BMAL 501
DISCUSSION ASSIGNMENT INSTRUCTIONS
The student will complete 2 Discussions in this course. The student will post one thread of 600-
900 words by 11:59 p.m. (ET) on Thursday of the assigned Module: Week. The student must
then post 2 replies of at least 250-300 words by 11:59 p.m. (ET) on Sunday of the assigned
Module/Week. For each thread, students must support their assertions with at least 3 peer-
reviewed references from the Jerry Falwell Library and 1 reference from the textbook. in APA
format. Each reply must incorporate at least 1 scholarly citation in APA format. Any sources
cited must have been published within the last five years.
Use the following as headings for your Discussion thread:
Topic Title
o A short overview of the topic
Three Concepts
o The 3 most important concepts you have learned from the textbook readings,
presentations, and website and article readings.
o In the Discussion, include why these are the most important for an organization to
consider.
Biblical Integration
o Integrate a minimum of one biblical principle that relates to one or more of your
concepts. Listing a Bible verse alone is unacceptable. Provide a verse or biblical
principle and elaborate how it relates to your topic and today’s current culture.
References – 4 total
o 3 peer-reviewed references from the Jerry Falwell Library
o 1 reference from the text
Use the following as headings for your Discussion replies:
Topic Reply
o A Discussion of your thoughts on the other student’s thread.
Biblical Integration
o Integrate one biblical principle that relates to the other student’s concept. Listing
a Bible verse alone is unacceptable. Provide a verse and elaborate how it relates
to today’s current culture and the topic.
References – 1 total
o 1 peer-reviewed reference from the Jerry Falwell Library
Saterlee
Chapter 7
The Functions of Human
Resource Management
Page 194
IMPORTANCE OF HUMAN RESOURCE
MANAGEMENT
Human resources management is the overarching administration of a
Human Resources (HR) department. HR is responsible for advising the
leadership of an organization in:
• which methods will be most effective to recruit new employees.
• oversight of the hiring process.
• the types of training and development programs to offer and on
whom the programs within the organization should focus.
• oversight of benefits the organization offers to employees,
employee records, and personnel policies.
In large organizations, a dedicated department will handle these issues; but
in a small organization, it could be one person who does the tasks in
addition to other job duties. Regardless of whether there is a formal HR
department, all managers in an organization participate in the
responsibilities required in recruiting, hiring, training, developing and
firing employees.
HR managers spend time planning for staffing of the organization. The first
activity, the planning process, consists of aligning the human resource
strategic goals with the organization’s strategic goals. The planning process
will ensure that all activities in which HR engages meet the strategic,
tactical and organizational goals of the overall organization. The planning
process includes assessment of jobs within the organization—job analysis,
job description, and job specification—and planning for future human
resource needs.
When an organization’s leaders determine staffing needs, HR will work
towards recruiting a pool of good candidates for the position. Applications
and resumes will be reviewed and interviews held before hiring a
candidate who has the desired skills and abilities, and is a good fit for the
organization. Hiring the best candidate who is also a good fit for the
organization is crucial for the success of an organization, because a poor
hiring decision will have repercussions across the entire organization. The
employment process involves several steps: recruitment, selection,
orientation, training, performance management, compensation, and
benefits.
Recruitment
Page 195Recruitment is the first step in the hiring process and is the
practice of building a pool of qualified job candidates. Recruitment requires
the following:1
1. Identification of the abilities needed to perform the job
successfully. If one has not already been done, then a job analysis
should be performed to determine the job description and job
specifications particular to a position.
2. Determination of how the job will be advertised to ensure that
the applicant pool includes those who qualified for, and can
become candidates for, the position.
3. Ensuring that the advertising and applicant pool meets the
organization’s equal employment opportunity commitment.
Recruitment efforts can focus on a variety of methods that promote
openings within an organization to qualified applicants. One method of
recruitment is for HR personnel to announce openings to current
employees. Internal recruiting is done by posting an upcoming job opening
on bulletin boards, in newsletters, on electronic message boards, or
casually through word of mouth. Another method of recruitment is to focus
on the external environment and obtain referrals from current employees,
advertise in print, on the radio, or online. Recruitment is an important
responsibility of HR managers and finding qualified and motivated
employees is one their biggest challenges.2
Internal Recruiting
Those who are interested in, and qualified for, an internally posted
position, whether it is a lateral or upward move, are invited to apply for the
position. Benefits to internal recruiting are as follows:
• Allows current employees the opportunity to grow in their
careers within the organization.
• The applicant already knows the organization and its policies.
• The applicant is a known entity whose work habits and abilities
are documented.
• Internal recruiting is cheaper than external recruiting; the
candidate can usually begin in their new position sooner than an
external recruit.
Disadvantages to internal recruiting also exist:
• By posting the job internally, there is the potential that none of
the applicants that apply qualify, which opens the potential for a
difficult work environment.
• Employees may expect that promotions or lateral moves are
based upon longevity rather than merit.
• Potentially, an internal job posting could be written with a
specific individual in mind, blocking out other qualified
candidates.
External Recruiting
If recruiters determine that none of the internal candidates qualify for the
position, the job then may be posted externally. Companies have the ability
to reach different target markets, based upon where the job advertisement
is posted. External recruiting also allows current employees to refer
acquaintances. The following reveals the benefits of external recruiting:
• External recruits bring new ideas to the organization.
• The person hired can already have the specialized skills and
abilities required for the position.
Page 196External recruiting also has its disadvantages:
• May leave current employees feeling neglected and overlooked,
encouraging the current employees to begin to look elsewhere for
employment, due to real or perceived lack of career growth.
• The applicant’s true work ethic is an unknown.
• The recruitment process is more expensive and takes longer.
At times, internal and external recruiting occurs simultaneously, but when
choosing to use internal or external recruiting as a means of filling a
position, one should understand the advantages and disadvantages of the
recruiting plan chosen. The skills required for a job and its level within the
organization will determine the most appropriate sources to utilize in a
search for applicants.
Selection
Selection is the process of screening applicants to determine the best
candidate for a position. Several common screening methods exist.
Application Forms & Résumés
Application forms & résumés provide background information about the
applicant’s education, work history, and certifications. Unfortunately,
studies report that 44 percent of all résumés contain some lies.3 Therefore,
review of the application and résumé is only the first step in the screening
process. Some very high profile people have been caught lying on their
resumes
Notre Dame football coach, George O’Leary, claimed that he had a masters
degree and earned three letters by playing college football. O’Leary
resigned when it was discovered he had neither played football nor earned
a graduate degree.
Chief Financial Officer of Veritas software, Kenneth Lonchar, claimed he
had earned an MBA. Lonchar resigned and Veritas stock prices fell 16%.
Falsification of information on a resume can not only lead to
embarrassment, but could also be detrimental to an organization.
[When Hatteras Hammocks] . . . abruptly lost its controller, Executive vice-
president Jay Branch interviewed several candidates for the position, but
one man distinguished himself from the others. Recommended by someone
Branch knew, the candidate came with a great resume—B.A. in accounting,
M.B.A. from Indiana University, CPA, and several years as controller at a big
local corporation. The following March, Branch hired him after a quick call
to the previous employer. After a few months it became obvious that the
new controller couldn’t do the job, and by October Branch had fired him.
His replacement quickly saw something wrong with the company’s books.
The man with the fancy resume had embezzled $60,000. A quick
background check turned up no record of either of his degrees or his CPA
credentials. The police arrested him and he confessed. . . . Branch, who saw
his own name forged on several checks, says, “The whole episode taught me
the necessity of checking thoroughly, no matter how good a
recommendation is.”4
Page 197Careful scrutiny and confirmation of facts presented on the
application and résumé must be completed prior to any job offers.
Ability Tests
Ability tests should be based upon a thorough job analysis and measure an
applicant’s physical, mechanical, mental, or clerical abilities. The tests must
accurately reflect a position’s requirements to be considered a valid and
reliable screening tool. Ability tests are easy to administer during a job
interview. Applicants can be asked to manipulate data in an Excel file, write
a simple code, or perform some other task that is part of the normal job
duties in the position for which the applicant is interviewing.
Performance Tests
Performance tests are used to evaluate performance on specific tasks that
will be carried out on the job. Applicants for a managerial position may be
asked to participate in different role-playing scenarios. Those applicants
are then assessed according to their actions during the scenario.
Personality Tests
Personality tests measure an individual’s characteristics, such as degree of
extroversion, autonomy, energy, and the need for achievement. Personality
tests may provide insight into personality traits that would be an advantage
in certain positions, such as extroversion for a customer service
representative or a high level of creativity for an advertising position. Most
organizations use personality tests with caution because of the challenge of
defending such tests in court.5
The Interview Process
Although widely debated as to its effectiveness, the interview is universally
utilized in the application process.6 Effective interview questions should
focus on the applicant’s job qualifications and abilities. During an interview
there are many questions that cannot be legally asked, so a manager must
be sure to avoid those questions and topics. The following topics should not
be discussed during an interview:7
• Children. Whether the interviewee currently has or plans to have
children or if the person has arrangements for child care cannot
be asked. Such questions single out a particular group and are
disallowed by Title VII of the Civil Rights Act of 1964.
• Age. An interviewer cannot ask an applicant’s age—even asking a
high school graduation date may be shaky because The Age
Discrimination in Employment Act outlaws discrimination of
anyone older than forty.
• Disabilities. The Americans with Disabilities Act (ADA) prohibits
employers from obtaining information regarding a physical or
mental disability that may interfere with a job.
• Citizenship. Although employers can ask applicants if they have a
legal right to work in the U.S., applicants for many positions do
not have to be U.S. citizens. Asking such questions, when not a
BFOQ, sets the organization up for a national origin
discrimination lawsuit.
• Legal Issues. Employers may not ask if the applicant has ever filed
a lawsuit or been arrested.
Page 198There are exceptions for many of these question bans in the form
of bona-fide occupational qualifications (BFOQ). The BFOQ rule provides an
exception to the Title VII of the Civil Rights Act of 1964 and allows for
hiring based upon race, gender, age, and national origin, if these
qualifications are bona-fide occupational qualifications. To establish a
BFOQ, a hiring organization must prove the requirement is necessary
through job analysis, job description and job specification. The following
are a few examples of BFOQs:
• There are mandatory retirement ages in many professions for
safety reasons. Airline pilots and bus drivers are two professions
where age as a BFOQ exist.
• Religious affiliation. Churches and religious organizations can
require affiliation to a certain denomination. However, the
position of a church janitor may not fall under BFOQ, as
religious affiliation does not affect one’s ability to perform the
duties of the job.
• Gender. Only female locker room attendants are hired to work in
the female locker room.
• U.S. citizenship. Jobs in the federal government may require
U.S. citizenship.
