HRM: The Analysis and Design of Work

BB301/BBB3053
3 . 0 H R M P – AN ALYSI S & DE SI G N O F WO R K
ONLY FOR THE CLASS OF BB301/BBB3053. NOT FOR EXTERNAL SHARING

Recap of last
lessons I
▪Importance of human
resource management from
the perspective of the THREE
(3) product lines.
ONLY FOR THE CLASS OF BB301/BBB3053

Recap of last
lessons II
▪How HRM may contributes to
the competitiveness of a
business and corporates by
offering the service of BP & SP
(formulating intended strategy,
implementing intended strategy
& developing of emergent
strategies and add to firm’s
competitiveness through
capabilities related to people)

About the topic
What are we going to learn today
1. The concept of Organization Structure, Work Flow and Designs of Job.

2. Implications of the three on human resource needs.
3. Implications of the three for human resource management practices to be
a strategic differentiator

Introduction
Strategy implementation is the way the strategic plan gets carried out in
activities of organizational members. We have learned that there are five
important components in the strategy implementation process, three of
which are directly related to the human resource management function.
We are going to focus on one today: the task or job.

A Story
When shoe manufacturers in Portugal saw that they were losing sales to
cheaper Chinese competitors, they completely revamped their work
processes to emphasize higher quality shoes that would support higher
prices. Well-trained and well-paid employees worked with expensive,
state-of-the-art technology like high-speed waterjet cutters to produce
small batches of high-end shoes that were sold to luxury designers.
Portuguese shoes are now second only to those made in Italy when it
comes to export price—$32 a pair, compared to $4 for China.

Can you relate
A Story what you have

learned with
Business Model
Canvas?
When shoe manufacturers in Portugal saw that they were losing sales to

Can you relate
what you have
A Story learned with A

Model of the
Strategic
Management
When shoe manufacturers
Process?
in Portugal saw that they were losing sales to

Work-Flow Analysis & Organization
Structure
Work-flow design is the process of Organization structure refers to the
analyzing the tasks necessary for the relatively stable and formal network of
production of a product or service, prior to vertical and horizontal interconnections
allocating & assigning these tasks to a among jobs that constitute the organization.
particular hob category or person. Only after we understand how one job
Understanding of the work-flow design is relates to those above (supervisors), below
crucial before making informed decisions (subordinates), and at the same level in
regarding how to initially bundle various different functional areas (marketing versus
tasks into discrete jobs that can be executed production) can we make informed decisions
by a single person. about how to redesign or improve jobs to
benefit the entire organization.

Work-Flow Analysis, Organization Structure,
Business Strategies
Work-flow design and organization
structure have to be understood in the
Business context of how an organization has
Strategies decided to compete. Both work-flow
design and organization structure can be
Work-flow Organization leveraged to gain competitive advantage
Design Structure
for the firm, but how one does this
depends on the firm’s strategy and its
competitive environment.

Organization Structure
Organization Structure Dimensions of an Organization
Whereas work-flow design provides a
longitudinal overview of the dynamic Structure
relationships by which inputs are converted 1. Centralization
into outputs, organization structure provides
a cross-sectional overview of the static 2. Departmentalization/
relationships between individuals and units Specialization
that create the outputs. Organization
structure is typically displayed via
3. Hierarchy of authority
organizational charts that convey both 4. Formalization
vertical reporting relationships and
horizontal functional responsibilities.

For efficiency?
For cost
containment?
For speed?
For flexibility?
Functional Organization Structure

Work-Flow Analysis & Organization
Structure
For efficiency?
For cost
containment?
For speed?
For flexibility?
Division Organization Structure: Product

For efficiency?
For cost
containment?
For speed?
For flexibility?
Division Organization Structure: Geographic

For efficiency?
For cost
containment?
For speed?
For flexibility?
Division Organization Structure: Client

Organization Structure & Business Strategy
Will a Strategy-
Organization Fit
affect the
implementation of a
business strategy?

Organization Structure & Business Strategy
Pure types? Can

we have a “middle-
of-the-road”
option?

