CHAPTER 6

Workforce management
Teaching Notes
This chapter provides an overview of one of the most important sub-systems in TQ - the human
resources sub-system. The human resources area continues to undergo wrenching change as
organizations try to recruit people with scarce technical skills, improve their performance while still
keeping them motivated, enhance organizational quality and productivity, and downsize the
organization to remain competitive and profitable. Students may have had prior courses in
management, organization behavior, or personnel and human resources management, and may thus
feel that they are "experts" in this area. You should point out that companies that embrace the TQ
philosophy are now adopting a unique workforce management perspective. In some ways, this
perspective "goes against the grain" of the traditional human resources approaches, while taking
advantage of much of the behavioral research that has never been well implemented in business
organizational practices.
The chapter also develops the important workforce management-related topic of employee
involvement and participative management. It covers the history of quality circles, employee
participation, and involvement for two reasons. 1) Students should know that the team concept,
which the Japanese called "quality control circles, (QCC's)" was developed in the U.S. long before
Kaoru Ishikawa started circles in Japan, and the idea has been used successfully for many years in
pioneering American companies, such as Lincoln Electric, Maytag, and Procter and Gamble. 2) The
"roots" of employee involvement teams come from an interdisciplinary blend of behavioral
psychology/sociology, engineering, and management science concepts that contribute to its richness
and diversity. Understanding EI should help bridge the gap between the "quants" and the "touchyfeely" people who are interested in TQ.
Key objectives for this chapter include:
To develop and reinforce the concept that the human resource in an organization is the only one
that competitors cannot copy. Students can be led to discover that employee satisfaction has a
strong correlation with customer satisfaction, so organizations must learn how to satisfy the
workforce to obtain the advantages of a satisfied customer base.
To learn about, and extend, key workforce-focused practices for performance excellence that
drive workforce engagement, satisfaction and motivation. Some of these are: designing and
managing work and jobs to develop a culture conducive to high performance and motivation;
creating a supportive and safe environment; developing reward and recognition systems that
support high performance and workforce engagement; and assessing engagement, satisfaction,
1

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capability, and capacity needs, and using the results for improvement, recruitment, investment in
training and development, career progression, and succession planning for management and other
positions.
To establish the differences between traditional workforce management practices, under theories
first developed by Frederick W. Taylor, that have tended to focus primarily on tasks and duties of
HR personnel, as opposed to quality-related individual and team development and enhancement
of employee involvement in problem-solving and decision-making activities.
To build on the basic definition of workforce management: Human resource management (called
workforce management, here) consists of activities designed to provide for and coordinate all
the people of an organization. These include determining the organizations human resource
needs; recruiting, selecting, developing, counseling, and rewarding employees; acting as a
liaison between unions and government organizations; and handling other matters concerning
employee well-being. Workforce management seeks to build a high performance workplace
and maintain an environment for quality excellence.
To provide an understanding of the concept of workforce engagement which refers to the extent
of workforce commitment, both emotional and intellectual, to accomplishing the work, mission
and vision of the organization.
To introduce leading concepts and practices including employee involvement (EI), suggestion
systems, motivation theories and models as bases for a sound understanding of workforce
management.
To define and explore high performance work, which refers to work approaches used to
systematically pursue ever-higher levels of overall organizational and human performance;
work design, a concept that refers to how employees are organized in formal and informal
units, such as departments and teams; and job design, a concept that refers to responsibilities
and tasks assigned to individuals. Work and job design affect motivation, satisfaction, and
organizational effectiveness. Approaches such as job enlargement, job rotation, and job
enrichment support TQ principles. The Hackman-Oldham model helps in understanding how
job design impacts motivation, satisfaction, and organizational effectiveness.
To define a team as 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.
To develop an appreciation for project teams that are a vital part of Six Sigma efforts and are
comprised of champions, master black belts, black belts, green belts, other team members,
who each provide different levels of knowledge and expertise in guiding a Six Sigma project.

3
To learn that building and developing successful teams requires solid management support and
good planning. Self-managed teams, in particular are challenging because of the level of
empowerment that they possess.

To touch on other aspects of workforce management systems, including topics of:

empowerment; recruitment and career development; training and education; compensation and
recognition; health, safety, and well-being; motivation; performance appraisal; compensation
and recognition; team-based pay and gainsharing; and measuring and evaluating workforce
effectiveness.

