EMPLOYEE INVOLVEMENT

12

Team is too large. The organization lacks methods for involving people in ways other than team membership . Trapped in groupthink. Tealll members all have a mind-set that no actions are taken . until everyone agreeS"with every decision. With a knowledge of these barriers, management can evaluate their own performance and take the necessary corrective actiQIi.to support team progress. Training Training is essential for an effective team. The quality council must take an active role in establishing training programs. Large organizations spend thousands of dollarS in team training. For instance, the Tennessee plants of Saturn and Nissan spent large sums of money in training before they ever produced a vehicle. This large investment has its payoffs. Motorola, lnc. estiniates that it earns $30 for every dollar invested in employee training. A recent study of small to mid-sized manufacturing firms found a significant positive relationship between company perfo~ance, as measured by profitability, and quality management training.35 . 'The training must be experimental, because the trainees will retain 20% of what they hear and about 90% of what they do. Training shonld be practical and given on an asneeded basis. When possible, role-playing and case studies should be used. Trainers should be carefully selected for their knowledge, enthusiasm, and respect from the trainees. Credibility must be established early. The team members should feel comfortable "",)Vith the trlriner and the program that has been developed. A clear picture of the objectiyesand how each member will benefit must be in place. The trainees should be encouraged to express their thoughts about the training program. Team leaders Bhould be receptive to suggestions and make changes where warranted. Employees are much more likely to support a program that they helped devel<)p. The first step in the training process is to make everyone aware of what the training is.all about Tnoughts, suggestions, and feedback should be gathered. The second step is to get aeceptance. Trail)ees must feel that the training\\@ be of value to them. The third step is to adapt the program. Is everyone ready to buy into it? Does everyone feel they are a part of what is going to take place? The fourth step is to adapt to what has been agreed upon. What changes must be made in behavior and attitudes? In a~dition to team training covering group dynamics and communication skills, all membe1'Smust receive tr\iining in quality awareness (TQM), specific problem solving techniques such as SPC, safety, and technical aspects of the job. The only difference among the types of training is that some may be required more often and for greater

35 Ryan,

Chuck, Richard H. Deane, and Ned P. Ellingtoil, "Quality Management Training MlUIufadUring Finl1s,fl Quality Management Journal, Vol. 8, No.2 (2001): 44-52.

in Small to Midsized

t 24
TABLE 4-2

CHAPTER 4

Who Needs to Receive Quality Training

Other X Managers X Quality management
X X . Management Top X

Middle Managers
X X

Specialists
X X

Facilitators
X X

x x x x

x x x x
x

x x x x

Quality

in Functional Areas for ~uality X

X X

X X

X X
1988).

Motivation

Reproduced, with permission, from 1. M. Juran ed., Quality Control Handbook, 4th ed., (New York: McGraw-Hili,

lengths of time tha~ ether~ Training programs fail for many different reasons, butthey: primarily fail because the f0cas is usually on tnc: training itself and not on helping the: organization improve in a real and measurable way.36 To be efficient for the team members and the organization, training should be acJion oriented so that results can ~ be obtained right away. Depending on an individual's position in the organization, Juran suggests different types of training in quality, as Table 4-2 suggests. Team leaders play an important role in team building. There is a difference between being a supervisor and a team leader. Supervisors who become team leaders will experience a different situation than what they were accustomed to as supervisors. Team leaders share their responsibijities with other team members. They give team members a chance to succeed on their ('wn. The team leader must be aware of the 85/15 rule, which means that 85% of the problems are part of the system. To be a good team leader requires specific training. Courses from local colleges in human rela'tions, motivation, conflict resolution, communications, and related matters are recommended. Some organizations provide on-site training in these areas. Consultants are also available for this type of training. A well-trained team leader can help ineffective team members improve, but team members usually cannot help an ineffective team leader.

36Snee, Ronald D., "Make the View Worth the Climb," Q,'a/;h' "rngress (Nnvember 2(01): 58-61.

