438 PAR T 2 | DESI GNI NG OP ER ATI O N S

full use of color-coded graphs and charts to report performance Discussion Questions*
against key metrics to employees. Twenty top managers gather
weekly in an operations leadership meeting, run by Executive VP 1. Summarize Alaska Airlines’ human resources focus in your
of Operations, Ben Minicucci, to review activity consolidated into own words.
visual summaries. Key metrics are color-coded and posted promi- 2. Why is employee empowerment useful to companies such as
nently in every work area. Alaska Airlines?
Ala ska’ s t r ain ing appro ac h resul ts in empow ere d 3. What tools discussed in the chapter might be employed to
employees who are willing to a ssume added responsibil- enhance the company’s training and performance efforts? Why?
ity and accept the unknowns that come with that added *Before answering these questions, you may wish to view the video that
responsibility. accompanies this case.

Hard Rock’s Human Resource Strategy Video Case

Everyone—managers and hourly employees alike—who goes to Applicants also are screened on their interest in music and their
work for Hard Rock Cafe takes Rock 101, an initial 2-day train- ability to tell a story. Hard Rock builds on a hiring criterion of bright,
ing class. The Hard Rock value system is to bring a fun, healthy, positive-attitude, self-motivated individuals with an employee bill
nurturing environment into the Hard Rock Cafe culture. This of rights and substantial employee empowerment. The result is a
initial course and many other courses help employees develop unique culture and work environment, which no doubt contributes
both personally and professionally. The human resource depart- to the low turnover of hourly people—one-half the industry average.
ment plays a critical role in any service organization, but at Hard The layout, memorabilia, music, and videos are important ele-
Rock, with its “experience strategy,” the human resource depart- ments in the Hard Rock “experience,” but it falls on the wait-
ment takes on added importance. ers and waitresses to make the experience come alive. They are
Long before Jim Knight, manager of corporate training, particularly focused on providing an authentic and memorable
begins the class, the human resource strategy of Hard Rock has dining experience. Like Alaska Airlines, Hard Rock is looking
had an impact. Hard Rock’s strategic plan includes building a for people with a cause—people who like to serve. By succeeding
culture that allows for acceptance of substantial diversity and with its human resource strategy, Hard Rock obtains a competi-
individuality. From a human resource perspective, this has the tive advantage.
benefit of enlarging the pool of applicants as well as contributing
to the Hard Rock culture. Discussion Questions*
Creating a work environment above and beyond a paycheck is 1. What has Hard Rock done to lower employee turnover to half
a unique challenge. Outstanding pay and benefits are a start, but the industry average?
the key is to provide an environment that works for the employees. 2. How does Hard Rock’s human resource department support
This includes benefits that start for part-timers who work at least the company’s overall strategy?
19 hours per week (while others in the industry start at 35 hours 3. How would Hard Rock’s value system work for automo-
per week); a unique respect for individuality; continuing training; bile assembly line workers? ( Hint: Consider Hackman and
and a high level of internal promotions—some 60% of the man- Oldham’s core job characteristics.)
agers are promoted from hourly employee ranks. The company’s 4. How might you adjust a traditional assembly line to address
training is very specific, with job-oriented interactive DVDs cover- more “core job characteristics”?
ing kitchen, retail, and front-of-the-house service. Outside volun-
teer work is especially encouraged to foster a bond between the *Before answering these questions, you may wish to view the video that
workers, their community, and issues of importance to them. accompanies this case.

• Additional Case Studies: Visit MyOMLab for these free case studies:
Chicago Southern Hospital: Examines the requirements for a work-sampling plan for nurses.
The Fleet That Wanders: Requires a look at ergonomic issues for truck drivers.

