Bài giảng môn Quản trị kinh doanh - Chapter 17: Workforce: optimizing human capital

Chapter 17Workforce: Optimizing Human Capital1Describe how the workforce contributes to profitability.Explain how expectations for employees are increasing.Explain the impact the workforce has on value.Use the customer experience grid to describe the relationship between customers and employees.Describe why teams have become more important.Explain a structure for team processes.Describe the impacts of contingent workers.Describe why workforce productivity is important.Demonstrate how standard times are created.Make the necessary calculations to perform a work sampling study.Describe how learning rates can affect worker productivity.Calculate the amount of time a task will take, given a specified learning rate.Learning Objectives2Why is the workforce viewed as the most valuable asset?Businesses increasingly depend on information and technologyCompetition for workers who have related skills is fierceAs products and services become more like commodities, competition based on price or quality becomes harder. Market dominance shifts to the most innovative company, and ideas come from peopleCompetition is, to a great extent, based on service-oriented value attributes. Employees who can interact effectively with customers are sought afterIntroduction: Using the Workforce as a Key to Competitive Success3Price and quality differentials disappear when customers have more information and access to more options through the Internet.Service-related attributes remainHow fast can I get it?How helpful were the people I talked to?How pleasant was the interaction?Managers are often afraid of letting employees talk to customers... but that’s what customers want.Knowledgeable, committed employees may be one of the most important competitive advantages remainingEmployee/Customer Interaction, Value, and Profitability4The Employee Contributions to Value AttributesCostStyle/FashionQualityEthical IssuesResponse TimeTechnologyDependability of DeliveryFlexibilityConveniencePersonalizationEmployees can have a direct impact on all of these important value attributes:The employees actions can determine whether or not the customer makes a purchase.5The Employee Contribution to Value AttributesCostIncreased workforce productivity lowers costs per unitThe best ideas for preventing waste and improving quality are often found at the lowest levels of the workforceQuality, response time, and dependability of deliveryNeed a ‘quality mentality’ among employees. Quality can’t be achieved through systems alone, it is cultural6The Employee Contribution to Value AttributesConvenience, style/fashion, and ethical issuesWorkforce carries out tasks necessary to provide convenienceWhen competing on style/fashion, having a workforce that understands the product and uses the product is helpfulWhen competing on ethical issues, the workforce must be committed to those issues and be able to effectively communicate the company’s positionTechnology, flexibility, and personalizationSpecific employee skills are required to enhance these attributesFlexibility and personalization often achieved through technological applications (created by skilled workers)7Employee Interaction with Customers:A Prerequisite to Good ServiceSkills, knowledge, personality, and attitude all play a part in employee interaction with customers.The service-profit chain creates a logical link between employee satisfaction and profitability.Exhibit 17.1 Service-Profit Chain8Employee Interaction with Customers: A Prerequisite to Good ServiceOutcome and process combine to result in customer satisfaction for the overall experience.Quantity and quality of employee interaction offer opportunity for differentiation.Exhibit 17.2 Customer Experience Grid with Customer Interaction Dimension9Give workers at lower levels the authority to make decisions in areas they are familiar with.Leads to increased interaction with customersEmployees who work day-to-day with processes are often most qualified to help improve them.The Most Important Employee Contribution to Value: Sound Decisions10Use of project and improvement teams is on the increase.Reengineering efforts frequently accomplished by project teamsTotal quality management and lean systems both rely heavily on well-trained worker teamsDeveloping a team requires more than throwing workers together and giving them a task to do.Members must know how to make decisions in a teamExhibit 17.3 Project Team CapabilitiesIncreasing the Contribution ofEmployees through Teams11Teams bring different perspectives and types of knowledge to a project.Individuals can’t effectively do projects with broad requirementsTeams can be very creative because of the differing perspectivesThe duration of projects is reduced.Teams split tasks up among membersTeams promote “buy-in”When a team has worked on a proposed change, they have a sense of ownership towards itIndividuals have to sell their proposals and overcome the natural resistance people have to ideas that aren’t their ownIncreasing the Contribution of Employees through Teams: Why Use Teams?12Teams are useful for implementing change.InnovationA dramatic change that comes from a new idea.Continuous improvementA process of always seeking ways to improve existing processes and tasks. Increasing the Contribution of Employees through Teams: Appropriate Uses for Teams13Stage 1” Project IdentificationAssignment of project to a teamDevelopment of a goals statementDescription of benefits of projectIdentification of stakeholdersStage 2: Current Situation AnalysisAnalysis of current situationProblem-solving: Determination of cause of problemProcess-improvement: Identification of non-value-adding activitiesExhibit 17.4 Project Life CycleIncreasing the Contribution of Employees through Teams: Structure for Team Processes14Stage 3: Action PlansCreation of a plan for actionIdentification of possible changesSelection of changes to implementJustification of selection through analysis of dataStage 4: Implementing ChangeObtaining support or buy-inImplementation of the changesMeasurement and evaluation of resultsExhibit 17.4 Project Life CycleIncreasing the Contribution of Employees through Teams: Structure for Team Processes15Increasing the Contribution of Employees through Teams: Team Decision-Making ToolsMany tools for aiding in project team tasks have their roots in traditional quality tools.Exhibit 17.5 Traditional Quality Tools16Some likely uses of decision-making tools:Stage 1, identifying exactly what the team is to do:Pareto charts give a sense of which item to address firstControl charts might indicate a process being out of controlCheck sheets might indicate too many instances of a particular undesirable eventStage 2, understanding the current situation:Analysis of run charts, Pareto charts, scatter diagrams, and