XLRI Final Project

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A Project Report on

“Human Resource Strategy in Operations & Manufacturing”

Submitted in fulfillment of the requirement for the

Final Project

in

Post Graduate Certif icate in Human Resource Management - 11

Submitted by

Mr. Deepesh Laungani

SID RH11116, SMS ID 108198

Student of PGCHRM-11, XLRI Jamshedpur

Centre: Juhu, Mumbai

Faculty Guide: Prof. Rajiv Misra

XLRI, Jamshedpur

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Acknowledgement

At the outset I would like to thank Prof. Rajiv Misra for his guidance without which I would not have

progressed with this project.

I would also like to extend my thanks to Mr. Ved Prakash Kedia; Director – Insta Exhibitions for letting me

conduct the project surveys at our production facilities.

Special thanks to Mr. Shirish Bhatt; Factory – Manager (Haridwar) & Mr. Narendra Patel; Factory - Manager

(Vasai) and Mr. Amol Dongrikar; Manager – Logistics (Production) for their help and valuable feedback.

Also appreciate the feedback given by all other employees who were considered for the surveys.

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Index:

1 Abstract 4

2 Objectives of HR strategy 4

2.1 Objectives of HR strategy in manufacturing set up 6

2.2 Constraints of HR strategy in manufacturing set up 6

3 Job Design & Job Analysis 6

3.1 Stages in job design 6

3.2 Objectives of job design 7

3.3 Psychological components of job design 9

4 Job Analysis Surveys (Survey 1 & Survey 2)

4.1 Associate – Production 11

4.1.1 Method & Survey Data 11

4.1.2 Conclusion 12

4.2 Executive – Logistics

4.2.1 Method & Survey Data 13

4.2.2 Conclusion 14

5 Leadership

5.1 What is leadership? 15

5.2 Types of leadership 15

5.3 Leadership Styles 16

5.4 Leadership Survey (Survey 3)

5.4.1 Leadership Style Survey 18

5.4.2 Survey scoring system 19

5.4.3 Conclusion 19

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6 References 20

7 Survey Forms – Sample & Duly Filled Forms 21

Abstract : The paper describes human resources s t ra teg ies in operat ions management

dealing with issues pertaining to job design effecting job satisfaction and leadership survey

amongst employees.

Objectives of HR strategy in a manufacturing set up:

In an organization most of the activities relevant to manufacturing, require capable and skilled personnel for

that job, in such a scenario, Human Resources plays a vital role in this process by providing the right

manpower. Hence, the Human Resources must receive the special attention of the management as a key

player in the manufacturing output.

The performance of the Human Resources team is critical. For the success of an organization in meeting all

its business objectives, competent and motivated people are critical. The role played by the managers in

planning a HR strategy will influence the business outcome by utilizing the talents available for operations.

We all know Human Resources is an expensive function sustain. As per Dowling’s study (1973), in many

organizations a third of total cost is in wages and salaries and within the operations function, these costs

range from 85 to 80%. Hence, human strategy as an option is mandatory.

Core functions of HR in all organizations:

1. Recruitment

2. Efficient manpower utilization

3. Rewards & Recognition

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In the current organization where design & development of products influence the business plans of my

organization, similar planning of the work place and utilization of employees must meet the needs of

employees in an organization like mine.

Earlier employee satisfaction was directly an outcome of wages or salaries and other financial incentives.

However, these days to attract and maintain an efficient manpower requires the satisfaction of a wide range

of employees needs such as working conditions, motivation and self development.

“In the design and operat ion of product ive systems one must consider the work to be

performed and the working” as quoted by Peter F. Drucker (1974).

In other word tasks needed to create a product or service and can be treated objectively, impersonally, and

in a logical fashion, however working, relates directly to the people performing the tasks and by its very

nature is highly subjective and personal, defying rational analysis.

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So, what are the objectives of HR strategy in manufacturing set up?

Mainly in a manufacturing set up like mine, the main deliverable of the HR team was to manage manpower

and design appropriate jobs. HR must play a role in strategic operations m and management decisions. At

place of work HR must create an atmosphere of mutual commitment and trust. Jobs must be safe. Employee

satisfaction must be achieved and job pay must be as per the job requirements.