To develop an understanding of why traditional performance appraisal processes often are at

odds with a TQ philosophy, how approaches such as 360-degree feedback and development
systems that often focus on core competencies and mastery descriptions can help to reduce
negative effects of appraisal, and why performance appraisal should be based on qualityrelated issues, problem identification, coaching, and continuous improvement rather than
being tied to compensation and merit-rating systems.

To assess the linkages with strategy and to provide a foundation for improvement,
measurement of employee satisfaction and workforce effectiveness using typical measures of
outcomes such as productivity improvement, defect reduction, employee turnover, and
perceptions of behavioral performance; and process measures, such as suggestion rates and
problem-solving effectiveness.
To help students appreciate that workforce management practices in the Internet Age often
require employers to take non-traditional approaches to attract and retain high-skilled
employees. They must understand workforce capability, which encompasses the organizations
ability to accomplish necessary work processes through the knowledge, skills, abilities, and
competencies of its people, in contrast to workforce capacity which refers to the organizations
ability to ensure sufficient staffing levels to accomplish work processes and successfully deliver
products and services to customers, including the ability to meet seasonal or varying demand
levels. Managing capability and capacity requires close attention to hiring, learning, and career
development.
To develop an understanding of the Baldrige criteria in the Workforce Focus category
addresses engagement, compensation and recognition, and assessment, and the management of
workforce capability and capacity. ISO 9000:2000 addresses some aspects of training and the
work environment, but not as comprehensively as Baldrige. Engaging people is vital to
successful Six Sigma efforts, as are dealing with the consequences and recommendations of Six
Sigma projects.
ANSWERS TO QUALITY IN PRACTICE KEY ISSUES
Training for Improving Service Quality at Honda

1.

Honda used a blended approach, rather than a pure virtual online learning approach because
it appeared to meet the criteria of a) improving and extending the delivery of training for
employees; b) reduce their time away from the job for training; c) take advantage of
expanding technology capabilities and infrastructure; d) ensure a tangible transfer of skills
that would take internal service quality to an entirely new level.

2.

There were several benefits of the approach including meeting the criteria listed above, as
well as enabling Honda to capture and measure detailed data about one program (problemsolving and decision-making) about how the techniques continue to be used to affect and
improve quality in critical service and support areas. The approach supports the achievement
of high performance by providing for:

3.

Increased learner readiness for workshop learning

Better identification of relevant application topics
Increased volume of completed applications
Increased dollar value of after-workshop applications
Greater ongoing use of skills

Other organizations might learn from Hondas experience by practicing management support,
using the blended approach to enhance motivation, making use of technology to improve
efficiency of delivery, focusing on transferability of training to enhance quality, and measuring
results to provide opportunities for improvement.

Improving Employee Retention through Six Sigma

1. The bold proposal made by the HR department at Hewitt Associates, to justify increases in
compensation based on ROI from calculated savings in productivity, helped management to
see the business problem differently. In the end, the annualized ROI bought credibility with
senior leaders and highlighted the importance of HR being in a position to make and defend
data-based decisions that yield a strong ROI. Conclusion: The Six Sigma method has helped
HR professionals and senior managers at Hewitt think differently about business problems,
address root causes quicker, and demonstrate the ROI of the talent solutions that are
implemented.
2. Hewitt Associates identified several solutions to high employee turnover of trained
customer service personnel at that the company, including:
1) Improving tangible rewards. After a review of market data revealed that Hewitts total
compensation rates had dropped slightly below market average, a targeted group of proficient
CS representatives received a market correction in their base pay and a similar group did not.
The improvement in compensation had a significant impact on retention.

5
2) Developing a realistic job profile targeted at explicitly showing candidates up front what the
first few months of the rolewhen turnover is highestentailed. Additionally, HR
implemented a role-based capability assessment to measure job fit at the time of application.
(3) Redesigning technical training to ensure associates become productive more quickly and
better understood the link between performance and growth opportunity, which is based on
productivity results. A formal career path tool was also constructed to help CS representatives
navigate the career journey more effectively and decrease the attrition due to employees
leaving for better-perceived career and development opportunities elsewhere.
(4) Developing a formal manager effectiveness curriculum for managers and local leaders,
focusing this training on interaction management, team leading, and conflict resolution.
Manager interaction sessions also would be delivered to improve one-on-one coaching
opportunities between managers and CS representatives.
Figure 6.8 Hewitts Employee Engagement Framework

These changes effectively support Hewitts Workforce Management model, focusing

respectively on: 1) Total Rewards; 2) Company Practices and also Work; 3) Opportunities;
and 4) People, Work, and Company Practices.
ANSWERS TO REVIEW QUESTIONS
1.

