Chapter 8 - Human Resources, Job Design and Work Management

Human Resources,
Job Design, and

Work Measurement 8
Madam Afifah Hanim Md Pazil
[email protected]
Lower Cabin B2
-ahmp-
Outline
► Human Resource Strategy for
Competitive Advantage
► Labor Planning
► Job Design
► Ergonomics and the Work Environment
► Methods Analysis
► The Visual Workplace
► Labor Standards
Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 10 - 2

Learning Objectives
When you complete this chapter you
should be able to:
10.1 Describe labor-planning policies
10.2 Identify the major issues in job design
10.3 Identify major ergonomic and work
environment issues
10.4 Use the tools of methods analysis
10.5 Identify four ways of establishing labor
standards
10.6 Compute the normal and standard times in a
time study
10.7 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 efficiently 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
• Materials used equipment used
• Safety • Safety
Schedules
Individual differences
• Time of day When Who
• Time of year
HUMAN • Strength and fatigue
(seasonal) RESOURCE • Information
STRATEGY processing and
• Stability of
response
schedules
Location strategy Layout strategy

• Climate • Fixed position
• Temperature • Process
• Noise • Assembly line
• Light • Work cell
• Air quality • Product
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 or overworked during busy
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/compressed
workweek
▶ Fewer but longer days
▶ Part-time status
▶ 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. Paying exactly the wage needed for the
particular 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

Job Enlargement
Enriched job
Planning
(Participate in a cross-
function quality
improvement team)
Enlarged job
Task #3 Present job Task #2
(Lock printed circuit (Manually insert and (Adhere labels
board into fixture for solder six resistors) to printed circuit
next operation) board)
Control
(Test circuits after
assembly)

Psychological Components
of Job Design
Human resource strategy requires
consideration of the psychological
components of job design

Hawthorne Studies
► They studied light levels, but discovered
productivity improvement was independent from
lighting levels
► Introduced psychology into the workplace
► The workplace social system and distinct roles
played by individuals may be more important
than physical factors
► Individual differences may be dominant in job
expectation and contribution

Core Job Characteristics
Jobs should include the following
characteristics
1. Skill variety
2. Job identity
3. Job significance
4. Autonomy
5. 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
► Employ financial and non-financial
rewards
► Reduce supervisory control
Job Design Continuum
Self-directed
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
▶ Higher capital cost

▶ Individual differences
▶ Higher wage rates
▶ Smaller labor pool
▶ 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 systems – typically based on
production rates
▶ Knowledge-based systems – reward for
knowledge or skills
Ergonomics and the Work
Environment
▶ Ergonomics is the study of the human
interface with the environment and
machines
▶ Often called
human factors
▶ Operator input
to machines needs
to be carefully
evaluated
Ergonomics and Work Methods
▶ Feedback to operators
▶ The work environment
▶ Illumination
▶ Noise
▶ Temperature
▶ Humidity

Recommended Levels of
Illumination

Levels of Illumination
TYPE OF TASK ILLUMINATION TYPE OF
TASK CONDITION OR AREA LEVEL ILLUMINATION
Small detail, Sewing, inspecting 100 Overhead ceiling
extreme accuracy dark materials lights and desk
lamp
Normal detail, Reading, parts 20-50 Overhead ceiling
prolonged periods assembly, general lights
office work
Good contrast, fairly Recreational 5-10 Overhead ceiling
large objects facilities lights
Large objects Restaurants, 2-5 Overhead ceiling

stairways, lights
warehouses

Decibel Levels

Methods Analysis
▶ Focuses on how task is performed
▶ Used to analyze
1. Movement of individuals or material
▶ Flow diagrams and process charts
2. Activities of human and machine and crew
activity
▶ Activity charts
3. Body movement
▶ Operations charts

Flow Diagram
Welding
From
Storage bins
press
mach. Paint
shop
Mach. 3 Mach. 4
Machine 1
Mach. 2

Flow Diagram
Machine 4 Welding
Machine 3
Paint
Machine 2 shop
Machine 1
From
press Storage
mach. bins