histograms might lead to suggestions for possible causesCause and effect chart can aid in moving from possible to root causesIncreasing the Contribution of Employees through Teams: Team Decision-Making Tools17Some likely uses of decision-making tools:Stage 3, the development of a solution:Selecting the appropriate changes might involve run charts, scatter diagrams, and flow chartsStage 4, development of buy-in and evaluation:Implementing ongoing use of control chartsThe same tools used to identify the problem would be used again to provide a “before and after” viewIn addition to quality tools, there are techniques for building team consensus.Increasing the Contribution of Employees through Teams: Team Decision-Making Tools18Cross-training – Training employees to do a variety of jobs.Increase contribution to the organizationEmployees find their work more interestingEmployees have a larger perspective on the business and a larger sense of contribution to company’s goalsContingent workers – Temporary workers employed by an agency and contracted to work for another firm.Includes employees of all abilities and salary levelsAdds flexibility, enabling firms to deal with seasonal demand fluctuations or implementation of short-lived projectsPotential cost to product and service qualityIncreased Need for Workforce Flexibility19Early process design decisions determine where decision-making power lies.Exhibit 17.6 Advantages and Disadvantages of Different Dominating Forces in Business InteractionsWho’s in Charge?20Businesses must be more networkedRespond to customer needs Use the increasing amount of information available about what customers want.Empowering employees is popular but employees must be given the training necessary to make decisions.Increasing diversity in customer base, and in workforce.The New Working Environment21Like productivity for any other asset, workforce productivity exists as a ratio of outputs to inputs.Improving productivity does not necessarily require forcing employees to work harder. Lack of productivity is often a result of the systems in which employees work, not a lack of ambition.Productivity measures of individual resources are local. They can conflict with other measures and with the goals of the organization.Workforce Productivity Improvement22For some jobs, a standard is needed to provide a basis for training and evaluation. A time standard is the expected time needed to complete a taskTime standards are frequently used in manufacturing environments (Repetitive tasks with little variability)Common approaches to creating standards:Stopwatch time studiesPredetermined motion timesWorkforce Productivity Improvement: Productivity Measurement and Improvement Tools23In stopwatch time studies, employees are observed and timed as they do a task. The average of the times of the observations, for one employee, is the observed timeThe observed time is adjusted by a performance rating, to take into account whether the worker was faster or slower than normalThe adjusted time is known as the normal time, which is how long a typical worker would take to complete a taskNormal time is adjusted to incorporate allowances (restroom breaks, rest periods...) to arrive at the standard timeWorkforce Productivity Improvement: Productivity Measurement and Improvement Tools24Example 17.1:A manager is trying to create a performance standard for reviewing claims at an insurance companyAn employee was found to have an observed time of 34 seconds. The manager judged him to be 10% faster than normal. Allowances are required to be 15%. Find the standard timeNormal time = 34 x 1.1 = 37.4 seconds (adjustment by 10%)Standard time = 37.4 x 1.15 = 43.01 secondsWorkforce Productivity Improvement: Productivity Measurement and Improvement Tools25Predetermined motion times are the times required to complete small aspects of tasks.Times are collected from a large number of observations, from film footageJobs are broken down into very small motionsThe times for a set of motions can be summed to find a standard time for a job – even of that job has never been performedWork sampling is a process of recording what a worker is doing to determine how employee time is spent.Used more often for white collar jobs where productivity is not a result of how fast you work but how you spend your working timeThe results can be the impetus for job redesignWorkforce Productivity Improvement: Productivity Measurement and Improvement Tools26Example 17.2:200 random observations of an office manager were taken, with the following results:Scheduling claims adjuster duties21Office personnel duties14Assisting with staff duties36Performing stopwatch time studies44One-on-one meetings with staff10Full staff meeting8Social chatting13On the phone54Workforce Productivity Improvement: Productivity Measurement and Improvement Tools27Example 17.2:The results are converted to the following percentages:Scheduling claims adjuster duties10.5%Office personnel duties7%Assisting with staff duties18%Performing stopwatch time studies22%One-on-one meetings with staff5%Full staff meeting4%Social chatting6.5%On the phone27%Workforce Productivity Improvement: Productivity Measurement and Improvement Tools28A learning curve shows the reduction in time it takes to complete a task as the number of times it has been completed increases.Individuals, groups, and organizations all have learning curvesThe learning rate is the amount of improvement obtained as a task is repeated. The gain expressed by the learning rate is achieved every time the number of repetitions doubles.The learning rate is almost always a prediction. There are always errors in predictions, and errors in estimating the learning rate can have a tremendous impact on the projected timeWorkforce Productivity Improvement: Learning Curves29If an individual completed a task for the first time in 4 hours and his learning rate was expected to be 85%, we would observe the following pattern:Exhibit 16.7 Learning Curve PatternWorkforce Productivity Improvement: Learning Curves30A lower percentage means faster learning. Below are 85% vs. 97% learning curves:Exhibit 17.8 85 percent learning curveExhibit 17.9 97 percent learning curveWorkforce Productivity Improvement: Learning Curves31The equation for the learning curve isTn = T1nrWhereTn = time in hours to produce nth unitT1 = time in hours to produce the first unitn = number of the unit of interestr = log l/log 2 where l is the expected learning rateWorkforce Productivity Improvement: Learning Curves32Example 17.3:A producer of machined components wants to determine the time it will take to produce the 300th unit on a new machine. The time for the first unit is 1.75 hours and the learning rate is 96%Tn = T1nrT300 = 1.75(300)log 0.96/log 2 = 1.75(300)-0.0589 = 1.75(300)0.0589 = 1.2506 hoursWorkforce Productivity Improvement:Learning Curves33