There is a logical relationship between customer satisfaction and employee satisfaction

because research has shown that as workforce satisfaction increased, so did customer
satisfaction and loyalty to the organization. If people were satisfied with their working
conditions and jobs, they stayed with the company, became familiar with customers and
their needs, had the opportunity to correct errors because the customers knew and trusted
them, and had outcomes of higher productivity and high service quality. Customers of
these firms became more loyal, thus providing more repeat business, were willing to
complain about service problems so that employees could fix them, and benefited from the

6
relationship by seeing lower costs and better service, thus leading to a new cycle of
increased customer satisfaction. An extensive research study by the Gallup Organization of
7,939 business units in 36 companies showed that employee satisfaction and engagement
were positively related to not only to customer satisfaction and loyalty, but also to
productivity, profit, turnover, and safety.
2.

The key workforce-focused practices for performance excellence include:

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.
Create an environment that ensures and improves workplace health, safety, and
security, and supports the workforce via policies, services, and benefits.
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.
Make appropriate investments in development and learning, both for the workforce
and the organizations leaders
Manage career progression for the entire workforce and succession planning for
management and leadership positions.

3.

The impact of F.W. Taylor on quality and productivity has been profound. Taylor developed
his "scientific management approach" primarily to improve efficiency and productivity of
manual workers. Taylor separated planning from execution, concluding that foremen and
workers of those days lacked the education necessary to plan their work. The foremans
role was to ensure that the workforce met productivity standards. However, under the
pressure to achieve productivity improvements, quality eroded. Labor unions became
stronger and adversarial relations developed between labor and management as the "push"
for productivity intensified. Unlike TQ principles, the Taylor system failed to make use of the
knowledge and creativity of the workforce.

4.

Workforce management consists of those activities designed to provide for and coordinate
the people of an organization. These activities include determining the organizations
workforce needs; assisting in the design of work systems; recruiting, selecting, training
and developing, counseling, motivating, and rewarding employees; acting as a liaison with
unions and government organizations; and handling other matters of employee well-being.

Human resource (workforce) managers still perform the traditional tasks of "personnel
management," such as: interviewing job applicants, negotiating contracts with unions,
keeping time cards on hourly employees, and teaching training courses, but the scope and
importance of their area of responsibility has changed dramatically. These managers are
taking on a strategic role in their organizations. They're also being required to plan for the
development of the corporate culture, as well as day-to-day operations involved with
maintenance of workforce management systems. In organizations that are committed to a
Total Quality philosophy, both the process and content of the human resource department -the way that it carries out its mission and responsibilities -- is rapidly changing.
5.

Workforce engagement refers to the extent of workforce commitment, both emotional and
intellectual, to accomplishing the work, mission, and vision of the organization.
Organizations with high levels of workforce engagement are often characterized by highperforming work environments in which people are motivated to do their utmost for the
benefit of their customers and for the success of the organization.
Engagement is manifested in Demings concept of pride and joy in work that was
reflected in his 14 Points. Engagement means that workers find personal meaning and
motivation in their work, have a strong emotional bond to their organization, are actively
involved in and committed to their work, feel that their jobs are important, know that their
opinions and ideas have value, and often go beyond their immediate job responsibilities for
the good of the organization. Employee engagement offers many advantages over
traditional management practices as it:

6.

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

Employee Involvement (EI) refers to participative team approaches currently being applied to
problem solving and decision-making in various organizations. These approaches involve
transforming the culture of the entire organization to tap the creative energies of all
employees. EI allows individuals "to discover their own potential, and to put that potential to
work in more creative ways....People develop in themselves pride in workmanship,
self-respect, self-reliance, and a heightened sense of responsibility."

