10 design of work systems

8/20/2019 10 Design of Work Systems

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involves job design, work

measurement, establishment of time

standards and worker compensation

Lesson 10

Design of Work Systems


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Job Design involves specifying the content and methods of jobs.

The goal is to create a work system that is productive andefficient.

To be successful, job design must:

. be carried out by personnel with proper training andbackground

. consistent with the goals of the organiation

. in written form

. understood and agreed to by bothmanagement and employees

Job Design


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Decisions In Job Design

!ob Structure

"ental and physical characteristics

of the work force

Who

Tasks to be performed

What

#eographic locale of the organiation$

location of work areas

Where

Time of day$ time of occurrence in

the work flow

When

%rganiational rationale for the job$

objectives and motivation of the

worker

Why

"ethod of performance and motivation

&ow


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' properly designed job

. (mproves efficiency through analysis of the job)s work elements

. (mproves productivity through consideration of technical and

human factors

. (ncreases the *uality of the final product or service

. (ncreases worker satisfaction

. (mproves the bottom line

Job Design


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Evolution of Job Design

1900s to 1960s - Scientific

Management/Assembl Lines

Task specialiation

"inimal worker skills

+epetition"inimal job training

"ass production

iece-rate wages

Time as efficiency

"inimal job responsibility

Tight supervisory control

19!0s to 1990s - Em"loee

#a$tici"ation % Involvement

&oriontal job enlargement

ertical job enlargement

/0tensive job training!ob control

Training 1 education

!ob rotation

&igher skill levels

Team problem solving

2ocus on *uality


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&ecent '$en(s In Job Design

Some of the recent trends in job design include:

. 3uality control as part of the worker4s job

. (ncreased skill 1 ability levels - cross-training workers to

perform multi-skilled jobs - education 1 training viewed as long-

term investments .

/mployee involvement 5responsibility 1 empowerment6 and teamapproaches to designing and organiing work 5job and task fle0ibility

. (nvolving

ordinary workers through telecommunication networks and

computers . /0tensive use of

temporary workers . Technology 1

automation of heavy manual work . %rganiational

commitment to providing meaningful and rewarding jobs 5content 1

remuneration6 for all employees


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7onsiderations in !ob Design

Specialiation

8ehavioral 'pproaches to !ob Design

Teams

"ethods 'nalysis"otion Study

Working conditions

(ncentive pay plans

Two major approaches to job design: Efficiency , Behavioral

Efficiency - emphasies systematic, logical approachBehavioral - emphasies the satisfaction of wants and needs

Job Design


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Specialization - jobs that have a very narrow scope 5welder, plumber,

medical technician, real estate lawyer, assembly line worker6

Advantages

For Management For Labor

simplifies training low education re*uirementshigh productivity minimum responsibilities

low wage costs little mental effort re*uired

Disadvantages

For Management For Labor

difficult to motivate *uality monotonous work

worker dissatisfaction limited advancement

little control over work little self-fulfillment

S"eciali)ation


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Behavioral Approaches to Job Design deal with improving the

worker)s attitude toward their jobs. %ver the last few yearsadvancement has been made to empower employees by giving the

worker more responsibility for their work.

Theory - workers do not like to work and have to be controlledrewarded, punished6 to get them to do a good job.

Theory ! - workers who enjoy their work will become committed to

doing a good job.

Theory " - 5William %uchi6 workers who are empowered to control their

work 5solve problems, participate in decisions6 will develop

an ownership attitude.

*e+avio$al A""$oac+es


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*e+avio$al A""$oac+es

Job Enlargement # giving a worker a larger portion of the total task by

increasing the variety of skills

Job $otation # workers periodically e0change jobs

Job Enrichment # increasing responsibility for planning and coordinationtasks along with other responsibilities


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'eams

Teams - responsibility for the problems are shared among team

members - sometimes difficult to implement because of. management issues 5feeling threatened of losing control6

. people issues 5getting along with each other6

Self#directed teams # empowered to make changes in their workenvironment 5e.g. workers doing the work are more knowledgeable6

Advantages

. higher *uality

% higher level of motivation

. higher level of job satisfaction leading to lower

absenteeism, less turnover and lower costs

for training new workers


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The more successful teams have

. 7ommon commitment to overarching purpose

. Shared leadership

. (ndividual and collective performance judgement

. %pen-ended discussion

. Team works together

. "eaningful, well-defined direction

. ositive environment

. 7lear rules for behavior

. /arly successes

. 2resh ideas from outside the team

. Spend lots of time together

. ositive reinforcement

Successful 'eams


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,om"onents f Job Design

'as

Analsis

Envi$onmental Analsis

o$e$

Analsis

Effective Job Design depends on balancing 9 critical components

. Worker

. Tasks

. /nvironment


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o$e$ Analsis

The worker analysis re*uires a detailed understanding the skills

necessary to perform a set of tasks 5to ensure that the right workers areassigned to the right jobs6. (t involves an assessment of

