Chapter 4

Workforce Focus

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The Value of Human Capital
• “For those smart enough to recognize it—and mine it—the human
capital embedded in a company’s workforce is simply the best
asset it has: more mobile than factories or equipment, more
rewarding in the long term than investment capital, easier to
leverage than brand or market share. It is human minds, after all,
that spark discoveries and breakthroughs; human impatience and
ingenuity that give rise to brilliant hacks and workarounds; human
touch, humor, instinct, and empathy that bond with customers and
sell products.”
- Clifton Leaf, Fortune magazine

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Workforce
• …everyone who is actively involved in accomplishing the work of
an organization. This encompasses paid employees as well as
volunteers and contract employees, and includes team leaders,
supervisors, and managers at all levels.
• Many companies refer to their employees as “associates” or
“partners” to signify the importance that people have in driving
business performance.

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Workforce Focus in ISO 9000
• Personnel performing work affecting product quality shall be competent
on the basis of appropriate education, training, skills, and experience.
• Organizations should determine the level of competence that
employees need, provide training or other means to ensure
competency, evaluate the effectiveness of training or other actions
taken, ensure that employees are aware of how their work contributes
to quality objectives, and maintain appropriate records of education,
training, and experience.
• The standards address the work environment from the standpoint of
providing buildings, workspace, utilities, equipment, and supporting
services needed to achieve conformity to product requirements, as well
as determining and managing the work environment, including safety,
ergonomics, and environmental factors.
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Key Workforce-Focused Practices for Performance
Excellence (1 of 2)
• Understand the key factors that drive workforce engagement,
satisfaction, and motivation.
• Design and manage work and jobs to promote effective
communication, cooperation, skill sharing, empowerment, innovation,
and the ability to benefit from diverse ideas and thinking of employees
and develop an organizational culture conducive to high performance
and motivation.
• Make appropriate investments in development and learning, both for
the workforce and the organization’s leaders.
• Create an environment that ensures and improves workplace health,
safety, and security, and supports the workforce via policies, services,
and benefits.

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Key Workforce-Focused Practices for Performance
Excellence (2 of 2)
• Develop a performance management system based on compensation,
recognition, reward, and incentives that supports high performance
work and workforce engagement.
• Assess workforce engagement and satisfaction and use results for
improvement.
• Assess workforce capability and capacity needs and use the results to
capitalize on core competencies, address strategic challenges, recruit
and retain skilled and competent people, and accomplish the work of
the organization.
• Manage career progression for the entire workforce and succession
planning for management and leadership positions.

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Quality Profile: VACSP
• The Veterans Affairs Cooperative Studies Program (V ACSP)
Clinical Research Pharmacy Coordinating Center (the Center) is a
federal government organization that supports clinical trials
targeting current health issues for America’s veterans.
• The Center sees engagement as the single most important
criterion for workforce satisfaction.
• Excellence in the workplace, superior customer service, and
personal involvement in organizational improvement are rewarded
through the Center’s performance management system with
visible, tangible benefits.

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Quality Profile: Stellar Solutions
• A global provider of systems engineering, integration, and
program management expertise in government and commercial
programs related to the aerospace field.
• New employees complete a new hire checklist and “dream job”
worksheet within the first month of employment, check in with the
respective sector vice president on their 30- and 90-day
milestones, and meet face to face with the president/chief
operating officer within the first quarter.
• Stellar has been named a Great Place to Work by Fortune
magazine for several years.

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Evolution of Workforce Management
• Taylor system and scientific management
o Improved productivity
o Changed manufacturing work into series of mundane and mindless
tasks
o Promulgated adversarial relationships between labor and
management
o Failed to exploit the knowledge and creativity of the workforce

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Workforce Management
• Workforce management (which has also been widely known as
human resource management, or HRM) consists of those
activities designed to provide for and coordinate the people of an
organization.
o determining the organization’s workforce needs;
o assisting in the design of work systems;
o recruiting, selecting, training and developing, counseling,
motivating, and rewarding employees;
o acting as a liaison with unions and government organizations; and
o handling other matters of employee well-being.