EMPLOYEE INVOLVEMENT

US

:Suggestion systems are designed to provide the individual wIth the opportunity to be ";Involved by coIitributing to the organization. Most of the ideas for continuous imlJjJfovement' will come from the team approach. However, once the foundation for a 'r~tQM organization has been established, a suggestion system can operate effectively and in parallel to the team approach. The key to an effective system is management -,j commitment. Management must make it easy for employees to suggest improvements. Management should ther review them promptly and if feasible, implement thein. Stimulating and encouraging employee participation starts the creative process. There are five ground rules:
I-.

t~

Be progressive by regularly asking your employees for suggestions. Merely putting up a suggestion box will not create the necessary motivation.

2. Remove fear by focusing on the process and not on the person. When employees ,know that punitive actions will not occur, they are more likely to respond. 3. Simplify the process so it is easy to participate: Stamp out superfluous paperwork, review, and procedures. 4. Respond quickly to suggestions and within a specific period of time. The evaluation process must be simple and effective. The response, in writing, has three possible responses-acceptance, rejection, pr:referraI to a colnrnittee for further' evaluation. If accepted, a time frame for implementation should be given; if rejected, the reason for the rejection should.be stated; and if referred to a committee, the evllluation time should be stated .. 5. Reward the idea with published recognition so that everyone knows the value of the contribution. ' Individual ideas 'are a vast untapped resource. The five-step approach helps to create an environment that opens communication between employees and managers. Idea generation is a skill that requires practice. It supplements the team process.

Recognition is a fOim of employee motivation in which the organization publicly acknowledges the positive. contributions an individual or team has made to the success of the organization. This acknowledgment is delivered using verbal and written praise and may include symbolic items such as certificates and plaques. Reward is something tangible such as theater tickets, dinner for two, Of a cash award to promote desirable

37 James

A. Heath, "A Few Good Ideas for a Good Idea Program," Quality Progress (January

1994): 35-38.

I Z6.

CHAPTER 4

behavior. Recognition and reward go together to form a system for letting people kn, they are valuable members of the organization. Employees should be involved in the planning and implementation of the reco tion and reward program. This activity should be performed by a cross-functional that represents all areas of the organization. Systems that are developed with employ, involvement will mosllikely succeed. It should be fully understood by the employ~ and reviewed periodically in order to continuously improve the system and be, . priorities-either the employee's or the organization's-may change. In addition, .system should be simple. Employee~ should be involved with the manager and so~ times the customer and supplier in the nomination and selection of the individuals teams to be recognized and rewarded. Criteria for selection can utilize som,e of the' formation discussed in the section on appraisal. The system that is developed by the team must have clear recognition criteria. Po. cies and procedures must be cons!stently and fairly applied throughout the organizatioi' The system should be structured to avoid ranking individuals, because ranking fostei the counterproductive notion that there are winners and losers. Recognition should f valid, genuine, and meaningful for the giver and the recipient; it should not be used manipulate people. The organization should recognize effort as well as easy-to-meas, results. Recognition should not be based primarily on chance, which frequently occu' in employee-of-the-month programs. The system should be so developed that monetary reward is not a substitute for co pensation, While the reward may be delayed until an appropriate time, the recogniti, should be on a timely basis. Rewards should be appropriate to the improvement level} the greater the improvement, the greater the reward. They should be of value-a coff, cup does not provide much incentive to improve performance, especially when this the third cup awarded to the employee and everyone else has two. It is also desirable ~ the employee to select the form of the reward from various alternatives.311 People like to be. recognized, either as a team or individually. A person's feeling achievement, value '0 the organization, knowing the organization cares, and haviJ" peer recognition may be more important than arty reward. In addition to the plaque framed certificate given at a formal banquet, or informal pizza party, there are 0 forms of individual and team recognition. Other forms of recognition include pic on the bulletin board, articles in newsletters or newspapers, letters to families, makin: a presentation to management, passing along comp'liments from others, personal pho:, calls or notes, placing positive notes in folders, and increased responsibility. Supe: sors can also informally use the power of recognition by giving on-the-spot praise fl a job well done whenever it is earned. There are many different forms of individual and team rewards. Individual rew include a better parking space, dinner out, gift certificates, gift to charity in the name the recipient, washing an employee's car during the lunch hour, trips, and event ticke
3~Gene H. Milas. "How to Develop a Meaningful 1995): 139-141. Employee Recognition Program," Quality Digest (Ma'