For jobs that do not have BFOQs, the subject of disabilities may be explored
only after a conditional job offer is made, based upon satisfactory
completion of required physical, medical, or job-related skills tests. If an
interviewer discovers any physical or mental condition that may affect job
performance, he or she may then ask the candidate direct questions
regarding the condition. Even visible evidence of a disability does not
automatically disqualify a candidate from either an interview or
employment. The organization is required to explore reasonable
accommodation to enable the applicant to perform the job’s essential
functions.8 Managers may find themselves in a job hiring scenario similar to
the following:
An employer is impressed with an applicant’s resume and contacts the
individual to come in for an interview. The applicant, who is deaf, requests
a sign language interpreter for the interview. The employer cancels the
interview and refuses to consider this applicant further because she
believes the organization would have to hire a full-time interpreter. The
employer has violated the Americans with Disabilities Act. The employer
should have proceeded with the interview, using a sign language
interpreter (absent undue hardship), and at the interview inquired to what
extent the individual would need a sign language interpreter to perform
any essential functions requiring communication with other people.9
The Interview (Behavioral and Situational)
Interviews should be designed so that each applicant is asked the same or
very similar questions and ask also questions that are behavioral and/or
situational in focus. All structured interviews should have the following
characteristics:
• The questions must be job related and based on a job analysis.
• Each applicant is asked the same questions (however, based
upon the applicant’s response different follow-up questions can
be asked).
• There is a standard scoring system used to score the applicant’s
answers to the questions.10
Behavioral interview questions focus on behaviors exhibited by the
interviewee in the past. The questions are structured, open-ended, and
focus on abilities needed in the position for which the applicant is
interviewing and ask the applicant to tell of past Page 102experiences. The
following questions are the types that could be asked during a behavioral
interview:
• Tell us about a time in the past year when you had to deal with a
difficult team member and describe what you did.
• Give us an example of a time when you used your customer
philosophy to deal with a perplexing problem.11
Situational interview questions focus on hypothetical situations. While the
questions are still structured, open ended, and focus on abilities needed in
the position, a situational question will ask the interviewee how they would
handle a certain situation. Questions that could be asked during a
situational interview are as follows:
• A customer is angry because the store is out of a product that was
advertised for sale. How would you handle the situation?
• You are having difficulties with a co-worker and believe that they
are telling your manager untruths about your work. What would
you do?
Employee Selection
Successful selection of an employee with the right skills, knowledge and
attitude depends upon seven steps:12
1. Know the exact job specification, including daily interaction,
interpersonal skills, and levels of commitment to the
organization and experience.
2. Understand what personal characteristics are required.
3. Identify the best recruiting source for the vacant position.
4. Assess qualities, such as technical skills, academic requirements,
business knowledge, etc.
5. Check applicant’s credentials and employment references.
6. Determine applicant’s expertise.
7. Put together information about the top three candidates and
decide which one is the best match for the organization.
Hiring good employees who are qualified for the jobs they fill will have a
significant positive impact on an organization. When the selection process
is completed and an individual is offered and accepts a position, the next
step is the orientation process.
Orientation
Orientation is not “just introducing a worker to a new job. It’s acclimating
him or her to a whole new culture.”13 Well developed orientation programs
provide the facts concerning pay and benefits, but also work to reduce the
anxiety associated with beginning a position with a new organization by
helping new employees understand the organization’s culture and values.
Most likely, a new employee will already be somewhat familiar with the
organization. The company should provide employee manuals and policies
prior to orientation so that during the orientation, the employee can
become acquainted with the organizational chart and learn how the
organization functions. Personal introductions and a tour of the
department or working area are also important during the orientation to
build the confidence of the new employee.
Meeting coworkers is an important part of the orientation process, and
Persistence Software has a creative way to get a new employee
introduced:Page 200
. . . [B]agels and bran muffins are the answer. On mornings when someone
new joins the 110-person company, a tray of breakfast food is placed
strategically near his or her desk. An e-mail invites everyone to come and
meet the new colleague. CEO Christopher Keene explains, “If you just send
out an E-mail announcing a new hire, it doesn’t help the new person meet
anybody, and that’s really the tough part.”—whereas bagels draw
coworkers to the new hire’s desk. “Everybody troops by,” Keene says. “And
they’re guilted into introducing themselves.”14
Training
Employee training is an important function of an effective human resources
department. Training is a process that is intended to equip employees with
specific skills and increase the quality of performance in their current jobs.
Training is an essential process in improving productivity and providing
the best services. The two types of training organizations commonly utilize
are on-the-job training and off-the-job training.
On-the-job training (OJT) is conducted at the employee’s worksite and
normally monitored by a supervisor or senior employee. This type of
training is especially effective in increasing skills unique to a job and may
include activities that will develop the skills of employees. On-the-job
training includes serving as an assistant to an experienced worker and
lateral transfer into a position, which supplements an employee’s current
skills and coaching. Although OJT may sound ideal, some disadvantages do
exist. The first of which is the implicit cost of such a training program, as
the energy and time spent by the trainer could have been used to perform
“real” work.15 However, since this cost occurs in the early training stage,
the result of the training should lead to higher productivity and thus pay off
in the long run.
Off-the-job training includes classroom training with live instructors, online
videos, or workbooks. Off-site training provides the advantage of a
“distraction free” environment, which promotes creativity and learning.
The disadvantages of off-the-job training are that it keeps the employee
away from their job and may involve travel expenses.
Employee Development
Development is educating employees so that they are prepared for their
future within the organization. Certification agencies require that many
professions, such as accountants, and HR professionals, continue to learn
through professional development courses, as professional skills must be
constantly updated and upgraded. Most business leaders agree that the
success and growth of an organization is closely related to the successful
development of employees within the organization.
Efforts should be made to provide the knowledge, tools and resources
necessary to support employees and their career goals. Organizations
should institute a variety of courses that develop management and
technical skills for workers at all levels. Such courses are important, not
only to those employees who have an interest in upward mobility, but also
to increase job satisfaction.
Performance Management
Performance management is the process of identifying, measuring, and
managing employee performance. Performance appraisals and feedback
are important in Human Resources Management because they provide
managers with important information to make decisions about pay raises,
bonuses, promotions, or if an employee is not meeting Page 201minimum
performance requirements. Performance appraisals also help managers
determine which workers are candidates for training. The information
provided during a performance appraisal helps an employee understand
how he or she is doing in relation to objective standards of performance.
The information also helps the supervisor determine what training or
development the employee may need. For those employees who are
working at levels below acceptable standards, supervisors should counsel
employees in ways to improve performance. Performance feedback can
lead to high levels of employee motivation because it provides employees
with detailed information about their strengths, weaknesses, and ways to
improve their performance in the future. The following points state a few
guidelines for effective performance feedback:
1. An assessment should be written using specific language. The
assessment of job performance should be stated clearly and
succinctly and supported with facts and examples. One must be
sure to focus on behaviors, not on opinions.
2. Performance gaps should be addressed. The difference between
the expected level of performance and the actual level of
performance. One must be sure to include the salient issue—
what has occurred and what is expected.16
3. Feedback given during a performance appraisal, whether
positive or negative, should never be a surprise to the receiving
employee. The official feedback should only be confirmation of
what the employee has already received through oral or written
methods—from his or her supervisor.
Compensation and Benefits
Employee compensation has three elements: base compensation, pay
incentives, and benefits. These three items constitute a remuneration
package that the employee obtains for his or her labor. Pay and benefits are
the most significant cost in most organizations. When pursuing a
competitive edge, the effectiveness with which compensation is allocated
greatly impacts the organizations and its employees. Compensation affects
an individual economically, sociologically, and
psychologically.17 Mishandling compensation issues could have a strong
negative impact on employees, and ultimately, on the organization’s
performance.
Reasonable pay systems allow an organization to attract, maintain, and
motivate employees, while controlling labor costs. Many factors influence
the levels of compensation and benefits offered by an organization. Those
factors are found both internal and external to the organization and
include:18
• Organizational factors.
• Size of the company
• Kind of business
• Industry
• Profitability of the company
• Whether or not the company is labor or capital intensive
• External factors.
• Geographical location
• UnionizationPage 202
• Employee factors.
• Kind of job performed
• Employee’s performance
• Tenure at the organization
• Management philosophy.
• Reward structures
• Pay strategies
LEGAL ISSUES
Major United States Federal Laws and Regulations
Related to HRM (1963–2005)
Employers must ensure that the organization itself and all employees in an
organization act in accordance with federal laws and regulations. While
many important U.S. federal laws and regulations exist, the following
delineates a few of them:
Equal Pay Act, 1963
The Equal Pay Act prohibits discrimination based upon gender in the payment of wages and fringe benefits for equal work in
jobs requiring equal skill, effort, and responsibility—which are performed under similar working conditions. Pay differences
can be based on seniority, merit, or production quota.
Civil Rights Act Title VII
The landmark legislation outlawing discrimination based on race, color, creed, or national origin is the Civil Rights Act of
1964. Those activities covered including hiring, promotions, assignments, discipline, performance, appraisal, and all other
conditions, benefits, or privileges of employment.
Age Discrimination in
Employment Act (ADEA)
The Age Discrimination in Employment Act (ADEA) provides protection for persons who are age 40 or over. It does not
prohibit; however, all discrimination on the basis of age, such as maximum entry level ages for initial appointment as law
enforcement officer or a bona fide occupational qualification.
Occupational Safety & Health
Act (OSHA)
Organizations must provide non-hazardous working conditions.
Employee Retirement Income
Security Act (ERISA)
The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most
voluntarily established pension and health plans in private industry to provide protection for individuals in these plans.
Pregnancy Discrimination Act
The Pregnancy Discrimination Act is an amendment to Title VII of the Civil Rights Act of 1964. Discrimination on the basis
of pregnancy, childbirth, or related medical conditions constitutes unlawful sex discrimination under Title VII. Women
affected by pregnancy or related conditions must be treated in the same manner as other applicants or employees with similar
abilities or limitations.
Mandatory Retirement Act
This Act prohibits forced retirement of employees under 70.
Consolidated Omnibus Budget
Reconciliation Act (COBRA)
The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health
benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time
under certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs,
death, divorce, and other life events. Qualified individuals may be required to pay the entire premium for coverage up to 102
percent of the cost of the plan.
Immigration Reform &
Control Act
Under IRCA, employers may hire only persons who may legally work in the U.S.—citizens and nationals of the U.S. The
employer must verify the identity and employment eligibility of anyone to be hired, which includes completing the
Employment Eligibility Verification Form (I-9). Employers must keep each I-9 on file for at least three years, or one year after
employment ends, whichever is longer.
Worker Adjustment and
Retraining Notification Act
WARN offers protection to workers, their families and communities by requiring employers to provide notice 60 days in
advance of covered plant closings and covered mass layoffs. This notice must be provided to either affected workers or their
representatives (e.g., a labor union), to the State dislocated worker unit, and to the appropriate unit of local government.
Americans with Disabilities
Act (ADA), 1990
ADA is a federal law that forbids discrimination in the workplace against persons who are disabled. Employers who have 15
or more employees, along with all State and Local Governments are affected. Individuals with a disability, individuals with
history of a disability, and people regarded as having a disability are covered. A qualified individual is defined as an individual
who, with or without reasonable accommodation, can perform the essential functions of the employment positions that such
individuals hold or desire.
Civil Rights Act of 1991
The purpose of this act was to amend the Civil Rights Act of 1964 to strengthen and improve Federal civil rights laws, to
provide for damages in cases of intentional employment discrimination, and to clarify provisions regarding disparate impact
actions.