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Strategic Human Resource Management
• … concerned with the contributions HR strategies make to
organizational effectiveness, and how these contributions are
accomplished.
• It involves designing and implementing a set of internally
consistent policies and practices to ensure that an organization’s
human capital (employees’ collective knowledge, skills, and
abilities) contributes to overall business objectives.

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High Performance Work Culture
• Performance - the extent to which an individual contributes to
achieving the goals and objectives of an organization.
• High-performance work - work approaches used to systematically
pursue ever-higher levels of overall organizational and human
performance.
• Characterized by:
o flexibility
o innovation
o knowledge and skill sharing
o alignment with organizational directions, customer focus, and rapid
response to changing business needs and marketplace requirements

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“Conditions of Collaboration” in a High
Performance Work Culture

• Respect
• Aligned values
• Shared purpose
• Communication
• Trust

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Workforce Engagement
• … the extent of workforce commitment, both emotional and
intellectual, to accomplishing the work, mission, and vision of the
organization. Engaged workers
o find personal meaning and motivation in their work,
o have a strong emotional bond to their organization, are actively
involved in and committed to their work,
o feel that their jobs are important, know that their opinions and
ideas have value, and
o often go beyond their immediate job responsibilities for the good
of the organization.

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Advantages of Workforce Engagement
• Replaces the adversarial mentality with trust and cooperation
• Develops the skills and leadership capability of individuals,
creating a sense of mission and fostering trust
• Increases employee morale and commitment to the organization
• Fosters creativity and innovation, the source of competitive
advantage
• Helps people understand quality principles and instills these
principles into the corporate culture
• Allows employees to solve problems at the source immediately
• Improves quality and productivity

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Drivers of Workforce Engagement
1. Commitment to organizational values
2. Knowing that customers are satisfied with products and services
3. Belief that opinions count
4. Clearly understanding work expectations
5. Understanding of how personal contributions help meet customer needs
6. Being recognized and rewarded fairly
7. Knowing that senior leaders value the workforce
8. Being treated equally with respect
9. Being able to concentrate on the job and work processes
10. Alignment of personal work objectives to work plans

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Employee Involvement (EI)
• …any activity by which employees participate in work-related
decisions and improvement activities, with the objectives of
tapping the creative energies of all employees and improving their
motivation.
o Example: employee suggestion system - a management tool for
the submission, evaluation, and implementation of an employee’s
idea to save cost, increase quality, or improve other elements of
work such as safety.

Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not
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Motivation
• Motivation - an individual’s response to a felt need
• Theories
o Content Theories (Maslow; MacGregor; Herzberg)
o Process Theories (Vroom; Porter & Lawler)
o Environmentally-based Theories (Skinner; Adams; Bandura,
Snyder, & Williams)

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be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Table 4.3 A Classification of Motivation Theories
Motivation Theory Pioneer/Developer Type of Theory
Content Theories blank blank
Hierarchy of Needs Abraham Maslow Need
Motivation and Maintenance Douglas McGregor Need/satisfaction
Theory X-Y Frederick Herzberg Managerial expectations
n-Ach, n-Aff, n-Pow David McClelland Acquired need
Process Theories blank blank
Preference–Expectancy Victor H. Vroom Expectancy
Contingency Porter and Lawler Expectancy/reward
Goal Setting Edward Locke Goal
Path–Goal Theory of Leadership Robert J. House Goal
Environmentally Based Theories blank blank
Operant Conditioning B. F. Skinner Reinforcement
Equity J. Stacy Adams Equity
Social Learning/Self-Efficacy A. Bandura; Snyder and Williams Social learning/self-efficacy

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Designing High-Performance Work Systems
• Work and Job Design
• Empowerment
• Teamwork
• Work Environment
• Workforce Learning and Development
• Compensation and Recognition
• Performance Management

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be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Work and Job Design

• Work design refers to how employees are organized in

formal and informal units, such as departments and
teams.
• Job design refers to responsibilities and tasks assigned
to individuals.