Work-Flow Analysis & Business Strategies
All organizations need to identify the outputs of
work, to specify the quality and quantity
standards for those outputs, and to analyze the
processes and inputs necessary for producing
outputs that meet the quality standards. This
conception of the work-flow process is useful
because it provides a means for the manager
to understand all the tasks required to produce
a number of high-quality products as well as
the skills necessary to perform those tasks.

Merely identifying an output or set of outputs is
not sufficient. Once these outputs have been
identified, it is necessary to specify standards
for the quantity or quality of these outputs. In
many cases, the number and nature of the
outputs chosen create challenges for how to
efficiently process the inputs in order to
generate the outputs. Strategically, a service
company needs to decide how many different
services it is going to provide, and again, this
has downstream implications for the rest of the
workflow.

Once the output or service has been chosen, the
organization has to decide whether they are going to focus
on producing the whole product or service or just one or
two parts of it. Research shows that organizations derive
far more return on investment from jobs that precede or
follow the manufacturing process. That is, the best value
and highest wages are associated with the research,
development, and design that occurs before
manufacturing, as well as branding, sales service, and
support that occurs after manufacturing. This is
sometimes referred to as “the smile curve,” and the base
of the smile in this case is manufacturing and the jobs
associated with it.

Manufacturing accounts for only 3% of the
phone’s cost, and the remaining 97% of the costs
are a result of design, sales, and service. Thus, a
company like Apple enjoyed a net income of 21%
of revenue in 2016 and its shares traded at 18
times earnings. Compare this to Han Hoi
Precision Company who manufactures the iPhone
in China. They report net income of 3% of
revenue and its shares trade at 12 times earnings.
The strategic decision to focus on design, sales,
and service, rather than manufacturing, allows
Apple to create 80,000 jobs in the United States
alone with plans to expand to 100,000 jobs by
2020.


Once the outputs of the work unit have been
identified, it is possible to examine the work
processes used to generate the output. The work
processes are the activities that members of a
work unit engage in to produce a given output.
Every process consists of operating procedures
that specify how things should be done at each
stage of the development of the product. These
procedures include all the tasks that must be
performed in the production of the output. The
tasks are usually broken down into those
performed by each person in the work unit.

In many situations where the work that
needs to be done is highly complex, no
single individual is likely to have all the
required skills. In these situations, the work
may be assigned to a team. Team-based
job design is becoming increasingly
popular in contemporary organizations. In
addition to providing a wider set of skills,
team members can back each other up,
share work when any member becomes
overloaded, and catch each other’s errors.

Activate Your Prior Learning
Technology
the combination of skills, knowledge, abilities,
techniques, materials, machines, computers,
tools, and other equipment that people use to
convert or change raw materials, problems,
and new ideas into valuable goods and
services.
Example:
Ford uses people’s skills, knowledge, materials,
machines, and so forth, to produce a finished
car.

Technology
Inside an organization, technology exists at
three levels:
Level Technology
Individual Personal skills, knowledge, &
competencies
Functional/ Procedures & techniques that
Department groups work out to perform their
work create (competences)
Organizatio The way an organization converts
nal input into outputs (mass production
vs craftwork)

At the input stage, technology - skills
procedures, techniques, and competences—
allows each organizational function to handle
relationships with outside stakeholders so that the
organization can effectively manage its specific
environment.
Examples:
HR function: Selection process
Purchasing function: Competences in dealing
with suppliers for negotiating favorable contract
terms, for obtaining low-cost, high quality
component parts.
Finance function: Techniques for obtaining capital
at a cost favorable to the company

At the conversion stage, technology—a
combination of machines, techniques, and
work procedures—transforms inputs into
outputs. The best technology allows an
organization to add the most value to its inputs
at the least cost of organizational resources.
Organizations often try to improve the
efficiency of their conversion processes, and
they can improve it by training employees in
new time-management techniques and by
allowing employees to devise better ways of
performing their job or by further automating
certain processes.

At the output stage, technology allows an
organization to effectively dispose of finished
goods and services to external stakeholders.
To be effective, an organization must possess
competences in testing the quality of the
finished product, in selling and marketing the
product, and in managing after-sales service to
customers.
The technology of an organization’s input,

conversion, and output processes is an
important source of a company’s competitive
advantage.