Family & Medical Leave Act
Covered employers must grant an eligible employee up to a total of 12 weeks of unpaid leave during any 12-month period for
one or more of the following reasons: (1) for the birth and care of the newborn child of the employee; (2) for placement with
the employee of a son or daughter for adoption or foster care; (3) to care for an immediate family member (spouse, child, or
parent) with a serious health condition; (4) to take medical leave when the employee is unable to work because of a serious
health condition.
Sarbanes-Oxley Act
The Act covers a whole range of governance issues— many covering the types of trade that are allowed within a company,
with an emphasis upon keeping everything above board. For example, the Act forbids personal loans to officers and directors.
Former WorldCom boss Bernie Ebbers had taken considerable loans from his company shortly before it became the center of a
corporate scandal. Other measures regulate the responsibilities of audit committees sent in to check the health of companies’
compliance. The Act also offers protection to whistleblowers.
Page 204The Equal Employment Opportunity Commission (EEOC) is
responsible for enforcing anti-discrimination laws and “provides oversight
and coordination of all federal equal employment opportunity regulations,
practices and policies.”19
The EEOC has five commissioners and a General Counsel appointed by the
President of the United States and confirmed by the Senate. The five-
member Commission makes equal employment opportunity policy and
approves most Sarbanes-Oxley Act litigation. The General Counsel is
responsible for conducting EEOC enforcement litigation under Title VII of
the Civil Rights Act of 1964, the Equal Pay Act, the Age Discrimination in
Employment Act, and the Americans with Disabilities Act.
Best Practices
Employers can take proactive measures that will reduce the likelihood of
violations of Equal Employment Opportunity (EEO) policies. Organizations
should develop a strong EEO policy that is embraced by top management,
but all levels of employees should be trained on EEO policies and held
accountable for implementation and practice. All hiring and promotions
should be done with regard to the organization’s EEO policies. Businesses
should police themselves, ensuring that current employment practices do
not violate any individual’s right to equal employment. Finally, the business
should make known to all employees all promotion criteria and job
openings.20
STRATEGIC HUMAN RESOURCE PLANNING
PROCESS
Strategic human resources planning is the process of establishing programs
or procedures to implement HR strategies. To be effective, any strategic
plans completed for Human Resources must follow the organization’s
overall strategic plan. A firm may have a well-composed HR strategy, but if
no detailed plans exist to implement it effectively, the strategy becomes
meaningless. In order for HR management to support the future direction
of an organization, strategic human resources plans should be
developed.21 To ensure their effectiveness, all development and training
programs overseen by HR must be based on the strategic human resource
plan. Managers should ensure that each component of training and
development programs is consistent with organizational architecture,
strategy, and goals.
It is important that not only is a strategic plan formulated, but that the plan
is also implemented.Page 205
Five Aspects of Implementing Strategy
Human resources from a strategic perspective include assessment of
human capital and an accountability framework.22 The five aspects of
implementing a human-resources strategy are strategic alignment,
leadership and knowledge management, results-oriented performance
culture, talent management, and accountability.
Strategic Alignment
Strategic alignment is the planning stage and aligns the strategies of the
human resources function with the mission, goals, and objectives of the
organization. This alignment is accomplished through analysis and
measurement of HR programs.
Leadership and Knowledge Management
Leadership and knowledge management is the first step in the
implementation stage and ensures continuity of leadership. A business
establishes continuity of leadership through the identification of potential
gaps in leadership and addressing those gaps. The organization then
implements programs that capture organizational knowledge and promote
learning.
Results-Oriented Performance Culture
The second part of the implementation stage is the promotion of a results-
oriented performance culture. During this stage, an organization’s HR
managers implement and maintain effective performance management
systems and award programs to promote a diverse, high-performing
workforce.
Talent Management
The third step in the implementation stage is managing the organization’s
human resource talent. In this step, human resource managers must
address all gaps in competency that employees may have and implement
and maintain programs to attract, acquire, develop, promote, and retain
quality individuals.
Accountability
The final stage, evaluating results, contributes to the organization’s
performance by ensuring accountability of Human Resource leaders. In this
stage, the organization monitors and evaluates policies, programs, and
activities. The company must also analyze compliance with merit systems
and identify and monitor improvements during this stage.
Objective of Human Resource Planning
The final objective of human resource planning is to ensure that an
organization has the necessary resources to produce a certain amount of
products or services. In order to obtain the necessary resources, HR should
conduct several activities prior to the employment process—create a
detailed job analysis, job description, and job specification for each position
within the organization.Page 206
Job Analysis
Job analysis is the process of pinpointing duties of a position and explaining
the significance of how those duties relate to a particular job.23 While
observations are made of a person performing a job, the analysis is of the
specifications and description of the job, not the person. Job analysis
identifies the competencies of knowledge, skills, and abilities directly
related to the performance of a specific job.
It is a systematic procedure for gathering, documenting and analyzing
information about the content, context, and requirements of a job. . . . A
competency is a measurable pattern of knowledge, skills, abilities,
behaviors and other characteristics that an individual needs in order to
perform work roles or occupational function successfully.24
Although a job analysis does not have to be completed each time a manager
seeks to fill a job, constant organizational changes require that a job
analysis should be conducted periodically for all jobs within the
organization.
Job Description
Although some believe that job descriptions should be abolished, a job
description is simply a general list of responsibilities and tasks of a specific
position. It contains information about the knowledge, training, education,
and skills necessary for a particular job—a summary of information
collected in the job analysis phase. Well-crafted, carefully-worded job
descriptions prevent unnecessary misunderstandings by ensuring that job
candidates and hiring managers understand the requirements for a job. Job
descriptions also provide a basis from which to determine whether a
disabled applicant is otherwise qualified for the job, and if so, to assist in
determining what accommodation the applicant would require to be able to
perform the essential functions of the position.
Job Specification
A job specification describes the minimum characteristics and
qualifications necessary to effectively perform a job. Therefore, an
applicant must possess these qualifications to be considered for a job. Job
specifications include critical expertise and proper education. Job
specifications should be specified as exact as possible to benefit managers
during the interview process, thus avoiding hiring over- or under-qualified
candidates.25
CURRENT ISSUES IN HUMAN RESOURCES
Managing Workforce Diversity
Characteristics, visible or not, that distinguish one individual from another
is referred to as diversity. These differences include age, gender, race,
ethnicity, religion, sexual orientation, and disabilities. Diversity is one of the
most important issues facing organizations today. Managers must ensure
that they are utilizing the skills of all employees and treating all employees
with respect and professionalism.Page 207
Workplace diversity is about people—employees who bring differences to
an organization. Diversity is about making differences work to the benefit
of all. Managers recognize that diversity is a resource that enhances
performance within an organization.26
Biases based upon diversity can create disharmony in the workplace and
serious legal issues, and managers should recognize that developing
awareness through diversity training will help to create a respectful
workplace. Employees do not have to agree with the viewpoints or beliefs
of their co-workers, but a manager must ensure that a culture of respect
must be evident throughout the organization. Understanding
discrimination laws and the importance of diversity will not only lower the
risk of lawsuits but also create a healthy work environment for all.27
Valuing diversity in the business world today means creating a workplace
that respects differences, recognizes individual contributions, and creates a
work environment that maximizes the potential of all employees. Teams
made up of culturally diverse individuals yield more creative, synergistic,
and effective outcomes.28
Workplace diversity focuses on how a diverse workforce can impact an
organization’s profits and losses. Leveraging workplace diversity is a vital
strategic resource for competitive advantage. Organizations that link
workplace diversity to strategic goals and objectives are holding managers
accountable for results.29
Sexual Harassment
Sexual harassment is a form of sex discrimination that violates Title VII of
the Civil Rights Act of 1964. Unwelcome sexual advances, requests for
sexual favors, and other verbal or physical conduct of a sexual nature
constitute sexual harassment. The following examples clarify sexual
harassment:30
• Submission to such conduct is made either explicitly or implicitly
a term or condition of an individual’s employment, also known
as quid pro quo.
• Submission to or rejection of such conduct by an individual is
used as the basis for employment decisions affecting such an
individual.
• Such conduct has the purpose or effect of unreasonably
interfering with an individual’s work performance or creating an
intimidating, hostile, or offensive working environment.
Harassment can be subjective, where the victim perceives an abusive
environment, or objective, where a reasonable person in similar
circumstances would perceive an abusive environment.
Sexual harassment can occur even if the victim is not of the opposite sex.
The victim, as well as the harasser, may be male or female and victims can
include anyone affected by the offensive conduct.31
Sexual harassment in the workplace presents a liability for organizations as
defense against legal action proves difficult. When the harasser is one in
authority, the organization is liable for tangible employment action—unless
the employer used reasonable care to prevent and correct harassment or
the victim unreasonably failed to make a complaint under the employer’s
prevention policy.32
When the harasser is a co-worker, an employer must take immediate
corrective action upon becoming aware of the harassment. If the harasser is
not an employee, liability will still be an issue if the employer knew or
should have known of the conduct and failed to take corrective action.
Page 208To prevent sexual harassment liability, an organization should
develop a policy prohibiting sexual harassment, and the policy must define
and explain zero tolerance for that type of conduct. All organizations should
have a complaint procedure in place, and all employees should
acknowledge receipt and understanding of this policy.33
Hostile Work Environment
If an employee is on the receiving end of unwelcome comments or conduct
based on legally protected characteristics that interfere with his or her
work performance, it may be considered a hostile work environment. The
interference must be unreasonable and create an intimidating or offensive
work environment. This type of harassment can be committed by a
supervisor, co-worker, or even a non-employee. The victim of a hostile
work environment complaint does not necessarily have to be the individual
toward which the offender directs his or her conduct. Whomever the
harasser affects with negative conduct can be a victim.34
While no laws mandate that an employer be courteous, certain laws do
protect employees from abuse and a hostile work environment. Like sexual
harassment, employers must establish a workplace that is free of hostile
conduct.
A hostile work environment is a violation of civil rights, and exists when an
employee experiences workplace harassment that includes an offensive,
intimidating, or oppressive atmosphere, created by an individual in the
workplace.
Many actions tend to create a hostile work environment, such as staring or
leering in a sexually suggestive manner or behaviors that may be
considered bullying. While not all inclusive, the following are examples that
may create a sexually hostile environment:35
• Offensive remarks about body parts, clothes, looks etc.
• Touching, patting, pinching, or intentional brushing.
• Sexual jokes or sexual gestures.
• Sexual emails, letters, notes, or images.
One should not assume that only actions of a sexual nature can create a
hostile work environment. Many non-sexual actions arise that may also
result in hostile environment harassment. These include the following:36
• Racially derogatory words, phrases or epithets.
• Gestures, pictures, or drawings that depict a particular racial or
ethnic group in an offensive manner.
• Comments about skin color or other ethnic characteristics.
• Offensive religious comments.
• Negative stereotype expressions.
• Negative age comments.
