Best Practices in HRM

1. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 1
Human Resource Practices

2. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 2
Toyota Georgetown
• “We’ve got nothing, technology-wise, that
anyone else can’t have. There’s no secret
Toyota Quality Machine out there. The
quality machine is the workforce -- the team
members on the paint line, the suppliers, the
engineers -- everybody who has a hand in
production here takes the attitude that we’re
making world-class vehicles.”

3. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 3
Human Resource Paradigms
Old Thinking New Thinking
People are part of the
process
Process requires
external control
Managers have to
control what
people do
People design and
improve processes
Workers who run the
process control it
Managers must obtain
commitment of workers

4. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Top 10 Highest Paying Jobs in
the Philippines
1. Art director: P69,286
2. Geologist: P64,889
3. Aircraft pilot/navigator/flight engineer: P57,789
4. Mining/metallurgical engineer: P55,638
5. Computer programmer: P43,573
6. Systems analyst/designer: P42,112
7. Production supervisor/general foreman: P36,133
8. Actuarian: P35,480
9. Customer service associate: P35,424
10. Statistician: P35,010
4

5. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Top 10 Most In-Demand Jobs in
the Philippines on 2013
1. Computer Programmer
2. Call Center Agent
3. Accountant
4. Nurse
5. IT Specialist
6. Online Teacher
7. Systems Analyst
8. Social Media Manager
9. Civil Engineer
10. Web/ Java Developers
5
Source: JobOpenings.ph

6. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 6
Leading Practices (1 of 2)
• Integrate HR plans with overall strategic
objectives and action plans
• Design work and jobs to promote organizational
learning, innovation, and flexibility
• Develop effective performance management
systems, compensation and recognition
approaches
• Promote cooperation and collaboration through
teamwork

7. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 7
Leading Practices (2 of 2)
• Empower individuals and teams to make decisions
that affect quality and customer satisfaction
• Make extensive investments in training and
education
• Maintain a work environment conducive to the
well-being and growth of all employees
• Monitor extent and effectiveness of HR practices
and measure employee satisfaction

8. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Key Values to Consider
• Strategic Perspective
• High Performance Work System
• Employee Involvement
• Empowerment
• Open Communication
• Training and Education
• Collaboration
• Compensation and Recognition
• Performance Appraisal
• Measuring Employee Satisfaction and Effectiveness
8

9. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 9
Strategic Perspective
• HR plans should be linked to business
strategy and aligned with business needs
• Key choices
– Planning
– Staffing
– Appraising
– Compensating
– Training and development

10. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 10
High Performance Work Systems
Work and Job
Design
Employee
Involvement
Suggestion
systems
Empowerment
Training and
Education
Teamwork and Cooperation
Compensation
and
recognition
Health and safety
Flexibility
Innovation
Knowledge and skill
sharing
Organizational
alignment
Customer focus
Rapid response

11. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 11
Designing High Performance
Work Systems
• Work design - how employees are
organized in formal and informal units
(departments, teams, etc.)
• Job design - responsibilities and tasks
assigned to individuals

12. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 12
Hackman/Oldham Model
Core job
characteristics
Critical
psychological
states
Outcomes
Skill variety
Task identity
Task significance
Experienced
meaningfulness
of work
Autonomy
Feedback
from job
Experienced
responsibility
Knowledge of
actual results
High motivation
High satisfaction
High work
effectiveness

13. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 13
Employee Involvement
• Employee Involvement - any activity by which
employees participate in work-related decisions
and improvement activities, with the objectives
of tapping the creative energies of all employees
and improving their motivation

14. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 14
Advantages of EI
• Replaces adversarial
mentality with trust
and cooperation
• Develops skills and
leadership abilities
• Increases morale and
commitment
• Fosters creativity and
innovation
• Helps people
understand quality
principles and
instilling them into the
organization’s culture
• Allows employees to
solve problems at the
source
• Improves quality and
productivity

15. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
• Hold individuals accountable
• Hire the best people you can
• Don't promote people just for the sake of promoting
them
• Keep teams small
• Screw focus groups, make what you want
Source: http://www.businessinsider.com/
15

16. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 16
Empowerment
• Giving people authority to make decisions
based on what they feel is right, to have
control over their work, to take risks and
learn from mistakes, and to promote
change.
“A sincere belief and trust in people.”

17. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 17
Successful Empowerment
• Provide education, resources, and encouragement
• Remove restrictive policies/procedures
• Foster an atmosphere of trust
• Share information freely
• Make work valuable
• Train managers in “hands-off” leadership
• Train employees in allowed latitude

18. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Open communication
Encourage innovative ideas
Learning program for high performers
18
Sharing of success and opportunities
Solicit employee opinions
Source: www.coca-colacompany.com

19. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 19
Training and Education
• Quality awareness
• Leadership
• Project management
• Communications
• Teamwork
• Problem solving
• Interpreting and using
data
• Meeting customer
requirements
• Process analysis
• Process simplification
• Waste reduction
• Cycle time reduction
• Error proofing

20. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 20
Teams
• Team - a small number of people with
complementary skills who are committed to a
common purpose, set of performance goals, and
approach for which they hold themselves mutually
accountable
• Effective teams are goal-centered,
independent, open, supportive,
and empowered

21. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 21
Types of Teams
• Problem solving teams
• Management teams
• Work teams
• Project teams
• Virtual teams

22. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 22
Functions of Teams
Implement
solutions
Identify
problems Select
problem
Collect
data
Focus
attention
Find
causesDevelop
solutions
Pick best
solution
Develop
follow-up
plan
Solve
Identify
Analyze

23. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 23
Self-Managed Teams
• Empowered
• Plan, control, improve
work processes
• Set own goals and inspect
own work
• Schedule & review
performance
• Prepare budgets &
coordinate work
• Order materials, keep
inventory, & deal with
suppliers
• Acquire any needed
training
• Hire replacements or
discipline members
• Take responsibility for
quality

24. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 24
Ingredients for
Successful Teams (1 of 2 )
• Clarity in team goals
• Improvement plan
• Clearly defined roles
• Clear communication
• Beneficial team behaviors

25. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 25
Ingredients for
Successful Teams (2 of 2)
• Well-defined decision procedures
• Balanced participation
• Established ground rules
• Awareness of group process
• Use of scientific approach

26. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 26

27. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 27
“Whatever we accomplish is due to the
combined effort. The organization must
be with you or you don’t get it done… In
my organization there is respect for
every individual, and we all have a keen
respect for the public… Of all the things
I’ve done, the most vital is coordinating
those who work with me and aiming
their efforts at a certain goal.”
-Walter Elias Disney

28. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 28
Compensation and Recognition
• Compensation
– Merit versus capability/performance
based plans
– Gainsharing
• Recognition
– Monetary or non-monetary
– Formal or informal
– Individual or group

29. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 29
Effective Recognition
and Reward Strategies
• Give both individual and team awards
• Involve everyone
• Tie rewards to quality
• Allow peers and customers to nominate and
recognize superior performance
• Make recognition fun

30. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 30
Performance Appraisal
• How you are measured is how you perform!
• Conventional appraisal systems
– Focus on short-term results and individual
behavior
New approaches
– Focus on company goals such as quality and
behaviors like teamwork
– 360-degree feedback

31. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 31
Measuring Employee
Satisfaction and Effectiveness
• Satisfaction
– Quality of worklife, teamwork, communications,
training, leadership, compensation, benefits,
internal suppliers and customers
• Effectiveness
– Team and individual behaviors; cost, quality, and
productivity improvements; employee turnover;
suggestions; training effectiveness