8
The team concept, which the Japanese called "quality control circles," was developed and put
into practice in the U.S. and other countries (such as Germany in the 1800's at the Zeiss
Company) long before Kaoru Ishikawa started circles in Japan. Also, the idea of team
approaches to problem-solving has been used successfully for many years in a few pioneering
American companies, such as Lincoln Electric, Maytag, and Procter and Gamble. The "roots"
of, and approaches to employee involvement teams come from an interdisciplinary blend of
behavioral psychology/sociology, engineering, and management science concepts that
contribute to its richness and diversity.
7.

A simple definition of motivation is response to a felt need. Thus, there are three components
of motivation: 1) the felt need, 2) the stimulus that produced that felt need, 3) and the
response to the stimulus. It is essential for managers and team members to understand the
concepts of motivation in todays TQ environment. For example, the Porter and Lawler
model draws on expectancy theory and provides some insights into motivation, while
Hackman and Oldham provide perspectives on the larger aspects of job design, that may be
used to enhance quality management. (see the answer to Review Question 10, below, and the
file on motivation in the Bonus materials on the Premium website for further elaboration.)

8.

High performance work refers to work approaches used to systematically pursue ever-higher
levels of overall organizational and human performance. Flexibility, innovation, knowledge
and skill sharing, alignment with organizational directions, customer focus, and rapid
response to changing business needs and marketplace requirements characterize high
performance work. Organizations may be viewed at three levels: the individual level, the
process level, and the organizational level. High-performance work at the individual level
should enable effective accomplishment of work activities and promote flexibility and
individual initiative in managing and improving work processes. This may be accomplished
via extensive employee involvement, empowerment, and training and education. At the
process level, cooperation, teamwork, and communication are key ingredients. At the
organizational level, compensation and recognition, and attention to employee well-being
through health, safety, and support services are major factors for outstanding performance.
Management through sound motivational principles and practices such as recruitment and
career development, performance appraisal, and continual evaluation and improvement of
workforce management practices is required for organizational success.

9.

Work design refers to how employees are organized in formal and informal units, such as
department and teams. Job design refers to the responsibilities and task assigned to
individuals. Both are vital to organizational effectiveness and job satisfaction.
The Hackman and Oldham job characteristics model can be used to design motivating
potential into a job, thus enhancing quality. Their approach to task design help to explain the
motivational properties of tasks by tying together human and technical components of jobs.
In the model, shown in Figure 6.1, the five core job characteristics of task significance, task
identity, skill variety, autonomy, and feedback from the job can all be related in some way to
quality. For example, the job of data entry operator in a computer center was formerly

9
designed using a highly specialized "pool concept" where operators received work assigned
at random from all departments. Also, groups of operators were designated to enter data
while others did nothing but "verify" (re-key data) to check for accuracy. High error rates,
low productivity, absenteeism, and turnover were experienced in the center. When the job
was redesigned, using Hackman and Oldham's concepts, substantial improvement in quality,
productivity, and measures of employee satisfaction resulted. The redesign involved
cross-training on data entry and verification skills for all operators, assignment of work from
individual departments to specified operators, and more control over work elements. This
provided for a greater feeling of task identity and significance, an opportunity for greater use
of skills, and more autonomy and feedback from "customers" in the departments that sent
work to the center.
10.

Job enlargement, expands workers jobs to include several tasks rather than one single,
low-level task. This approach reduces fragmentation of jobs and generally results in lower
production costs, greater worker satisfaction, and higher quality, but it requires higher
wage rates and the purchase of more inspection equipment. Job enrichment entails
vertical job loading in which workers are given more authority, responsibility, and
autonomy rather than simply more or different work to do. They support the Hackman and
Oldham model, as they relate to the core job chracteristics of skill variety and
autonomony, in particular. In turn, these characteristics also relate to their critical
psychological states and outcomes, as shown in the model.

11.

Empowerment simply means giving people authority and power to make decisions, gain
greater control over their work, and thus more easily satisfy customers. Successful
empowerment of employees requires that:
*0 Employees are provided education, resources and encouragement.
*1 Policies and procedures are examined for needless restrictions on the ability of employees
to serve customers.
*2 An atmosphere of trust is fostered rather than resentment and punishment for failure.
*3 Information be shared freely rather than closely guarded as a source of control and power.
*4 Workers feel their efforts are desired and needed for the success of the organization.
*5 Managers are given the support and training to adopt a "hands off" leadership style.
*6 Employees are trained in the amount of latitude they are allowed to take.
*7 Managers relinquish some power, but also obtain new responsibilities for hiring and
developing people capable of handling empowerment, for encouraging risk-taking, and for
recognizing achievements.

