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To manage labor and design jobsso people are effectively and efficiently utilized
Objective of Human ResourceStrategy
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People and Work System Goals
Use people efficiently
within constraints
Provide reasonable
quality of work life
1995 Corel Corp.
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Constraints on Human ResourceStrategy
Product strategy- Skills needed- Talents needed- Materials used- Safety
Location strategy- Climate- Temperature- Noise- Light- Air quality
Schedule- Time of day- Time of year(seasonal)- Stability of schedules
Individual differences- Strength and fatigue- Information processingand response
Layout strategy- Fixed position- Process- Assembly line- Work cell- Product
Process strategy- Technology- Machinery andequipment used- Safety
Human
Resource
Strategy
Who
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People and Work System Aspects
Job
Design
Labor
Standards
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Labor Planning
Follow demand
exactly
keeps direct labor
costs tied closely to
production
incurs costs of hiring/firing
unemployment
insurance
labor wage premium
Hold employment
constant
maintains a trainedworkforce
incurs costs of
idle time whendemand is low
meeting
increased
demand when
demand is high
1. Employment-Stability Policies
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Determining Policies of Labor
Stability
Employer policies are partly determined by
managements view of labor costs as a
fixed cost, or as a variable cost.
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2. Work Schedules
Standard work schedule five eight-hour days
Flex-time allows employees, within prescribed limits, to
determine their own schedules
Flexible work week four 10-hour days
Part-time less than eight hours per day, or an irregular
schedule
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Job Design
Specifying the tasks that make up
a job for an individual or group
Involves determining What is to be done (i.e., responses)
How it is to be done (i.e., tools etc.)
Why it is to be done (i.e., purpose)
Results in job description Shows nature of job in task-related
behaviors
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Job Specialization
Involves
Breaking jobs into small component
parts
Assigning specialists to do each part
First noted by Adam Smith (1776)
Observed how workers in pin factory
divided tasks into smallercomponents
Found in manufacturing &
service industries
1995Corel
Corp.
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Greater dexterity & faster
learning
Less lost time changing jobs ortools
Use of more specialized tools
Pay only for needed skills
Job Specialization OftenReduces Cost
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Job Expansion
Process of adding more variety to
jobs
Intended to reduce boredomassociated with labor specialization
Methods
Job enlargement
Job enrichment
Job rotation
Employee empowerment
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Job Enlargement/Job Enrichment
PresentJob
Control
Planning
Enriched Job
Task #3Task #2
Enlarged Job
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Job Enlargement/Job Enrichment
Present job
Manually insert and
solder six resistors
Task #3
Lock printed circuit into
fixture for next
operation
Task #2
Adhere labels to
printed circuit board
Control
Test circuits after
assembly
Planning
Participate in a cross-
function quality-
improvement team
Enriched job
Enlarged job
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Job Rotation
Geriatrics 1995Corel
Corp.
Pediatrics
1995 Corel
Corp.
Maternity
1995
Corel Corp.
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Employee Empowerment
Employee Empowerment
Control
Decision-Making
Planning
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Higher capital cost
Many individuals prefer simple jobs
Higher wages are required since the workermust utilize a higher level of skill
A smaller labor pool exists of persons able andwilling to perform enriched or enlarged jobs
Increased accident rates may occur
Current technology in some industries does notlend itself to job enlargement and enrichment
Limitations toJob Enlargement/Job Enrichment
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Work Measurement
Determining the amount of worker time required
to generate one unit of output
Provides labor standards
Target amount of time required to perform a
job under normal working conditions
Labour Standards
The amount of time required to perform a job or
part of a job
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Uses of Labor Standards
Costing labor content of products
Planning staffing needs
Cost & time estimates for bids Planning production
Wage-incentive plans
Employee efficiency
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Labor standards are based on observing
worker doing task
Observe only a sample of work Use average time & pace to set standard
Disadvantages
Requires a trained & experienced analyst Standard cannot be set before task is
performed
Time Studies
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Fundamental definitions
What is an ELEMENT? Element is a component of job or task
that are logical divisions with easily
identifiable starting and end points, andare repeated on a regular basis
What is a CYCLE? Cycle is the completion of the activities
(elements) required to perform the jobunder study.
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Rules for Performing Time Study
Dont comment to the worker during the task
Stand (dont sit) beside the worker
Write every event (even though it may seems
not important) Have a good position to observe
Stop the study if the worker seems to be under
pressure and it affects his/her work
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The Eight Steps to Conducting aTime Study
1. Define the task to be studied (after a methods
analysis)
2. Break down the task into precise elements
3. Decide how many times each element of the task
must be measured
4. Record the times and ratings of performance for
the task elements
5. Compute the average observed cycle time
(element times adjusted for unusual influences)
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6. Compute the normal time for each task element:Normal time = (Average actual cycletime)
x (Rating factor)
The Eight Steps to Conducting aTime Study - continued
Rating Factor : 1 for normal worker
>1 for slower worker
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7. Sum the normal times for each element to
develop a total normal time for the task
8. Compute the standard time:
The Eight Steps to Conducting aTime Study - continued
Standard time =Total normal time
1- Allowance factor
Allowance factor =Nonwork time
Total time
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Allowances
Personal time allowance - 4% - 7% of
total time - use of restroom, water
fountain, etc.
Delay allowance - based upon actual
delays that occur
Fatigue allowance - to compensate for
physical or mental strain, noise level,tediousness, heat and humidity,
assumption of an abnormal position,
etc.
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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
Standard time = = =Normal time
1 - Allowance factor
3.4
1 - .13
3.4
.87
= 3.9 minutes
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Time Study Example 2
Allowance factor = 15%
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 2 1 5* 2 1 110%sort envelopes
Cycle Observed (in minutes)
1. Delete unusual or nonrecurring observations (marked with *)2. Compute average times 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
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Time Study Example 2
3. Compute the normal time for each element
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
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 = 15.36 minutes
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Time Study Example 2
5. Compute the standard time for the job
Standard time =Total normal time
1 - Allowance factor
= = 18.07 minutes15.36
1 - .15
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