In other words, mutual commitment would mean all employment policies that are transparent and

implemented to the satisfaction of both management and employees.

What are the constraints faced by HR strategy in such a set up?

Human Resources have many constraints in effective implementation of HR strategies in a manufacturing set

up. To name a few, is job satisfaction and employee satisfaction after a leadership survey. In other words,

designing the right job and hiring the right leaders.

Job Design: What should job designing be like in such a set up? What components constitute to a job

design?

Stages in job design:

a. Identify the main decision in a job.

b. In what way does the job design affect the performance objectives

c. The main principles of each of the major influences on job design.

d. Indicate how the different approaches to job design differ in terms of control and commitment

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Objectives of a job design as per study guide of Pearson, Chapter 9 states:

1. Quality

The ability of staff to produce high-quality products and services can be affected by job design. This

includes avoiding errors in the short term, but also includes designing jobs which encourage staff to

improve the job itself in such a way as to make errors less likely.

2. Speed

Sometimes speed of response is the dominant objective to be achieved in job design. For example, the

way in which the jobs of emergency service personnel are organised (the range of tasks for which they

are trained, the sequence of activities in their approved procedures, the autonomy which they have to

decide on appropriate action, and so on) will go a long way to determine their ability to respond promptly

to emergencies and perhaps save lives.

3. Dependability

Dependable supply of goods and services is usually influenced, in some way, by job design. For example,

in the postal services’ working arrangements, multi-skilling, accurate use of sorting equipment through

good staff-machine interface design, and the ‘design’ of postal staff’s clothing, can all aid dependable

delivery of letters and parcels.

4. Flexibility

Job design can affect the ability of the operation to change the nature of its activities. New product or

service flexibility, mix flexibility, volume flexibility and delivery flexibility are all dependent to some extent

on job design. For example, staff who have been trained in several tasks (multi-skilling) may find it easier

to cope with a wide variety of models and new product or service introductions.

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5. Cost

All the elements of job design described above will have an effect on the productivity, and therefore the

cost, of the job. Productivity in this context means the ratio of output to labour input: for example, the

number of customers served per hour or the number of products made per worker.

In addition, job design will influence two other particularly important objectives.

6. Health and safety

Whatever else a job design achieves, it must not endanger the well-being of the person who does the

job, other staff of the operation, the customers who might be present in the operation, or those who use

any products made by the operation.

7. Quality of working life

The design of any job should take into account its effect on job security, intrinsic interest, opportunities

for development, stress level and attitude of the person performing the job.

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Psychological Components of Job Design

It is essential that human resources strategies consider psychological components of a job. In other words,

how to improve the quality of work life, job satisfaction, and motivation by designing job that meet some

minimum psychological requirements.

Some of these psychological parameters of good job design can be identified as follows:

i . Hawthrone S tudi es :

This has proved that there is a dynamic social system at the workplace. However, these studies

were done to check the impact of lighting on productivity.

They found the social system and distinct role played by employees to be more important than

the intensity of the lighting.

They also found that individual differences may be dominant in what an employee expects from

the job and what the employee thinks his contribution to the job should be.

ii. Maslow’s Hierarchy of Needs:

Maslow’s need theory suggests that well-designed jobs should allow employees to address

physiological and psychological needs. Maslow’s need theory suggests that once employees have

satisfied lower-level needs, they seek to satisfy those needs at the next higher level.

Ideally then, job should contain ingredients that allow people to satisfy needs at all levels. Job

design has the potential of providing both satisfaction and motivation as the employee seeks to

satisfy higher level needs.

i i i . Herzberg’s Two-Factor Theory (or Motivation/Hygiene Factors):

This suggested that a job can contain hygiene elements (there are dissatisfactions if not fulfilled)

and motivation.

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Job Analysis Survey:

Recruitment Issues – are people hired for the right jobs? Are the job expectations set right?

Survey No. 1 (Survey data to be collated and sent with hard copy of final project)

Location: 2 – Vasai & Haridwar

Job Analysis: Associate - Production

Survey Sample: 33 Nos.

