Chapter Summary
The first section of this chapter discusses the analysis of work process within a given work
unit. Having provided an understanding of the broader context of jobs, the chapter discusses
the need for and usefulness of both job analysis and the techniques for performing job
analysis. Finally, the chapter concludes by presenting the various approaches to job design to
provide managers with an understanding of the costs and benefits of emphasizing different
characteristics of jobs when designing or redesigning them.
Learning Objectives
1. Analyze a work-flow process, identifying the output, activities, and inputs in the
production of a product or service.
2. Understand the importance of job analysis in strategic and human resource
management.
3. Choose the right job-analysis technique for a variety of human resource activities.
4. Identify the tasks performed and the skills required in a given job.
5. Understand the different approaches to job design.
6. Comprehend the trade-offs among the various approaches to designing jobs.
Note: Key terms appear in boldface and are listed in the "Chapter Vocabulary" section.
In the 1990s, revenue growth was high for Microsoft. Since then, Microsofts dominance has
been reduced due to competition and external and internal pressures. One of the problems at
Microsoft was that the decision-making process was slow. In addition, turnover was higher
than expected because key employees lacked intrinsic motivation.
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To turn this situation around, the companys CEO restructured the organization to respond to
these new competitive pressures. It became clear that Microsoft was too centralized given its
size, and too much decision-making power rested with the CEO and founder. CEO Bill
Balmer took steps to decentralize the organization and create semiautonomous business
divisions, but founder Bill Gates resisted. Balmer and Gates found that the solution was to
create a matrix like organization structure that relied on seven autonomous divisions. These
divisions divided the work up into separate units for operating systems, desktop applications,
business services, servers systems, mobil devices, Internet services, and gaming applications.
This new system revealed ho much money was being lost in certain divisions relative to more
profitable divisions. This provided a benchmark from which to measure improvement. This
new structure also motivated individuals to sink or swim in their new, more autonomous roles.
This increased intrinsic motivation and in turn reduced turnover rates. Many Microsoft
managers now believe that this new type of attitude will propel Microsoft back to the lofty
rates of growth that it once enjoyed.
II. Work-Flow Analysis and Organization Structure (Workflow analysis, analyzing work
outputs, processes, and inputs; see text Figure 4.1)
- work-flow design the process of analyzing the tasks necessary for the
production of a product or service, prior to allocating and assigning these
tasks to a particular job category or person.
- organization structure the relatively stable and formal network of vertical
and horizontal interconnections among jobs that constitute the
organization.
A. Work-flow Analysis
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1. Work outputs are products of, or services provided by, a work unit.
Example: A work output for GM is a new Buick off the assembly line;
a work output for Gordon Landscaping Company is a mowed lawn.
1. Work processes are the activities that members of a work unit engage
into produce a given output.
1. Work inputs are the "ingredients" that go into the work processes and
can be broken down into three categories (text Figure 4.1).
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2. A divisional structure (see Figures 4.3, 4.4, 4.5 in the text) employs a
workflow departmentation and low levels of centralization. Because of
their workflow focus, their semi-autonomous nature, and their
proximity to a homogenous consumer base, divisional structures tend to
be more flexible and innovative. However, they are not very efficient.
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IV. Job analysis the process of getting detailed information about jobs.
1. Job analysis has been called the building block of everything that the
personnel department does.
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As the example of the call-center industry in this case study shows, many
industries are moving from highly developed countries like the U.S. and
Germany, to countries with lower wages. This has become a necessity of
competition in our global society. The U.S. is experiencing a lag in job
growth, and this is affecting unemployment and the standard of living in the
U.S.
1. Managers must have detailed information about all the jobs in their
work group to understand the work-flow process.
This case study demonstrates that there has been growing concern about the
safety associated with working in clean rooms at IBM and other
semiconductor chip manufacturers.
Despite their name, clean rooms are filled with many potentially toxic
substances. Many workers feel that under the pressure to get the job done,
shortcuts are taken that put the workers at risk. The problem with clean rooms
stems from a combination of lack of knowledge, need for innovation, and
speed in manufacturing operations.
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b. Managers should ask others familiar with the job, such as the
supervisor, to look over any information received from the
incumbents.
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b. The 194 items are organized into six sections, and the job
analyst is asked to rate each item on six scales. A computer
program generates a job report based on the ratings. The six
sections are:
- information input
- mental processes
- work output
- relationships with other persons
- job context
- other characteristics
d. One of the main problems with the PAQ is that it requires the
reading level of a college graduate to complete the ques-
tionnaire.
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Although we tend to view jobs as static and stable, in fact, jobs tend to change
and evolve over time. The job analysis process must also detect changes in the
nature of jobs. Advances in technology have made it hard to keep up with
some of the major changes in jobs, and automation has led to the elimination of
certain jobs or the offshoring of tasks or even shifting the tasks from the
worker to the customer.