If an employer fails to take appropriate corrective action, or if it can be
proven that an employer knew or should have known about an incident of
harassment, then the employer is liable. Title VII prohibits retaliation
against an employee who makes a complaint of harassment or supports the
claim of another employee. Retaliation can include dismissal, transfer,
demotion, or negative evaluation.37 Page 209
CAREER MANAGEMENT
In the early stages of a career, individuals should place themselves near or
in situations with colleagues and supervisors whom they want to emulate.
For example, one place to gain experience and network is volunteering on
company projects, such as the newsletter or volunteer activities external to
the organization. Volunteering brings one in contact with individuals from
all levels and departments within the organization and provides exposure
throughout the organization.
Other areas of career management that tend to get overlooked include
dress code and punctuality. Employees need to dress appropriate to the
part and rank towards which they aspire. If an employee works on the
manufacturing line but wishes to one day be the line manager, then he or
she must learn the policies and procedures, and also needs to set
themselves apart from the others in the group: show up for work a few
minutes ahead of schedule and report back early after lunch. An employee
might consider volunteering to stay late to meet the project deadline or
offer to learn skills which are needed by the organization.
In an office environment, the principles of career management are the same
as those on the manufacturing line. Two deadlines that are carelessly
overlooked in an office environment include responding to emails and
voicemails. One should respond to emails and voicemails promptly,
because lack of response sends a negative message regarding work ethic.
Mentors are a key to career management. Whether one has been in the
workforce for two days or twenty years, he or she should seek a mentor.
Mentors are individuals that provide career guidance, advice, help with
obstacles along the way and can explain office culture and politics or give
insight into how to make a presentation to different managers within the
organization. Good mentors will provide sound career advice, serve as a
sounding board, and can also offer feedback.
Koinonia, a word found in the Bible, can be interpreted as fellowship,
sharing and participation, and is a term that has recently been connected to
mentoring efforts within organizations.38 A new employee is deliberately
matched with a high performing employee with the intent that the two will
form a positive relationship. The role of the seasoned employee is to
provide guidance regarding the organization’s culture, encouragement and
ensure that the new employee is able to successfully assimilate.
Career Paths
When an employee transfers from one position to another within the
company, three different types of career paths are available: linear, spiral,
and steady-state.39
Linear
In a linear career path, the employee progresses up though an
organization’s hierarchy, generally in one functional area, such as
marketing or finance. One who follows a linear career path will move up
within the organization by taking on more responsibility and expanding his
or her skills in a series of jobs. The employee on this track may do so at one
organization or change companies during the career climb.Page 210
Spiral
In a spiral career path, upwardly mobile employees will often start in one
position, such as an electrical engineer, become an engineering manager,
transition to director of Human Resources planning, and wind up in
recruiting. Each of the different jobs held by one in a spiral career path will
build on the previous jobs and provide a broad base of experience.
Steady-State
When an individual chooses a career as a lifetime profession, he or she
follows the steady-state career path. This type of career is common, with
individuals practicing professions such as a physician or minister.
Job Hunting
Whether one is competing for a promotion within an organization or
looking for a job in the marketplace, optimal self-presentation is critical for
success. Job applicants are removed from consideration throughout all of
the stages of the recruitment/interview process. Sarah Needleman has
gathered input from various recruiters and developed a list of things that
every job hunter should know:40
1. Be concise when answering interview questions. A candidate can
talk himself or herself out of a job by giving long-winded answers
to interview questions. A candidate should practice answering
common interview questions. It is a balancing act to provide the
interviewer with enough information to make a decision, but not
so much that they can find something wrong with the answers.
2. Résumés should be free of all factual discrepancies. Any
falsifications—such as academic record or awards—will
immediately disqualify a candidate. Even a simple error, such as
noting that a Bachelor of Arts was earned instead of the actual
degree of a Bachelor of Science may have recruiters questioning
a résumé.
3. Candidates must exhibit strong communication skills during an
interview. A candidate shows strong communication skills by
making eye contact, speaking with confidence, and using
complete sentences and thoughts, without excessive slang or
verbal crutches.
4. If communicating with a recruiter via email, use plain fonts, no
background wallpaper and check spelling, punctuation, and
grammar prior to sending. Be sure that a personalized email
account is appropriate—sleezgirl@ might not get the wanted
response. If using a cell phone as a contact number, be sure the
voicemail message is appropriate and professional.41
5. Present an air of professionalism and remember that a candidate
may be assessed from the time they enter the parking lot. How a
candidate treats the organization’s receptionist may be
considered just as important as credentials or responses to
questions during the interview. Candidates should get rid of gum
and be aware of habits—such as foot tapping or hair twirling—
and listen to mom’s advice and stand up straight.
6. Recruiters do not want candidates who act nonchalant during an
interview. Genuine enthusiasm, energy, and passion, regarding
both previous accomplishments and the opportunity available in
the position for which the candidate is interviewing, should be
displayed during the interview process.Page 211
7. A candidate must have a professional appearance—in both dress
and demeanor. Clothing should not be outdated and special
attention should be given to the entire outfit. Polish shoes, iron
the wrinkles, and wear a minimum amount of jewelry.
8. Finally, be cautious about personal information that is available
on blogs or other places on the web. Recruiters regularly use
Google and other search engines to check on candidates.
According to a survey of 102 executive recruiters 75 percent of
recruiters use search engines to uncover information about
candidates, and 26 percent of recruiters have eliminated
candidates because of information found online.42
The entire hiring process from résumé to interview is carefully scrutinized
by recruiters, and job candidates must ensure that they navigate the entire
process with enthusiasm, care, and professionalism.
CONCLUSION
Human Resource Management is vital to every organization, regardless
of its size. Polices need to be established that will guide both the
organization and its employees through the steps needed to build a world
class workforce. These policies not only protect the company but also the
employee. Human Resource Management impacts all aspects of the
company and their employees.
Laws that pertain to personnel were established to protect both the
organization and employees. These laws need to be integrated into the
organization through policies and procedures. Established policies will
guide managers through the processes of hiring, retaining, and
termination.
Without solid foundations and guidelines on how to handle typical
employee issues, organizations may be vulnerable to legal recourse.
Managers need to understand how the hiring/termination process works
to ensure that they are acquiring and maintaining the right personnel for
the job. Employees have the responsibility of knowing polices under
which they work and how these will impact their career and
advancement.
Page 213
The Christian Perspective
If one is looking for guidelines as to how to develop and manage people, the
first book to reference is the Bible. Examples of how people are called and
equipped, and how to be a good steward of God’s people are covered in
detail. When you read the passages below, review each of them through the
lens of leading people in an organization and the specific topics covered in
this chapter.
Compare I Corinthians 4:2; 14:33 and Luke 12:47. How do these passages
address the stewardship of others? How do they address accountability?
Relate to specific topics in the chapter
Consider Titus 1:4-5, Ephesians 4:11 and I Corinthians 12. What wisdom do
they have regarding employee recruitment and selection? Relate to specific
topics in the chapter.
Page 214In studying how to choose the correct person for a job, examine
Aaron in Numbers 17, Saul in I Samuel 13:8-14, and the seven sons of Sceva
in Acts 19:13-16. What do each of these verses have to say about selecting a
person for a job?
Note: Examining these verses as they relate to selecting someone to fill a
position in no way suggests that man’s approval is equal to God’s anointing.
See II Samuel 13-20 to review the outcome when Absalom is not anointed
by God.
Page 215
Matching
Match the answers by writing the correct letter in the space provided
____ 1.Koinonia
a.When an organization looks to fill available jobs with current or internal employees
____ 2.Americans with Disabilities Act
(ADA)
b.Includes base compensation, pay incentives, and benefits
____ 3.BFOQ rule
c.When an individual chooses a career as a lifetime profession
____ 4.Strategic human resource
planning
d.The process of establishing programs or procedures to implement HR strategies
____ 5.Behavioral interview questions
e.Describes the minimum characteristics and qualifications to perform a job
____ 6.Employment process
f.Aligns the strategies of the human resources function with the mission, goals, and objectives of the
organization
____ 7.Internal recruiting
g.Is conducted at the employee’s worksite and is monitored by a supervisor or senior employee
____ 8.Job description
h.Focuses on hypothetical situations
____ 9.On-the-job training (OJT)
i.Includes classroom training with live instructors, online videos, or workbooks
____ 10.Employee compensation
j.The final stage of the human resource implementation strategy where evaluation of policies,
programs, and activities occurs
____ 11.EEOC
k.Individuals who provide career guidance, advice, and help
____ 12.Off-the-job training
l.Prohibits employers from obtaining information regarding a physical or mental disability that could
interfere with a job
____ 13.Job specification
m.Focuses on behaviors exhibited by the interviewee in the past
____ 14.Biases
n.Is a word found in the Bible and has been connected to mentoring efforts within organizations
____ 15.Mentors
o.When an individual experiences different jobs that build on the previous jobs to provide a broad
base of experience
____ 16.Steady-state career path
p.A list of responsibilities and tasks of a specific position
____ 17.Strategic alignment
q.Involves recruitment, selection, orientation, training, performance management, compensation, and
benefits
____ 18.Accountability
r.Can create disharmony in the workplace
____ 19.Spiral career path
s.Allows for the hiring of an employee based upon race, gender, age, and national origin
____ 20.Situational interview questions
t.Is responsible for enforcing anti-discrimination laws217
Page 217
Test Your Knowledge
Analyze the questions and select or write the answer based on the reading of
the chapter material
1. The Human Resource department is responsible for advising the
leadership of an organization in:
a. Which methods of advertising will be most effective to
buy operational resources
b. Oversight of the operations process
c. The types of training and development programs offered
to employees
d. The oversight of resource allocation between
departments
e. All of the above
2. All HR managers participate in the following activities EXCEPT?
a. Training
b. Hiring
c. Developing
d. Financing
3. The planning process includes job analysis, ________, and job
specification.
a. Job description
b. Job enlargement
c. Job development
d. None of the above
4. Which of the following is NOT a step in the employment
process?
a. Recruitment
b. Orientation
c. Organization
d. Compensation
5. ______is the practice of building a pool of qualified job
candidates?
a. Selection
b. Recruitment
c. Interviewing
d. Orientation
6. A disadvantage of internal recruiting is?
a. The applicant’s true work ethic is unknown
b. The recruitment process is more expensive
c. The applicant already knows the organization and its
policies
d. Employees may expect promotions are based on
longevityPage 218
7. Recruitment requires?
a. Identification of the abilities needed to perform the job
successfully
b. Determination of how the job will be advertised to deter
unqualified applicants
c. Ensuring that the advertising and applicant pool meets
the EEOC standards
d. All of the above
8. Which of the following is an example of an advantage of external
recruiting?
a. Recruits bring new ideas to the organization
b. The applicant is a known entity whose work habits are
documented
c. Is cheaper than internal recruiting
d. Both B and C
9. Studies report that ____ of all resumes contain some lies.
a. 45%
b. 54%
c. 44%
d. 64%
10. ______tests should be based upon a thorough job analysis
and measure an applicant’s physical, mechanical, mental or
clerical abilities.
a. Personality
b. Performance
c. Comprehension
d. Ability
11. If an applicant is asked to manipulate data in an Excel file or
write a simple code, then the applicant is performing a(n)?
a. Ability test
b. Performance test
c. Comprehension test
d. Personality test
12. Which of the following is NOT an example of a BFOQ ?
a. Mandatory retirement ages for safety reasons
b. A Church pastor being Catholic in a Catholic church
c. Female employees employed as a female bathroom
attendants
d. U.S. Citizenship is required
e. A Lutheran janitor working in a SynagoguePage 219
13. Which of the following should always be discussed during an
effective interview?
a. The job applicant’s qualifications
b. The job applicant’s age
c. The job applicant’s citizenship
d. The job applicant’s disabilities
14. All structured interviews should have questions that?
a. Are open-ended
b. Are focused on abilities
c. Are based on job analysis
d. Ask “what would you do?”