EMPLOYEE INVOLVEMENT

127

TABLE 4-3

EfhctIve R.
Intrinsic Rewards

PnIctIces
&trinsic Rewafds

Non-monetary fonns of recognition to acknowledge achievement of quality improvement goals Celebrations to acknowledge achievement of quality improvement goals Regular expressions of appreciation by managers and leaders to employees' to acknowledge achievement of quality imprqvement goals 360 degree perfonnance appraisalsfeedback from co-workers (other than the immediate supervisor), subordinates or customElrs is incorporated into performance appraisals Formal suggestion system available for individuals to make quality improvement suggestions

Profit sharing Gainsharing Employment seqJrity Compensation time Individual based performance systems Quality based performance appraisals

Developmental based performance appraisals Quality based promotions ,~

Reproduced, with permission, from Richard S. Allen and Ralph H. Kilmann, Reward System Support TQM?" Quality Progress (December 1998): 47-51. "How Well Does Your

to name a few. Group rewards are simllar and can also include an outing such as a ball game, bowling, and movies; group lunch or dinner; allowing the team ~omake some decisions affecting their work or allowing the team to spend their reward "earnings" to improve their work environment. Cash awards are also effective motivatorS for individual and team awards. Gainsh~g is discussed next in this chapter. A survey of 1()()organizations found the following intrinsic (those related to feelings of accomplishment or self-worth) and extriitsic (those related to pay.or compensation issues) reward practices to be effective in their companies in supporting their TQM practices, as described in Table 4-3. Many ~rganizations have periodi~ celebration banquets where awards are presented to individuals or teams.39 To sumrilanze, an effective recognition and reward system:

1.. Serves as a continual reminder that the organization regards quality and productivity as important.

39]00] Ways tQReward EmpIqyees (New York: Workman Publishing Co. Inc., 1994).
".-~

128.

CHAPTER 4

2. Offers the organization a visible technique to thank high achievers for outstan, ing performance. 3. Provides employees a specific goal to work toward. It motivates them to improv, the process. 4. Boosts morale in the work environment by creating a healthy sense of competi_ tion among individuals and teams seeking recognition.

Galnsharing
Gainsharing is a financial reward and recognition system that results from improved organizational performance. It is different than profitsharing, in which the stockholders~ share a portion of the year-end profits with salaried and occasionally hourly employees. 1 Gainsharing is based on the philosophy that people and teamwork are the keys to success. Because organizational sllccess is dependent on team effort, the team shares in the rewards of success. Thus, gainsharing is a measurement of organizational productivity . and a method to share productivity gains. There are many different variations to the technique. We will illustrate the basic ap-

proach: This particular method utilizes labor costs and potential sales income for the cal-' culations and is based on four-week periods; however, calculations are made on a, weekly basis. At the end of the week, the leam performance is calculated based on po~ tential sales income from the week's production less rejections and outsourcing costs. ' - Financial data shows that labor costs are a certain percentage of sales income, and this value multiplied by the income gives the team goal. Team cost is the sum of all labor costs for the week including fringe benefits. The gain or loss is the difference betwe.en the team cost and the team goal. For example: Potential income = $535,000 Labor cost as a percent of sales = 27% Team goal = $535,000 X 0.27 = $144,450 Actual team cost = $138,365 Gain = $144,450 - 138,365 = $6,085 Payments are usually made every four weeks, thereby providing motivational reinforcement. They are separate from the regular paycheck. Every four weeks gainsharing meetings are held to review the calculations, evaluate the performance, and discuss ways to make additional gains. Distribution of the gain can be to hourly personnel or to both salaryand hourly personnel. It should be prorated by the employees' regular weekly earnings for four weeks. In other words, the gainsharing amOUritfor an employee is the ratio of his four weeks earnings divided by the four weeks earnings of all employees in the plan.This ratio is multipliedby the gain. There are two types of perfomlance strategies-

