningful and rewarding jobs for employees.

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 10–14

Job Design (cont’d)Job Design (cont’d)Job Design (cont’d)Job Design (cont’d)

• Job Design–Tasks and sequences that have to be

accomplished and are within an individual’s job assignment.

–Micromotion: the smallest work activity. –Element: two or more micromotions.–Task: two or more elements that comprise a

complete activity.–Job: A set of all the tasks that must be

performed by a worker.

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 10–15

Factors in Job DesignFactors in Job DesignFactors in Job DesignFactors in Job Design

Exhibit 10.2Exhibit 10.2

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 10–16

Behavioral Considerations in Job Behavioral Considerations in Job DesignDesign

Behavioral Considerations in Job Behavioral Considerations in Job DesignDesign

• Degree of Labor Specialization–Dividing tasks into small increments of work,

resulting in efficient operations due to highly repetitive tasks.

–Job Enlargement (Horizontal Enlargement)• Redesigning a job, usually by increasing the

number of tasks, to make it more interesting.

–Job Enrichment• Broadening a job description to include both more

tasks and greater worker involvement in the planning and design of the work to be done.

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 10–17

Advantages and DisadvantagesAdvantages and Disadvantagesof Labor Specializationof Labor Specialization

Advantages and DisadvantagesAdvantages and Disadvantagesof Labor Specializationof Labor Specialization

Exhibit 10.3aExhibit 10.3a

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 10–18

Advantages and DisadvantagesAdvantages and Disadvantagesof Labor Specializationof Labor Specialization

Advantages and DisadvantagesAdvantages and Disadvantagesof Labor Specializationof Labor Specialization

Exhibit 10.3bExhibit 10.3b

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 10–19

Physical Considerations in Job Physical Considerations in Job DesignDesign

Physical Considerations in Job Physical Considerations in Job DesignDesign

• Work Task Continuum–Manual tasks

• Put stress on large muscle groups, causing fatigue.

–Motor tasks• Involve speed and precision in physical

movements.

–Mental tasks• Involve rapid decision making base on certain

types of stimuli.

Fundamentals of Operations Management 4e © The McGraw-Hill Companies, Inc., 2003 10–20

Work Task: Continuum (Human Work)Work Task: Continuum (Human Work)Work Task: Continuum (Human Work)Work Task: Continuum (Human Work)

Exhibit 10.4Exhibit 10.4