MODULE 7 HUMAN RESOURCE MANAGEMENT

Learning Objectives:

At the end of the module, the student should be able to:

1. Discuss employees' role in achieving a company's goals for quality.

2. Identify benefits on employee involvement in quality management.
3. Provide a perspective on how work has developed and changed in both local and
international.
4. Discuss the basic principles and recent trends of human resource management.
5. Explain the different motivation theories of individual employees.

INTRODUCTION
As cited by Roberta Russel, most successful quality-oriented firms today
recognize the importance of their employees when developing a competitive strategy.
Quality management is an integral part of most companies' strategic design, and the
role of employees is an important aspect of quality management. To change
management's traditional control-oriented relationship with employees to one of
cooperation, mutual trust, teamwork, and goal orientation necessary in a quality-focused
company generally requires a long-term commitment as a key part of a company's
strategic plan.
One of the important concepts of quality management is employee involvement.
It is a very important factor to consider in any quality management initiative, as it is a
system wherein employees are encouraged to use their expertise and knowledge to
suggest methods for improvement in their work areas.
Some of the most successful companies are those that have achieved a close
relationship between workers and the managers. The policies in these companies
fostered teamwork, participation, continuous learning and flexibility. The key is to let
employees take a big role in the success of the company. By trying to allow them to be
part of the decision making can somewhat make them feel that the organization is
seeing them as part of the growth.
As an example, Nissan Motor Philippines’ corporate philosophy includes a
statement about the value of its human resources. They see their employees as the
heart of their company.
A safe, healthy working environment is a basic necessity to keep employees
satisfied. Successful companies provide special services like recreational activities, day
care, flexible work hours, cultural events, picnics, and fitness centers. Notice that these
are services that treat employees like customers, an acknowledgment that there is a
direct and powerful link between employee satisfaction and customer satisfaction.

It is important that employees understand what the strategic goals of the

company are and that they feel like they can participate in achieving these goals.
Employees need to believe they make a difference, to be committed to goals and have
pride in their work. Employee commitment and participation in the strategic plan can be
enhanced if employees are involved in the planning process, especially at the local
level. As the strategic plan passes down through the organization to the employee level,
employees can participate in the development of local plans to achieve overall
corporate goals.

The Changing Nature of Human Resource Management

The principles of scientific management developed by F. W. Taylor in the 1880s

and 1890s dominated operations management during the first part of the twentieth
century. Taylor's approach was to break jobs down into their most elemental activities
and to simplify job designs so that only limited skills were required to learn a job, thus
minimizing the time required for learning. This approach divided the jobs requiring less
skill from the work required to set up machinery and maintain it, which required greater
skill. In Taylor's system, a job is the set of all the tasks performed by a worker, tasks
are individual activities consisting of elements, which encompass several job motions,
or basic physical movements.

Scientific management broke down a job into its simplest elements and motions,
eliminated unnecessary motions, and then divided the tasks among several workers so
that each would require only minimal skill. This system enabled companies to hire large
numbers of cheap, unskilled laborers, who were basically interchangeable and easily
replaced. If a worker was fired or quit, another could easily be placed on the job with
virtually no training expense. In this system, the timing of job elements (by stopwatch)
enabled management to develop standard times for producing one unit of output.
Workers were paid according to their total output in a piece-rate system. A worker was
paid "extra" wages according to the amount he or she exceeded the "standard" daily
output. Such a wage system is based on the premise that the single motivating factor
for a worker to increase output is monetary reward.

Scientific management also proved to have serious disadvantages. Workers

frequently became bored and dissatisfied with the numbing repetition of simple job tasks
that required little thought, ingenuity, or responsibility. The skill level required in
repetitive, specialized tasks is so low that workers do not have the opportunity to prove
their worth or abilities for advancement. Repetitive tasks requiring the same
monotonous physical motions can result in unnatural physical and mental fatigue.

