MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 9e, © 2014 Cengage Publishing

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.”
Workforce
 …everyone who is actively involved in
accomplishing the work of an organization. This
encompasses paid employees as well as
volunteers and contract employees, and
includes team leaders, supervisors, and
managers at all levels.
 Many companies refer to their employees as
“associates” or “partners” to signify the
importance that people have in driving business
performance.
The workforce is an important component of
a basic quality system!
ISO 9000:2000 includes several workforce-
focused requirements.
 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,
 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.
 Key Workforce-Focused Practices for
Performance Excellence
 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.
 Make appropriate investments in development and
learning, both for the workforce and the organization’s
leaders.
 Create an environment that ensures and improves
workplace health, safety, and security, and supports
 Develop a performance management system based on
compensation, recognition, reward, and incentives
that supports high performance work and workforce
engagement.
 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.
 Manage career progression for the entire workforce
and succession planning for management and
leadership positions.
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
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.
Strategic Human Resource
Management
 … concerned with the contributions HR
strategies make to organizational effectiveness,
and how these contributions are accomplished.
 It involves designing and implementing a set of
internally consistent policies and practices to
ensure that an organization’s human capital
(employees’ collective knowledge, skills, and
abilities) contributes to overall business
objectives.
High Performance Work Culture
 Performance - the extent to which an individual
contributes to achieving the goals and objectives of
an organization.
 High-performance work - work approaches used to
systematically pursue ever-higher levels of overall
organizational and human performance.
 Characterized by:
 flexibility
 innovation
 knowledge and skill sharing
 alignment with organizational directions, customer focus,
and rapid response to changing business needs and
marketplace requirements
“Conditions of Collaboration” in a
High Performance Work Culture
 Respect
 Aligned values
 Shared purpose
 Communication
 Trust
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.
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
Top Drivers of Workforce Engagement
1. Commitment to organizational values.
2. Knowing that customers are satisfied with products and
services.
3. Belief that opinions count.
4. Clearly understanding work expectations.
5. Understanding of how personal contributions help meet
customer needs.
6. Being recognized and rewarded fairly.
7. Knowing that senior leaders value the workforce.
8. Being treated equally with respect.
9. Being able to concentrate on the job and work processes.
10. Alignment of personal work objectives to work plans.
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.
Motivation
 Motivation - an individual’s response to a felt
need
 Theories
 Content Theories (Maslow; McGregor;
Herzberg)
 Process Theories (Vroom; Porter & Lawler)
 Environmentally-based Theories (Skinner;
Adams; Bandura, Snyder, & Williams)
Classification of Motivation Theories
Designing High-Performance
Work Systems
 Work and Job Design
 Empowerment
 Teamwork
 Work Environment
 Workforce Learning and Development
 Compensation and Recognition
 Performance Management
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.
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
Hackman-Oldham Model
 The model proposes that five core
characteristics of job design (task
significance, task identity, skill variety,
autonomy, and feedback from the job)
influence three critical psychological states
(experienced meaningfulness, experienced
responsibility, and knowledge of results),
which in turn, drive work outcomes
(employee motivation, growth satisfaction,
overall job satisfaction, and work
effectiveness).
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.”

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
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
Types of Teams
 Management teams
 Natural work teams
 Self managed teams
 Virtual teams
 Quality circles
 Problem solving teams
 Project teams
Examples of Teams at Baptist
Hospital, Inc.
Team Skill Requirements
 Conflict management and resolution
 Team management
 Leadership skills
 Decision making
 Communication
 Negotiation
 Cross-cultural training
Boeing A&T Team Development Process
 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.
Ingredients for Successful
Teams
 Clarity in team goals  Well-defined decision
 Improvement plan procedures
 Clearly defined roles  Balanced participation
 Clear communication  Established ground rules
 Beneficial team  Awareness of group
behaviors process
 Use of scientific approach
Workplace Environment
 Key factors:
 Health
 Safety
 Overall well-being
Workforce Learning and
Development
 Research indicates that companies that spend
heavily on training their workers outperform
companies that spend considerably less, as
measured on the basis of overall stock market
returns.
 Focus on both what people need to know as well
as what things they need to know how to do.
 Continual reinforcement of knowledge learned
is essential.
MEDRAD Learning and Development
Process
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
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
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
Premier Performance
Management Process
Assessing Workforce Effectiveness,
Satisfaction, and Engagement
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.
Assessing Workforce Effectiveness
Satisfaction, and Engagement
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
Measuring Workforce Engagement
 Gallup Q12 - 12 survey statements that Gallup
found as those that best form the foundation of
strong feelings of engagement. Factors include:
 what is expected in one’s work
 having the right materials and equipment to do the
job
 receiving recognition and feedback on progress
and development
 having opinions that count
 feeling of importance of the job
 opportunities to learn grow and develop
Gallup Engagement Index
Classification
1. Engaged employees who work with passion and feel
a profound connection to their company. They drive
innovation and move the organization forward.
2. Not-engaged employees who are essentially
“checked out.” They are sleepwalking through their
workday. They are putting in time, but not enough
energy or passion into their work.
3. Actively disengaged employees who aren’t just
unhappy at work; they’re busy acting out their
unhappiness. Every day, these workers undermine
what their engaged coworkers accomplish.
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
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.
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
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