Chapter 7  Redesign work systems

Designing Organizations for Performance Excellence

Quality & Performance Excellence, 8th Edition TYPES OF PROCESSES
 Value-creation processes – those most important to
FACTORS AFFECTING WORK ORGANIZATION “running the business”
 Company and organizational guidelines
 Design processes – activities that develop functional
 Management style product specifications

 Customer influences  Production/delivery processes – those that create or

deliver products
 Company size
Support processes – those most important to an organization’s
 Diversity and complexity of product line value creation processes, employees, and

 Stability of the product line PROCESS FOCUS: GOLD STAR CHILI

 Financial stability

 Availability of personnel

FUNCTIONAL STRUCTURE

MAKE QUALITY EVERYONE’S JOB

 Recognize that all jobs involve “managing quality”

 Eliminate the quality department

PROBLEMS WITH THE FUNCTIONAL STRUCTURE  Example: Texas Nameplate Company
 Separates employees from customers
PUT EXTERNAL CUSTOMERS FIRST
 Inhibits process improvement

 Functional organizations often have a separate function for

quality

REDESIGNING ORGANIZATIONS FOR

PERFORMANCE EXCELLENCE
 Focus on processes

 Make quality everyone’s job

 Recognize internal customers

 Create a team-based organization

 Reduce hierarchy RECOGNIZE INTERNAL CUSTOMERS

 “Chains of customers” concept
 Use leadership teams
 Process mapping to identify internal customer-supplier
 Develop an agile organization relationships
 Create links between internal customers and external  Communication
suppliers
 Trust
CREATE A TEAM-BASED ORGANIZATION REDESIGN WORK SYSTEMS
 Structure the quality organization around functional or
cross-functional teams

WORK DESIGN APPROACHES

 Job enlargement – expand jobs to include several tasks
rather than one single, low-level task

REDUCE HIERARCHY  Job rotation – have individual workers learn several tasks
 Eliminate layers of middle management by rotating from one to another

 Empower frontline workers  Job enrichment – “vertical job loading” in which workers
are given more authority, responsibility, and autonomy
 Benefits include improved communication rather than simply more or different work to do.

 Risks include impact on morale and loss of valuable ORGANIZATIONAL DESIGN FOR QUALITY IN
experience ACTION
 Boeing Airlift and Tanker Programs
USE LEADERSHIP TEAMS
Four elements: leadership, planning, implementation, and  VA Hospitals
review
 Solar Turbines, Inc.

 Octicon

 The San Diego Zoo

COMPARISONS TO ORGANIZATIONAL THEORY

 Structural Contingency Theory

 Mechanistic vs. Organic

 Choice depends on organizational environment and

technology

 Institutional Theory
DEVELOP AN AGILE ORGANIZATION
 Faster reaction to competitive challenges and changing  Structure legitimizes purpose, even if they may not
customer demands provide value
 Simplification of work processes and rapid changeovers  ISO 9000 and Six Sigma
HIGH PERFORMANCE CULTURE Chapter 8
 Respect Quality Teamwork
Quality & Performance Excellence, 8th Edition
 Aligned values
TEAMS
 Shared purpose  Team - a group of people who work together and cooperate
to share work and responsibility.
  Teams are a way to coordinate work.
 Teamwork enables various parts of the organization to
work together in meeting customer needs that can
seldom be fulfilled by employees limited to one
specialty.
 Teams promote equality among individuals,
encouraging a positive attitude and trust.
TYPES OF TEAMS
 Leadership teams
 Problem solving teams (departmental or cross-functional)
 Master Black Belts – highly trained experts responsible for
strategy, training, mentoring, deployment, and results.
 Black Belts – Experts who perform technical analyses
 Green Belts – functional employees trained in introductory
Six Sigma tools
 Team Members – Employees who support specific projects
CROSS-FUNCTIONAL TEAMWORK
 Common in leadership teams, virtual teams, and project
teams

 Natural work teams  Useful for process improvement and for implementing
large-scale organizational changes
 Self managed teams
TEAM EFFECTIVENESS CRITERIA
 Virtual teams  Teams must achieve their goals

 Project teams  Teams should make progress quickly

LEADERSHIP TEAMS  Teams must maintain or increase their strength as units

 Steering committees
 Teams must preserve or strengthen their relationships with
 Quality councils the rest of the organization

 Executive leadership teams INGREDIENTS FOR SUCCESSFUL TEAMS

 Clarity in team goals
PROBLEM-SOLVING TEAMS
 Corrective action teams  Improvement plan

 Quality circles  Clearly defined roles

 Typically composed of workers at lower levels of the
organization  Clear communication

NATURAL WORK TEAMS  Beneficial team behaviors

 Organized to perform a complete unit of work
 Well-defined decision procedures
 Extensive cross-training and sharing of responsibilities
 Balanced participation
SELF-MANAGED TEAMS
 Also known as self-directed teams or autonomous work  Established ground rules
groups
 Awareness of group process
 Have broad responsibilities, including the responsibility to
manage themselves  Use of scientific approach

