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LESSON 7: HUMAN RESOURCES AND JOB
DESIGN
HUMAN RESOURCE STRATEGY
The objective of a human resource strategy is to manage labor and design jobs so people are effectively and ef 8 iciently utilized. It ensures people are ef 8 iciently utilized within the constraints of their decisions and have reasonable quality of work life.
- People should be effectively utilized within the constraints of other operations management decisions
- People should have a reasonable quality of work life in an atmosphere of mutual commitment and trust
- Work should be safe and secure
- Fair wages
- Minimum physical and psychological requirements
- Everybody, executives and employees should perform within the objectives
- Employments policies (fair and documented) Many decisions about people are constrained by other decisions:
LABOR PLANING
Labor planing is determining staf 8 ing polices that deal with employment stability, work schedules and work rules.
Employment stability polices
Is the number of employees maintained by an organization at a given time .
Two basic polices for dealing with stability: ‣ Follow demand exactly
- Matches direct labor costs to production
- Incurs on other costs in hiring and layoff, unemployment insurance, and premium wages to entice personnel to accept unstable employment
- Labor is treated as a variable cost ‣ Hold employment constant
- Maintains trained workforce
- Minimizes hiring, layoffs, and unemployment costs
- Employees may be underutilized during slack periods
- Labor is treated as a 8 ixed cost
Work schedules
- Standard work schedule: Five eight-hour days
- Flex-time: Allows employees, within limits, to determine their own schedules. 8 am (+/- 2 hours)
- Flexible work week: Fewer but longer days (police)
- Part-time: Fewer, possibly irregular, hours (shorter days)
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 (convenios)
- Restricts 8 lexibility in assignments and consequently ef 8 iciency of production JOB DESIGN It is specifying the tasks that constitute a job for an individual or a group
Labor specialization
- The division of labor into unique tasks
- Development of dexterity
- Less loss of time
- Development of specialised tools
- Eg: an assembly line, each worker has its speci 8 ic job
Job expansion
- Adding more variety to jobs
- Intended to reduce boredom associated with labor specialization and so employee enjoys a higher quality of work life: - Job enlargement: variety of tasks about the same skill level (horizontal enlargement) - Job rotation: employee is moved from one specialized job to another. - Job enrichment: giving more responsibility as controlling or planning - Employee empowerment: responsibility adding authority and responsibility
Psychological components of job design
Human resource strategy requires consideration of the psychological components of job design. The core job characteristics are:
- Skill variety: requiring the worker to use a variety of skills and talents.
- Job identity: allowing the worker to perceive the job as a whole and recognize a start and a 8 inish.
- Job signi 8 icance: providing a sense that the job has an impact on the organization and society.
- Autonomy: offering freedom, independence and disretion.
LABOR STANDARDS The amount of time required to perform a job or part of a job. For that we need to know:
- The labor cost
- Staf 8 ing needs: how many people
- Cost and time estimated prior to production
- Crew size and work balance: who does what and in which group Expected production
- Basis of Wage-incentive plans
- Ef 8 iciency of employees and supervision Properly labor standard represent the amount of time that it should take an average employee to perform speci 8 ic job activities under normal working conditions. Four ways to establish labor standards:
- Historical Experience
- Time Studies
- Predetrmined Time Standards
- Work Sampling We will use:
- Movement of individuals or material: Flow diagrams and process charts
- Activities of human and machine and crew activity: Activity charts
- Body movement:Operations charts
Flow diagram
Process chart
Activity chart
Operation chart
Four ways of establishing labor standards (method Analysis)
Time Studies (stopwatch)
Involves 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
Work sampling
Estimates percent of time a worker spends on various tasks. Requires random observations to record worker activity. Determines how employees allocate their time.Can be used to set staf 8 ing levels, reassign duties, estimate costs, and set delay allowances. Take a preliminary sample to obtain estimates of parameter values. Compute the sample size required. Prepare a schedule for random observations at appropriate times. Observe and record worker activities. Determine how workers spend their time. Normal time = (total time observed * time activity% * permormance rating) / nº units produces Standard time = (normal time) / 1 - allowance factor Sales people Asembly-line employees Advantages:
- Less expensive than time study
- Observers need little training
- Studies can be delayed or interrupted with little impact on results
- Worker has little chance to affect results
- Less intrusive Disadvantages:
- Does not divide work elements as completely as time study
- Can yield biased results if observer does not follow random pattern
- Less accurate, especially when job element times are short
Historial 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.
Predeterminad tome standards
Divide manual work into small basic elements that have established times. Can be done in a laboratory away from the actual production operation. Can be set before the work is actually performed. No performance ratings are necessary