EMPLOYEE INVOLVEMENT

129

fiI1ancialperformance medbure as illustrated by the example or physical performan~ measure such as pieces, weight, or volume. - One of the key issues is the amount of the gains. Organizations distribute between 30% and 100%, with 50% appearing to be equitable. Another issue is the baseline determination, which in the example was 27%. The baseline can be based on historical information or, ifunavailable, targeted information. It should be changed several times a year, using ~ weighted average, so that gains are for recent improvements rather than old ones. The baseline may also need to be adjusted for . capital improvements or changes in mix. Varian X-Ray Thbe uses a simple gainsharing system to improve their yield. A pool is established by adding $125 for each good tube produced, subtracting $500 for each bad tube produced, and subtracting each bad tube returned from the customer. At the end I)f each quarter the money is divided equally among everyone in the production cycle who influenced quality.40 Texas Nameplate Company started a gainsharing plan around 1997 when their defect rate was 3.7% (excellent compared to the industry aVerage of 10%). Regardless of position or years with the company, all employees get the same share of the quarterly gain-sharing payout. By the end of 1997, employees reduced nonconf6nnance~ to 1%,41 Gainsharing is an excellent motivational tool that improves quality, productivity, and, of course, the bottom line.

The purpose of perfonnance appraisals is to let employees know how they are doing, and provide a basis for promotions, salary increases, counseling, and other pwposes rel. lated to an employee's future. There should be a good relationship between the employee and the appraiser. Employees should be made aware of the appraisal process, what is evaluated, and how often. Employees should be told how they are doing on a continuous basis, not just at appraisal time. The appraisal should point out strengths and weaknesses as well as how performance can be improved. Common appraisal formats are shown in Table 4-4.' Performance appraisals may be for the team or individuals. Regardless of the system, a key factor in a successful performance appraisal is employee involvement. An. employee should,always be given the opportunity to comment on the evaluation, to include protesting, if desired. Performance must be bas.ed on standards that are developed and agreed upon by the appraisor'and employee. Standards normally contain an ideal lc;vel

40 Robert

H. Kluge, "An Incentive Compensation 1996): 65-{j8 .

Plan With an Eye on Quality," Quality Progress (December

IS

1 Stratton

.Brad, ''Texas Nameplate Company: All You Need

Trusl," Quality

Progress (October

1998):

29-32...

CHAPTER 4

TABLE 4-4

Appraisal ForIIIats
Type

Description Compares employees by ranking from highest to lowest. Gives a written description of employee's strengths and weaknesses. Indicates the major duties performed by the employee and rates each duty with a scale,which is usually from 1 (poor) to 5 (excellent). Placeseach employee in a category with a predetermined percentag for example, excellent(10%), very good (25%), good (30%), fair (25%), and poor (10%).

Ranking Narrative Graphic

Forced choice

and an acceptable level. Standards should change when the situation changes, such as' when equipment changes or new production techniques are developed. P~rformance appraisals should be viewed as a positive way to get employees involved. Many supervisors look at appraisals as one of the unpleasant duties they must perform. Yet, if employees have been adequately interviewed as a part of the hiring process, properly trained, given lielp when needed, and counseled, then their per-' formance will be a reflection on how well those tasks' were performed. Performance appraisals also can be a pleasant duty for supervisors ~nd can reveal how effective the 'i employee is in contributing to the success of the organization .. . Every effort should be made to avoid errors in performance evaluations. Culture, ethics, education level, and predetennined opinions can affect evaluations. It would be ' unfair indeed to render a poor rating based on bias or anything except how the employee has perfonned ba~edon established standards. An unfair evaluation could cost the organization a valuable employee .. The traditional performance appraisal system has been criticized as being counterproductive and unnecessary by"suchquality experts as Deming and Scholtes. There are a number of argumentsto support theiropinion. Appraisals nourish short-term performance and destroy long-term planning. Frequently,long-termgains are sacrificed by making the individual look good in the short term. This outlook is especially prevalent when we look at the emphasis on the quarterly profit and loss statement. Another criticism states that individual appraisal destroysteamwork.If teams are to becomea cohesive unit of "all for one and one for all," then individual ranking would undermine the entire concept. The end resuk would be a team that performspoorer, not !:letter. A third concern is the assumption that an individual is responsiblefor all results. In reality, the results are frequently beyond an individual's control.suchas processes and equipment. Deming has stated that 85% of the problemsare the result of the system. Last, there is a concern that appraisals are frequentlybased on subjectivityand immeasurables. They should be based on objectivity;

