CHAPTER 6 DESIGN REDESIGN OF WORK SYSTEMS Copyright

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CHAPTER 6: DESIGN & REDESIGN OF WORK SYSTEMS Copyright © 2005 South-Western. All rights

CHAPTER 6: DESIGN & REDESIGN OF WORK SYSTEMS Copyright © 2005 South-Western. All rights reserved.

Exhibit 6 -1 Model for Design of Work Systems Copyright © 2005 South-Western. All

Exhibit 6 -1 Model for Design of Work Systems Copyright © 2005 South-Western. All rights reserved. 1– 2

Design of Work Systems • Job Specialization – Creates jobs with very narrow task

Design of Work Systems • Job Specialization – Creates jobs with very narrow task (activity) assignments – Resulted in high efficiency, quickly achieved job competency, low training costs, but created monotonous jobs • Job Enlargement – An increase in task variety to relieve boredom • Job Rotation – Employees moved across different specialized positions – Enlargement & rotation add variety but not Copyright © 2005 South-Western. All rights reserved. 1– 3

Design of Work Systems • Job Enrichment – Increasing amount of responsibility for quality

Design of Work Systems • Job Enrichment – Increasing amount of responsibility for quality & productivity that employees have for their own work • Vertical Loading – Reassignment of job responsibility formerly delegated to supervisor to employee Copyright © 2005 South-Western. All rights reserved. 1– 4

Five Core Job Characteristics • Skill variety –Extent to which work allows employee to

Five Core Job Characteristics • Skill variety –Extent to which work allows employee to use variety of skills • Task identity –Extent to which work allows employee to complete whole or identifiable piece of work • Task significance –Extent to which employee perceives that work is important & meaningful to those inside or outside organization Copyright © 2005 South-Western. All rights reserved. • Autonomy –Extent to which employee is able to work & determine work procedure at own discretion • Feedback –Extent to which work allows employee to gain sense of how well job responsibilities are met 1– 5

Exhibit 6 -2 Job Characteristics Model Copyright © 2005 South-Western. All rights reserved. 1–

Exhibit 6 -2 Job Characteristics Model Copyright © 2005 South-Western. All rights reserved. 1– 6

What Workers Need • Changing demographics & life styles – Worker needs vary by

What Workers Need • Changing demographics & life styles – Worker needs vary by age, gender, race, religion, physical abilities, sexual orientation, & marital & family status • Employee needs for work/life balance – Workers less committed to organizations today – Also suffer from burnout & lower performance Copyright © 2005 South-Western. All rights reserved. • Employee needs representation (“voice”) – Workers want to be involved in work-related issues & expect organization to listen to concerns • Employee concerns about safety in workplace – Workers want safe, hazard-free working environment 1– 7

Types of Task Interdependence • Pooled interdependence – Individual employees work independently of each

Types of Task Interdependence • Pooled interdependence – Individual employees work independently of each other in performing tasks but utilize coordination of activities • Sequential interdependence – Work in process flow is linear, from one individual to another – One individual depends on timely completion of quality work from another coworker Copyright © 2005 South-Western. All rights reserved. • Reciprocal interdependence – Workflow is random – Responds to immediate situation – Employees have joint & shared responsibilities for work • Higher levels of interdependence require higher levels of coordination & attention 1– 8

Redesign of Work Systems • Current & future work systems more broadly defined &

Redesign of Work Systems • Current & future work systems more broadly defined & more closely related to strategic choices • Workers becoming more involved in design & reengineering of jobs • Cross-function teams strategically beneficial – Also create challenges in effectively managing themselves • Employees raised in individualistic cultures need training to be effective team members Copyright © 2005 South-Western. All rights reserved. 1– 9

Outsourcing • Involves contracting out some of organization’s noncore work activities to outside specialists

Outsourcing • Involves contracting out some of organization’s noncore work activities to outside specialists – Can do work more effectively – Often for less than cost of doing work in-house • Areas frequently outsourced: – – – Payroll Benefits Technological support • More than 75% of organizations outsource at least one HR function Copyright © 2005 South-Western. All rights reserved. 1– 10

Outsourcing • Can free up HR staff to focus on more strategic issues •

Outsourcing • Can free up HR staff to focus on more strategic issues • Considerations: – Cost savings – Whether contractor can deliver – Compliance with laws – Impacts on employees whose jobs might be lost – Impacts on morale of remaining employees Copyright © 2005 South-Western. All rights reserved. 1– 11

