High

Performance
Workforce
Management

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1
 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.”

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 Organizations are learning that to satisfy
customers, they must first satisfy
employees.

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3
 Key Workforce-Focused Practices
for Performance Excellence (1 of 2)
 Understand the key factors that drive workforce engagement, satisfaction, and
motivation.
 Design and manage work and jobs to promote effective communication,
cooperation, skill sharing, empowerment, innovation, and the ability to benefit
from diverse ideas and thinking of employees and develop an organizational
culture conducive to high performance and motivation.
 Create an environment that ensures and improves workplace health, safety, and
security, and supports the workforce via policies, services, and benefits.
 Develop a performance management system based on compensation,
recognition, reward, and incentives that supports high performance work and
workforce engagement.

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4
 Key Workforce-Focused Practices
for Performance Excellence (2 of 2)
 Assess workforce engagement and satisfaction and use results for
improvement.
 Assess workforce capability and capacity needs and use the results to
capitalize on core competencies, address strategic challenges, recruit and
retain skilled and competent people, and accomplish the work of the
organization.
 Make appropriate investments in development and learning, both for the
workforce and the organization’s leaders.
 Manage career progression for the entire workforce and succession
planning for management and leadership positions.

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 Evolution of Workforce
Management
Taylor system and scientific management
Improved productivity
Changed manufacturing work into series of
mundane and mindless tasks
Promulgated adversarial relationships
between labor and management
Failed to exploit the knowledge and creativity
of the workforce
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 Workforce Management
Workforce management (which has also been widely known as
human resource management, or HRM) consists of those activities
designed to provide for and coordinate the people of an
organization.
determining the organization’s workforce needs;
 assisting in the design of work systems;
recruiting, selecting, training and developing, counseling, motivating,
and rewarding employees;
acting as a liaison with unions and government organizations; and
handling other matters of employee well-being.

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 The objectives of an effective workforce
management system are to build a high-
performance workplace and maintain an
environment for quality excellence to
enable employees and the organization
to achieve strategic objectives
and adapt to change.

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 Workforce Engagement and
Motivation
A survey of 55,000 workers by the Gallup Organization found
that four key employee attitudes, taken together, correlate
strongly with higher profits:
Workers feel they are given the opportunity to do what they do
best every day.
They believe their opinions count.
They sense their fellow workers are committed to quality.
They’ve made a direct connection between their work and the
company’s mission.

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 Workforce Engagement
The extent of workforce commitment, both emotional and
intellectual, to accomplishing the work, mission, and vision of
the organization. Engaged workers
find personal meaning and motivation in their work,
have a strong emotional bond to their organization, are actively
involved in and committed to their work,
feel that their jobs are important, know that their opinions and
ideas have value, and
often go beyond their immediate job responsibilities for the good
of the organization.

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 Organizations with high levels of
workforce engagement are often
characterized by high-performing
work environments in which people
are motivated to do their utmost for
the benefit of their customers and
for the success of the organization.

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 Advantages of Workforce
Engagement
 Replaces the adversarial mentality with trust and cooperation
 Develops the skills and leadership capability of individuals, creating a
sense of mission and fostering trust
 Increases employee morale and commitment to the organization
 Fosters creativity and innovation, the source of competitive advantage
 Helps people understand quality principles and instills these
principles into the corporate culture
 Allows employees to solve problems at the source immediately
 Improves quality and productivity

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 Employee Involvement (EI)
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.

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 EI approaches can range from simple
sharing of information or providing input
on work-related issues and making
suggestions to self-directed
responsibilities such as setting goals,
making business decisions, and solving
problems, often in cross-functional teams.

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 Motivation
Motivation - an individual’s response to a felt
need
Theories
Content Theories (Maslow; MacGregor;
Herzberg)
Process Theories (Vroom; Porter & Lawler)
Environmentally-based Theories (Skinner;
Adams; Bandura, Snyder, & Williams)

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 There is no such thing as an unmotivated
employee, but the system within which
people work can either seriously impede
motivation or enhance it.

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 Designing High-Performance Work
Systems
High-performance work refers to work approaches used to
systematically pursue ever-higher levels of overall
organizational and human performance.
High-performance work is characterized by flexibility,
innovation, knowledge and skill sharing, alignment with
organizational directions, customer focus, and rapid
response to changing business needs and marketplace
requirements.

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 Work and Job Design
Work design refers to how employees are
organized in formal and informal units, such
as departments and teams.
Job design refers to responsibilities and tasks
assigned to individuals.

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 The design of work should provide
individuals with both the intrinsic and
extrinsic motivation to achieve quality and
operational performance objectives.

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 Critical
Core job
psychological Outcomes
characteristics
states

Skill variety Experienced High motivation

Task identity meaningfulness
Task significance of work High satisfaction
Experienced
Autonomy responsibility High work
effectiveness
Feedback Knowledge of
from job actual results
Moderators
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 Enhancing Work Design
Job enlargement – expanding workers’
jobs
Job rotation – having workers learn
several tasks and rotate among them
Job enrichment – granting more
authority, responsibility, and autonomy

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 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.”

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 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

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 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

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 24
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 25
 Types of Teams
Management teams
Natural work teams
Self managed teams
Virtual teams
Quality circles
Problem solving teams
Project teams

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 Six Sigma Project Teams
Champions – senior managers who promote Six
Sigma
Master Black Belts – highly trained experts
responsible for strategy, training, mentoring,
deployment, and results.
Black Belts – Experts who perform technical
analyses
Green Belts – functional employees trained in
introductory Six Sigma tools
Team Members – Employees who support
specific projects
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 Developing and Empowering
Teams
Teams are generally formed in organizational
settings by direction from a manager, leader, or
governing body.
They are typically given a broad objective.
The team may also be given a time frame and
resource limits, if it is a project team.