. 7apabilities 5skill level, physical abilities, motivation6

. "ental stress

. 8oredom

. umber of workers re*uired

. ;evel of responsibility

. "onitoring level

. 3uality responsibility

. /mpowerment level

. /valuation methodology


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'as Analsis

The task analysis consists of a detailed description of

. Tasks < where are they performed 5fi0ed station, interaction

with e*uipment, interaction with other people6

. Task steps - se*uence

. 2unction of tasks

. 2re*uency of tasks

. 7riticality of tasks

. Task duration5s6

. +elationship with other jobs=tasks

. /rror possibilities

. +e*uirements for performance, information, control, e*uipment


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Envi$onmental Analsis

The environmental analysis addresses physical attributes of the workplace

because they can have a dramatic affect on worker productivity

. Work place location

. rocess location

. Temperature and humidity

. ;ighting

. entilation

. Safety

. ;ogistics

. Space re*uirements

. oise

. ibration


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ISS #$inci"le f Job Design

&uman /lement

. Work - simplified, rhythmic 1 symmetric

. &and=arm motions - coordinated 1 simultaneous

. /mploy full e0tent of physical capabilities

. 7onserve energy - use machines, minimie distances

. Tasks - simple, minimal eye contact 1 muscular effort, nounnecessary motions, delays or idleness

Workspace /lement

. Tools, material, e*uipment - designated, easily accessible

. Seating 1 work area - comfortable 1 healthy/*uipment /lement

. /*uipment 1 mechanied tools enhance worker abilities

. >se foot-operated e*uipment to relieve hand=arm stress

. 7onstruct 1 arrange e*uipment to fit worker use


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Methods Analysis # focuses on how a job 5e0isting or new6 is done

beginning with general details about a job then focusing on the specifictasks in the job

The need for methods analysis comes from:

. 7hanges in tools and=or e*uipment

. ew products or changes in e0isting products

. 7hanges in materials or procedures

. #overnment regulations

. 7ontractual agreements

. 'ccidents

. 3uality problems

Met+o(s Analsis


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The methods analysis proced&re involves

. #athering all pertinent information 5tools, e*uipment,materials, etc.6 for the operation to be studied

. Discuss the job with the people who do it

. Discuss the job with the people who supervise it

. Study and use process charts to document the presentmethod the job is done

. 'nalye the job

. ropose new methods

. (nstall new methods

. 2ollow up installation to assure improvements have been

achieved

' process flo' chart is very useful to document the tasks and flow of

work in a job.

Met+o(s Analsis


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#$ocess lo2 Analsis

L #&,ESS ,3A&'

Job Requisition of petty cash

Details of Method

ANALYST

D. Kolb

PA!

" of #

$ p e % a t i

o n

M

o & e '

e n t

( n

s p e c t i

o n

D e l a

y

S t o

% a ) e

Requisition 'ade by depa%t'ent head

Put in *pic+,up- bas+et

To accountin) depa%t'entAccount and si)natu%e &e%ified

A'ount app%o&ed by t%easu%e%

A'ount counted by cashie%

A'ount %eco%ded by boo++eepe%

Petty cash sealed in en&elope

Petty cash ca%%ied to depa%t'entPetty cash chec+ed a)ainst %equisition

Receipt si)ned

Petty cash sto%ed in safety bo


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Motion St&dy Techni(&es

Motion st&dy principles - guidelines for designing motion-efficient work

procedures

Analysis of therblings - basic elemental motions in a job

Micro#motion st&dy # use of motion pictures and slowmotion to study motions that otherwise would be too

rapid to analye

)harts

Motion St&dy ## is the systematic study of the human motions used to

perform an operation - the purpose is to eliminate unnecessary motionsused to perform an operation. (t is very effective in improving worker

productivity and lowering costs

Motion Stu(


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The most common ways to develop time standards for tasks:

% Stop'atch time st&dy - development of a time standard by

observing the time it takes to perform a job over several

observation periods

% ,istorical times% -redetermined data 5many industry associations or

consultants have time standard information6

% *or+ Sampling

o$ Measu$ement


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Standard Elemental Times are time standards derived from the firm)s

historical time data. When setting a new job standard there is no reasonto ?reinvent the wheel@. )hec+ the files to determine .ob elements

that have been /meas&red0 and apply these rates appropriately%

-redetermined Time Standards are available inmany instances through industry publications,

associations, industrial engineering associations. '

commonly used system is methods-time management

5MTM 6tables created by the "ethods /ngineering

7ouncil.