Something new
Three principal approaches to measure &
increase organizational effectiveness:
External resource approach
▪ Uses technology to increase its ability to
manage & control external stakeholders.
Internal system approach
▪ Uses technology to increase the success of its
attempts to innovate; to develop new products,
services, *& processes; & to reduce the time
needed t bring new products to market.
Technical approach
▪ Uses technology to improve efficiency & reduce
costs while simultaneously enhancing the
quality & reliability if its products.

Something new
Organizations use technology to become more
efficient, more innovative, and better able to meet
the needs and desires of stakeholders. Each
department or function in an organization is
responsible for building competences and
developing technology that allows it to make a
positive contribution to organizational
performance. When an organization has
technology that enables it to create value, it
needs a structure that maximizes the
effectiveness of the technology. Just as
environmental characteristics require
organizations to make certain organizational
design choices, so do the characteristics of
different technologies affect an organization’s
choice of structure

Something new: Technical Complexity (Joan
Woodward)
Programmed technology
A technology in which the procedures for
converting inputs into outputs can be specified in
advance so that tasks can be standardized, and
the work process can be made predictable.
Technical complexity
A measure of the extent to which a production
process can be programmed so that it can be
controlled and made predictable.
High: When conversion processes can be
programmed in advance & fully automated
Low: When conversion processes depend
primarily on people & their skills & knowledge
and no on machines.

Woodward)
Programmed technology
A technology in which the procedures for
converting inputs into outputs can be specified in
advance so that tasks can be standardized and
the work process can be made predictable.
Technical complexity
A measure of the extent to which a production
process can be programmed so that it can be
controlled and made predictable.
High: When conversion processes can be
programmed in advance & fully automated
Low: When conversion processes depend
primarily on people & their skills & knowledge
and no on machines.

Woodward)
If you are curios to dive deeper
Additional Reading:
Page 266- 271

Routine Tasks and Complex Tasks:
The Theory of Chares Perrow
According to Task Variability (High to Low):
Charles Perrow, ▪ The number of exceptions (new or unexpected situations) that
two dimensions a person encounters while performing a task)
underlie the ▪ Exceptions may occur at the input, conversion, or output stage.
difference
between routine Task Analyzability (High to Low):
and nonroutine ▪ The degree to which search & information-gathering activity is
or complex tasks required to solve a problem.
and technologies: ▪ The more analyzable a task, the less search activity is needed;
task variability such tasks are routine as the information & procedures needed
and task to complete it have been discovered, rules have been worked
analyzability. out and formalized, and the way to perform a task can be
programmed in advance.
Routine Tasks and Complex Tasks:
The Theory of Chares Perrow
According to Routine Task Complex Task
Charles Perrow, “well-established “there are few
two dimensions techniques which are established
underlie the sure to work and these techniques; there is
difference are applied to essentially little certainty about
between routine similar raw materials.
methods, or whether
and nonroutine That is, there is little
or complex tasks
or not they will work.
uncertainty about
and technologies: methods and little variety But it also means that
task variability or change in the task that there may be a great
and task must be performed.” variety of different
analyzability. tasks to perform.”

Routine Tasks and Nonroutine Tasks &
Organizational Design

Tasks Interdependence
The Theory of James D. Thompson
Task Interdependence Technology 1: Mediating Technology &
The manner in which different organizational
tasks are related to one another. It is the Pooled Interdependence
degree to which people or department Mediating Technology
interact with & rely on other for the
information, materials, & resources needed ▪ A technology characterized by a work
to accomplish work for them. process in which input, conversion, &
When Low: output activities can be performed
People & departments are individually interdependently of one another
specialized; work separately &
independently to achieve organizational Pooled Task Interdependence
goals. ▪ Each part of the organization (person,
When High: team, department) contributes separately
People & departments are jointly to the performance of the whole
specialized; depend on one another for organization.
supplying the inputs & resources they need
to get the work done.

Technology 1: Mediating Technology &
Pooled Interdependence
Mediating Technology
▪ A technology characterized by a work
process in which input, conversion, &
output activities can be performed
interdependently of one another
Pooled Task Interdependence
▪ Each part of the organization (person,
team, department) contributes separately
to the performance of the whole
organization.