Survey Method: Observation

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Observation Method

Interview Method QuestionnaireMethod



Job Analysis Methods & Survey Data

Observation: (as an observer)

Uniform – How many were in uniforms? 100%

On-time attendance – How many reported to work on time? 70%

Body Language/ Work Environment Effect – Was the body language positive? 79%

Interview: (as asked to all 33 associates)

Aware of safety measures & use of safety gear (like masks, helmet, gloves) –How many employees were aware and using safety gear while at work? 91%

Shop Floor Know How – How many employees are aware of the shop floorlayout? 79%

Tools usage & know how – How many use tools to the optimum and areaware of spare/ tools usage? 88%

Raw Material usage & where about – How many employees know what rawmaterial is to be used, without consulting the production manager? Designknow how? 76%

Production & Workshop Assembly – How many are clear about workshopassembly while assembling display products? 76%

Questionnaire: (as per Manager-Production)

Knows job role – How many employees are aware of the role & responsibilities? 88%

Over Time – How many end up doing over time? 82%

Performs role as expected – How many meet up to their expectations? 88%

Delivery on production targets – How many adhere to production targets? 82%

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Conclusion:

Job Analysis for Associate – Production:

i. The associates more or less are aware of their job roles & responsibitlies. Better understanding of

the roles will help perform better.

ii. Issues that need to be looked at are like employee attendance, since in the manufacturing set

up, which has an adverse effect on production outputs.

iii. Employee motivation is relatively lower compared to other components, much is needed to be

done for employee motivation & making the environment more employee friendly.

iv. Also, is it possible that since the employees were aware that HR is observing them, it is possible,

with a margin of error, that the employee’s behavior is not real.

v. In this analysis type people are deceptive and can sell a good game but not necessarily are they

the best candidate for a technical job.

vi. One must also note, the questionnaire filled by the Manager – Production may not necessarily

reflect what the actual analysis could be, as there is scope of biasness. The data can also be

skewed.

vii. Hence, to conclude improvisation on the job analysis should be to train the employees on

important aspects of the job, improve employee motivation and conduct more training on shop

floor know-how, standard operating procedures, use of tools which would have a direct impact

on production deliverables.

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Survey No. 2 (Survey data to be collated and sent with hard copy of final project)

Facility: 1 – Vasai

Job Analysis: Executive - Logistics


Survey Method: Job Analysis Check List

Questionnaire & Survey Data:

i. Are you aware of your job responsibitlies?

5 employees; 83% replied affirmative.

ii. Are you aware of the company objectives?

4 employees; 67% replied affirmed. P r o p e r c o m p a n y i n d u c t i o n s h o u l d b e d o n e t o e n s u r e

p rope r g oa l s e t t i n g s w i t h emp lo yee s i n a l i g nmen t w i t h company g oa l s .

iii. Are you aware what to expect your co-workers with you work with in the 1st degree?

All replied affirmative.

iv. Do you know the process followed within the logistics departments to deliver its SLA?

Yes – 5 employees; Somewhat – 1 employee.

B r i e f emp lo yee s on SOP o f t h e l o g is t i c s d epa r tmen t .

v. Are you aware of your KRA and KPI for the current year?

Yes – 4 employees; Not discussed – 2 employees.

D i s cu s s a nd f i n a l i z e o f t h e KRA & KP I f o r L og i s t i c s E x e cu t i v e s p o s i t i o n s .

vi. Do you require specific tools or software to perform your job better?

Yes.

Eva l u a t e Nav i s i o n ( ERP ) f o r L og i s t i c s .

vii. Are you aware of the internal job promotion or career growth options within the organization?

5 Employees – 83% are aware of the IJP process.

E f f e c t iv e comm un i ca t i o n on b eha l f o f HR f o r I J P . Make i t a mo re t r a n spa ren t p ro ce s s .

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viii. Do you require additional knowledge to do your job better in forms of training or certifications?

None perceived.

ix. Do you complete work on time?

Sometimes – 4 employees.

Yes – 2 employees.

P repa re p rope r a c t i v i t y cha r t w i t h e a ch emp lo yee f o r e f f i c i e n t u t i l i z a t i o n o f wo rk i ng

hou r s t owa rd s a ch i e v i ng d e s i r e d p e r f o rmance .

x. Is work delegated correctly and logical time lines set?

Yes – 5 employees

No – 1 employees

D i s cu s s j o b s d e l e g a t ed and t ime s l i n e s w i t h i n d i v i d ua l s a nd t e am , f o r b e t t e r d e l i v e r y

b y t h e t e am a s a who l e co l l e c t i v e l y .

xi. Do you think there is a need of additional job benefits attached to your job?

