OPMAN LESSON 6

objective of Human Resource Strategy

is to manage labor and design jobs

Labor Planning

involves determining staffing policies

Follow Demand Exactly

keeps direct labor costs tied

to production

• treats labor as a variable

Ex.

• Hiring and layoff costs.

• Unemployment insurance.

Hold Employment Constant

maintains a trained workforce and minimizes hiring/underutilization

• treats labor as a fixed cost.

Flextime

own schedules within limits

Flexible Workweek

Fewer but longer days, such as four 10-hour days or 12-hour shifts, providing viable options

Shorter Days

part-time status/part time employees/ peak loads

Job Classifications and Work Rules

Strict job classifications and work rules can restrict employee flexibility, reducing the flexibility of the operations function. Part of an operations manager’s task is to manage the unexpected. Therefore, the more flexibility a firm has when staffing and establishing work schedules, the more efficient and responsive it can be. This is especially true in service organizations where extra capacity often resides in extra or flexible staff. Building morale and meeting staffing requirements that result in an efficient, responsive operation are easier with fewer job classifications and work-rule constraints. A flexible workforce may be essential for achieving a competitive advantage by responding rapidly to customers.

flexibility in jobs and rules helps the company serve customers better and stay competitive.

Job Design

tasks constitute a job for individual or a group. It involves structuring jobs to enhance performance, satisfaction, and motivation.

Labor Specialization

introduced by the 18th-century economist Adam Smith, involves dividing labor

Development of Dexterity and Faster

Learning: more skilled and efficient.

• Reduced Time Loss: do not

lose time switching between jobs or

tools.

Development of Specialized tools

Reduces investment in tools as each

employee requires only a few specific

tools.

Job Expansion

quality of work life/fulfilling and flexible

Job Enlargement

similar skills

Job Rotation

employees to move from one

Job Enrichment

adding planning and control to the job/ vertical expansion and horizontal expansion

Employee Empowerment

accept responsibility for decisions

Limitations of Job Expansion

• Higher Capital Cost

• Individual Differences

• Higher Wage Rates

• Smaller Labor Pool

• Higher Training Costs

Higher Capital Cost

additional equipment and facilities

Individual Differences

some employees may prefer less complex jobs.

Higher Wage Rates

expanded jobs may require higher wages.

Smaller Labor Pool

more skill and responsibility may reduce the pool of suitable candidates

Higher Training Costs

job expansion requires increased training and cross-training.

Psychological Components of Job Design

Effective human resources strategy includes considering the psychological components of job design/ meet minimum

Hawthorne Studies

Conducted in the 1920s, these studies highlighted the importance of social systems and roles in the workplace

Skill Variety

variety of skills and talents.

Job Identity

allowing the worker to perceive the job as a whole with a clear start and finish.

Job Significance

providing a sense of impact on the organization and society

Autonomy

offering freedom, independence, and discretion.

Feedback

providing clear, timely information about performance.

Self-Directed Teams

working together to achieve common goals.

• Foster employee empowerment.

• Ensure core job characteristics.

• Satisfy psychological needs of team members.

Motivation and Incentive Systems

play crucial role in job satisfaction and performance / these can include both psychological and monetary factors.

Monetary Rewards

Bonuses, profit-sharing, and gain-sharing.

Incentive Systems

based on individual or group productivity, these systems provide financial and non-monetary rewards.

Team-Based Pay

bonuses/knowledge

Understand Cultural Differences

• respect cultural backgrounds of employees.

• appreciate and value

• celebrate events

Promote Inclusive Leadership

• leaders adopt

• leadership training (diversity,equity, inclusion) (DEI)

• leadership roles

Offer Flexible Work Arrangements

remote work options/ parental leave

Create a Supportive Work Environment

• foster culture of respect

• Establish Employee Resource Groups

(ERGs) to support underrepresented

groups.

• mentorship

Provide Equal Opportunities for Development

• offer training and development program

• career advancement

• reward performance

Encourage Open Communication

• employees voice

• communication

• listen to employees

Implement Fair Compensation Practices

pay audits / corrective/ offer competitive benefits

Foster Team Collaboration

team building/ shared goals

Leverage Technology

• utilize technology

• Implement tools that support accessibility for all employees.

• Use data analytics to track and

measure DEI initiatives.