Endnotes
1. Four Seasons Magazine, Annabell Shaw, Jan. 3, 2011. 4. A. S. Helms, B. W. Shaw, and C. A. Lindner, “The Development
2. See “Motivation Through the Design of Work,” in Jay Richard of Laboratory Workload Standards through Computer-Based
Hackman and Greg R. Oldham, eds., Work Redesign (Reading, Work Measurement Technique, Part I,” Journal of Methods-
MA: Addison-Wesley, 1980); and A. Thomas, W. C. Buboltz, Time Measurement 12: 43. Used with permission of MTM
and C. Winkelspecht, “Job Characteristics and Personality as Association for Standards and Research.
Predictors of Job Satisfaction,” Organizational Analysis, 12, 5. The Occupational Safety and Health Administration (OSHA)
no. 2 (2004): 205–219. is a federal government agency whose task is to ensure the
3. MTM is really a family of products available from the Methods safety and health of U.S. workers.
Time Measurement Association. For example, MTM-HC deals 6. Material safety data sheets (MSDS ) contain details of haz-
with the health care industry, MTM-C handles clerical activi- ards associated with chemicals and give information on their
ties, MTM-M involves microscope activities, MTM-V deals safe use.
with machine shop tasks, and so on.
Chapter 10 Rapid Review 10

Rapid Review
Main Heading Review Material MyOMLab
HUMAN RESOURCE The objective of a human resource strategy is to manage labor and design jobs so Concept Questions:
STRATEGY FOR people are effectively and efficiently utilized. 1.1–1.4
COMPETITIVE Quality of work life refers to a job that is not only reasonably safe with equitable VIDEO 10.1
ADVANTAGE pay but that also achieves an appropriate level of both physical and psychological The “People” Focus:
(pp. 410–411) requirements. Human Resources at
Mutual commitment means that both management and employees strive to meet Alaska Airlines
common objectives. VIDEO 10.2
Mutual trust is reflected in reasonable, documented employment policies that are Human Resources at
honestly and equitably implemented to the satisfaction of both management and Hard Rock Cafe
employees.

LABOR PLANNING j Labor planning —A means of determining staffing policies dealing with employ- Concept Questions:
(pp. 411–412) ment stability, work schedules, and work rules. 2.1–2.4
Flextime allows employees, within limits, to determine their own schedules.
Flexible (or compressed ) workweeks often call for fewer but longer workdays.
Part-time status is particularly attractive in service industries with fluctuating
demand loads.

JOB DESIGN j Job design—Specifies the tasks that constitute a job for an individual or group. Concept Questions:
(pp. 412–415) j Labor specialization (or job specialization)—The division of labor into unique 3.1–3.4
(“special”) tasks.
j Job enlargement —The grouping of a variety of tasks about the same skill level;
horizontal enlargement.
j Job rotation—A system in which an employee is moved from one specialized job
to another.
j Job enrichment —A method of giving an employee more responsibility that
includes some of the planning and control necessary for job accomplishment;
vertical expansion.
j Employee empowerment —Enlarging employee jobs so that the added responsibil-
ity and authority are moved to the lowest level possible.
j Self-directed team—A group of empowered individuals working together to
reach a common goal.

ERGONOMICS AND THE j Ergonomics—The study of the human interface with the environment and machines. Concept Questions:
WORK ENVIRONMENT The physical environment affects performance, safety, and quality of work life. 4.1–4.4
(pp. 415–417) Illumination, noise and vibration, temperature, humidity, and air quality are con-
trollable by management.

METHODS ANALYSIS j Methods analysis —A system that involves developing work procedures that are Concept Questions:
(pp. 417–419) safe and produce quality products efficiently. 5.1–5.4
j Flow diagram—A drawing used to analyze movement of people or material. Problems: 10.2, 10.6,
j Process chart—A graphic representation that depicts a sequence of steps for a 10.8
process.
j Activity chart —A way of improving utilization of an operator and a machine or Virtual Office
some combination of operators (a crew) and machines. Hours for Solved
j Operations chart —A chart depicting right- and left-hand motions. Problem: 10.1

THE VISUAL WORKPLACE j Visual workplace —Uses a variety of visual communication techniques to rapidly Concept Questions:
(p. 420) communicate information to stakeholders. 6.1–6.4

