Human Resources and

Job Design

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 Outline
 Human Resource Strategy for Competitive Advantage
 Machine or People?
 Labor Planning
 Work Schedules
 Job Classifications and Work Rules
 Job Design
 Labor Specialization
 Job Expansion
 Motivation and Incentive Systems
 Ergonomics and the Work Environment
 The Visual Workplace
 Labor Standards
 Time Studies

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 Learning Objectives

1. Describe the objective of a human resource strategy

2. Describe labor planning

3. Describe the elements of job design (specialization,

expansion , motivation and incentives)

4. Identify major ergonomic and work environment

issues

5. Identify visual workplace

6. Establish labor standards

7. Compute the normal and standard times in a time

study
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World Record F1 Pit Stops

https://www.youtube.com/watch?v=b1f51TOXWik

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 Formula 1 Pit Crew Members Salaries 2022
(Revealed)
Race Winning
Personnel Per Race Annual Salary
Bonus
Crew Chief $10,000 $1 Million $5,000
Refueling Person $5,000 $350,000 $2,500
Tyre Changers
$5,000 $350,000 $2,500

Tyre Carriers $3,500 $270,000 $2,500

Jack Men
$3,000 $150,000 $500

Wing Men
$3,000 $150,000 $500

Stabilizer $2,500 $90,000 $250

Starter Man $750 $40,000 $250
Fire Extinguisher
$500 $30,000 $250
Man

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 Formula 1 Racing Team

 High performance pit crews are a key element of a

successful race team!

 Each position has very specific work standards

 Pit crews are highly organized and go though

rigorous physical training

 Pit stops are videotaped to look for improvements

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Formula 1 Pit Crew Position

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 Human Resource Strategy

The objective of a human resource strategy

is to manage labor and design jobs so
people are effectively and efficiently utilized

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 Machines or People?
Should the job or some part of it be automated?

 Machines do some things better than people, whereas people do

other things better than machines.

 For example, automated voice messaging systems.

 favorable impression on the customer?
 live receptionist - extra expense – worth?

 The decision must support the company’s objectives

 If a job is designed for people rather than machines, the next

question is how specialized an employee should be.

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 Labor Planning
Employment Stability Policies
1. Follow demand exactly
 Matches direct labor costs to production
 Labor is treated as a variable cost
 Incurs costs in hiring and termination, unemployment
insurance, and premium wages

2. Hold employment constant

 Maintains trained workforce
 Labor is treated as a fixed cost
 Minimizes hiring, termination, and unemployment costs
 Employees may be underutilized during slack periods

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 Labor Planning

 Work Schedules

 Standard work schedule – Five days, eight-hour

/day

 Flex-time - Allows employees, within limits, to

determine their own schedules

 Flexible work week - Fewer but longer days

 Part-time - Fewer, possibly irregular, hours

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 Labor Planning
 Job Classification and Work Rules

 Specify who can do what

 Specify when they can do it
 Often result of union contracts
 A union contract is a legal document that
contains provisions related to workers' rights and
benefits.
 Restricts flexibility in assignments

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Job Design:
Labor Specialization

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Job Design:
Job Expansion
 Adding more variety to jobs

 Intended to reduce boredom associated with labor

specialization

 Job enlargement - A horizontal expansion of the job through

increasing the scope of the work assigned.

 Job enrichment - A vertical expansion of the job through

increased worker responsibility.

 Job rotation - Workers shift to different jobs to increase

understanding of the total process

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Job Design: Motivation and
Incentive Systems

 Bonuses – incentive payment beyond normal standard

wages. Generally given at the end of the year

 Profit-sharing – receive in addition to wages. A share is

fixed in advance.

 Gain sharing - rewards for improvements or exceed certain

standard

 Incentive plans - typically based on production rates

 Knowledge-based systems - reward for knowledge or skills

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Ergonomics and the Work
Environment
 Ergonomics is the study of the interface between
man and machine
 Often called human factors

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 Ergonomics and Work
Methods
 Feedback to operators

 The work
environment
 Illumination
 Noise
 Temperature
 Humidity

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Visual management basics

https://www.youtube.com/watch?v=ZySTy_6Gr_s

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 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

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 The Visual Workplace
Visual utensil holder A “3-minute service”
encourages clock reminds employees
housekeeping of the goal

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 The Visual Workplace
Visual signals at the Visual kanbans reduce
machine notify inventory and encourage
support personnel JIT

Reorder
Line/machine point
stoppage

Parts/
maintenance
needed

All systems go
Part A Part B Part C

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 The Visual Workplace

Quantities in bins indicate

ongoing daily requirements
and clipboards provide
information on schedule
changes
Process specifications and
operating procedures are
posted in each work area

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Exercise

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Labor Standards

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‘Throwback’: Chapter 1- Process
Analysis
‘Throwback’: Chapter 1- Process
Analysis
 What is the process capacity?
 What is the throughput time?
 What is the cycle time?
 What is the throughput rate?
 Labor Standards

 Labor standards are the amount of time required to

perform a job

 Labor standards determine labor requirements, costs,

and fair work

 Necessary for determining staffing requirements

 Important to labor incentive systems, example:

performance based incentive

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 Labor Standards:
Time Studies

 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

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 Labor Standards:
Time Studies
1. Choose the job for the time study

2. Tell the worker whose job to perform the study

3. Break the job into easily recognizable units

4. Decide/calculate the number of cycles to observe.

5. Time each elements, record the times and rate the

worker’s performance

6. Compute normal time

7. Compute standard time

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 Labor Standards:
Time Studies
- Compute average observed time:

- Determine performance rating and normal time:

- Sum normal times of each elements to find task total normal time

- Compute the standard time

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 Performance rating factor

 Performance rating factor - A subjective estimate of a

worker’s pace relative to a normal work pace by the
person doing the time study

 If a factor of 1.0 - an average work pace

 If a factor of < 1.0 – below average work pace.
 If a factor of > 1.0 – above average work pace

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 Allowances factor

 The amount of time the analyst allows for personal time, delay
and fatigue.

 Personal time allowance

 4% - 7% of total time for use of restroom, water
fountain, etc.

 Delay allowance
 Based upon actual delays that occur

 Fatigue allowance
 Based on our knowledge of human energy expenditure

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 Time Study Example 1
Average observed time = 4.0 minutes
Worker performance rating = 85%
Allowance factor = 13%

Calculate normal time & standard time

Normal time =

Standard time =

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 Time Study Example 2
Allowance factor = 15%

Cycle Observed (in minutes)

Performance
Job Element 1 2 3 4 5 Rating
(A) Cleaning and sorting 8 10 9 21 11
120%
(B) Skin removal 2 3 2 1 3
105%
(C) Packing 2 1 5 2 1
110%

Calculate normal time & standard time

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 Solution
1. Delete unusual or nonrecurring observations (marked with *)

Cycle Observed (in minutes)

Performance
Job Element 1 2 3 4 5 Rating
(A) Cleaning and sorting 8 10 9 21 11
120%
(B) Skin removal 2 3 2 1 3
105%
(C) Packing 2 1 5 2 1
110%
2. Compute average times for each element

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 Solution
3. Compute the normal time for each element

Normal time = (Average observed time) x (Rating)

4. Add the normal times to find the total normal time

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 Solution
5. Compute the standard time for the job

Total normal time

Standard time =
1 - Allowance factor

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Exercise

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 Job Redesign

https://www.youtube.com/watch?v=z-qaFrgrFPc

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End of slide

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