15. ______interview questions focus on hypothetical situations?
a. Situational
b. Dynamic
c. Behavioral
d. Development
16. On-the-job training might include?
a. Classroom training with live instructors
b. Online videos
c. Workbooks
d. Serving as an assistant
17. Employee training involves educating employees so that they are
prepared for their future within the organization.
a. True
b. False
18. The three elements of employee compensation are?
a. Base compensation, promotion incentives, and benefits
b. Commission sales, pay incentives, and benefits
c. Base compensation, pay incentives, benefits
d. None of the above
19. Performance appraisals are important because they?
a. Inform management if employees are not meeting job
requirements
b. Prevent employees from understanding how they are
doing
c. Helps supervisors determine what training or
development is needed
d. Help management make decisions about pay raises,
bonuses, or promotionsPage 220
20. Compensation affects an individual?
a. Physically
b. Economically
c. Spiritually
d. All of the above
21. All of the following are organizational factors that influence
the level of compensation and benefits offered by an organization
EXCEPT?
a. Industry
b. Reward structure
c. Kind of business
d. Size of the company
22. The ______ is responsible for conducting EEOC
enforcement litigation under the Title VII of the Civil Rights act
of 1964.
a. Supreme Court
b. General Counsel
c. Executive Branch
d. OSHA
23. The third step in the strategic human-resource
implementation strategy is?
a. Accountability
b. Strategic alignment
c. Leadership and knowledge management
d. Talent management
24. During the ______ stage of implementing a human-resource
strategy, an organization’s HR managers seek to promote a
diverse, and high-performing workforce.
a. Strategic alignment
b. Results-oriented performance culture
c. Talent management
d. Accountability
25. ______ contains information about the knowledge, training,
education, and skills necessary for a particular job.
a. Job specification
b. Job analysis
c. Job description
d. Job listingPage 221
26. Which of the following is NOT an example of valuing diversity
in the workplace?
a. Creating a workplace that respects differences
b. Focusing on group activities and less on individual
contributions
c. Creating a work environment that maximizes employee
potential
d. Recognizing individual contributions
27. A hostile work environment exists when an employee
experiences workplace harassment that includes an offensive,
intimidating, or jovial atmosphere, created by an individual in
the workplace.
a. True
b. False
28. Which of the following are types of employee career paths?
a. Longitudinal, spiral, steady-state
b. Linear, circular, suspended-state
c. Vertical, corkscrew, steady-state
d. Linear, spiral, steady-state
29. When an electrical engineer gets promoted to engineer
manager and then transitions to the director of Human
Resources, the employee is considered to have taken a?
a. Linear career path
b. Horizontal career path
c. Spiral career path
d. Vertical career path
Chapter 8
Managing and Leading
Operations
Page 224
OPERATIONS MANAGEMENT
Earlier chapters discussed the functions of management: Planning, Leading,
Organizing, and Controlling. The functions of management are
accomplished through the coordinated efforts of working with others, and
it is through these functions that a manager sets goals for the organization,
determines how to meet those goals and performs analysis to determine if
the goals have been met. An organization’s operations are the production of
its goods or services, so operations management is about producing those
goods or services using the most efficient and effective methods available.
Operations management must consider the acquisition, development, and
utilization of resources and can include decisions such as determining the
location of manufacturing plants or transportation hubs to project
management methods, supply chains, production scheduling, inventory
management, or equipment maintenance policies.1 Operations
management is the implementation of all the functions of management.
Some common issues experienced by those who practice operations
management are:
• reducing the development and manufacturing time for new
goods and services
• achieving and sustaining high quality while controlling cost
• integrating new technologies and control systems into existing
processes
• obtaining, training, and keeping qualified workers and managers
• working effectively with other functions of the business to
accomplish the goals of the firm
• integrating production and service activities at multiple sites in
decentralized organizations
• working effectively with suppliers at being user-friendly for
customers
• working effectively with new partners formed by strategic
alliances2
Practicing organizational management in the most efficient and effective
manner means being proactive regarding not only these common issues,
but also being efficient and effective in every step in the transformation
process of products or services in a planned and coordinated manner. Total
Quality Management (TQM) is a purposeful technique that works to ensure
complete satisfaction of both the internal and external customer and in
“doing the right things right, the first time”. Total quality management
(TQM) is a cycle of continuous improvement that is based upon the work of
W. Edwards Deming, but the work of Frederick Taylor and Frank and
Lillian Gilbreth and their work in Scientific Management is also evident.
TQM is the idea that although perfection cannot be obtained, an
organization must strive for it. Two very popular methods used to
implement TQM, The Toyota Production System and Six Sigma, will be
explored in this chapter.
Toyota Production System
Toyota is recognized as a leader in automotive manufacturing and credit
can be given to the system that was developed through trial and error
between 1948 and 1975, The Toyota Production System (TPS). TPS, which
is sometimes referred to as a lean manufacturing, is based upon two
concepts: Jidoka and Just-in-Time.3
The first concept, Jidoka, can be roughly translated as “automation with a
human touch” and is the ability for those working on the front line to stop
equipment immediately when a problem occurs, so as to prevent defects
from being produced. Equipment operators correct the problem and
production can begin again.
Page 225The foundational necessity for TQM to work is that all parts, both
made and supplied, meet mandatory quality standards. Some tools that are
connected with Jidoka:
• Andon: A visual control that displays the current state of work (i.e.
abnormal conditions, work instructions, and job progress information).
• Pokayoke: Low cost, highly reliable devices, used in Jidoka that will
stop processes in order to prevent the production of defective parts.4
Implementation of the second concept, Just-in-Time (JIT), means that “each
process produces only what is needed by the next process in the
continuous flow”. An organization using the JIT process will “make only
what is needed, when it is needed, and in the amount needed” and thus
eliminate extra inventory caused by overproduction, which can be
considered waste.5 A JIT inventory system frees up monetary resources
that would be used to purchase inventory and means that less space is
required for storage of the inventory. JIT is a benefit to organizations, as
inventory may become obsolete, the cash used to purchase inventory can
be put to other uses and money once used to store excess inventory may be
saved by decreasing overhead paid to rent and utilities. Other examples of
waste are: over-processing, motion, waiting, transportation, inventory,
rework of defects and unused employee genius.6
The goal of the Toyota Production System (TPS)is to efficiently produce
quality products through the elimination of waste, inconsistencies and
unreasonable requirements. Some concepts that are connected to JIT:
• Heijunka – the overall leveling, in the production schedule, of the
volume and variety of items produced in given time periods.
Heijunka is a prerequisite for JIT delivery.
• Kanban – the key control for JIT production. Kanban serves as a
visual control tool to check for overproduction and to detect
irregular processing speeds and is a tool to perform kaizen.
• Kaizen – a system of continuous improvement in which instances
of Muda (waste) are eliminated one-by-one at a minimal cost.
Kaizen is performed by all employees in an organization.
• Muda – translated as waste. There are seven types of muda:
overproduction, waiting, conveyance, processing, inventory,
motion, and correction.
• Standardized Work – all jobs are organized around human
motion which creates an efficient production sequence without
any muda.7
According to Toyota, the three desired outcomes of the TPS are:
1. provide the customer with the highest quality product, at the
lowest possible cost, in a timely manner with the shortest
possible lead times.
2. provide workers with job satisfaction, job security and fair
treatment.
3. provide the company flexibility to respond to the market, achieve
profit through cost reduction activities and long term
prosperity.8
In TPS, responsibility is delegated to the lowest possible levels, and
employees are responsible for improving their own work. Because TPS is
fully integrated into its culture, Toyota has been able to consistently
“introduce change to its operations, while keeping it funning at full tilt.”9
Paul Akers, the owner of FastCap, implemented the concepts of the Toyota
Production System and credits lean manufacturing with the success of his
company. Each day the workers at FastCap look for ways to eliminate waste
and “fixing what bugs” them.
Page 226Akers has even added videos to the FastCap website regarding
how to implement TPS at work and home.10 Lean Principles that have been
institutionalized at FastCap are:
1. Encourage people’s creativity and respect for people.
2. Ideas are always a team effort.
3. Admit you are wrong at least 2 times a day.
4. Improvements should be ongoing because waste is like gravity.
(Gravity pulls at you 24/7 and if you don’t have a method to
overcome it, you will lose and it will win.)
5. 90% of everything you do is waste.
6. Never look at the waste of others; you will always have plenty of
your own.
7. Lean is not about working fast, but rather working smooth.11.
Organizations of all sizes are implementing the Toyota Production System
and finding that the results are beneficial, to both the bottom line through
cost savings brought about by the elimination of excess inventory and to
employee satisfaction through delegation of responsibility throughout all
levels of the organization.
Six Sigma
Motorola developed Six Sigma in the 1960s with the goal to improve
customer satisfaction, decrease product defects and increase efficiency and
effectiveness. Six Sigma processes focus on saving time, improving quality
and lowering costs by improving the quality of outputs, identifying and
removing the causes of defects and minimizing variability in manufacturing
and business processes. Utilizing Six Sigma, Motorola achieved success
“through benchmarking competitors, soliciting new ideas from employees,
changing reward plans, adding training, and revamping critical
process.”12 Six Sigma provides the processes necessary to enable
improvement to business performance through alignment of its processes,
people and strategy with the customer.
The Six Sigma improvement model, represented by the acronym, DMAIC, is
a problem solving process that has adapted the principles of Scientific
Management to process improvement. When a Six Sigma project is
implemented, there are specific quantifiable financial targets that must be
met and a defined series of steps that must be followed. The 5 steps in the
DMAIC process are:
1. Define the purpose, scope and outputs and then define quality
2. Measure the process and collect data
3. Analyze the data ensuring reliability (the results can be repeated)
4. Improve by modifying or redesigning existing processes or
procedures
5. Control the new processes to ensure increased performance
levels are maintained
The widely accepted definition of Six Sigma is a process that produces
below 3.4 defects per million opportunities (DPMO), or 99.99997 percent
defect free, which includes process, procedure or service. While the goal is
Six Sigma, most organizations do not operate at that level:
• Three Sigma - 66,800 DPMO
• Four Sigma - 6,210 DPMO (relatively efficient)
• Five Sigma - 230 DPMO (world class efficiency)
• Six Sigma – 3.4 DPMO (statistical perfection)
However, the goal of Six Sigma is significant, as the difference in the levels
at which an organization operates is important to the bottom line:
Page 227GE, which launched a Six Sigma initiative in late 1995, says the
$300 million invested in quality improvement in 1997 will deliver some
$400 million to $500 million in savings. Quality improvement, under the
disciplined rubric of Six Sigma methodology, will define the way we work,”
the company announced in its 1996 annual report. A three- to four-sigma
level, average for most U.S. companies, can cost a company as much as 10
percent to 15 percent of its revenues. For GE, that would mean $8 billion to
$12 billion.13
Kotter’s eight step change model is integral to deploying a Six Sigma
transformation. As an organization implementing Six Sigma will be making
substantial changes to the way it operates the internal and external
systems of its business, leadership must consider the human element in
those changes and ensure that the change is successful. The steps in
Kotter’s change model are as follows:
1. Establish a sense of urgency;
2. Create a guiding coalition;
3. Develop the vision for change;
4. Communicate the change vision for buy-in by stakeholders;
5. Empower for broad-based action;
6. Generate short-term wins;
7. Change what does not fit the vision – do not let up; Incorporate
the changes into the culture of the organization.