Job Stan(a$(s 4 Don5t &einvent '+e +eel


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The steps in a time study are:

. (dentify the task

. (nform the worker that he=she is being studied

. Time the job over several observation periods 5cycles6

. +ate the worker)s performance

. 7ompute the time standard

The n&mber of cycles that must be timed are a function of :

. ariability of the observed times

. Desired accuracy

. Desired level of confidence for theestimated job time

'ime Stu(

,onfi(ence

level


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meansample=

percentageaccuracydesired=

deviaitonstandardsample=

confidencedesiredfordeviations standardnormalof numer=!

"#ere2

=n

X

a

s

X a

Zs

The n&mber of cycles that should be timed 5to within a desired A

accuracy6 can be calculated by:

'ime Stu(

Typical Z Values

Desired

Confidence

Level % Value

90 1.65

95 1.9695.5 2.00

98 2.

99 2.58


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'n alternate calc&lation for the n&mber of cycles, when the desired

accuracy is stated as a an actual amount 5e.g. within B minute of the truemean6 is:

error acceptalema'imumoraccuracy=

"#ere2

=n

e

e

Zs

/0ample Bb: 2or a desired confidence of FGA how many cycles must

be observed if the desired accuracy is within one-half minuteI

68touprounded67$77=

2

$5

1$96%2$1& =

2 =n

e

Zs

'ime Stu(


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Development of a .ob standard time involves computation of 1 times2

% 3bserved time - the average of the observed times% 4ormal time - the observed time adjusted for worker

performance

% Standard time - the length of time a worker should take to

perform a job if there are no delays or interruptions

Job Stan(a$( 'ime

The observed time 53T6 is calculated by:

timesrecordedof numertotal=

timerecordedit#=

timeoserved=()

"#ere =()

ni

x

ni x∑


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( ) *) = +, "#ere= average time for o element

+, = performance rating for o element

x x i

i

i i

i

i

∗∑

(f a .ob performance rating has not been determined for an entire job,

the normal time 54T6 is calculated by:

(f a .ob performance rating has been determined for an entire job, the

normal time 54T6 is calculated by:

-oentirefor t#eratinge performanc= -o+,

timenormal= *)

-o

+, ()= *) ∗

Job Stan(a$( 'ime


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The reason for the .ob ad.&stment factor is that the worker being

observed may be working at a rate different from the normal rate 5working at a deliberately slow rate, natural abilities differ from the norm,

working at a rate to impress the observer6. Thus the observed time is

ad.&sted by this factor to yield a more accurate work pace.

performance rating J B.H indicates the worker is working at anormal rate

performance rating J .FH indicates the worker is working at FHA

of a normal rate

performance rating J B.BH indicates that the worker is working

BHA faster than a normal rate

Job Stan(a$( 'ime


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The standard time 5ST6 is the length of time a worker should take to

perform a job if there are no delays or interruptions. 'n allo'ance factor 5AF6 is used to ad.&st the normal time to allow for delays,

interruptions or breaks.

The standard time 5ST6 is calculated by one of the following methods:. 'llowance factor for job time

. 'llowance factor for time worked

Job Stan(a$( 'ime


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Job Stan(a$( 'ime

(f the allo'ance factor has been determined for the .ob time the

standard time 5ST6 is calculated by:

rea.sons/interruptidelays/forfactorallo"ance= -o

-o

*)=) ∗

The allo'ance factor based on .ob time is calculated by:

time -oon ased percentageallo"ance= -o

-o

1= -o


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Job Stan(a$( 'ime

(f the allo'ance factor has been determined for the time 'or+ed

5day6 the standard time 5ST6 is calculated by:

rea.sons/interruptidelays/forfactorallo"ance=day

day

*)=) ∗

The allo'ance factor based on time 'or+ed 5day6 is calculated by:

on "or.day ased percentageallo"ance=day

day-1

1

=day


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/0ample 9: ' time study of an assembly operation yielded the following

observed times for one element of the job for which the analyst gave aperformance rating of B.B9. >sing an allowance of EHA of job time,

determine the appropriate standard time for this operation.

times&recordedof numer%total9=

time& -ofor%allo"ance$20= -o

rating&e performanc%-o1$13= -o

+,

n

Job Stan(a$( 'ime - Eam"le

i!" o#serva!ion

Ti$e

%$inu!es&

1 1.12

2 1.15

1.16

' 1.12

5 1.15

6 1.18( 1.1'

8 1.1'