 Generally more productive than conventional teams
VIRTUAL TEAMS
 Groups of people who work closely together despite being
geographically separated
 Use technology to share information
 Importance because of globalization, knowledge work, and
need for diverse skills
REASONS FOR TEAM PARTICIPATION
 Have a say in decisions that affect work
 Enhance promotion or job opportunities
 Learn more information
 Enhance feeling of accomplishment
 Address personal agendas

SIX SIGMA PROJECT TEAMS  Want to genuinely help the organization

 Champions – senior managers who promote Six Sigma
 Enjoy recognition and rewards associated with team  Cultural values and support/resistance
activity
 Diversity
 Be in a comfortable social environment
CHAPTER 9
TEAM PROCESSES ENGAGEMENT, EMPOWERMENT, AND MOTIVATION
 Problem Selection
Workforce Engagement
 Problem Diagnosis  Strong emotional bond to their organization

 Work Allocation  Are actively involved in and committed to their work

 Communication  Feel that their jobs are important, know that their opinions
and ideas have value
 Coordination
 Often go beyond their immediate job responsibilities for
 Organizational Support the good of the organization

TEAM CHARTERS  Businesses have learned that to satisfy customers, they

 A team charter is an explicit, written document that offers must satisfy the workforce.
guidelines, rules, and policies for team members. It often
includes a mission statement; values that guide behavior; Drivers of Workforce Engagement (Top 10 drivers of
structural issues such as logistics, meeting agendas, task workforce engagement)
responsibilities, and target dates; methods for group  Commitment to organizational values.
decision making; processes for dealing with conflicts; and
methods for resolving problems with team members.  Knowing that customers are satisfied with products and
services.
BOEING A&T TEAM DEVELOPMENT PROCESS
 Belief that opinions count.

 Clearly understanding work expectations.

 Understanding of how personal contributions help meet

customer needs.

 Being recognized and rewarded fairly.

 Knowing that senior leaders value the workforce.

 Being treated equally with respect.

 Being able to concentrate on the job and work processes.

 Alignment of personal work objectives to work plans.

 Engagement leads to greater levels of satisfaction among

the workforce.
TEAMWORK IN ACTION
 Sentara Norfolk General Hospital
How Engagement Leads to Quality
 Organizations that provide an environment in which
 Analog Devices
workers can do their best every single day foster
engagement. This includes job autonomy.
 Wikipedia

TEAMS AND ORGANIZATIONAL BEHAVIOR

THEORIES
 Sociotechnical systems approach

 Organizational development (OD)