EMPLOYEE INVOLVEMENT

t.t

JibQwever, it is difficult to measure some attributes such as customer satisfaction and . Ieadership.42 Rather than scrap performance appraisals, a number of practitioners have sug-

~gCsted that the performance appraisal sy.stem be improved. Some improvement sug. gestions are: 1. Use rating scales that havefew rating categaries. It is difficult to differentiate the middle range of performers (approximately 67%), whereas it is relatively easy to rate the 10 to 20% at each end. Therefore, scales should be limited to between 3 and 5. . 2. Require wark team 'Orgroup evaluatians , . ,iTJdividuql-facused evaluatians. The increased ~4' ,. with TQM in the workplace dictates that team will encourage team members to help, support, i-,t:.). that are at least equal in emphasis ta interdependence of tasks associated performance be utilized. This action and cooperate with each other .

t'

3. Require more frequent perfarmaru:e reviews where such reviews will have a daminant emphasis an future perfarmance planning. Work team and individual performanct1 ,data should be collected and reviewed with an evaluation of results and lessons learned. It may be necessary io have two reviewHne immediately after completion of the task and one when the performance cycle of the task allows evaluation of results. More fre~; . quent reviews with emphasis on improvement is much less tiu:eatening than the annual appraisal. "

I.,.,

4. PT'(}motiandecisians shauld be made by an independent administrative process that draws on current-jab infarmatian and potential far the neW jab. Placing too much ":,weight on current performance in the selection process can force well-intentioned ap.;;.; praisers to make a poor decision. For example, the highest performing teller in a bank ~>~:inay notbe the best' person to be promoted to loan officer.43 . ~." , .. _. _ :,... 5~ lru:lude indexes 'Ofexte17l(l1 customer satisfactian {nJhe appraisal-proces.s. In or'''.'. del' toaccomplis~ this process, the customers and their requirements will need to be . identified, performance metrics determilied using a rating scale, and the improvement .. prOcess inj.tiated. Evaluation will be based on the change in the metiics once the base'c.' line has been established. . , )' 6. ,.Usep~er and suJ?ordinatefeedback as an index qfintemal Initiation of this activity would be similar to the previous item. custamer satisfactian.

l\

7. lru:ludeevallUltionfor process improvement in addition ta result~. Process behavior tends to be more within the person's control. One of the basic concepts of TQM is continuous process improvement; therefore, if this concept is to be achieved, it must be

"George Eckes. "Practical Alternatives . S7-#J.

to Performance Alternatives,"

Quality Progress

(November

1994): Ql!tllity

~.1,BIUCC Prince, "Perfonnance AppraisalllDd Reward Practices for Total Quali~y Organizations," ,. " "'MOtiag-imentloui7lal (JaiiUarY 199'4): 36-46.

t 5Z

CHAPTER 4

appraised. There is frequently a lag between process imr:~yefi""m and the results that improvement.44 Despite Deming's reservations, performance appraisal:, Cl:nreinforce TQM Con provided these suggestions are implemented where apprc)riate.