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 The key stages of a team’s life cycle are
called forming, storming, norming,
performing, and adjourning.

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 Life Cycle of Teams
 Forming takes place when the team is introduced, meets together, and
explores issues of their new assignment.
 Storming occurs when team members disagree on team roles and challenge
the way that the team will function.
 Norming takes place when the issues of the previous stage have been worked
out, and team members agree on roles, ground rules, and acceptable
behavior when doing the work of the team.
 Performing characterizes the productive phase of the life cycle when team
members cooperate to solve problems and complete the goals of their
assigned work.
 Adjourning is the phase in which the team wraps up the project, satisfactorily
completes its goals, and prepares to disband or move on to another project.

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 Ingredients for Successful
Teams (1 of 2 )
Clarity in team goals
Improvement plan
Clearly defined roles
Clear communication
Beneficial team behaviors

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 Ingredients for Successful
Teams (2 of 2)
Well-defined decision procedures
Balanced participation
Established ground rules
Awareness of group process
Use of scientific approach

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 Workplace Environment
Key factors:
Health
Safety
Overall well-being

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 Engaging the Workforce in
Process Excellence
Develop a shared vision and behavioral skills
Develop skills for team leaders:
Conflict management and resolution, Team management,
Leadership skills, Decision making, Communication,
Negotiation, Cross-cultural training
Develop skills for team members:
Rules for effective meetings, Shared decision making

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 Compared to the technical tools for
gathering and analyzing data, the
“soft skills”—those that involve
people—such as project management
and team facilitation, are more
difficult to teach and learn.

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 Compensation and Recognition
Compensation and recognition refer to all aspects of
pay and reward, including promotions, bonuses, and
recognition, either monetary and nonmonetary or
individual and group.
Compensation
Merit versus capability/performance based plans
Gainsharing
Recognition
Monetary or non-monetary
Formal or informal
Individual or group

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 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
Publicize extensively
Make recognition fun

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 Performance Management
How you are measured is how you perform!
Conventional performance appraisal systems
Focus on short-term results and individual behavior;
fail to deal with uncontrollable factors
New approaches
Focus on company goals such as quality and behaviors
like teamwork
360-degree feedback; mastery descriptions

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 Performance appraisals are most effective
when they are based on the objectives
that support the strategic directions of the
organization, best practices, and
continuous improvement.

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 Assessing Workforce Engagement,
Satisfaction and Effectiveness
Outcome Measures
number of teams, rate of growth, percentage of employees
involved, number of suggestions implemented, time taken
to respond to suggestions, employee turnover,
absenteeism, and grievances; perceptions of teamwork
and management effectiveness, engagement, satisfaction,
and empowerment.

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 40
 Assessing Workforce Engagement,
Satisfaction and Effectiveness
Process Measures
number of suggestions that employees make, numbers of
participants in project teams, participation in educational
programs, average time it takes to complete a process
improvement project, whether teams are getting better,
smarter, and faster at performing improvements,
improvements in team selection and planning processes,
frequency of use of quality improvement tools, employee
understanding of problem-solving approaches, and senior
management involvement

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 Sustaining High-Performance
Work Systems
Regular assessment of
workforce capability and capacity needs;
hiring, training and retention of employees;
and
career progression and succession planning

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 Workforce Capability and
Capacity
Workforce capability refers to an organization’s ability to
accomplish its work processes through the knowledge, skills,
abilities, and competencies of its people.
Workforce capacity refers to an organization’s ability to ensure
sufficient staffing levels to accomplish its work processes and
successfully deliver products and services to customers,
including the ability to meet seasonal or varying demand
levels.

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 Meeting and exceeding customer
expectations begins with hiring the
right people whose skills and attitudes
will support and enhance the
organization’s objectives.

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 Effective Hiring Practices
Determine key employee skills and
competencies
Identify job candidates based on required
skills and competencies
Screen job candidates to predict suitability
and match to jobs

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 Succession Planning
Formal processes to identify, develop, and position
future leaders
Mentoring, coaching, and job rotation
Career paths and progression for all employees

Succession planning is vital to long-term

sustainability

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 In a culture of performance excellence,
employees need to understand the
importance of customer satisfaction, to
be given the training and responsibilities
to achieve it, and to feel that they do
indeed make a difference.

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© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 48
 Workforce Focus in the Baldrige
Award Criteria
 The Workforce Focus Category examines how an organization engages,
manages, and develops the workforce to utilize its full potential in
alignment with the organization’s mission, strategy. and action plans. It
also addresses the ability to assess workforce capability and capacity
needs and to build a high-performance work environment.
5.1 Workforce Engagement
a. Workforce Enrichment
b. Workforce and Leader Development
c. Assessment of Workforce Engagement
5.2 Workforce Environment
a. Workforce Capability and Capacity
b. Workforce Climate

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 49
 Workforce Focus in ISO 9000
 Personnel performing work affecting product quality shall be competent on
the basis of appropriate education, training, skills, and experience.
 Organizations should determine the level of competence that employees
need, provide training or other means to ensure competency, evaluate the
effectiveness of training or other actions taken, ensure that employees are
aware of how their work contributes to quality objectives, and maintain
appropriate records of education, training, and experience.
 The standards address the work environment from the standpoint of
providing buildings, workspace, utilities, equipment, and supporting
services needed to achieve conformity to product requirements, as well as
determining and managing the work environment, including safety,
ergonomics, and environmental factors.

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 Workforce Focus in Six Sigma
Teams are an integral part of Six Sigma implementation.
Selecting the right people to serve on teams, training and
skill development, and reward and recognition
approaches to drive behavior are vital to Six Sigma
efforts.
Understanding how changes affect people is a necessary
issue that organizations must address after Six Sigma
projects are completed.

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 51