Yes – All employees affirmatively agreed to this.

HR need s t o con s i d e r p ro v i d i ng emp lo yee s w i t h b e t t e r b ene f i ts .

xii. Do any HR policies require special attention for revision?

Ove r - t ime and com p -o f f p o l i c i e s n eed t o b e r e v i s ed .

Conclusion: The HR is the custodian of maintaining employee motivation and driving employee

performance in an organization. Similarly, the manufacturing set up plays a important role in helping HR

maintain its objectives.

Hence, to achieve maximum production, a firm must be able to extract maximum performance from

employees, as employee cost is the major factor influence business costs.

Further, proper job design after considering all factors that motivate employees must be taken into

consideration when designing jobs.

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Leadership: Are we hiring Task Masters or People Masters?

What is Leadership?

Leadership is a process by which a person influences others to accomplish an objective and directs

the organization in a way that makes it more cohesive and coherent. This definition is similar to

Northouse's (2007, p3) definition — Leadership is a process whereby an individual influences a group

of individuals to achieve a common goal.

Leadership style is the manner and approach of providing direction, implementing plans, and

motivating people. Kurt Lewin (1939) led a group of researchers to identify different styles of

leadership.

This early study has been very influential and established three major leadership styles. The three

major styles of leadership are (U.S. Army Handbook, 1973):

Authoritarian or autocratic

Here leaders tell their employees what they want and how they want it, without getting the

advice of their followers. Some of the appropriate conditions to use is when you have all the

information to solve the problem, you are short on time, and your employees are well

motivated.

Participative or democratic

Here leaders including one or more employees in the decision making process (determining

what to do and how to do it). However, the leader maintains the final decision making

authority. Using this style is not a sign of weakness, rather it is a sign of strength that your

employees will respect.

Delegative or Free Reign

The leader let the employees to make the decisions. However, the leader is still responsible

for the decisions that are made. This is used when employees are able to analyze the

situation and determine what needs to be done and how to do it.

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http://www.nwlink.com/~donclark/leader/leadstl.html#one

http://www.nwlink.com/~donclark/leader/leadstl.html#one



This is also known as laissez faire (or lais·ser faire), which is the noninterference in the

affairs of others. [French : laissez, second person pl. imperative of laisser, to let, allow +

faire, to do.]

Although good leaders use all three styles, with one of them normally dominant, bad leaders tend to

stick with one style.

Leaders who want their employees to grow, use a participative style of leadership. As they grow into

their jobs, then they are gradually given more authority (delegative) over their jobs.

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Leadership Survey:

Survey No. 3

Facility: 1 – Vasai

Job Analysis: Manager – Production & Manager – Factory (Head)


Survey Method: Leadership Style Survey

Next to each statement, circle the number that represents how strongly you feel about the statement by

using the following scoring system:

Almost True Frequently True Occasionally True Seldom True Almost Never True

5 4 3 2 1

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Leadership Style Survey:

1

I always retain the final decision making authority within my department or

team. 5 4 3 2 1

2I always try to include one or more employees in determining what to do andhow to do it. However, I maintain the final decision making authority.

5 4 3 2 1

3 I and my employees always vote whenever a major decision has to be made. 5 4 3 2 1

4I do not consider suggestions made by my employees as I do not have thetime for them.

5 4 3 2 1

5 I ask for employee ideas and input on upcoming plans and projects. 5 4 3 2 1

6For a major decision to pass in my department, it must have the approval of each individual or the majority.

5 4 3 2 1

7 I tell my employees what has to be done and how to do it. 5 4 3 2 1

8When things go wrong and I need to create a strategy to keep a project orprocess running on schedule, I call a meeting to get my employee's advice.

5 4 3 2 1

9To get information out, I send it by email, memos, or voice mail; very rarely isa meeting called. My employees are then expected to act upon theinformation.

5 4 3 2 1

10

When someone makes a mistake, I tell them not to ever do that again andmake a note of it.

5 4 3 2 1

11

I want to create an environment where the employees take ownership of theproject. I allow them to participate in the decision making process.