Task Interdependence Technology 2: Long-Linked Technology &
The manner in which different organizational Sequential Interdependence
tasks are related to one another. It is the Long-linked Technology
degree to which people or department
interact with & rely on other for the ▪ A technology characterized by a work
information, materials, & resources needed process in which input, conversion, & output
to accomplish work for them. activities can be in series.
Sequential Task Interdependence
When Low: ▪ The actions of one person/ department
People & departments are individually
specialized; work separately & directly affect the actions of another, so work
independently to achieve organizational cannot be successfully completed by allowing
goals. each person/ department to operate
independently
When High: ▪ Different tasks are done in a prescribed order,
People & departments are jointly & the person/ departments involved
specialized; depend on one another for
supplying the inputs & resources they need specialized in these tasks.
to get the work done. ▪ Tasks are routine.

Technology 2: Long-Linked Technology &
Sequential Interdependence
Long-linked Technology
▪ A technology characterized by a work
process in which input, conversion, & output
activities can be in series.
Sequential Task Interdependence
▪ The actions of one person/ department
directly affect the actions of another, so work
cannot be successfully completed by allowing
each person/ department to operate
independently
▪ Different tasks are done in a prescribed order,
& the person/ departments involved
specialized in these tasks.
▪ Tasks are routine.

Task Interdependence Technology 3: Intensive Technology &
The manner in which different organizational
tasks are related to one another. It is the Reciprocal, and Comprehensive
degree to which people or department Interdependence
interact with & rely on other for the
information, materials, & resources needed Intensive Technology
to accomplish work for them. ▪ Work process where input, conversion &
When Low: output activities are inseparable. .
People & departments are individually Reciprocal Task Interdependence
specialized; work separately &
independently to achieve organizational ▪ Instead of a strict sequence of activities,
goals. members interact with a subset of other
When High: members to complete the team’s work.
People & departments are jointly Comprehensive Task Interdependence
specialized; depend on one another for ▪ The activities of all people & all
supplying the inputs & resources they need
to get the work done. departments full depend on one another.

Technology 3: Intensive Technology &
Reciprocal, and Comprehensive
Interdependence
Intensive Technology
▪ Work process where input, conversion &
output activities are inseparable. .
Reciprocal Task Interdependence
▪ Instead of a strict sequence of activities,
members interact with a subset of other
members to complete the team’s work.
Comprehensive Task Interdependence
▪ The activities of all people & all
departments full depend on one another.

Work-Flow Analysis,
Can you connect the Organization Structure,
Business Strategies
dots now?
(Technology with the
following diagram?

structure have to be understood in the
Design Structure

Work-Flow Analysis,
Which of Organization Structure,
the following reflects
Business Strategies
your opinion now?
i) Different business strategies
requires different technology
& organization structure
ii) There is a technology &
organization structure that structure have to be understood in the
fits all strategy.
Design Structure

Work-Flow Analysis, Organization Structure,
Business
WhichStrategies
of the following
reflects your opinion
now? Organizational strategy and the decision to produce
i) Different business a wider range of products and enter new markets
strategies requires can cause an organization to grow and adopt a more
different technology complex structure. Thus the strategic choices that
Business
& organization an organization—especially a large organization—
Strategies makes aboutHmmm…
what products to make for which
structure
Howaffect
markets about
thethe design
design of organization’s
of an
ii) There is a
job?
structure as much as or more than the technology
technology &
Work-flow Organization
organization the organization uses to produce the outputs. For
Designstructure Structure
that fits all small organizations or for functions or departments
within large organizations, the importance of
strategy.
technology as a predictor of structure may be more
important than it is for large organizations.

Structure and the Nature of Jobs
Moving from big-picture issues to lower-level specifics, the type of organization
structure also has implications for the design of jobs. Jobs in functional
structures need to be narrow and highly specialized. Workers in these structures
(even middle managers) tend to have little decision-making authority or
responsibility for managing coordination between themselves and others.
The choice of structure also has implications for people who would assume the
jobs created in functional versus divisional structures. For example, managers of
functional structures often need to be specialists with deep experience in a
narrow topic area.