Offshoring • Involves exporting tasks & jobs to countries where labor costs significantly less

Offshoring • Involves exporting tasks & jobs to countries where labor costs significantly less than in U. S. • India remains largest market • Wages approximately 10% of those paid in U. S. – Often considered good by local standards • Challenge of managing virtual global teams • Need for tight organizational & operational control to ensure coordination & communication Copyright © 2005 South-Western. All rights reserved. 1– 12

Offshoring • Advantages – Cost savings – Extend work day to 24 hours Copyright

Offshoring • Advantages – Cost savings – Extend work day to 24 hours Copyright © 2005 South-Western. All rights reserved. • Disadvantages – Loss of domestic jobs – Transfer of technical knowledge – Public image/loyalty concerns 1– 13

Mergers & Acquisitions • Mergers pursued for a variety of reasons: – Economies of

Mergers & Acquisitions • Mergers pursued for a variety of reasons: – Economies of scale in operations – Consolidation in saturated markets – Improving competitive position through larger asset base • Two thirds of mergers fail – Largely because of inability to merge cultural & other human factors Copyright © 2005 South-Western. All rights reserved. 1– 14

Barriers to Change • Disrupting status quo may be met with resistance by both

Barriers to Change • Disrupting status quo may be met with resistance by both employees and managers • Costs & reallocation of resources • Employees will resist change unless they – Perceive need to change – See benefits from change • Risk & uncertainty; no guarantee of improvements • Poor coordination & communication can undermine change initiatives Copyright © 2005 South-Western. All rights reserved. 1– 15

To Overcome Resistance to Change • Promote & implement change so it provides benefits

To Overcome Resistance to Change • Promote & implement change so it provides benefits to those impacted • Involve employees in change process to increase their commitment to change • Open, two-way communication – Early before change decisions are made – Dispel rumors – Increase trust & acceptance of change by keeping employees informed & asking for input Copyright © 2005 South-Western. All rights reserved. 1– 16

Reading 6. 1 Restructuring Teams for Re-engineered Organizations • Reasons for using teams in

Reading 6. 1 Restructuring Teams for Re-engineered Organizations • Reasons for using teams in organizations: – Unlikely one individual will have all of knowledge & information needed to make complex decisions – Teams provide more “buy-in” to decisions – Managers believe teams enhance motivation & productivity – Facilitate acquisition & sharing of information vital to organizational growth and flexibility – Facilitate variety of internal quality control Copyright © 2005 South-Western. All rights reserved. 1– 17

Reading 6. 1 Restructuring Teams for Re-engineered Organizations • Problems with teams – May

Reading 6. 1 Restructuring Teams for Re-engineered Organizations • Problems with teams – May fail without proper training & support – Often poorly integrated into organization’s hierarchy – Individuals often feel their team contributions dilute personal success – Few teams have found effective means to deal with “freeloaders” – Usually not represented at top levels of organizations, sending a mixed message about their importance Copyright © 2005 South-Western. All rights reserved. 1– 18

Reading 6. 1 Restructuring Teams for Re-engineered Organizations • U. S. & Japanese culture

Reading 6. 1 Restructuring Teams for Re-engineered Organizations • U. S. & Japanese culture differences – Individualism versus collectivism – Conflict & conformity – Power & authority – Time orientation – Cultural & demographic homogeneity Copyright © 2005 South-Western. All rights reserved. 1– 19

Reading 6. 1 Restructuring Teams for Re-engineered Organizations • Three keys to successful teams

Reading 6. 1 Restructuring Teams for Re-engineered Organizations • Three keys to successful teams – Value & endorse dissent – Encourage fluidity of membership – Enable teams to make decisions Copyright © 2005 South-Western. All rights reserved. 1– 20

Figure 1 Three Key Elements for Success of US Teams Copyright © 2005 South-Western.

