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Technical Note 4
Job Design and Work
Measurement
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? Job Design Defined
? Job Design Decisions
? Trends in Job Design
? Work Measurement
? Basic Compensation Systems
? Financial Incentive Plans
OBJECTIVES
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What is Job Design?
Defined
? Job design is the function of specifying the
work activities of an individual or group in an
organizational setting
? The objective of job design is to develop jobs
that meet the requirements of the organization
and its technology and that satisfy the
jobholder’s personal and individual
requirements
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Job Design Decisions
HowWhyWhenWhereWhatWho
Mental and
physical
characteristics
of the
work force
Tasks to be
performed
Geographic
locale of the
organization;
location of
work areas
Time of day;
time of
occurrence in
the work flow
Organizational
rationale for
the job; object-
ives and mot-
ivation of the
worker
Method of
performance
and
motivation
Ultimate
Job
Structure
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Trends in Job Design
? Quality control as part of the worker's job
? Cross-training workers to perform multi
skilled jobs
? Employee involvement and team approaches
to designing and organizing work
? "Informating" ordinary workers through
e-mail and the Internet
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Trends in Job Design (Continued)
? Extensive use of temporary workers
? Automation of heavy manual work
? Organizational commitment to providing
meaningful and rewarding jobs for all
employees
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8Behavioral Considerations in Job Design
Ultimate
Job
Structure
Degree of
Specialization
Job Enrichment
(vs,Enlargement)
Balancing the specialization in a job and its
content through enrichment can give us….
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Sociotechnical Systems
Task Variety
Skill Variety
Feedback
Task Identity
Task Autonomy
Process
Technology
Needs
Worker/Group
Needs
Focuses on the interaction between technology and the work group
by looking at….
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Physical Considerations in Job Design
? Work physiology sets work-rest cycles
according to the energy expended in various
parts of the job,The harder the work,the
more the need for rest periods.
? Ergonomics is a term used to describe the
study of the physical arrangement of the work
space together with tools used to perform a
task,Fit the work to the body rather than
forcing the body to conform to the work,
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Work Methods
Workers Interacting
with Other Workers
A Production
Process
Worker at a Fixed
Workplace
Worker Interacting
with Equipment
Ultimate
Job
Design
Ultimate
Job
Design
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Work Measurement
Defined
? Work measurement is a process of
analyzing jobs for the purpose of setting
time standards
? Why use it?
– Schedule work and allocate capacity
– Motivate and measure work performance
– Evaluate performance
– Provide benchmarks
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Time Study Normal Time Formulas
? Normal time(NT)=Observed performance time per unit
x (Performance rating)*
*The Performance Rating is usually expressed in
decimal form in these formulas,So a person working
10% faster than normal would have a Performance
Rating of 1.10 or 110% of normal time,Working
10% slower,0.90 or 90% of normal.
? NT= Time worked _ x (Performance rating)*
Number of units produced
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Time Study Standard Time Formulas
? Standard time = Normal time
+ (Allowances x Normal times)
? Standard time = NT(1 + Allowances)
? Standard time = NT,
1 - Allowances
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Time Study Example Problem
? You want to determine the standard time for a job,
The employee selected for the time study has
produced 20 units of product in an 8 hour day,
Your observations made the employee nervous and
you estimate that the employee worked about 10
percent faster than what is a normal pace for the
job,Allowances for the job represent 25 percent of
the normal time.
? Question,What are the normal and standard times
for this job?
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Time Study Example Solution
Normal time = Time worked x (Performance rating)
Number of units produced
= (480 minutes/20) x (1.10)
= 26.4 minutes
Standard time = NT,
1 – Allowances
= (26.4)/(1-0.25)
= 35.2 minutes
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Work Sampling
? Use inference to make statements about work
activity based on a sample of the activity
? Ratio Delay
– Activity time percentage for workers or
equipment
? Performance Measurement
– Relates work time to output (performance index)
? Time Standards
– Standard task times
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Advantage of Work Sampling over Time
Study
? Several work sampling studies may be
conducted simultaneously by one observer
? The observer need not be a trained analyst
unless the purpose of the study is to determine
a time standard
? No timing devices are required
? Work of a long cycle time may be studied with
fewer observer hours
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Advantage of Work Sampling over
Time Study (Continued)
? The duration of the study is longer,which
minimizes effects of short-period variations
? The study may be temporarily delayed at any
time with little effect
? Because work sampling needs only
instantaneous observations (made over a longer
period),the operator has less chance to
influence the findings by changing work
method
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Basic Compensation Systems
? Hourly Pay
? Straight Salary
? Piece Rate
? Commissions
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Financial Incentive Plans
? Individual and Small-Group Plans
– Output measures
– Quality measures
– Pay for knowledge
? Organization-wide Plans
– Profit-sharing
– Gain-sharing
? Bonus based on controllable costs or units of output
? Involve participative management
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Scanlon Plan
Basic Elements R a t i o = T o t a l l a b o r c o s t
S a l e s v a l u e o f p r o d u c t i o n
? The ratio
– Standard for judging business performance
? The bonus
– Depends on reduction in costs below the preset
ratio
? The production committee
? The screening committee
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Pay-for-Performance
? Paying employees based on their
performance works--improvements in
productivity and quality
? Pay-for-performance will become
increasingly common components of
performance management strategies and
systems
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End of Technical Note 4