Process
Chart

Activity Chart

Operations Chart

The Visual Workplace
▶ Use low-cost visual devices to share
information quickly and accurately
▶ Displays and graphs root out confusion
and replace printouts and paperwork
▶ Able to provide timely information in a
dynamic environment
▶ Can eliminate nonvalue-added activities
▶ Supervision is reduced
Visual signals can take many forms
and serve many functions
► Present the big picture

► Performance
► Housekeeping

Visual utensil holder A "3-minute service" clock
encourages reminds employees of the
housekeeping goal

Visual signals at the Visual kanbans reduce
machine notify inventory and foster JIT
support personnel
Reorder
Line/machine point
stoppage
Parts/
maintenance
needed
All systems go
Part A Part B Part C
Andon

Quantities in bins indicate

ongoing daily requirements, Company data, process
and clipboards provide specifications, and operating
information on schedule procedures are posted in
changes each work area

Labor Standards
▶ Effective manpower planning is dependent on a
knowledge of the labor required
▶ Labor standards are the amount of time required to
perform a job or part of a job
▶ Accurate labor standards help determine labor
requirements, costs, and fair work
▶ Started early in the 20th century
▶ Important to both manufacturing and service
organizations
▶ Necessary for determining staffing requirements
▶ Important to labor incentive systems
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

1. Historical 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

2. 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

Time Studies
1. Define the task to be studied
2. Divide the task into precise elements
3. Decide how many times to measure the task
4. Time and record element times and ratings of
performance
5. Compute average observed time:
Sum of the times recorded to
Average perform each element
observed =
time Number of observations

Time Studies
6. Determine performance rating and normal
time:
Average Performance
Normal time = observed x
rating factor
time
7. Add the normal times for each element to
develop the total normal time for the task
8. Compute the standard time:
Total normal time
Standard time =
1 - Allowance factor

Rest Allowances
▶ Personal time allowances
▶ 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

Rest Allowances
Allowance Factors (in percentage) for Various Classes of Work
1. Constant allowances:
(A) Personal allowance …………………………………….. 5
(B) Basic fatigue allowance ………………………………... 4
2. Variable allowances:
(A) Standing allowance …………………………………….. 2
(B) Abnormal position
(i) Awkward (bending) …………………………………. 2
(ii) Very awkward (lying, stretching) ………………….. 7
(C) Use of force or muscular energy in lifting, pulling, pushing
Weight lifted (pounds)
20 ……………………………………………………….. 3
40 ……………………………….................................. 9
60 ………………………………………………………. 17
(D) Bad light:
(i) Well below recommended ………………………… 2
(ii) Quite inadequate …………………………………… 5
(E) Noise level:
(i) Intermittent–loud …………………………..………. 2
(ii)Pearson
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Education Ltd. All or highReserved.
Rights pitched ..…………. 5 10 - 48
Time Study Example 1
Average observed time = 4.0 minutes
Worker rating = 85%
Allowance factor = 13%
Normal time = (Average observed time) x (Rating factor)

= (4.0)(.85)
= 3.4 minutes
Normal time 3.4 3.4

Standard time = = =
1 – Allowance factor 1 – .13 .87
= 3.9 minutes

Allowance factor = 15%
OBSERVATIONS (MIN) PERFORMANCE

JOB ELEMENT 1 2 3 4 5 RATING
(A) Compose and type letter 8 10 9 21* 11 120%

(B) Type envelope address 2 3 2 1 3 105%
(C) Stuff, stamp, seal, and sort 2 1 5* 2 1 110%
envelopes
1. Delete unusual or nonrecurring observations (marked with *)

2. Compute average time for each element
Average time for A = (8 + 10 + 9 + 11)/4 = 9.5 minutes
Average time for B = (2 + 3 + 2 + 1 + 3)/5 = 2.2 minutes
Average time for C = (2 + 1 + 2 + 1)/4 = 1.5 minutes

3. Compute the normal time for each element
Normal time = (Average observed time) x (Rating)

Normal time for A = (9.5)(1.2) = 11.4 minutes
Normal time for B = (2.2)(1.05) = 2.31 minutes
Normal time for C = (1.5)(1.10) = 1.65 minutes
4. Add the normal times to find the total normal time
Total normal time = 11.40 + 2.31 + 1.65