Unions and Employee Involvement

In general, unions support quality improvement programs but express concern reg ing management exercising too much control over employees. Union representati mustbe involved in any program involving employees. Although employee involve: has been widely accepted, it could be a problem if not properly addressed. In some; stances where management takes too much control over employee involvement, it eo: be a violation of the National Labor Relations Act (NLRA) of 1935. Some have argu that a law passed to serve a good purpose in 1935 may not be appropriate for toda}i problems. However, unless the NLRA is amended, it is in the best interest of manag~ ment to be sure actions taken will not violate the NLRA. Teamsshould not discuss wages, rates of pay, hours of employment, or conditions wcrk. In some cases, these limitations will adversely effect the team's objective.45 Both management and unions must examine long-held views of what constitute; proper union-management relationships. Desire for unilateral power must be chang' to shared power for the benefit of employees and the organization. A joint proees of determining how best to proceed to effectively meet the competition, especiall from foreign organizations, is the only sensible solution. Management must reeo nize and respect the unique role unions play in employee involvement: A feeling 0, trust must be established and a partnership developed between management and th union. There aretwo ways in which' unions and management have chosen to deal with the im-, plementationof employee involvement in an organization. Some have chosen to work cO"' operatively,giving unions membership on quality councils and having them participate fullyin planning,implementation, and evaluation of the entire effort. Others have adopted: the more "traditional" mode of bargaining the impact and implementation actions affecting those in the improvement team. Each approach presents benefits and potential ri~ks. Unioninvolvementimproves the continuous improvement process; however, union leadership runs the risk of criticism from other members if it is perceived as working too closelywith management. The nature of the relationship will be determined by the back-

.44 Allan (June

1. Weber, "Making Perfonnance 1995): 65-69.

Appraisals Consistent With a Quality Environment,"

Quality Digest

"Donald L Dewar, "National Labor vs. Teams: What You Should !<JlOW," Quality Digest (May 1993): 60-62.

EMPLOYEE INVOLVEMENT

I sa

ground and history or the labor-management relations in the organization and the willing~ ness of the union to participate. Ideally, the leadership of the organization will seek early Involvement of the union and make the nature of the involvement as specific as ~ssible.46 An example of union-management cooperation is illustrated by the collective bargaining agreement between the United Auto Workers and Ford Motor Company. It provides for joint leadership in the quality improvement effort by joint committees at the .. corporate: division, and facility levels. These committees have the authority of the contract to plan, implem:lnt, evaluate, lIlJdexpand quality systems as needed. Many organizations caD.provide evidence that ~eir successful quality systems can be attributed to . the unions. Unions will grow jf ~ey are seen as a superior way to support democracy in, the workplace and improve the performance of the organization.47

efits of Employee Involvement

Involving employees, empowering theIl).,'and bringing thetn into the decision-making process provides the opportunity for continuous procesS. improvement. The untapped ideas, innovations, and creative thoughts of employees can make the difference between succesS and failure. Competition is so fierce that. it would be unwise not t~ use every available tool. Employee involvement improves quality an~ increases productivity, because Employees make better decisions using their expert knowledge of the process. Employees are more likely to implement and support decisions they had a part in making. fmployees are better able to spot and pinpoint areas for improvement. Employees are better able t6 take immediate corrective action. EIY-ployeeinvolvement reduces labor/management friction by encouraging more effective communication and cooperation. Employee involvement increases moraIeby creating a feeling of belonging to the organization. Employees are better able to accept change because they control the work:environment. Employees have ~ increased.commifmentto unit goals because they are involved.

46 Federal

Quality Institute, Employee Involvement and Quality MlJ1I(lgement in the Federal Government, P. Rubinstein, "Dt;mbcracy and Quality as an Integrated SyStem," Quality

July

1993. "Sidney Progres;(September

1~9~):,51-55.