This study discusses the trend toward self-service. For some organizations, the
goal is to totally eliminate human involvement from certain transactions. In
the last few years, technological developments have allowed the shift from
customer-service to self-service. For example, self-service kiosks are
becoming increasingly ubiquitous in todays economy. Self-service checkout
is also becoming popular in grocery stores. This trend is driven by the
computer savvy of customers today.
Airports are using kiosk technology so that customers can print tickets
themselves and avoid long waits in line. Because there are still glitches in
these automated systems, some organizations think they can compete better by
making customer service a warm and friendly experience. Increasingly, it
appears that many customer feel that there is no service like self-service.
V. Job design is the process of defining the way work will be performed and the tasks
that will be required in a given job. Job redesign refers to changing the tasks or the
way work is performed in an existing job. Jobs can also be characterized on different
dimensions of job design (Table 4.4 in the text).
A. Mechanistic Approach
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3. The scientific management approach was built upon in later years and
resulted in a mechanistic approach that calls for the job to be designed
very simply. The organization reduces its need for high-ability
individuals, and workers are easily replaceable (a new employee can be
trained to perform the job quickly and inexpensively).
B. Motivational Approach
c. When the core job characteristics are high, individuals will have
a high level of internal work motivation, higher quantity and
quality of work, and higher levels of job satisfaction.
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C. Biological Approach
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D. Perceptual-Motor Approach
E. Trade-offs among Different Approaches for Job Design (See Table 4.5 in text)
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A Look Back
The chapter opening of Microsoft showed how drastically restructuring the nature of work
could increase both the effectiveness and efficiency of operations. The specific changes in
how work was designed created a better fit between the organization and its environment, as
well as between the organization and its internal strategy.
Questions
1. Based on this chapter, how would you characterize the changes that were made in
terms of the degree of centralization and departmentalization?
Students answers may vary, but could include the following. The changes that
Microsoft made created a matrix like structure with increased decentralization to the
degree that workers in seven newly established units had more autonomy. The
company was able to use this structure to determine which units were least profitable,
and it was able to establish benchmarks for improvement. This is expected to reduce
turnover at Microsoft because workers are more intrinsically motivated.
3. How would each of these changes in structure trickle down and affect the jobs of
individual workers?
Students answers will vary, but may include the following. These changes could
affect other employees because now if employees have questions, they could formally
deal with the issue. In the past, confused employees would send e-mails to Bill Gates.
Benchmarking in each department would encourage employees to improve and
involve them directly in the process, increasing intrinsic motivation.
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Chapter Vocabulary
Centralization
Departmentation
Job Analysis
Job Description
Job Specification
Task Analysis Inventory
Job Design
Job Redesign
Ergonomics
Discussion Questions
1. Assume you are the manager of a fast-food restaurant. What are the outputs of your
work unit? What are the activities required to produce those outputs? What are the
inputs?
Some examples of outputs for a fast-food restaurant include the food orders and the
service provided. Activities required to produce these outputs include cooking,
cleaning, preparing orders, taking orders, and so forth. The inputs include the raw
materials (the ingredients for the food orders), the equipment (stove, cash register),
and the human resources (the ability to cook, the knowledge of what ingredients go
into a menu item).
2. Based on question 1, consider the cashier's job. What are the outputs, activities, and
inputs for that job?
Inputs for the cashier's job include the raw inputs (food ordered, prices, tax),
equipment (cash register), and human resources (the skill to operate the register, the
knowledge of the prices of the menu items, and the ability to answer customers'
questions).
3. Consider the "job" of college student. Perform a job analysis on this job. What are the
tasks required in the job? What are the knowledge, skills, and abilities necessary to
perform those tasks? What environmental trends or shocks (e.g., computers) might
change the job, and how would that change the skill requirements?
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4. Discuss how the following trends are changing the skill requirements for managerial
jobs in the United States: (a) increasing use of computers, (b) increasing international
competition, (c) increasing work-family conflicts.
Students should have no trouble discussing how these trends are changing the skill
requirements for managerial jobs in the United States. Managers are increasingly
expected to be computer literate. Managers are also expected to be knowledgeable
about other cultures, and knowledge of a second language is more commonly
preferred. Managers are also expected to be more sensitive to work-family conflicts
(day-care and elder-care issues for example) and to be knowledgeable about various
legislation that deals with such situations (such as the FMLA).
5. Why is it important for a manager to be able to conduct a job analysis? What are the
negative outcomes that would result from not understanding the jobs of those
reporting to the manager?
The chapter has a section on the importance of job analysis to both HR managers and
line managers. The students' answers will probably reflect information in these
sections as well as possible reasons of their own. The negative outcomes of a manager
not understanding the jobs of his or her subordinates are that the manager may not
make intelligent hiring decisions, may not be able to adequately evaluate the
performance of subordinates, and will have trouble understanding the work-flow
process if individual jobs are not understood.