= 15.36 minutes

5. Compute the standard time for the job
Total normal time

Standard time =
1 – Allowance factor
15.36
= = 18.07 minutes
1 – .15

Determine Sample Size
1. How accurate we want to be

2. The desired level of confidence
3. How much variation exists within the
job elements

Required sample size =
where h = accuracy level (acceptable error) desired in percent of the

job element expressed as a decimal
z = number of standard deviations required for the desired
level of confidence
s = standard deviation of the initial sample
= mean of the initial sample
n = required sample size

TABLE 10.2
Common z-Values
Required sample size = z-VALUE
(STANDARD
DEVIATION
REQUIRED
where h = accuracy level (acceptableDESIRED
error) desired in percent
FOR of the
DESIRED
job element expressed CONFIDENCE
as a decimal LEVEL OF
z = number of standard deviations (%)required forCONFIDENCE)
the desired
level of confidence
90.0 1.65
s = standard deviation of the initial sample
95.0 1.95
= mean of the initial sample
n = required sample size 95.45 2.00
99.0 2.58
99.73 3.00

Desired accuracy with 5%
Confidence level = 95%
Sample standard deviation = 1.0
Sample mean = 3.00
h = .05 = 3.00 s = 1.0
z = 1.96 (from Table S10.2 or Appendix I)

3. Predetermined Time 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
▶ Unions tend to accept them

4. Work Sampling
▶ Estimates percentage 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 staffing levels,
reassign duties, estimate costs, and set
delay allowances
Work Sampling
1. Take a preliminary sample to obtain
estimates of parameter values
2. Compute the sample size required
3. Prepare a schedule for random
observations at appropriate times
4. Observe and record worker activities
5. Determine how workers spend their
time
Work Sampling
Determining the sample size
z 2 p (1 − p )
n=
h2
where n = required sample size
z = standard normal deviate for desired confidence level
p = estimated value of sample proportion
h = acceptable error level in percent (as a decimal)

Work Sampling Example
Estimates employees idle 25% of the time
Sample should be accurate within ± 3%
Wants to have 95.45% confidence in the results
z 2 p (1 − p )
n=
h2
where n = required sample size
z = 2 for a 95.45% confidence level
p = estimate of idle proportion = 25% = .25
h = acceptable error of 3% = .03

Work Sampling Example
NO. OF
OBSERVATIONS ACTIVITY
485 On the phone or meeting with a welfare client
126 Idle
62 Personal time
23 Discussions with supervisor
137 Filing, meeting, and computer data entry
833
All but idle and personal time are work related

Percentage idle time = (126 + 62)/833 = 22.6%
Since this is less than the target value of 25%, the
workload needs to be adjusted
Work Sampling Time Studies
Salespeople
Sales in Travel
person 20%
20%
Telephone
sales Paperwork
12% 17%
Lunch and
personal
10%
Telephone
within firm Meetings
13% and other
8%

Work Sampling Time Studies
Startup/exercise
Assembly-Line 3%
Employees
Breaks and lunch
10%
Dead time
between tasks
13%
Productive Unscheduled tasks
work and downtime
67% 4%
Cleanup
3%

Work Sampling
▶ Advantages of work sampling
▶ 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

Work Sampling
▶ Disadvantages of work sampling

▶ 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

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Human Resources,

Job Design, and

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The objective of a human resource

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Location strategy Layout strategy

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▶ Higher capital cost

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Large objects Restaurants, 2-5 Overhead ceiling

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► Present the big picture

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Quantities in bins indicate

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May be set in four ways:

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

Normal time 3.4 3.4

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OBSERVATIONS (MIN) PERFORMANCE

(A) Compose and type letter 8 10 9 21* 11 120%

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

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

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

Total normal time = 11.40 + 2.31 + 1.65

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Total normal time

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1. How accurate we want to be

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Required sample size =

where h = accuracy level (acceptable error) desired in percent of the