Figure 1 Three Key Elements for Success of US Teams Copyright © 2005 South-Western. All rights reserved. 1– 21

Figure 2 Team Development Model Copyright © 2005 South-Western. All rights reserved. 1– 22

Figure 2 Team Development Model Copyright © 2005 South-Western. All rights reserved. 1– 22

Reading 6. 2 HRM Outsourcing: Make or Buy Decision • Five competitive forces driving

Reading 6. 2 HRM Outsourcing: Make or Buy Decision • Five competitive forces driving organizations to outsource HR activities: – Downsizing – Rapid growth or decline – Globalization – Increased competition – Restructuring Copyright © 2005 South-Western. All rights reserved. 1– 23

Reading 6. 2 HRM Outsourcing: Make or Buy Decision • Operationales for outsourcing –

Reading 6. 2 HRM Outsourcing: Make or Buy Decision • Operationales for outsourcing – Small firms lack resources; large firms gain economies of scale – Specialized HR expertise & objectivity • Reduced liability & risk in legally sensitive HR areas – Innovations & economies of scale in HRIS technology used by outside vendors • Simplify transactions • Reduce HR costs Copyright © 2005 South-Western. All rights reserved. 1– 24

Reading 6. 2 HRM Outsourcing: Make or Buy Decision • Operationales for outsourcing (continued):

Reading 6. 2 HRM Outsourcing: Make or Buy Decision • Operationales for outsourcing (continued): – Time-sensitive issues better handled by outsourcing – Temporary or cyclical increases in HR needs – Efficient vendor management practices drive costs down more than economies of scale – Specialized vendors offer activities as their core business & strategic focus Copyright © 2005 South-Western. All rights reserved. 1– 25

Reading 6. 2 HRM Outsourcing: Make or Buy Decision • Strategic rationales for outsourcing:

Reading 6. 2 HRM Outsourcing: Make or Buy Decision • Strategic rationales for outsourcing: – Outsourcing nonstrategic activities permits HR to move away from administration toward strategic role – Decentralization of HR function through redeployment of some of assets to operating units – Develop less bureaucratic HR departments – Downsizing may require HR to reduce staff, eliminating specialized in-house expertise Copyright © 2005 South-Western. All rights reserved. 1– 26

Reading 6. 2 HRM Outsourcing: Make or Buy Decision • Positive outcomes – Lower

Reading 6. 2 HRM Outsourcing: Make or Buy Decision • Positive outcomes – Lower HR costs – Higher service quality – Realignment or redeployment of internal HR expertise – Development of negotiation & broker skills – Enhanced credibility of HR function – Risk & uncertainty absorption by HR vendor Copyright © 2005 South-Western. All rights reserved. 1– 27

Reading 6. 2 HRM Outsourcing: Make or Buy Decision • Negative outcomes – Significant

Reading 6. 2 HRM Outsourcing: Make or Buy Decision • Negative outcomes – Significant cost savings not always experienced – Vendor switching costs – Long-term vendor contracts – Disruption of firm’s culture – Removal or distancing of HR function from employees Copyright © 2005 South-Western. All rights reserved. 1– 28

Reading 6. 3 Productivity in Downsizing • Many downsizing firms face immediate challenge of

Reading 6. 3 Productivity in Downsizing • Many downsizing firms face immediate challenge of keeping operations going with minimal staff • Productivity often declines • Survivors – Working more hours – Receive with bigger workload • Morale often plummets Copyright © 2005 South-Western. All rights reserved. 1– 29

Reading 6. 3 Work Redesign • Typical problems – Failure or inability to identify

Reading 6. 3 Work Redesign • Typical problems – Failure or inability to identify & categorize duties & assignments – Failure to identify when employee is over-tasked – Failure to see when business unit’s demands exceed its capacity Copyright © 2005 South-Western. All rights reserved. 1– 30

Reading 6. 3 Work Redesign: Task Categories • Critical tasks – Enable company to

Reading 6. 3 Work Redesign: Task Categories • Critical tasks – Enable company to accomplish primary objectives • Sub-critical tasks – Need to be performed, but average standard of quality will suffice Copyright © 2005 South-Western. All rights reserved. • Minor tasks – Add value to firm but will not hinder operations or goals if left undone • Unnecessary tasks – Can be discarded because they drain resources 1– 31

Reading 6. 3 Work Redesign • Output from work categorization process must be shared

Reading 6. 3 Work Redesign • Output from work categorization process must be shared with all employees so they have list of tasks for which they are accountable • These tasks are used to drive performance management process Copyright © 2005 South-Western. All rights reserved. 1– 32