Employee Motivation
Motivation is a willingness by an employee to work hard to achieve the
company's goals because that effort satisfies some employees' need or objective. Thus,
employee motivation is a key factor in achieving company goals such as product quality
and creating a quality workplace. However, different things motivate employees.
Obviously, financial compensation is a major motivating factor, but it is not the only one
and may not be the most important. Other factors that motivate employees include self-
actualization (such as integrity, responsibility, and naturalness), achievement and
accomplishment, recognition, relationships with coworkers and supervisors, the type
and degree of work supervision, job interest, trust and responsibility, and the opportunity
for growth and advancement.

In general, job performance is a function of motivation combined with ability. Ability

depends on education, experience, and training, and its improvement can follow a slow
but clearly defined process. On the other hand, motivation can be improved more
quickly, but there is no clear-cut process for motivating people. However, certain basic
elements in job design and management have been shown to improve motivation,
including

 positive reinforcement and feedback

 effective organization and discipline
 fair treatment of people
 satisfaction of employee needs
 setting of work-related goals
 design of jobs to fit the employee
 work responsibility
 empowerment
 restructuring of jobs when necessary
 rewards based on company as well as individual performance
 achievement of company goals

Table 1 Evolution of Theories of Employee Motivation

Contemporary Trends in Human Resources Management

JOB TRAINING

In companies with a commitment to quality, job training is extensive and varied.

Expectations for performance and advancement from both the employee and
management tend to be high. Typically, numerous courses are available for training in
different jobs and functions. Job training is considered part of a structured career-
development system that includes cross training and job rotation. This system of
training and job rotation enhances the flexibility of the production process we mentioned
earlier. It creates talent reserves that can be used as the need arises when products or
processes change or the workforce is reduced.

Training is a major feature of all companies with quality management programs.

Two of W. E. Deming's 14 points refer to employee education and training. Most large
companies have extensive training staffs with state-of-the-art facilities. Federal Express
has a television network that broadcasts more than 2000 different training course titles
to employees. Many UPS employees are part-time college students, but each receives
more training than most skilled factory workers in the United States.

CROSS TRAINING

In cross training an employee learns more than one job in the company. Cross
training has a number of attractive features that make it beneficial to the company and
the employee. For the company it provides a safety measure with more job coverage in
the event of employee resignations and absenteeism, and sudden increases in a
particular job activity. Employees are given more knowledge and variety so that they
won't get as easily bored, they will find more value in what they do, and their interest
level in the company will increase. Because of their increased knowledge, they will have
the opportunity to move to other jobs within the company without leaving. Employees
will respect each other because they will be more familiar with each other's jobs.
However, cross training requires a significant investment in time and money, so the
company should be committed to its implementation and sure of the benefits it hopes to
realize from cross training.

JOB ENRICHMENT

The objective of job enrichment is to create more opportunities for individual

achievement and recognition by adding variety, responsibility, and accountability to the
job. This can also lead to greater worker autonomy, increased task identity, and greater
direct contact with other workers.

EMPOWERMENT

Empowerment is giving employees responsibility and authority to make

decisions. For quality management programs to work, it is generally conceded that
employees must be empowered so that they are willing to innovate and act on their own
in an atmosphere of trust and respect. Five of W. E. Deming's 14 points for quality
improvement relate to employee empowerment. Empowerment requires employee
education and training, and participation in goal setting. The advantages of
empowerment include more attention to product quality and the ability to fix quality
problems quickly, increased respect and trust among employees, lower absenteeism
and higher productivity, more satisfying work, less conflict with management, and fewer
middle managers. However, empowerment can also have some negative aspects.
Employees may abuse the power given to them; empowerment may provide too much
responsibility for some employees; it may create conflicts with middle management; it
will require additional training for employees and managers which can be costly; group
work, which often is an integral part of empowerment, can be time-consuming and some
employees may not make good decisions.

TEAMS

The use of teams optimizes employee involvement. Teams can differ according
to their purpose, level of responsibility, and longevity. Some teams are established to
work on a specific problem and then disband; others are more long-term, formed to
monitor a work area or process for continual improvement. Most teams are not totally
democratic and have some supervisory oversight, although some have more authority
than others. Quality circles typically have a supervisor in charge. In general, for teams
to be effective, they must know what their purpose and roles are relative to the
company's goal's, as well as the extent of their empowerment, have the skills and
training necessary to achieve their goals, and possess the ability to work together as a
team.