LABOR STANDARDS j Labor standards—The amount of time required to perform a job or part of a job. Concept Questions:
(pp. 420–430) Labor standards are set in four ways: (1) historical experience, (2) time studies, 7.1–7.4
(3) predetermined time standards, and (4) work sampling. Problems:
j Time study—Timing a sample of a worker’s performance and using it as a basis 10.13–10.46
for setting a standard time. Virtual Office
j Average observed time —The arithmetic mean of the times for each element meas- Hours for Solved
ured, adjusted for unusual influence for each element. Problems: 10.2–10.6
Sum of the times recorded to perform each element
Average observed time = (10-1)
Number of observations
j Normal time —The average observed time, adjusted for pace:
Normal time = (Average observed time) * (Performance rating factor) (10-2)
10 Chapter 10 Rapid Review continued
MyOMLab
Rapid Review

Main Heading Review Material

j Standard time —An adjustment to the total normal time; the adjustment provides
allowances for personal needs, unavoidable work delays, and fatigue:
Total normal time
Standard time = (10-3)
1 - Allowance factor
Personal time allowances are often established in the range of 4% to 7% of total time.
zs 2
Required sample size = n = a b (10-4)
hx
2
zs
n = a b (10-5)

g (xi - x)2 g(Each sample observation - x)2

e

s = = (10-6)
B n - 1 B Number in sample - 1
j Predetermined time standards —A division of manual work into small basic ele-

ments that have established and widely accepted times.

The most common predetermined time standard is methods time measurement
(MTM).
j Therbligs—Basic physical elements of motion.
j Time measurement units (TMUs)—Units for very basic micromotions in which 1
TMU = 0.0006 min or 100,000 TMUs = 1 hr.
j Work sampling —An estimate, via sampling, of the percent of the time that a
worker spends on various tasks.
Work sampling sample size for a desired confidence and accuracy:
z2p(1 - p)
n = (10-7) ACTIVE MODEL 10.1
h2
ETHICS Management’s role is to educate the employee; specify the necessary equipment, Concept Questions:
(p. 430) work rules, and work environment; and then enforce those requirements. 8.1–8.2

Self Test
j Before taking the self-test, refer to the learning objectives listed at the beginning of the chapter and the key terms listed at the end of the chapter.

LO 10.1 When product demand fluctuates and yet you maintain a LO 10.4 Methods analysis focuses on:
constant level of employment, some of your cost savings a) the design of the machines used to perform a task.
might include: b) how a task is accomplished.
a) reduction in hiring costs. c) the raw materials that are consumed in performing a
b) reduction in layoff costs and unemployment insurance task.
costs. d) reducing the number of steps required to perform a task.
c) lack of need to pay a premium wage to get workers to LO 10.5 The least preferred method of establishing labor standards is:
accept unstable employment. a) time studies.
d) having a trained workforce rather than having to retrain b) work sampling.
new employees each time you hire for an upswing in c) historical experience.
demand. d) predetermined time standards.
e) all of the above.
LO 10.6 The allowance factor in a time study:
LO 10.2 The difference between job enrichment and job enlargement a) adjusts normal time for errors and rework.
is that: b) adjusts standard time for lunch breaks.
a) enlarged jobs contain a larger number of similar tasks, c) adjusts normal time for personal needs, unavoidable
while enriched jobs include some of the planning and delays, and fatigue.
control necessary for job accomplishment. d) allows workers to rest every 20 minutes.
b) enriched jobs contain a larger number of similar tasks,
while enlarged jobs include some of the planning and LO 10.7 To set the required sample size in a time study, you must
control necessary for job accomplishment. know:
c) enriched jobs enable an employee to do a number of a) the number of employees.
boring jobs instead of just one. b) the number of parts produced per day.
d) all of the above. c) the desired accuracy and confidence levels.
d) management’s philosophy toward sampling.
LO 10.3 The work environment includes these factors:
a) Lighting, noise, temperature, and air quality
b) Illumination, carpeting, and high ceilings
c) Enough space for meetings and videoconferencing
d) Noise, humidity, and number of coworkers
e) Job enlargement and space analysis

Answers: LO 10.1. e; LO 10.2. a; LO 10.3. a; LO 10.4. b; LO 10.5. c; LO 10.6. c; LO 10.7. c.