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6. What are the trade-offs between the different approaches to job design? Which
approach do you think should be weighted most heavily when designing jobs?
7. For the cashier in question 2, which approach to job design was most influential in
designing that job? In the context of the total work-flow process of the restaurant,
how would you redesign the job to more heavily emphasize each of the other
approaches?
Students' answers will vary. All of the approaches could be used to design the cashier's
job. To redesign the job to emphasize the mechanistic approach, students should
discuss concepts such as more specialization. To redesign the job to emphasize the
motivational approach, students should discuss making the job more complex. To
redesign the job to emphasize the biological approach, students should discuss
adjusting or making changes in the equipment or job environment. To redesign the job
to emphasize the perceptual/motor approach, students should discuss ways to make the
job less demanding mentally.
I. Introduction
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Overview: Three months ago, Ralph Ramos assigned a number of employees to work
as telecommuters to alleviate the lack of space in their office building. Among them
was Angela Zononi, an employee and friend for over four years, who was delighted to
work from home since her commute to the office was particularly time-consuming.
Although things went relatively smoothly for the first six weeks, since then
communication and performance have taken a steady downturn. Angela has biweekly
meetings with Ralph in his office. Lately they have had unprecedented arguments and
frequent misunderstandings.
Profile:
Ralph Ramos is the Senior Manager of Claims, managing a 75 employee
department, at Saber Union Insurance, an international insurance company.
Angela Zanoni is a Claims Investigator at Saber Union. She has handled very
large accounts, including insurance fraud cases, resulting in multi-million
dollar recoveries for her company.
Back History: Angela was one of five employees that moved to home offices three
months ago. She had volunteered right off the bat because she could spend more time
with her family if she eliminated all that commuter time [on a bad day she was losing
over three hours roundtrip!]
The telecommuting has had its ups and downs but her relationship with Ralph is
going downhill. Theyve been having frequent misunderstandings, and a few small
arguments. Angela feels that Ralphs operating on an out of sight out of mind
mentality. He doesnt even seem to read the email reports very closely. They do meet
every two weeks at the office as a check-in but its a pure formality. To make matters
worse, a colleague who works in the office told her about all the high stakes claims
another investigator, Bob, has been working on. Angela hasnt had anything hot in
weeks.
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Ralph is happy with the way things are working out. The office is no longer over-
crowded or disturbingly noisy. The telecommuters are doing their work and reporting
regularly. He is having more trouble staying on top of their reports and their projects
but thats probably because hes so busy.
Scene Set-up: Ralph and Angela are meeting to discuss their recent
miscommunications and Angela reveals her dissatisfaction with her recent treatment.
The Meeting - Summary: Ralph brings up the missed deadline and Angela says she
was not informed that the deadline had been moved. Ralph explains how the
information was conveyed. She says she feels that she is out of sight, out of mind and
that since she began telecommuting it has hurt her career. She notes that Bob has
received more high-stakes claims than her recently. Ralph explains that assignments
to employees are based on their talents and experience and that Bob had experience
with one client which is why he chose him. Ralph says he didnt realize she was
feeling this way and wasnt prepared. He suggests they meet later.
Two weeks later Angela misses an appointment with Ralph and deliberately fails to
provide work on time. Ralph wants to understand what has happened to change the
good working relationship they had. Angela threatens to resign, but Ralph maintains
his composure and urges her to try to work out a solution with him. They decide that
for the next two weeks they will talk on the phone everyday. Then, they will decide if
Angela should come back to the office rather than telecommute.
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The References and related Discussion Questions may be found in PowerPoint slides 12-1 to
12-9 on the instructors side of the texts Website.
Angela enjoys not having to commute and likes to be closer and more available for her
family. The voicemail from her friend indicates that she may be losing the personal
relationships she enjoyed at work because of decreased interaction. She clearly feels left
out of certain decisions and is concerned her career may be impeded.
1. How should Ralph respond [when Angela says since Ive been working
from home, Im out of sight]?
A. Compassionately
B. Clarify issues
C. Debate point
His intention was to improve moral and job satisfaction of Angela by cutting down her
commuting time. In actuality, the opposite result has occurred. He blames this on the
difficulty coordinating and controlling staff and monitoring their performance. He is
clearly frustrated by not being able to reach Angela readily when important work-related
matters arise.
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It appeared that the meeting was a good start, but Angelas actions in between the two
meetings indicates that she is very upset and feels discriminated against because of her
working arrangement.
1. What should Angela have done to prepare herself for telework? Refer to PPT 12-7.
Angela needed to really assess whether her work style was suited for telecommuting.
While there are obvious advantages (shorter commute time), there are some less
obvious disadvantages. One needs to assess themselves on the degree that the reality
of telework will impact them. The questions found in PPT 12-7 would be a good start
in this assessment.