People who are knowledgeable in Six Sigma methods can achieve special
designations, known as “Belts.” Different colors of belts are used to
describe the knowledge of the people who have earned those belts.14
• Yellow Belt – the most basic designation, but those who are
Yellow Belts must have a good foundation of Six Sigma
principles. Those who hold this designation participate as a team
member to review process improvements.
• Green Belt – known as the worker bees, as those with this
designation assist with the collection of information and
analysis. May lead Green Belt improvement projects.
• Black Belt – those with this designation lead problem-solving Six
Sigma projects within their organization. When a project is over
the black belt will normally return to their regular duties.
• Master Black Belt – A highly trained black belt, who functions at
the organizational and program level by developing strategic
direction. This is normally a full-time position.
The desire to eliminate waste and improve performance is the foundation
of Six Sigma processes. Through the improvement of processes that occurs
when an organization works toward obtaining Six Sigma an organization
achieves competitive advantage. To operate an organization efficiently and
effectively, an operations manager must understand the transformation
process. In the transformation process, an organization obtains raw
materials, turns those materials into products and makes the product
available to the customer. The details of the transformation process are
found in the design of the organization’s goods and services, supply chain
management, inventory management and transportation management. A
successful Six Sigma implementation is one that delivers a reasonable
return on investment (ROI).
Under the leadership of CEO Jack Welch, GE was given the corporate goal to
obtain Six Sigma. The process began when all exempt employees were
required to take a Page 228thirteen-day, one-hundred-hour, Six Sigma
training program, in addition to completing a Six Sigma project. Then, GE
connected Six Sigma goals to outcomes by linking bonuses and promotions
to quality improvement. Any employee who wanted to be considered for
promotion had to attain a Green Belt, and 40 percent of management
bonuses were based on successful implementation of Six Sigma goals.
“Application of Six Sigma at General Electric brought a marked culture
change in the attitude of individual employees toward quality, translating
into dramatically lower service-call rates, and improved product reliability.
The Six Sigma effort at GE contributed $700 million in corporate benefits in
1997, just two years into the program.”15
Design of Goods and Services
Another focus of operations management is the efficient and effective
design of goods and services. Organizations exist to offer a product or a
service, and managers must carefully consider a myriad of factors in order
to ensure that those products or services go from an idea, through the
transformation process and result in satisfied customers. Six aspects in the
design of goods and services that must be given attention by managers are:
1. product design process
2. product development process
3. economic analysis of development projects
4. designing for the customer
5. measuring product development performance and, product life
cycle.
Product Design Process
A widely recognized tool utilized in the planning process for a new product
is The House of Quality Matrix (so called as the result looks like a
house).The House of Quality Matrix “. . . translates customer requirements,
based on marketing research and benchmarking data, into an appropriate
number of engineering targets to be met by a new product design.”16 The
matrix connects what a customer wants to how the organization is going to
meet those wants. The format of the matrix is comprised of six
components: “customer requirements, technical requirements, a planning
matrix, an interrelationship matrix, a technical correlation matrix, and a
technical priorities/benchmarks and targets section.”17. The result of the
analysis that goes into the different components of the matrix is that the
focus is on the customer and what the customer wants, which leads to a
satisfied customer.Page 229
House of Quality Matrix
Page 230The evaluation completed as a result of the House of Quality
Matrix provides analysis of the technical components and critical issues,
which are determined prior to finalizing the design of a product. Careful
evaluation is completed to identify critical parts, necessary quality control
and manufacturing requirements that will create a product that fulfills the
needs of customers and the organization. The essential effect of this matrix
is that the actions of the organization are determined by the customer’s
wants and needs, which should lead to increased customer satisfaction.
Product Development Process
To determine what product, if any, should be produced, a series of
deliberate steps must be taken to ensure innovative, rapid and effective
product development through a strategic approach. Since 95 percent of
new products in the U.S. fail, the ability to produce new products based on
consumer needs, technology and the product life cycle is essential for a
company’s success. Decisions made during the product development
process that can lead to failure of a new product include ignoring or
misinterpreting market research, overestimating market size, high
development costs, poor design, incorrect positioning, ineffective
advertising, wrong price, insufficient distribution support, and, competitors
who fight back.18
Each product brought to market goes through the same basic process. Steps
in the process by which an idea is first proposed, to the introduction of the
product in the market should be followed in order to produce a viable
product and reduce the risk of product failure.
Idea Generation and Screening
In the idea generation and screening stages of product development, ideas
for a new product are gathered from all types of sources, some of which are
competitors, suppliers, employees, customers, and social media. During
these steps of the product development process, the objective is to review
ideas and eliminate both any that are not practical and will not provide a
profit for the organization. Opinions are collected from the opinions of
workers, customers and other businesses, and data is collected from
legislation, marketing surveys, and competition. Questions considered
during this phase:
• Will customers benefit from the product?
• What is the size of the target market and what are the growth
forecasts for that target market?
• What is the competitive pressure for the product?
• What are the market trends and industry sales for the product?
• What are the barriers to entry for this product? (laws,
regulations, scarcity of raw materials, etc.)19
Concept Development
In the concept development stage of product development, an organization
should conduct an analysis of the marketplace in order to determine if
there is a viable market for the product; in essence determining what the
market segment will be for the product. That market niche will determine
the remaining steps in the product development process, as this will
determine if the product can be manufactured and delivered to the
customer at a target price that provides a profit for the organization. Once
an organization determines Page 231that it will proceed with the
development of a product, a prototype is manufactured that will allow
market testing. With favorable results of the marketing tests, and with the
research conducted during this stage, the organization will proceed with
plans to launch the product and being the planning of a marketing
campaign.20
Product Life Cycle
After a product is developed, its life begins and managers must be prepared
to develop strategies for oversight of products based upon their place in the
product life cycles. The product life cycle (PLC) includes four distinct stages
that takes a product from introduction, through growth and maturity and
then into decline. The time span of a product through this cycle may be
months (as in computers) or years (as in cars). All products have life cycles;
one need only take a look at the products in a grocery store. Two examples
to consider: detergents brands are constantly releasing new formulas and
cookies are being made in all sorts of variations of the original (for example
double-stuff or red-colored cream Oreo cookies that are available during
the holidays). These new products are introduced to create renewed
interest, to divert attention away from the competition’s product and to
renew the life cycle.
During the introduction phase of the product life cycle, the goal is to build
customer awareness of the product and convince them to buy. Normally
products are still being refined during this stage, as customers may still be
defining what they want. Pricing strategies differ, as new products can be
priced high in order for the organization to quickly recover development
costs or prices can be set low in order to penetrate the market. During this
phase of the PLC, the organization works to build brand awareness and to
convince wholesalers and/or retailers to carry the product.
A product enters the growth phase when there is rapid growth in revenue
as customers becomes aware of the product and sales increase.
Distribution may be expanded and an organization may need to add
capacity to meet the increase in product demand. Competitors begin to
enter the market during the latter part of the growth phase and as a result
there may be competition in pricing and the organization may increase the
budget for product promotion. The price of the product may be reduced
because of the competition or maintained at higher levels if the demand for
the product remains high.
While sales continue to increase during the maturity phase, they do so at a
slower pace than earlier stages of the PLC. This is the most profitable stage;
however, the products of competitors may be very similar, so an
organization must focus on product differentiation. The organization will
focus on both retailers and the end user customer of their products to
increase sales during this stage. Retailers may be provided with incentives
to give the product more or premium shelf space over competing products.
Building brand loyalty is important during this stage and organizations will
try to motivate customers to switch from a competitor’s product. Price
reductions may be a necessary response to remain competitive.
During the decline stage, sales decrease because the market becomes
saturated with similar products, the product becomes obsolete, or there
has been a change in customer tastes. An organization has some choices to
make when a product enters the decline stage of its PLC. It may decide to
continue to offer the product and focus on a niche market, revitalize the
product by adding new features, or make a decision to discontinue the
product.21 Page 232
Product Life Cycle22
Supply Chain Management
Supply Chain Management is the oversight of all the activities that are
involved in providing the end user with a good or service. Managers must
coordinate the flow through the supply chain, which includes upstream
processes of raw materials and the relationships with vendors, to securing
materials, transportation processes and all of the downstream processes
that take the product or service to the customer. Generally, managers with
oversight of the supply chain are concerned with the process to procure
materials, information and services as they move through the system from
supplier, through the transformation process, and ultimately delivery of the
product or service to the customer. The goal of effective supply chain
management is to decrease costs, reduce risks, ensure ethical behavior and
determine the best supply chain strategy for the organization. Strategies
can include:
The number of suppliers to pursue.
There is some benefit in negotiating with many suppliers. The organization
can request bids from numerous suppliers who understand they are in
competition with others. The organization can then accept the lowest bid.
However, there are also benefits of pursuing only a few suppliers. When an
organization looks to a few suppliers, relationships can be built with
suppliers who can be encouraged to partner in JIT systems or other
technological expertise.
Whether the organization should develop backward or forward vertical
integration.
Vertical integration is the control an organization has over its upstream
suppliers and/or its downstream buyers. An organization must consider
whether it should produce goods or services that were previously
purchased or perhaps even buy a supplier or distributor. Upstream vertical
integration is when an organization controls its suppliers used in the
production of its products or services. For example, an energy company
that owned an oil rig and refinery would ensure the organization would be
able to supply gas stations with a consistent quality of gasoline.
Downstream vertical integration is when the organization has control of
distributors and/or retail outlets, so if the energy company also owned gas
retailers it would have control over where its product was sold.Page 233
A review of possible joint ventures
As there is a lot of risk inherent with vertical integration, an organization
may choose to pursue joint ventures by partnering with another company.
To enter a joint venture, organizations agree that for a set period of time
and through contribution of equity, there will be shared revenues, expenses
and assets.
Inventory Management
Effectively managing inventory through proper oversight can add flexibility
to the organization’s operations. The types of inventory an organization has
can run the range from raw materials inventory that is work-in-progress,
maintenance/repair/operating inventory through finished-goods
inventory. There are many methods that use quantitative models to ensure
optimal inventory levels an organization should hold and which provide
information regarding reorder points, the quantity of goods to
manufacture, and quality discount models. All of this serves to bring about
optimal levels of inventory and provide a just-in-time inventory system.