Self-directed teams, though not totally independent, are usually empowered to

make decisions and changes relative to the processes in their own work area. This
degree of responsibility is based on trust and management's belief that the people who
are closest to a work process know how to make it work best. Team members tend to
feel more responsibility to make their solutions work, and companies typically reward
teams for performance improvement.

FLEXIBLE WORK SCHEDULES

Flexible work schedules or flextime is becoming an increasingly important

workplace format. It refers to a variety of arrangements in which fixed times of arrival
and departure are replaced by a combination of "core" or fixed time and flexible time.
Core time is the designated period during which all employees are present, say 9:00
a.m. to 2:30 p.m. Flexible time is part of the daily work schedule where employees can
choose their time of arrival and departure. In some cases, an employee may bank or
credit hours—that is, work more hours one day and bank those hours in order to take a
shorter work day in the future. In other cases, an employee may vary work days during
the week, for example, work four 10-hour days followed by a three-day weekend. While
flextime helps the company attract and retain employees and promotes job satisfaction,
it can make it difficult to compensate for sudden changes in the workload or problems
that can arise that require quick reactions.
ALTERNATIVE WORKPLACES AND TELECOMMUTING

An alternative workplace is a combination of nontraditional work locations,

settings, and practices that supplements or replaces the traditional office. An alternative
workplace can be a home office, a satellite office, a shared office, a shared desk or an
open workspace where many employees work side-by-side. Another form of alternative
workplace is telecommuting, performing work electronically wherever the worker
chooses.

TEMPORARY AND PART-TIME EMPLOYEES

A trend among service companies in particular is the use of temporary, or

contingent, employees. Part-time employees accounted for over 40% of job growth in
the retail industry during the 1990s. Fast-food and restaurant chains, retail companies,
package delivery services, and financial firms tend to use a large number of temporary
employees. Companies that have seasonal demand make extensive use of temporary
employees. Some firms lease people for jobs, especially for computer services. As
companies downsize to cut costs, they turn to temporary employees to fill temporary
needs without adding to their long-term cost base. People with computer skills able to
work from home have also increased the pool of available temporary workers.

EMPLOYEE COMPENSATION

Good human resource management practices or motivation factors cannot

compensate for insufficient monetary rewards. If the reward is perceived as good, other
things will motivate employees to give their best performance. Self-motivation can go
only so far—it must be reinforced by financial rewards. Merit must be measured and
rewarded regularly; otherwise performance levels will not be sustained.

MANAGING DIVERSITY IN THE WORKPLACE

In order to be successful with a diverse workforce, companies must provide a

climate in which all employees feel comfortable, can do their job, feel like they are
valued by the organization, and perceive that they are treated fairly. However,
inequalities too often exist for employees because of race, gender, religion, cultural
origin, age, and physical or mental limitations. The elimination of racism, sexism,
cultural indifference, and religious intolerance cannot be mandated by higher
management or managed by financial incentives. Companies as a whole, starting with
top management, must develop a strategic approach to managing diversity in order to
meet the challenges posed by a diverse workforce.

Although there is no magic formula for successfully managing diversity,

education, awareness, communication, fairness, and commitment are critical elements
in the process. Employees must be educated about racial, gender, religious, and ethnic
differences; they must be made aware of what it is like to be someone who is different
from themselves. This also requires that lines of communication be open between
 different groups, and between employees and management. Most importantly,
successful diversity management requires a commitment from top
JOB DESIGN

A key element in employee motivation and job performance is to make sure the
employee is well suited for a job and vice versa. If a job is not designed properly and it
is not a good fit for the employee, then it will not be performed well. Frederick Herzberg
identified several attributes of good job design, as follows:

 An appropriate degree of repetitiveness

 An appropriate degree of attention and mental absorption
 Some employee responsibility for decisions and discretion
 Employee control over their own job
 Goals and achievement feedback
 A perceived contribution to a useful product or service
 Opportunities for personal relationships and friendships