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Hackman-Oldham Model
• The model proposes that five core characteristics of job design
(task significance, task identity, skill variety, autonomy, and
feedback from the job) influence three critical psychological
states (experienced meaningfulness, experienced
responsibility, and knowledge of results), which in turn, drive
work outcomes (employee motivation, growth satisfaction,
overall job satisfaction, and work effectiveness).

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Enhancing Work Design

• Job enlargement – expanding workers’ jobs

• Job rotation – having workers learn several tasks and
rotate among them
• Job enrichment – granting more authority, responsibility,
and autonomy

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Empowerment

• …giving people authority to make decisions based on what

they feel is right, to have control over their work, to take risks
and learn from mistakes, and to promote change.

“A sincere belief and trust in people.”

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Successful Empowerment
• Provide education, resources, and encouragement
• Remove restrictive policies/procedures
• Foster an atmosphere of trust
• Share information freely
• Make work valuable
• Train managers in “hands-off” leadership
• Train employees in allowed latitude

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Teams

• Team - a small number of people with complementary

skills who are committed to a common purpose, set of
performance goals, and approach for which they hold
themselves mutually accountable

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Types of Teams
• Management teams
• Natural work teams
• Self managed teams
• Virtual teams
• Quality circles
• Problem solving teams
• Project teams

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Figure 4.2 Teams at Baptist Hospital, Inc.

People Service Quality Financial Growth

Baptist University Board Patient Loyalty Clinical Excellence Teams: Revenue Cycle Teams: Service Lines:
Education Planning Teams: • Acute Myocardial • Payment Compliance • Oncology
Committee • Culture • Congestive Heart Failure • Patient Registration • Cardiology
Employee Benefits Team • Communication • Pneumonia • Billing and Collections • Orthopedics
Bright Ideas • Customer Loyalty Skin Care Integrity Team • Managed Care Pricing
Diversity Council • Physician Loyalty Medication Event Team • Documentation & Coding
Faith in Action • Employee Loyalty Environment of Care • Late/Lost Charges
Operation Teen Committee • Charge Master

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Team Skill Requirements
• Conflict management and resolution
• Team management
• Leadership skills
• Decision making
• Communication
• Negotiation
• Cross-cultural training

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 Figure 4.3 Boeing A&T Team Development Process

* Stages may overlap under certain conditions. Team maturity and level of process improvement already in place may impact
stage application.

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 Life Cycle of Teams
• Forming takes place when the team is introduced, meets together, and
explores issues of their new assignment.
• Storming occurs when team members disagree on team roles and challenge
the way that the team will function.
• Norming takes place when the issues of the previous stage have been
worked out, and team members agree on roles, ground rules, and
acceptable behavior when doing the work of the team.
• Performing characterizes the productive phase of the life cycle when team
members cooperate to solve problems and complete the goals of their
assigned work.
• Adjourning is the phase in which the team wraps up the project,
satisfactorily completes its goals, and prepares to disband or move on to
another project.
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Ingredients for Successful Teams
• Clarity in team goals
• Improvement plan
• Clearly defined roles
• Clear communication
• Beneficial team behaviors
• Well-defined decision procedures
• Balanced participation
• Established ground rules
• Awareness of group process
• Use of the scientific approach

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Workplace Environment

• Key factors:
o Health
o Safety
o Overall well-being

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Workforce Learning and Development
• Research indicates that companies that spend heavily on training
their workers outperform companies that spend considerably less,
as measured on the basis of overall stock market returns.
• Focus on both what people need to know as well as what things begin underline end underline

they need to know how to do .

begin underline end underline

• Continual reinforcement of knowledge learned is essential.