Ralph should help Angela realize her value to the organization and explain that he did
not intend to make her feel left out.
2. What should Ralph have done to prevent this problem from occurring? Refer to PPT
12-9.
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Exercising Strategy
Summary
In 1993 IBM racked up over $8 billion in losses when it was blindsided by the switch in
consumer preferences from mainframe computers to smaller, networked personal computers.
The new incoming CEO, Lou Gerstner, created a new vision and strategy for the company.
The strategy was to switch from being an old-fashioned manufacturing company to a modern
service provider. In addition, Gerstner wanted to restructure operations to reduce costs and
promote efficiencies.
The human resource division was most impacted by these changes, which was downsized and
became centralized. Technology was integral to facilitating this centralized strategy. The
sprawling, geographically dispersed units were replaced with an efficient three-tier system.
Despite the radical downsizing of the human resource unit, employee satisfaction with service
increased to 90 percent. The restructuring and redesign of these IBM jobs have formed a
blue-print for many other HRM departments in other organizations.
1. In terms of our discussion of organizational structure, in what ways did the structure at
IBM change under Lou Gerstner and what impact did this have on individual jobs?
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The changes that IBM made created a functional structure with extreme centralization
to the degree that the HRM department was condensed to one unit with less than 1,000
employees from worldwide offices with over 3,500 employees. The company
departmentalized the department into a 3-tier unit, each with its own specialized
employees.
2. Compare and contrast the direction of structural change at IBM with the direction of
change we saw in our opening story regarding the structural realignment at Microsoft.
Student answers may vary. The main difference between the strategies of these
companies is that while Microsoft took on a more decentralized approach, IBM took
on a more centralized, departmentalized approach to its HR department. Both
organizations were plagued with drops in market share and profitability. Both
organizations hoped these strategies would lead to improved efficiency. For
Microsoft, improved efficiency would come from reduced turnover due to higher
intrinsic employee motivation. For IBM, improved efficiency would come from
downsizing the HR department.
3. Since both IBM and Microsoft achieved their goals by changing their structures and
job design in opposite directions, what does this say about the relationship between
organizational structure and job design on the one hand and organizational
performance and job satisfaction on the other?
Student answers may vary. One the one hand, downsizing an organizations structure
and redesigning jobs to be more efficient can improve the profitability of a company.
However, downsizing can negatively affect an organization by lowering employee
morale (this was not the case at IBM). On the other hand, restructuring an
organization and redesigning jobs to improve employee motivation can be costly for
the company. (Because of reduced turnover, this was not the case for Microsoft).
There are definite tradeoffs between these two strategies, and these examples
demonstrate that there is no one best strategy within an industry. Managers must
carefully evaluate strategies before implementing them.
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Summary
For the first time in three years, the tech job market is showing signs of life. This has
significant implications for job creation. Thanks to Corporate Americas robust demand for
tech gear and services, the hiring is relatively broad-based. Technical firms like Symantec
and Qualcomm are hiring at twice the rate of last year. These companies are also filling
positions that many feared would be sent to China or India. Management consulting is
another hot area in terms of job creation. These positions are particularly resistant to moving
offshore. People adept at overseeing the development of software products are also in
demand. In some sectors, such as telecommunications, layoffs will continue.
1. What were some of the factors that led to widespread unemployment among technical
workers prior to the recent upsurge in hiring?
Student answers may vary. Overcapacity is the major factor that let to widespread
unemployment among technical firms. In the late 90s, tech firms were eager to hire
many employees because of the technological boom. After 2000, the tech bubble
burst, and because of overcapacity, companies were forced to layoff employees in
order to remain competitive.
2. In what ways are the technology jobs that are now emerging in the U.S. economy
different from those that existed ten years ago?
Because to the recent trend in outsourcing, tech jobs today have to be strongly
resistant to moving offshore. This is good news to management consultants and other
managers. Today, lower-level support and maintenance tasks are concentrated
overseas, while high-tech, high profile jobs are staying in the U.S. sector.
3. If you were a worker in the tech industry like Mark Herleman, what steps would you
take to help buffer yourself from the ups and downs of this labor market?
Student answers will vary. An important key attribute in the tech industry is being
able to stay on top of innovation changes in technology. Mark could do this by
enrolling in classes or researching new technologies or inventions. In addition, Mark
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Additional Activities
In-Class Activity 1
Many students are or have been employed. Ask students to choose a company for which they
have worked and analyze the corporate culture at that company. Answers may include some of
the following:
In-Class Activity 2
Invite students to discuss their experiences traveling by air. Have any of them flown
Southwest Airlines? If yes, does the airline measure up to everything that is being said
about it?
Do they have a favorite airline? Why?
What, in their opinion, are the most important reasons for choosing an airline?
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