 Homogeneous and heterogeneous groups

Advantages of Workforce Engagement
 Replaces the adversarial mentality with trust and
cooperation
 Develops the skills and leadership capability of
individuals, creating a sense of mission and fostering trust
 Increases employee morale and commitment to the
organization
 Fosters creativity and innovation, the source of competitive
advantage
 Helps people understand quality principles and instills
these principles into the corporate culture
 Allows employees to solve problems at the source
immediately
 Improves quality and productivity
 ADVERSARIAL is anything related to a person, place, or
thing where there is disagreement, opposition or where
problems are created that go against a desired result.
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.
 simple sharing of information
 providing input on work-related issues
 making suggestions
 self-directed responsibilities
 Engagement begins with involvement. Employee
involvement refers to one of the easiest ways to involve
employees on an individual basis is the suggestion system.
 An employee suggestion system is a management tool…
 Companies who rewards employees for implemented
suggestions.
 Google encourages their employees to spend 20% of their
time working on what they think will most benefit Google
Empowerment
 Empowerment – giving people authority to do whatever is
necessary to satisfy customers, and trusting employees to
make the right choices without waiting for management
approval.
 Empowerment represents the highest level of engagement.
 The objective - To display real leadership
Examples of Empowerment
 Managing work as individuals or teams
 Making traditional “managerial” business decisions
 Going outside of job descriptions to help customers
 Taking risks for the good of the organization even at a
short-term cost
Management Action Needed for Empowerment
1. Identify and change organizational conditions that make
people powerless, and
2. Increase people’s confidence that their efforts to
accomplish something important will be successful.
 For empowerment to occur managers must undertake two
major initiatives
1. Organizations that specify who and cannot make
certain types of decisions
2. To deal with psychological aftereffects of
powerlessness by convincing people that they are able
to make a difference.
Principles of Empowerment
 Empower sincerely and completely
 Establish mutual trust
 Provide employees with business information
 Ensure that employees are capable
 Don’t ignore middle management
 Change the reward system
 Giving empowerment is never that easy.
1. Managers must empower for its improvement value,
not for it public relations value.
2. Job security. That if you work hard-cut workforce
3. Sharing business information with employees relates
directly to quality, customer service and
competitiveness
4. “you can’t empower incompetence”- only technical
skills but also interpersonal, problem solving. Prepare
employees to take on roles.training
5. Act as teachers and coaches
6. It is hard to specify exactly what kind of reward
systems will be needed to complement empowerment.
Skills=payment; profit sharing
Reasons for Failure of Empowerment
 Management support and commitment is nonexistent or
not sustained.
 If management is not genuinely committed to the
principles of empowerment, the initiative is likely to
fail.
 Empowerment is used as a manipulative tool to ensure
employees complete tasks and assignments without giving
them any real responsibility or authority.
 When empowerment is used as a manipulative tool
rather than a genuine effort to delegate authority and
responsibility, it can lead to disillusionment among
employees.
 If employees perceive that empowerment is a mere
tactic to extract more work without providing real
decision-making power, it erodes trust and hampers
the success of the initiative.
 Managers use empowerment to abdicate responsibility or
task accountability, accepting accolades for successes and
assigning fault to others for failure.
 If managers use empowerment as a way to avoid
accountability or responsibility, it creates a
dysfunctional work environment.
 Employees need to feel that they are entrusted with
meaningful responsibilities and that their
contributions are valued. If managers only use
empowerment to deflect blame and take credit for
successes, it undermines the principles of
empowerment.
 Empowerment is deployed selectively, segmenting the
workforce into those who are empowered and those who
are not.
 When empowerment is deployed selectively, dividing
the workforce into those who are empowered and
those who are not, it can create a sense of inequality
and resentment.
 Empowerment is used as an excuse to not invest in training
or employee development.
 If empowerment is used as an excuse to avoid
investing in training or employee development, it can
hinder the growth and skill enhancement of the
workforce.
 True empowerment involves not only delegating
authority but also providing the necessary support and
resources, including training, to ensure that employees
are well-equipped to handle their empowered roles
 Managers fail to provide feedback and do not recognize
achievements.
 Failure to provide feedback and recognize
achievements can demotivate employees. Regular
feedback is crucial for employees to understand their
performance, identify areas for improvement, and feel
valued for their contributions. Recognition reinforces
positive behavior and encourages employees to
continue making meaningful contributions.
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
 Delegating Responsibility: Managers need to learn the
art of delegation, entrusting employees with
meaningful tasks and responsibilities. This involves
letting go of the need to control every aspect of the
work and allowing employees the autonomy to make
decisions within their roles.
 Train employees in allowed latitude
 Understanding Limits and Boundaries: Employees
need to be educated about the boundaries of their
authority and the limits within which they can make
decisions. This training helps in avoiding situations
where employees may overstep their roles or feel
uncertain about the extent of their empowerment.
Employee Engagement in Action
 DynMcDermott (DM) Petroleum Operations Company
 Hewitt Associates
 Los Alamos National Bank
Motivation
Motivation - an individual’s response to a felt need
 “What’s in it for me?”
Views
 Extrinsic
 Intrinsic
 How do you motivate yourselves?
Compensation
 Effect on motivation
 Merit versus capability/performance based plans
 Gainsharing
 Compensation is always a sticky issue, closely tied to
the subject of motivation and employee satisfaction.
The objectives of a good compensation system should
be to attract, retain and not to demotivate employees.
Recognition and Rewards
 Monetary or non-monetary
 Formal or informal
 Individual or group
 These rewards might include trips.
 Whatever the recognition, it should have symbolic
value that employees can inspire employees in the
future.
 What does recognition provides to employees?
 It provides a visible means of promoting quality
efforts and telling employees that the
organization values their efforts, which
stimulates their motivation to improve.
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
 Certain key practices lead to effective employee
recognition and rewards.
Work Environment
 Quality of working life and employer-provided services
 personal and career counseling,
 career development and employability services,
 recreational or cultural activities,
 daycare, special leave for family responsibilities or for
community services,
 flexible work hours, outplacement
 services, and extended health care for retirees

Working in an organization that cares for its
employees is perhaps the best form of
motivation.
Engagement and Theories of Motivation
 Job Characteristics Theory (Hackman-Oldham model)
 JCT-states that people will be more motivated to work and
more satisfied with their jobs to the extent that their jobs
possess certain core characteristics: skill variety, task
identity. The model proposes that five core characteristics
of job design. These core job design characteristics are:
1. Task significance- substantial impact
2. Task identity-task is whole, identifiable
3. Skill variety-variety of skills, talent
4. Autonomy-task permits freedom
5. Feedback from the job-effectiveness of performance
 Acquired Needs Theory
 People are motivated by work that fulfills their needs.
–specifically, the need for achievement, the need for
affiliation and the need for power. The needs for
affiliation refers to?? Achievement?? Power??
 Our needs motivates us
 Goal-Setting Theory
 people whose goals are clear will work more quickly,
perform better and generally be more motivated than
people who lack clear goals.
 Goals will motivate people-goals should be attainable,
specific and challenging goals