5 4 3 2 1

12

I allow my employees to determine what needs to be done and how to do it. 5 4 3 2 1

13

New hires are not allowed to make any decisions unless it is approved by mefirst.

5 4 3 2 1

14

I ask employees for their vision of where they see their jobs going and thenuse their vision where appropriate. 5 4 3 2 1

15

My workers know more about their jobs than me, so I allow them to carry outthe decisions to do their job.

5 4 3 2 1

16

When something goes wrong, I tell my employees that a procedure is notworking correctly and I establish a new one.

5 4 3 2 1

17

I allow my employees to set priorities with my guidance. 5 4 3 2 1

18

I delegate tasks in order to implement a new procedure or process. 5 4 3 2 1

19

I closely monitor my employees to ensure they are performing correctly. 5 4 3 2 1

20

When there are differences in role expectations, I work with them to resolvethe differences. 5 4 3 2 1

21

Each individual is responsible for defining their job. 5 4 3 2 1

22

I like the power that my leadership position holds over subordinates. 5 4 3 2 1

23

I like to use my leadership power to help subordinates grow. 5 4 3 2 1

24

I like to share my leadership power with my subordinates. 5 4 3 2 1

25

Employees must be directed or threatened with punishment in order to getthem to achieve the organizational objectives.

5 4 3 2 1

26 Employees will exercise self-direction if they are committed to the objectives. 5 4 3 2 1

2 Employees have the right to determine their own organizational objectives. 5 4 3 2 1

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7

28

Employees seek mainly security. 5 4 3 2 1

29

Employees know how to use creativity and ingenuity to solve organizationalproblems.

5 4 3 2 1

30

My employees can lead themselves just as well as I can. 5 4 3 2 1

Scoring System:

Item Score Item Score Item Score

1 2 3

4 5 6

7 8 9

10 11 12

13 14 15

16 17 18

19 20 2122 23 24

25 26 27

28 29 30

TOTAL TOTAL TOTAL

Style Authoritarian Participative Delegative

(autocratic)(democratic) (free reign)

Leadership Scores: (Reports to be attached in hardcopy of final project):

Factory Manager – Autocratic Leadership

TOTAL 35 TOTAL 25 TOTAL 22


(autocratic)(democratic

) (free reign)

Manager – Logistics

TOTAL 26 TOTAL 31 TOTAL 26


(autocratic)(democratic

) (free reign)

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Conclusion: As shown above, the Factory – Manager adopts an authoritarian style of

leadership. Since he is in a position where he is leading. This could also mean: The leader is

competent and a good coach. There are new employees in the factory, and the factory

manager takes charge of their performance. The employee is motivated to learn a new skill.

The situation is a new environment for the employee.

On the other hand the Manager – Logistics, as other leaders would is more participative,

however, also uses the authoritarian & delegative style of leadership. So, when a procedure

is not working correctly and a new one must be established (authoritarian) style is adopted.

Asking for their ideas and input on creating a new procedure (participative). Delegating tasks

in order to implement the new procedure (delegative).

References:

Dowling, W. P. (1973), “Job Design in the Assembly-Line: Forward to the collars Blues”’

Organizational Dynamics, Spring pp51-67

Peter F. Drunker (1974)

Pearson Study Guide, Chapter 9

Northouse, G. (2007). Leadership theory and practice. (3rd ed.) Thousand Oak, London, New

Delhe, Sage Publications, Inc.

Lewin, K., LIippit, R. and White, R. K. (1939). Patterns of aggressive behavior in

experimentally created social climates. Journal of Social Psychology, 10, 271-301

U.S. Army Handbook (1973). Military Leadership.

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http://www.amazon.com/Leadership-Dr-Peter-Guy-Northouse/dp/1412974887/ref=sr_1_1?ie=UTF8&s=books&qid=1270485118&sr=1-1/bigdogsbowlofbis





Survey Forms:

1. Survey No. 1 - Job Analysis – Associate Production (workers)

a. Sample form

b. Survey Data

c. Survey Forms duly filled

2. Survey No. 2 – Job Analysis – Logistics Executive

a. Sample form

b. Survey Forms duly filled

3. Survey no. 3 – Leadership Style Survey

a. Sample form

b. Survey Forms duly filled

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Thank You

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XLRI Final Project