Task Analysis Worker Analysis Environmental Analysis

• Description of tasks to be performed • Capability requirements • Workplace location

• Task sequence • Performance requirements • Process location

• Function of tasks • Evaluation • Temperature and humidity

• Frequency of tasks • Skill level • Lighting

• Criticality of tasks • Job training • Ventilation

• Relationship with other jobs/tasks • Physical requirements • Safety

• Performance requirements • Mental stress • Logistics

• Information requirements • Boredom • Space requirements

• Control requirements • Motivation • Noise

• Error possibilities • Number of workers • Vibration

• Task duration(s) • Level of responsibility

• Equipment requirements • Monitoring level

• Quality responsibility

• Empowerment level
 Some influence over the way work is carried out in groups
 Use of skills
Table 2. Elements of Job Design

THE ELEMENTS OF JOB DESIGN

A. TASK ANALYSIS- determines how to do each task and how all the tasks fit
together to form a job. It includes defining the individual tasks and determining
their most efficient sequence, their duration, their relationship with other tasks,
and their frequency.
B. WORKER ANALYSIS- determines the characteristics the worker must possess
to meet the job requirements, the responsibilities the worker will have in the job,
and how the worker will be rewarded.
C. ENVIRONMENTAL ANALYSIS- it refers to the physical location of the job in the
production or service facility and the environmental conditions that must exist.
These conditions include things such as proper temperature, lighting, ventilation,
and noise.
D. ERGONOMICS- as it is applied to work is fitting the task to the person. It deals
with the interaction of work, technology, and humans. Ergonomics applies human
sciences like anatomy, physiology, and psychology to the design of the work
environment and jobs, and objects and equipment used in work. The objective of
ergonomics is to make the best use of employees' capabilities while maintaining
the employees' health and well-being.
E. TECHNOLOGY AND AUTOMATION-the worker-machine interface is possibly
the most crucial aspect of job design, both in manufacturing industries and in
service companies where workers interface with computers. New technologies
have increased the educational requirements and need for employee training.
The development of computer technology and systems has heightened the need
for workers with better skills and more job training.

JOB ANALYSIS

Methods analysis is used to redesign or improve existing jobs. An analyst will

study an existing job to determine if the work is being done in the most efficient manner
possible; if all the present tasks are necessary; or if new tasks should be added. The
analyst might also want to see how the job fits in with other jobs—that is, how well a job
is integrated into the overall production process or a sequence of jobs. The
development and installation of new machinery or equipment, new products or product
changes, and changes in quality standards can all require that a job be analyzed for
redesign.

The primary tools of methods analysis are a variety of charts that illustrate in
different ways how a job or a work process is done. These charts allow supervisors,
managers, and workers to see how a job is accomplished and to get their input and
feedback on the design or redesign process. Two of the more popular charts are the
process flowchart and the worker–machine chart.

PROCESS FLOWCHART

A process flowchart is used to analyze how the steps of a job or how a set of
jobs fit together into the overall flow of the production process. Examples might include
the flow of a product through a manufacturing assembly process, the making of a pizza,
the activities of a surgical team in an operating room, or the processing of a catalogue
mail or telephone order.

A process flowchart uses some basic symbols shown in Figure 2 to describe the tasks
or steps in a job or a series of jobs. The symbols are connected by lines on the chart to
show the flow of the process.

Figure 2. Symbols for a Process Flowchart

Figure 3. Process Flowchart of Copying Job

WORKER-MACHINE CHART

A worker-machine chart illustrates the amount of time a worker and a machine

are working or idle in a job. This type of chart is occasionally used in conjunction with a
process flowchart when the job process includes equipment or machinery. The worker-
machine chart shows if the worker's time and the machine time are being used
efficiently—that is, if the worker or machine is idle an excessive amount of time

Figure 4. Worker-Machine Chart

MOTION STUDY

The study of the individual human motions used in a task. The purpose of motion
study is to make sure that a job task does not include any unnecessary motion by the
worker and to select the sequence of motions that ensure that the task is being
performed in the most efficient way.