Transportation Operations
Management must consider how goods will be transported between supply
points to the points of demand in order to increase efficiencies through
minimization of production and transportation costs. Modes of
transportation are railroad, trucking, ship and air transport, and each has
advantages and disadvantages:
• Railroad: handles most materials and is a good choice for shorter
distances. Trains can handle any size of shipment, are available
in most areas, and have specialized services (such as refrigerator
cars and livestock transport). It is a relatively low cost mode of
transportation.
• Trucking: if shipping short distances with small quantities,
transportation via truck is the optimal mode to utilize.
• Shipping: is the least expensive mode of transportation and the
choice when bulky, nonperishable materials must be transported
over long distances. However, it is very slow and is limited
because there must be access to ports.
• Air transport: The advantage to using air transport is the speed of
delivery over long distances, but that speed does come at a cost.
However, when the merchandise is small, fragile or has a high
value, this mode of transportation can reduce inventory and
improve organizational efficiencies.23
When determining the mode of transportation that will provide efficiencies
and allow for optimal effectiveness, managers must consider many factors.
Those factors can include the size of the product being shipped, whether
the product is fragile or perishable, cost per unit shipped, total shipment
cost, shipping time, and risk involved in the shipping method. There is not
one optimal method of transportation; a manager must consider a range of
variables prior to determining the method, or combination of methods, that
should be used to transport goods.
Project Management
A subset of operations management is project management. Operations
management is ongoing oversight without an established end. Project
management is, “usually temporary, with a defined beginning and end, and
is usually time-constrained, and often constrained Page 234by funding or
deliverables.”24 Managers who have oversight of the operations of service
or manufacturing may also be involved in project management.
Project management is based upon the work of Frederick Taylor and Frank
and Lillian Gilbreth, theories of scientific management and Henry Gantt,
who is known as the father of planning and control techniques and is
famous for the Gantt Chart as a project management tool.25
Projects have distinct beginnings and endings, and each project typically
goes through a series of planned steps. The stages of project management:
• proposal – the idea or need is identified and the objectives are
defined.
• initial investigation – a brief overview of the possible
requirements and solutions. The scope, time frame and scale of
resources should be determined.
• detailed investigation – performance of a feasibility study to
determine the options and define solutions.
• development and testing – building the solution. A Work
Breakdown Structure Document (WBSD) is created, which forms
the basis of the remainder of the project. The WBSD plans, sets
budgets for resources (wages, overhead, materials and supplies,
equipment, depreciation, administration, etc.), sets in place
control processes, develops timelines to determine what can be
done in sequential processes and what may be accomplished in
overlapping processes, and assigns responsibilities.
• trial – pilot of the solution. Aspects of the project, costs,
timelines and quality are monitored to ensure that the progress
is being made toward the solution.
• operation and closure – implementation and then ending of the
project.26
• evaluation – the final step should always be to measure the
project’s level of success and determine what lessons can be
learned. Any mistakes should be noted so they will not be
repeated in future projects. Also, any skills or techniques that
can be utilized in the future should be recorded, using questions
such as what should be done differently in the future?
Whether the project is to produce a physical product, plan an event or
produce a service, the process will go through these stages. An example of a
project would be organizing a vacation:—when planning, one has to
consider budget, when vacation days are available, the types of places to go
(beach, mountains, resort area, spa), the requirements to get to the
destination (Is a passport or visa required?), what mode of travel to take to
the vacation spot, what activities to participate in—(boating, sightseeing,
resting by the pool, eating at gourmet restaurants, eating in?) The planner
must ask when do reservations need to be made? Then, upon return home,
evaluation of the trip is typical: what did we really enjoy doing? Do we want
to stay at that hotel chain again? Should we plan additional activities, or
plan more free time? All the activities that go into planning a vacation, the
activities that are done while on vacation, and the after action review when
the vacation is over can be considered project management.
A common tool used in project management is Program (or Project)
Evaluation and Review Technique (PERT). First developed by the United
States Navy in the 1950s, it is used to represent and analyze tasks involved
in a project. Projects require a series of activities, some of which must be
performed sequentially and others that can be performed parallel with
other activities. An effective PERT review can determine if resources, such
as Page 235time and/or budget, can be reduced without sacrificing project
outcome of quality. The information gained from this analysis is used to
formulate a Gantt Chart, which is used to schedule resources and allocate
time for a project.
A Gantt Chart is a bar chart that shows how work for a project will be
scheduled through to its completion. Each step in a project is allocated a
specific amount of time that is represented on the chart. Each bar is a
different activity, which notes the earliest start date and the estimated time
for completion of the task. The chart is then completed by considering
whether each task can be performed simultaneous to other activities or if it
must be performed sequentially, and if sequential, which other tasks must
proceed and which tasks must follow.27
A simple Gantt Chart would be used in construction
The Project Triangle
All projects are limited in terms of time, cost and scope, which together are
project constraints and referred to as the Project Triangle, which is a good
way to keep these three aspects of a project in perspective. None of these
constraints can be changed without affecting the other two. A common
example of this concept is a project with the constraints of fast, good and
cheap. Fast refers to the time required to deliver the product, good is the
quality of the product, and cheap is the total cost of designing and
manufacturing the product. This concept applies equally to manufacturing
a product or designing a web page. The project triangle reveals that the
three constraints are interrelated, and there are usually tradeoffs in any
project: “When asked to design something quickly and to a high standard, it
will not be cheap. When asked to design something quickly and cheaply, it
will not be of high quality. When asked to design something to a high
standard and cheaply, it will take a long time.”28 Page 236
Project Creep
There are sobering statistics that show only one-third of projects are
considered successful A review of projects revealed:
• 32% of all projects were successful, meaning delivered on time,
on budget, with required features and functions.
• 44% were challenged; these projects were late, over budget,
and/or with less than the required features and functions.
• 24% failed which included projects that were canceled prior to
completion or projects that were delivered and never used.29
Although not all of the project failures or challenges were due to project
creep, it does play a role in the problems experienced by project teams.
Each project must have detailed parameters under which it operates and
the scope of a project identifies all of the project’s deliverables and
boundaries. The project team is responsible for operating within the stated
boundaries and producing the required deliverables, but even when the
scope of a project is clearly defined, requests for new features may be
requested that causes an increase in time, budget and/or resources. It is a
challenge to prevent scope creep, but some common reasons that a project
experiences it are:
• Poor requirements analysis—The internal or external customer
may not know what they want. Instead of providing details, the
project team may only receive a vague, unclear idea.
• Poor communication—The project team and customer do not have
a common understanding of what the project is to accomplish.
• Not involving the customer early enough—Without consulting the
internal or external customer, the project team believes they
know what the customer wants.
• The complexity of the project is underestimated—There is an
overconfidence in the skills and abilities of those who are a part
of the project team.
• Lack of change control—Most projects will experience scope creep
and a process should be in place to manage project changes.
• Gold plating—This refers to the practice of intentionally
exceeding the scope of a project because there is a belief that
value will be added. Such changes increase the time and budget
required.30
“Succeeding as a project manager requires that you complete your projects
on time, finish within budget, and make sure your customers are happy
with what you deliver. That sounds simple enough, but how many projects
have you heard of (or worked on) that were completed late, cost too much,
or didn’t meet the needs of their customers?”31
CONCLUSION
Operations management is concerned with not only with internal
operations, but also how those operations affect internal and external
customers. Jan Carzon of Scandinavian Airways coined the concept, The
Moment of Truth, which is based upon the fact that “Anytime a customer
comes into contact with any aspect of a business, however remote, is an
opportunity to form an impression.”32 Moments of truth are when the
front line employees act in such a way that customers come back again
and again, and the value is the perception that the customer takes away
when they use the company’s products or services. Such critical moments
between the customer and the organization determine customer
satisfaction and are opportunities to gain or lose business. According to
Carzon, Page 237organizations that understand the necessity of being
customer-driven and business-oriented will end up being flatter, with
fewer levels of management because the individual on the front line with
the customer are the ones who are managing the moments of truth and
should have the authority to act without the direct supervision of
managers.33
Operations and project managers must be attuned to the characteristics
of the organization and the demands placed on them to increase
efficiencies and effectiveness. There are many tools that can be utilized to
plan operations and projects that will increase efficiencies and save the
organization time, effort and/or money, and a good manager will
understand how to utilize those tools and how to lead.
Page 239
The Christian Perspective
Operations management is the processes that attempts to bring order to an
organization, which aligns with biblical concepts and truths. There are
multiple verses which show God is not a God of confusion.
“Thus says the Lord, Who gives the sun for light by day And the fixed order
of the moon and the stars for light by night, Who stirs up the sea so that its
waves roar; The Lord of hosts is His name: “If this fixed order departs From
before Me,” declares the Lord, “Then the offspring of Israel also will cease
from being a nation before Me forever.” Jeremiah 31:35–36 “Let all things
be done decently and in order” (I Corinthians14:40).
Read 1 Kings 6:11-12 What do these verses say is a requirement for the
effective management of a project? Use concepts from this chapter to
answer.
Psalm 127:1 According to this verse, what should be the motivation of the
believer in any project? Use concepts from this chapter to answer.
Page 240Read Acts 11:27 – 30; Acts 15:32-35; Acts 15:30-41. How do these
verses address operations management? Use concepts from this chapter.
Read Ecclesiastes 4:9-12 What wisdom does this verse impart regarding
successful operations management? Use concepts from this chapter.
Read the account of Noah in Genesis 6 – 7. Address at least 4 specific stages
of project management discussed in this chapter that are evident in this
scripture.
Page 241Read Nehemiah 2- 7. Address at least 6 specific stages in project
management discussed in this chapter that are evident in this scripture.