9 1.19

To!al 10.5


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() = =10$35

9 = 1$15 minutes

*) = () +, = 1$15 4 1$13 = 1$30 minutes

) = *) 4 = *) 4 %1 = 1$30 4 1$20 = 1$56 minutes

-o

-o -o

x

n

i∑

∗

&

To calculate the standard time for this operation we must calculate the

three times %T, T and then ST

Job Stan(a$( 'ime - Eam"le


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*or+ Sampling is a techni*ue for estimating the proportion of time that

a worker or machine spends on various activities. (t involvesobservation of a worker or machine where the resulting data are counts

of the number of time each activity or non-activity is performed. 5e.g.

secretary typing, talking, filing, etc6

The primary use of work sampling studies is for:

% $atio#delay information # the percentage of a workers time

involved in unavoidable delays or interruptions

% Analysis of non#repetitive .obs 5e.g. maintenance

work, administrative work, etc.6

o$ Sam"ling

,onfi(ence

level


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Work sampling develops a sampling proportion which estimates

the tr&e proportion of time a worker spends on a job within someallo'able error .

p

p

e

pn

n=%(served ount&

= sample sie

e z

p( -p)

n

z

n

= "#ere

= standard deviations to ac#ieve t#e desired confidence

= sample sie

1

2or large samples 5EH or so6 the ma7im&m error can be calculated by

the following formula:

o$ Sam"ling


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(n the instance where the confidence level and ma0imum allowable error

are specified the following formula 5which is a mathematicalsimplification of the previous one6 can be used to determine the sample size necessary to obtain the desired results:

n z e

p( p)= −2

1

Mai'u'

p%obable

e%%o%

Mai'u'

p%obable

e%%o%

/onfidence

le&el

p

The concept in work

sampling is the same asthat learned in DS7( E9E

o$ Sam"ling


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/0ample : The manager of a small supermarket chain wants to

estimate the proportion of time that stock clerks spend making pricechanges on previously marked merchandise. The manager wants a

FKA confidence level such that the resulting error will be within GA of

the true value. What sample sie should be usedI

e z = $05 = 2$33

n z e p( p)= −2

1

We do not have an estimate of proportion,

so what do we doI

Typical Z ValuesDesired

Confidence

Level % Value

90 1.65

95 1.96

95.5 2.00

98 2.

99 2.58

o$ Sam"ling - Eam"le


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We must first start with a proportion estimate, let)s say

p = $50

ow we can use the formula to calculate the number of observations we

must make.

n z

e p( p)= =

2$33

$05 = 542$89 or 543

− −2

12

5 1 5 $ % $ &



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Suppose that after EH observations we notice that the stock clerks only

changed prices E times. 't that time we revise our proportion estimateand recalculate n.

p =2

20 = $10

n z

e p( p)= =

2$33

$05 = 195$44 or 196

− −

21

21 1 1 $ % $ &



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Suppose that after KH more observations 5BHH total6 we notice that the

stock clerks only changed prices BB times. 't that time we revise ourproportion estimate and recalculate n.

p =11

100 = $11

n z

e p( p)= =

2$33

$05 = 212$60 or 213

− −2

12

11 1 11 $ % $ &

The manager might want to make an additional check before settling ona final value of n.



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Lea$ning ,u$ve

>nder-*ualified worker

'verage worker

, r o c e s s i n g T i m e , e r > n i t

Job Standard

Training time

%ver-*ualified worker

!ob standard times 5whether developed using time studies or work

sampling6 are used to develop performance e0pectations. These can bedisplayed in the form of a learning c&rve.


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. too little may make it hard to attract competent workers

. too much may limit profitability

Two basic systems for compensating employees

. Time#based systems # compensation based on time worked

5e.g. hourly pay, straight salary6. 3&tp&t#based 5incentive6 systems 8 compensation based on

output produced 5e.g. piece rates, commissions6

,om"ensation


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2inancial incentives can be based on

. (ndividual and Small-#roup lans.. %utput measures

.. 3uality measures

.. roductivity measures

.. ay for knowledge

. %rganiation-wide lans

.. rofit sharing

.. #ain-sharing

- 8onus based on controllable costs or units of

output

- (nvolve participative management

,om"ensation


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9ncentive Systems should be:

. 'ccurate% /asy to apply

% 7onsistent

% /asy to understand

% 2air

,om"ensation


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"ay consider many dimension of performance

. 7ustomer Service% 3uality

. erformance

/0ecutive management compensation is usually tieddirectly to the performance of the 7ompany or

Division for which he=she is responsible.

5e.g. /arnings per share, profitability, growth, etc.6

Management ,om"ensation


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3ome2o$

+ead and understand all material in the chapter.

Discussion and +eview 3uestions

+ecreate and understand all classroom e0amples

/0ercises on chapter web page

10 design of work systems

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