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Figure 4.4 MEDRAD Learning and Development Process

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Compensation and Recognition
• Compensation and recognition refer to all aspects of pay and
reward, including promotions, bonuses, and recognition, either
monetary and nonmonetary or individual and group.
• Compensation
o Merit versus capability/performance based plans
o Gainsharing

• Recognition
o Monetary or non-monetary
o Formal or informal
o Individual or group

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Effective Recognition and Reward Strategies
• Give both individual and team awards
• Involve everyone
• Tie rewards to quality
• Allow peers and customers to nominate and recognize superior
performance
• Publicize extensively
• Make recognition fun

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Performance Management
• How you are measured is how you perform!
• Conventional performance appraisal systems
o Focus on short-term results and individual behavior; fail to deal
with uncontrollable factors
• New approaches
o Focus on company goals such as quality and behaviors like
teamwork
o 360-degree feedback; mastery descriptions

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Assessing Workforce Effectiveness, Satisfaction, and
Engagement (1 of 2)
Outcome Measures
• number of teams, rate of growth, percentage of employees
involved, number of suggestions implemented, time taken to
respond to suggestions, employee turnover, absenteeism, and
grievances; perceptions of teamwork and management
effectiveness, engagement, satisfaction, and empowerment.

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Assessing Workforce Effectiveness, Satisfaction, and
Engagement (2 of 2)
Process Measures
• number of suggestions that employees make, numbers of
participants in project teams, participation in educational
programs, average time it takes to complete a process
improvement project, whether teams are getting better, smarter,
and faster at performing improvements, improvements in team
selection and planning processes, frequency of use of quality
improvement tools, employee understanding of problem-solving
approaches, and senior management involvement

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Measuring Workforce Engagement
• Gallup Q12 - 12 survey statements that Gallup found as those
that best form the foundation of strong feelings of engagement.
Factors include:
o what is expected in one’s work
o having the right materials and equipment to do the job
o receiving recognition and feedback on progress and development
o having opinions that count
o feeling of importance of the job
o opportunities to learn grow and develop

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Gallup Engagement Index Classification
1. Engaged employees who work with passion and feel a profound
connection to their company. They drive innovation and move the
organization forward.
2. Not-engaged employees who are essentially “checked out.”
They are sleepwalking through their workday. They are putting in
time, but not enough energy or passion into their work.
3. Actively disengaged employees who aren’t just unhappy at
work; they’re busy acting out their unhappiness. Every day, these
workers undermine what their engaged coworkers accomplish.

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Sustaining High-Performance Work Systems

Regular assessment of
• workforce capability and capacity needs;
• hiring, training and retention of employees; and
• career progression and succession planning

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Workforce Capability and Capacity
• Workforce capability refers to an organization’s ability to
accomplish its work processes through the knowledge, skills,
abilities, and competencies of its people.
• Workforce capacity refers to an organization’s ability to ensure
sufficient staffing levels to accomplish its work processes and
successfully deliver products and services to customers, including
the ability to meet seasonal or varying demand levels.

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Effective Hiring Practices

• Determine key employee skills and competencies

• Identify job candidates based on required skills and
competencies
• Screen job candidates to predict suitability and match to
jobs

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Succession Planning
• Formal processes to identify, develop, and position future leaders
• Mentoring, coaching, and job rotation
• Career paths and progression for all employees

Succession planning is vital to long-term organizational sustainability

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Quality in Practice: Training for Improving Service
Quality at Honda
Key Issues for Discussion
1. Why did Honda use a blended learning approach rather than, for
example, a pure virtual online learning approach?
2. What were the benefits of the three-phase learning model? How
does it support the achievement of high performance?
3. What lessons might other organizations learn from Honda’s
experience?

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Quality in Practice: Improving Employee Retention
Through Six Sigma
Key Issues for Discussion
1. Explain the importance and benefit of using data-driven analytical
tools, such as Six Sigma methodology, to address a human
resource management issue.
2. Discuss how the solutions that the company identified support its
employee engagement framework and should improve
engagement and ultimately retention.

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