Page 243
Matching
Match the answers by writing the correct letter in the space provided
____ 1.Transformational process
a.Also referred to as lean manufacturing
____ 2.Total Quality Management
(TQM)
b.Is temporary, has a defined beginning and ending, is time-constrained, and has constraints on funding
____ 3.Jidoka
c.Low cost, highly reliable devices to stop a process in order to prevent the production of defective parts
____ 4.Andon
d.A visual control that displays the current state of work
____ 5.Pokayoke
e.Translates customer requirements into an appropriate number of engineering targets to be met by a new
product design
____ 6.Kanban
f.Project constraints in terms of time, cost, and scope
____ 7.Kaizen
g.The stage of project management where aspects of the project, costs, and timelines, and quality are
monitored
____ 8.Muda
h.When an organization turns raw materials into products which are then made available to customers
____ 9.DMAIC
i.The oversight of all the activities that are involved in providing the end user with a good or service
____ 10.House Quality Matrix
j.Where each process produces only what is needed by the next process in the continuous flow
____ 11.Toyota Production System
(TPS)
k.“Automation with a human touch”
____ 12.Product life cycle (PLC)
l.A system of continuous improvement where waste is eliminated at minimal cost
____ 13.Supply chain management
m.A problem solving process that has adapted the principles of Scientific Management to process
improvement
____ 14.Just-in-Time (JIT)
n.The practice of intentionally exceeding the scope of a project
____ 15.Project management
o.A process that produces below 3.4 defects per million opportunities
____ 16.Trial
p.The key control for JIT production
____ 17.Gold plating
q.A cycle of continuous improvement that is based upon the work of Deming that seeks to ensure
maximum customer satisfaction
____ 18.Project Triangle
r.Also means “waste”
____ 19.Six Sigma
s.Program Evaluation and Review Technique that represents and analyzes tasks involved in a project
____ 20.PERT
t.The four stages of a product defined as introduction, growth, maturity, and decline
Page 245
Test Your Knowledge
Analyze the questions and select or write the answer based on the reading of
the chapter material
1. An organization’s operations are the production of its goods or
services.
a. True
b. False
2. Operations management must consider the ______,
development, and utilization of resources?
a. Acquisition
b. Adaptation
c. Purchasing
d. Processing
3. Which of the following is NOT a decision that operations
managers would need to make?
a. Determining the location of manufacturing plants
b. Deciding on project management methods
c. Supply chain and inventory oversight
d. The hiring and firing of employees
4. Which of the following is NOT a common issue experienced by
those who practice operations management?
a. Reducing the development and manufacturing time for
new goods
b. Achieving and sustaining high quality, regardless of cost
c. Obtaining, training, and keeping qualified workers and
managers
d. Working effectively with suppliers
5. The foundational necessity for TQM is that all parts made, not
supplied, meet mandatory quality standards.
a. True
b. False
6. Which of the following is not an example of Muda?
a. Overproduction
b. Waiting
c. Correction
d. Service
7. Providing the customer with the highest quality regardless of
cost, in a timely manner with the shortest possible lead times is
one of the desired outcomes of the TPS system.
a. True
b. FalsePage 246
8. Motorola is credited with the development of ______ to
improve customer satisfaction, decrease product defects and
increase efficiency and effectiveness.
a. TQM
b. Six Sigma
c. House of Quality Matrix
d. PLC
9. Which of the following is NOT one of the 5 steps in the DMAIC
process?
a. Analyze data to ensure reliability
b. Complete the new process to ensure increased
performance
c. Measure the process and collect data
d. Improve by modifying or redesigning existing processes
or procedures
10. DMAIC stands for?
a. Define the purpose, Measure the process, Analyze the
data, Improve by modifying, Control the new process
b. Determine the cause, Measure the process, Appoint
personnel, Improve by modifying, Control the new
process
c. Define the purpose, Maintain production, Analyze data,
Improve by modifying, Control the new process
d. Determine the cause, Measure the probability, Analyze
personnel, Improve the process, Control the outcome
11. Six Sigma is a process that produces below ______ defects per
million opportunities?
a. 2.8
b. 3.9
c. 3.4
d. 4.2
12. Four Sigma is considered?
a. World class efficiency
b. Statistical perfection
c. Relatively efficient
d. Not efficient
13. Which of the following is NOT one of the steps in Kotter’s
change model?
a. Formulate corporate culture
b. Establish a sense of urgency
c. Empower for broad-based action
d. Generate short-term winsPage 247
14. A manager who assists with the collection of information and
analysis would have a?
a. Yellow Belt
b. Green Belt
c. Black Belt
d. Master Black Belt
15. A manager who functions at the organizational and program
level by developing strategic direction would have a?
a. Black Belt
b. Yellow Belt
c. Green Belt
d. Master Black Belt
16. The desire to eliminate waste and improve popularity is the
foundation of the Six Sigma process.
a. True
b. False
17. Which of the following is NOT an aspect in the design of goods
and services?
a. Product life cycle
b. Designing for the customer
c. Environmental analysis of strategic projects
d. Product development process
18. Which of the following is a component of the House of
Quality Matrix?
a. Customer requirements
b. Technical requirements
c. An interrelationship matrix
d. None of the above are components
19. The tool/process that translates customer requirements into
an appropriate number of engineering targets to be met by a new
product design is?
a. TPS
b. PLC
c. House of Quality Matrix
d. JIT
20. Which of the following is a decision made during the product
development process that can lead to the failure of a new
product?
a. An effective price point
b. Misinterpreting market research
c. Accurately estimating market size
d. Effective advertisementPage 248
21. In the concept development stage of product development
ideas for a new product are gathered from all types of sources.
a. True
b. False
22. In the growth phase of the product life cycle, a product?
a. Receives customer awareness in an effort to increase
purchasing
b. Revenue and sales increase
c. The product becomes obsolete
d. Needs to be differentiated
23. The _______ phase of the product life cycle is the most
profitable.
a. Growth
b. Introduction
c. Decline
d. Maturity
24. The goal of effective supply chain management is to?
a. Maintain costs
b. Reduce risk
c. Disregard ethical behavior
d. None of the above
25. The strategies of effective supply chain management can
include:
a. The number of suppliers to pursue
b. Resource allocation
c. Transportation strategies
d. Marketing strategies
26. Which of the following is NOT a type of inventory?
a. Raw materials
b. Work-in-progress
c. Finished-goods inventory
d. Returned goods
27. ______ is the least expensive mode of transportation
a. Shipping
b. Air transport
c. Trucking
d. RailroadPage 249
28. When determining what type of transportation to use,
managers need to consider?
a. Cost per unit shipped, shipping time, perishability of
product
b. Total shipment cost, shipping time, shipping personnel
c. Risk of shipping method, how fragile the product is,
durability of transportation method
d. Shipping time, total shipment cost, bribery and legal
complications
29. According to a review on projects, _____ of the projects were
considered successful.
a. 56%
b. 39%
c. 19%
d. 32%
30. Poor communication and lack of change control are just two
reasons why a project might experience scope creep.
a. True
b. False
Running Head: RESILIENCY IN LEADERSHIP AND MANAGEMENT 1
Strategic Human Resource Management and Resiliency
Student’s Name
Course Name
Course Code
Institution
Date
RESILIENCY IN LEADERSHIP AND MANAGEMENT 2
While reading through Dee’s Resilient Leaders and Saterlee’s Organizational Management and
Leadership, strategic human resource management seems to be a topic where HR managers and
other leaders meet adversity, setbacks, and trauma. At the same time, they must recover and
develop processes, procedures, and programs to implement the needed HR strategies. Chapter
eight of Saterlee’s Organizational Management and Leadership highlights that HR managers
should complete and follow a meaningful and well-composed HR strategy. They should ensure
each component of talent management, training, and development programs are consistent with
organizational goals, architecture, and strategy. In addition to formulating and implementing a
strategic plan, Shen et al. (2020) note that other elements of management call for a resilient
leader as organizational uncertainties and risks cannot be solved at once.
Three Concepts
Strategic alignment, results-oriented performance culture, and leadership and knowledge
management are some of the issues that call for a resilient leader. Strategic alignment seems
challenging in the planning phase as it has to align human resource functions with an
organization's objectives, mission, and goals (Satterlee, 2013). The process appears challenging
when the organization involved is vast and widely distributed, and its complexity also increases
when complex analysis and measurement of HR programs are required.
In addition, HR managers are required to promote a result-oriented performance culture. During
this stage, there are necessary to maintain and implement effective performance management
systems and award programs to encourage a high-performing and diverse workforce.
Finally, leadership and knowledge management should be their concern to ensure continuity of
leadership and processes in an organization. They should establish procedures and leadership
continuity by identifying potential leadership gaps and addressing them accordingly. They
RESILIENCY IN LEADERSHIP AND MANAGEMENT 3
should then formulate and implement programs that promote learning and captures
organizational knowledge.
Discussion
Practical and robust strategic alignment among processes, human resources, and technological
components across an organization significantly impact objective achievement and the success of
a firm's supply chain. This has remained to be true over the years. Still, the current disruptive,
complex, and competitive business environment has made it more challenging to develop and
uphold this strategic alignment than ever before. Human resource, among other organizational
leadership organs, faces two significant challenges to achieve solid strategic management
(McAdam et al., 2019). Most leaders find it challenging to understand the linkage between
strategy-structure-implementation and the realism of applying strategic leadership across
strategy-structure-implementation. Besides, the rate of change, the magnitude and the depth of
the current disruptions, and the scope of business are impacting a leader’s ability to maintain
strategic alignment.
Strategy-Structure-Implementation must be done systematically and must contain business
strategy and its corresponding operations strategy. For this reason, managers must define the
product and service offerings, market, and value position. Besides, they must establish
complementary operation strategies with needed operational capabilities and the needed
operating model. The correct people-process-technology model has remained to be a challenge
over the years. As a result, organizations are not maintaining their strategic alignment. Due to
digitalization, the increased technology level brings complexity, volatility, differentiation, and
various channels, making it difficult to have a solid strategic alignment.
RESILIENCY IN LEADERSHIP AND MANAGEMENT 4
Results-Oriented Performance Culture focuses on output instead of individuals' process to
achieve personal and business goals. For instance, in the public sector, challenges arise when
close communication is required in addition to rigorous analysis and planning (Thi et al., 2020).
In addition, the implementation of this culture becomes more complicated when coordination is
required among stakeholders who have distinct priorities and needs.
Obsolete technology, easy access to information, and employee motivation are the significant
issues affecting leadership and knowledge management in most organizations. Leaders must
address these issues to ensure that the data collected help their organizations meet their strategic
goals. The tools they are using should keep pace with the current trending technology and ensure
that employees are actively sharing information they are supposed to be sharing.
Issues in leadership and knowledge management, strategic alignment, and Results-Oriented
Performance Culture defines how vital Human resource management is essential in every
organization, regardless of its size or location. These issues directly affect policies that guide the
organization as well as its employees. Ensuring that these issues are addressed is a complex
process that calls for a resilient leader (Kuntz et al., 2017). Without solid guidelines and a
foundation on handling employee and organizational issues, an organization may be vulnerable
to legal recourse and failure.
Biblical Integration
The Bible gives guides and tips for managing people and offers suggestions on how to behave in
cases of pressure and anxiety. I Corinthians 4:2, for instance, teaches us to have faith in
processes and people in our various leadership posts. Luke 12:47, in addition, teaches about
servanthood as its associated reward. Were a servant performing well or endures hardship, there
RESILIENCY IN LEADERSHIP AND MANAGEMENT 5
is always are a reward. In this case, an organization thrives, and everyone achieves the set
objectives and goals.
References
Kuntz, J. R., Malinen, S., & Näswall, K. (2017). Employee resilience: Directions for resilience
development. Consulting Psychology Journal: Practice and Research, 69(3), 223.
McAdam, R., Miller, K., & McSorley, C. (2019). Towards a contingency theory perspective of
quality management in enabling strategic alignment. International Journal of Production
Economics, 207, 195-209.
Shen, N., Au, K., & Li, W. (2020). Strategic alignment of intangible assets: The role of corporate
social responsibility. Asia Pacific Journal of Management, 37(4), 1119-1139.
Satterlee, A. (2013). Organizational management and leadership: A Christian perspective.
Thi Tran, Y., Nguyen, N. P., & Nguyen, L. D. (2020). Results-oriented culture and
organizational performance: the mediating role of financial accountability in public sector
organizations in Vietnam. International Journal of Public Administration, 1-16.