Job Design & Redesign
(Activation of Prior Learning)
Job design
Approaches Explaination
The process of defining
Mechanistic Focus on iidentifying the simplest way to
the way work will be structure work that maximizes efficiency. This
performed and the tasks most often entails reducing the complexity of
that will be required in a the work to provide more human resource
efficiency—that is, making the work so simple
given job. that anyone can be trained quickly and easily to
perform it.
Job redesign
This approach focuses on designing jobs
The process of around the concepts of task specialization, skill
changing the tasks or simplification, and repetition.
the way work is
performed in an existing
job
Job design
Motivational Focuses on the job characteristics that affect
the way work will be psychological meaning and motivational
performed and the tasks potential, and it views attitudinal variables (such
that will be required in a as satisfaction) as the most important outcomes
of job design.
given job.
The prescriptions of the motivational approach
Job redesign focus on increasing the meaningfulness of jobs
through such interventions as job enlargement
The process of and job enrichment.
changing the tasks or
the way work is
job
Job design
Biological Concerned with examining the interface
the way work will be Approach between individuals’ physiological
performed and the tasks characteristics and the physical work
that will be required in a environment. The goal of this approach is to
minimize physical strain on the worker by
given job. structuring the physical work environment
around the way the human body works. It
Job redesign therefore focuses on outcomes such as
physical fatigue, aches and pains, and health
The process of complaints. Any job that creates a significant
changing the tasks or number of injuries is a target for ergonomic
the way work is redesign.
job
Job design
Perceptual- Focuses on human mental capabilities and
the way work will be Motor limitations. The goal is to design jobs in a way
performed and the tasks Approach that ensures they do not exceed people’s
that will be required in a mental capabilities and limitations. This
approach generally tries to improve reliability,
given job. safety, and user reactions by designing jobs to
reduce their information-processing
Job redesign requirements. In designing jobs, one looks at
the least capable worker and then constructs
The process of job requirements that an individual of that ability
changing the tasks or level could meet. Similar to the mechanistic
the way work is approach, this approach generally decreases
the job’s cognitive demands
job
Job Analysis
(Reactivation of Prior Learning)
The process of getting detailed information about jobs. It is important for
organizations to understand and match job requirements and people to
achieve high-quality performance. This is particularly true in today’s
competitive marketplace.
The main outcomes are job descriptions and job specifications and these
information has been seen as the building block of everything human resource
managers do for work design & redesign, human resource planning, selection,
training & development, performance management, career planning & job
evaluation.

Key Take Aways
The analysis and design of work is one of the most important components to developing
and maintaining a competitive advantage. Strategy implementation is virtually impossible
without thorough attention devoted to work-flow analysis, job analysis, and job design.
Managers need to understand the entire work-flow process in their work unit to ensure
that the process maximizes efficiency and effectiveness. To understand this process,
managers also must have clear, detailed information about the jobs that exist in the work
unit, and the way to gain this information is through job analysis. Equipped with an
understanding of the work-flow process and the existing job, managers can redesign
jobs to ensure that the work unit is able to achieve its goals while individuals within the
unit benefit from the various work outcome dimensions such as motivation, satisfaction,
safety, health, and achievement. This is one key to competitive advantage.

Key Take Away Where can
you fit
today’s topic
into Figure
2.9?

A Story

Is there another explanation that links to SP?
Can our work
system & job
designs be a
strategic
differentiator?

QUESTIONS?

Read Text Book
▪ Chapter 4 The Analysis and Design of Work

HRM: The Analysis and Design of Work

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

HRM: The Analysis and Design of Work

Uploaded by

Copyright:

Available Formats

BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053. NOT FOR EXTERNAL SHARING

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

1. The concept of Organization Structure, Work Flow and Designs of Job.

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

A Story what you have

ONLY FOR THE CLASS OF BB301/BBB3053

A Story learned with A

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

Functional Organization Structure

ONLY FOR THE CLASS OF BB301/BBB3053

Division Organization Structure: Product

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

Division Organization Structure: Client

ONLY FOR THE CLASS OF BB301/BBB3053

Division Organization Structure: Client

ONLY FOR THE CLASS OF BB301/BBB3053

Pure types? Can

Division Organization Structure: Client

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

The technology of an organization’s input,

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

Work-flow design and organization

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053

ONLY FOR THE CLASS OF BB301/BBB3053