Motion study originated with Frank Gilbreth, a colleague of F. W. Taylor's at the

beginning of the twentieth century. F. W. Taylor's approach to the study of work
methods was to select the best worker among a group of workers and use that worker's
methods as the standard by which other workers were trained. Alternatively, Gilbreth
studied many workers and from among them picked the best way to perform each
activity. Then he combined these elements to form the "one best way" to perform a task.

Activity 1
Direction: Read this mini-case and write your reaction as to how employee
involvement made KFC a successful fast-food chain.
Caught Doing Things Right
(Adopted from: Quality and Performance Excellence, 2013, 6 th edition by James R Evan
and used by Prof Angelita Ong Camilar-Serrano in her book Productivity and Quality
Management)
When the chicken strips at a KFC sold out that day, a customer had to wait while
employees cooked up a fresh batch. Gardner, working the lunch shift, apologize for the
delay and offered the man a free side item so he wouldn’t go hungry. She and her team
members “were just so attentive to me”, the customer recalls. It was no ordinary
customer experience and the man, it turned out, was no ordinary customer. As senior
VO of public affairs at Yum Brands Inc, (formerly Tricon Global Restaurants), a KFC’s
parent company, Jonathan Blum was in a position to recognize employees going the
extra mile. Blum hurried back to a nearby Yum headquarters, grabbed one of his
signature awards- a seat belt on a plaque, symbolizing the “roller coaster” nature of the
restaurant business and returned to the KFC to fete Gardner. “In front of all her peers, I
said, “You didn’t know that I work at Yum. I want you to know how proud I am of you”.
Today, a photo of a beaming Gardner hangs in Blum office.
In yum parlance, they call it “catching people doing things right’-taking time to
notice and publicly reward employees who exceed expectations. “People innately want
to be recognized for their hard work”, says Yum Chairman and CEO David Novak.
ACTIVITY 2
Pick an activity you are familiar with in your daily life such as washing a car, cutting
grass, or taking a shower and develop a process flowchart for it.

ACTIVITY 3

Describe a job you have had in the past or a job you are very familiar with and indicate
the negative aspects of the job and how it could be improved with current human
resource management techniques.

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SAQ 1
Identify what is being described in each of the following statements.
__________________ 1. It is a willingness by an employee to work hard to achieve the
company's goals because that effort satisfies some employees' need or objective
__________________ 2. The study of the individual human motions used in a task.
__________________ 3. It illustrates the amount of time a worker and a machine are
working or idle in a job.
__________________ 4. It is used to analyze how the steps of a job or how a set of
jobs fit together into the overall flow of the production process.
_________________ 5 It determines how to do each task and how all the tasks fit
together to form a job. It includes defining the individual tasks and determining their
most efficient sequence, their duration, their relationship with other tasks, and their
frequency.
__________________ 6.An employee learns more than one job in the company.
__________________ 7.It is giving employees responsibility and authority to make
decisions.
__________________ 8. It is a combination of nontraditional work locations, settings,
and practices that supplements or replaces the traditional office.
__________________ 9. It determines the characteristics the worker must possess to
meet the job requirements, the responsibilities the worker will have in the job, and how
the worker will be rewarded.
__________________10. It refers to the physical location of the job in the production or
service facility and the environmental conditions that must exist. These conditions
include things such as proper temperature, lighting, ventilation, and noise.
ASAQ 1
Identify what is being described in each of the following statements.
1. Motivation
2. Motion Study
3. Worker Machine Chart
4. Process Flow Chart
5. Task Analysis
6. Cross Training
7. Empowerment
8. Alternative Workplace
9. Worker Analysis
10. Environmental Analysis

References
Operations Management by Roberta Russell and Bernard W Taylor, III
Productivity and Quality Management by Prof Angelita Ong Camilar Serrano
Managing Human Resources Local and Global Perspectives 9Outcomes-based
Learning by Melva M Diamante and Genevieve Ledesma Tan

Adapted and prepared by:

MARICEL V MANIAOL, DBA CAR

Associate Professor II