12.

According to management theorist, David Geisler, self-determination differs from

empowerment in that what traditionally passes for empowerment does not allow
employees to use their skills and talents to the maximum. He maintains that selfdetermination is an extension of empowerment (see Table 6.5 for contrasts) and that: 1)
individual and organizational effectiveness result when employees are allowed to achieve
their own unique levels of excellence; and 2) personal power arises when employees are

10
certain that the organization is free of barriers, they are valued for what they contribute,
and they are allowed to express themselves.
13.

A team is defined as: 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.
Teams provide opportunities to individuals to solve problems that they may not be able to
solve on their own. Teams may perform a variety of problem-solving activities, and may also
assume many traditional managerial functions. Effective teams are goal-centered,
independent, open, supportive, and empowered.
The most common types of teams are:
Management teams: Teams consisting mainly of managers from various functions, such as
sales and production that coordinate work among teams
Natural work teams: Teams organized to perform entire jobs, rather than specialized,
assembly line-type work
Self-managed teams (SMTs): Specially empowered work teams defined as a highly
trained group of employees, from 6 to 18, on average, fully responsible for turning out a
well-defined segment of finished workalso known as self-directed work teams. More
information on the evolution and activities of SMTs can be found in the Bonus Materials
folder for this chapter on the Premium website for this chapter.
Virtual teams: A relatively new format in which team members communicate by computer,
take turns as leaders, and jump in and out as necessary. These types of teams use a
combination of Internet, e-mail, phone, fax, video conferencing, PC-to-PC connections,
and shared computer screen technologies to get their jobs done.
Quality circles: Teams of workers and supervisors that meet regularly to address workrelated problems involving quality and productivity.
Problem-solving teams: Teams whose members gather to solve a specific problem and
then disband (The difference between these and quality circles is that quality circles usually
remain in existence for a much longer period of time.)
Project teams: Teams with a specific mission to develop something new or to accomplish
a complex task (Project teams have been in use since World War II, and probably before
that. However, project teams recently gained a new measure of importance and respect in
the context of Six Sigma.)

14.

A quality circle is a small group of employees from the same work area who meet regularly
and voluntarily to identify, solve, and implement solutions to work-related problems.
Characteristics of quality circles include:
(1) Quality circles are small groups, ranging from 4 to 15 members. Eight members are
considered the norm.
(2) All members come from the same shop or work area. This gives the circle its identity.

11
(3) The members work under the same supervisor, who is a member of the circle.
(4) The supervisor is usually, though not always, the leader of the circle. As leader, he or she
moderates discussion and promotes consensus. The supervisor does not issue orders or
make decisions. The circle members, as a group, make their own decisions.
(5) Voluntary participation means that everyone has an opportunity to join.
(6) Circles usually meet once every week on company time, with pay, and in special meeting
rooms removed from their normal work area.
(7) Circle members receive training in the rules of quality circle participation, the mechanics
of running a meeting and making management presentations, and techniques of group
problem solving.
(8) Circle members, not management, choose the problems and projects that they will work
on, collect all information, analyze the problems, and develop solutions.
(9) Technical specialists and management assist circles with information and expertise
whenever asked to do so. Circles receive advice and guidance from an adviser who attends
all meetings but is not a circle member.
(10) Management presentations are given to those managers and technical specialists who
would normally make the decision on a proposal.
Self-managed teams, management teams, natural work teams, and virtual teams typically
work on routine business activitiesmanaging an organization, building a product, or
designing an electronic systemand are an integral part of how work is organized and
designed. Quality circles, and other such problem-solving teams, generally work more on
an ad-hoc basis to address specific tasks or issues, often relating to quality improvement.
However, self-managed teams and quality circles have one major similarity they typically
are intraorganizational; that is, members usually come from the same department or
function. Management teams, problem-solving teams, virtual teams, and project teams, are
usually cross-functional; they work on specific tasks or processes that cut across
boundaries of several different departments regardless of their organizational home.
15.

