Human Resource

Human Resources,
Job Design, and

Work Measurement
PowerPoint presentation to accompany

Heizer and Render
Operations Management, Eleventh Edition
Principles of Operations Management, Ninth Edition
© 2014 Pearson Education, Inc. 10 - 1

Learning Objectives
When you complete this chapter you
should be able to:
1. Describe labor planning policies

2. Identify the major issues in job design
3. Identify major ergonomic and work
environment issues
4. Use the tools of methods analysis

Learning Objectives
When you complete this chapter you
should be able to:
5. Identify four ways of establishing labor

standards
6. Compute the normal and standard times in
a time study
7. Find the proper sample size for a time study

Human Resource Strategy
The objective of a human resource

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

Human Resource Strategy
▶ Ensure that people:
1. Are effectively utilized within the

constraints of other operations
management decisions
2. Have a reasonable quality of work life
in an atmosphere of mutual
commitment and trust

Constraints on Human
Resource Strategy
Product strategy Process strategy
• Skills needed • Technology
• Talents needed • Machinery and
re
W
u
• Materials used ha equipment used
ed
• Safety t
oc
• Safety
Pr
Schedules
• Time of day Individual differences
When HUMAN Who • Strength and fatigue
• Time of year
RESOURCE • Information
(seasonal)
• Stability of STRATEGY processing and
response
schedules
Location strategy Layout strategy

• Climate • Fixed position
re
H
he
• Temperature • Process
ow
W
• Noise • Assembly line

• Light • Work cell
• Air quality • Product
Figure 10.1
Labor Planning
Employment-Stability Policies
1. Follow demand exactly
► Matches direct labor costs to production
► Incurs costs in hiring and termination,
unemployment insurance, and premium
wages
► Labor is treated as a variable cost

Labor Planning
Employment-Stability Policies
2. Hold employment constant
► Maintains trained workforce
► Minimizes hiring, layoff, and
unemployment costs
► Employees may be underutilized during
slack periods
► Labor is treated as a fixed cost

Work Schedules
▶Standard work schedule
▶ Five eight-hour days
▶Flextime
▶Allows employees, within limits, to
determine their own schedules
▶Flexible work week
▶Fewer but longer days
▶Part-time
▶Fewer, possibly irregular, hours
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
▶Restricts flexibility in assignments and
consequently efficiency of production

Job Design
▶Specifying the tasks that constitute a job
for an individual or a group
1. Job specialization
2. Job expansion
3. Psychological components
4. Self-directed teams
5. Motivation and incentive systems

Labor Specialization
▶The division of labor into unique tasks
▶First suggested by Adam Smith in 1776
1. Development of dexterity
2. Less loss of time
3. Development of specialized tools
▶Later Charles Babbage (1832) added
another consideration
4. Wages exactly fit the required skill required

Job Expansion
▶Adding more variety to jobs
▶Intended to reduce boredom associated
with labor specialization
▶Job enlargement
▶Job rotation
▶Job enrichment
▶Employee empowerment

Core Job Characteristics
Jobs should include the following
characteristics
1. Skill variety
2. Job identity
3. Job significance
4. Feedback

Self-Directed Teams
▶Group of empowered individuals working
together to reach a common goal
▶May be organized for long-term or
short-term objectives
▶Effective because
▶Provide employee empowerment
▶Ensure core job characteristics
▶Meet individual psychological needs

Self-Directed Teams
To maximize effectiveness, managers should
► Ensure those who have legitimate
contributions are on the team
► Provide management support
► Ensure the necessary training
► Endorse clear objectives and goals
► Financial and non-financial rewards
► Supervisors must release control
Job Design Continuum
Self-directed
Figure 10.3 teams
Empowerment
Self-direction
Enrichment
Enlargement
Specialization
Job expansion

Benefits of Teams and Expanded
Job Designs
▶Improved quality of work life
▶Improved job satisfaction
▶Increased motivation
▶Allows employees to accept more
responsibility
▶Improved productivity and quality
▶Reduced turnover and absenteeism

Limitations of Job Expansion
1. Higher capital cost

2. Individuals may prefer simple jobs
3. Higher wage rates for greater skills
4. Smaller labor pool
5. Higher training costs

Motivation and Incentive
Systems
▶Bonuses - cash or stock options
▶Profit-sharing - profits for distribution to
employees
▶Gain sharing - rewards for improvements
▶Incentive plans - typically based on
production rates
▶Knowledge-based systems - reward for
knowledge or skills

Ergonomics and the Work
Environment
▶Ergonomics is the study of the interface
between man and machine
▶Often called
human factors
▶Operator input
to machines

Ergonomics and Work Methods
▶Feedback to operators
▶The work environment
▶Illumination
▶Noise
▶Temperature
▶Humidity

Meaningful Standards Help
Determine
1. Labor content of items produced
2. Staffing needs
3. Cost and time estimates
4. Crew size and work balance
5. Expected production
6. Basis of wage-incentive plans
7. Efficiency of employees
Labor Standards
May be set in four ways:
1. Historical experience
2. Time studies
3. Predetermined time standards
4. Work sampling

Thanks 

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Human Resources,

Job Design, and

PowerPoint presentation to accompany

© 2014 Pearson Education, Inc. 10 - 1

1. Describe labor planning policies

© 2014 Pearson Education, Inc. 10 - 2

5. Identify four ways of establishing labor

© 2014 Pearson Education, Inc. 10 - 3

The objective of a human resource

© 2014 Pearson Education, Inc. 10 - 4

1. Are effectively utilized within the

© 2014 Pearson Education, Inc. 10 - 5

Location strategy Layout strategy

• Noise • Assembly line

© 2014 Pearson Education, Inc. 10 - 7

© 2014 Pearson Education, Inc. 10 - 8

© 2014 Pearson Education, Inc. 10 - 10

© 2014 Pearson Education, Inc. 10 - 11

© 2014 Pearson Education, Inc. 10 - 12

© 2014 Pearson Education, Inc. 10 - 13

© 2014 Pearson Education, Inc. 10 - 14

© 2014 Pearson Education, Inc. 10 - 15

© 2014 Pearson Education, Inc. 10 - 17

© 2014 Pearson Education, Inc. 10 - 18

1. Higher capital cost

© 2014 Pearson Education, Inc. 10 - 19

© 2014 Pearson Education, Inc. 10 - 20

© 2014 Pearson Education, Inc. 10 - 21

© 2014 Pearson Education, Inc. 10 - 22

May be set in four ways:

© 2014 Pearson Education, Inc. 10 - 24

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