.J4 ~

CHAPTER4

I'clclitional Comments
Employee involvement should n~t be looked at as. a fad that will go away soon. It is way of life, crucial to TQM, and It can mean ~e dIfference between being competitive' and going out of business. Employees, not semor management, hold the future in the~ hands. The sign over the plant entrance that says, "Through these doors pass Our most' important asset, our employees" does not.ring true when employees have a feeling that' no one re.ally cares. More involvement rtnght be encouraged by the sign "No one of Us knows as much as all of us." As the organizational culture beginsthe process of change, resistance to this change wil1 certainly be present. Keeping ~ople inf~rmed will reduce resistance, especially when they see the benefits. Change ISan ongomg process that must occur if an organi_ zation is to continue to exist in the competitive world. People do not necessarily resist change; they resist being changed. and problems arjse when a person's comfort zone is disturbed. Much of the information in this chapter has related to the role of management. How- . ever, we must not overlook the role of the work force. Workers must become knowledgeable about the needs of the customer and nominate quality problems for solution. In addition, workers must know what they are supposed to do and how they are doing and have a commitment to improving their job. -

IVIExemplary Organization"
~ered in San,Antonio, TX, Clarke American provides a wide range of products and services to financial services partners across the United States. Products include personalized checks, checkbooks, checking account and bill-paying accessories, and fin'ancial forms. Services include customer contact calf centers and e-commerce and direct response marketing solution~on behalf of their partners. The company has about 3,200 associates in its headquarters and at 17 manufacturing facilities and six customer contact call centers located in 15 states. Clarke American's KeyLeadership TeaD!utilizes a goal deployment process to communicate and deploy values, directions, and performance expectations throughout the company. All associatesreceive company updates through weekly, monthly, quarterly, and annual meetings.Clar~eAmerican's eight values are: Customer First, Integrity and , Mutual Respect, KnowledgeSharing, Measurement, Quality Workplace, Recognition, Responsiveness, and Teamwork. Customer satisfaction of its business products has consistently been above 96% since 1999 and reached 98% for September 2001, outperforming the bankingindustry average of90%. Since 1995, revenue per' associate has increased to $148,600,an 84% improvement.

"Malcolm Baldrige National Quality Award. 2001 Manufacturing HOOlepage.

Category

Recipient.

NISTlBaldrige

EMPLOYEE INVOLVEMENT

,as

Iv The S~TAR. (Suggestions,Teams, Actions, Results) Program, initiated in 1995, allows liSsociates to capture, implement, and share proCess improvements made to their work areas. Clarke American has implemented six S.TAR. ideas per associate for 200 I Year~to-date,which exceeds both the average level reported by the Employee InvolvementAssociation and the performiulce of a recent Baldrige winner. S.T.A.R. ideas implementation rates have increased from below 20% in 1995 to 70%, or over 20,000 ideas unpleinented for 2001 year-to-date. \. Clarke American's overall associate satisfaction has improved from 72% in 1994 to 84% in 2000 and exceeds outside industry comparisons with two Baldrige Award recipients, Associate survey participation reached 96% in 2000, comparable to .the world~ class benchmark. Clarke ~erican uses a variety of methOds to deliver traiilingand education to its associates, including classroom teaching, individual coaching, and web- and computerbased training. Clarke American's 76.1 training hours per associate in 2000 exceeded the American Society for Training and Development Best in Class level of 60. The company's Team Excellence program (an award program for high performing teams) is responsible for over $15 million in cost reductions and $103 nullion in revenue growth from 1996 to 2000. Manufacturing Cycle Tune (in-plant production time) has improved by over 44% since 1995 and is under 18 hours for 2001 year-to-date. Manufacturing units per hour has improved over 150% since 1991, increasing from 10 to 26. Manufacturing cost per unit hlis improved 15% since 1995. Levels ofintemal errors have decreased 55% since 1995 and meet lndusry Week magazine's aver-age for best plants.

1. As a supervisor, list ways to improve morale. 2. List the five levels in Maslow's hierarchy of needs and describe each level. 3. How do recognition and reward affect motivation? 4. List at least five reasons given by supervisors when resisting change. 5. Discuss the advantages of an empowered team. 6. You recently completed a performance appraisal for one of your employees. The employee is not happy with the evaluation and has asked for an appointment to discuss the evaluation process. Discuss the following: (a) The purpose,of the ~rf\l.rmanceevaluation. (b) The evaluation criteria. , (c) The employee's options regarding the evaluation.