Although the roles of team members in traditional project teams can and do vary within
the teams structure, typical roles are the champion, sponsor, team leader, facilitator,
timekeeper, scribe, and team member. Coaching is a helpful process for less experienced
team members, and may include such activities as: setting expectations, assisting in skill
development, instilling a sense of individual responsibility and ownership for personal
development, and reviewing performance. Roles in Six Sigma teams are similar to, and
different from traditional project team roles, because Six Sigma projects require a diversity
of skills that range from technical analysis, creative solution development, and
implementation, where conventional teams do not. Six Sigma teams not only address
immediate problems, but also to provide an environment for individual learning,
management development, and career advancement. Six Sigma teams are comprised of
several types of individuals:
Champions
Master Black Belts

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Black Belts
Green Belts
Team Members

16.

Teams go through several very predictable phases of development called forming, storming,
norming and performing. Forming is 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. The third stage, 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. Stage four, performing, is the productive phase of the life cycle when team
members cooperate to solve problems and complete the goals of their assigned work. The
adjourning phase is when the team wraps up the project, satisfactorily completes its goals,
and prepares to disband or move on to another project.

17.

Issues must be considered, and pitfalls must be avoided, if teams are to be successful. As
stated in the chapter, the team structure depends heavily on cooperation, communication,
and clarity. Eckes estimates that 60 percent of failures of Six Sigma teams are due to
failures in the mechanics of team operations, as opposed to poor project selection or
improper use of tools. He cites contributing factors such as lack of application of meeting
skills, improper use of agendas, failure to determine meeting roles and responsibilities, lack
of setting and keeping ground rules, and lack of appropriate facilitative behaviors.
Electronic communications, virtual teams, and motivation were discussed earlier, but they
must also be used effectively if teams are to be successful. Robbins and Finley list 14
reasons why teams fail, although they are quick to point out that no one reason, and often
multiple reasons, explain why it happens. Their list includes organizational problems (bad
policies, stupid procedures, bleary vision, ill-conceived reward system, confused goals,
unresolved roles, antiteam culture), leadership problems (bad leadership, insufficient
feedback and information, the wrong tools), and individual/team barriers (mismatched
needs, hidden agendas, personality conflicts, lack of team trust, unwillingness to change).
Thus, managers need to carefully evaluate how teams are introduced in their organizations
and address team building as a critical work process.
Team implementation should always begin with a period of investigation, reflection, and
soul searching. Many companies rush out and form the wrong kind of teams for a specific
job. For example, quality circle-type teams cannot achieve the same type of results as a
cross-functional problem-solving team or a self-managed team. Managers should examine
their organizations goals, objectives, and culture to evaluate its readiness to develop and
support team-based initiatives. This step may be the most difficult portion of the process,
because it demands a hard self-appraisal of the organization as a whole. One enthusiastic
manager can often get teams going, but solid support at a number of managerial levels is
necessary to keep them going. Managers should then analyze the work required. Teams

13
take a lot of maintenance, and if the work can be done faster and better by a single person,
a team should not be used.
Self-managed teams (SMTs) represent the greatest challenge. Organizations that use
SMTs typically arrive at them through one of two routes: organizational start-up with
SMTs in place, or transformations from more limited team structures. The second is often
a next logical step after other types of employee involvement programs reach maturity.
18.

The organization must consider a number of issues relating to employee well-being in

todays work environment. These include: health and safety factors, accommodations for
workers with disabilities, protection of employees from sexual harassment, and quality of
worklife factors. The latter category now includes such factors as: personal and career
counseling, career development and employability services, recreational or cultural
activities, daycare, special leave for family responsibilities or for community services,
flexible work hours, outplacement services, and extended health care for retirees.

19.

According to Scholtes, the tools needed for running an effective meeting include:
Peter Scholtes provides some rules for effective meetings:

Use agendas.
Have a facilitator.
Take minutes.
Draft the next agenda.
Evaluate the meeting.
Adhere to the 100-mile rule.

Scholtes suggests the use of detailed agendas that include topics, a sentence about the
importance of each, who will present them, the estimated time for each topic, and the type
of item, such as discussion, decision, or information topics. A facilitator can keep the
discussion on time and on target, prevent anyone from dominating or being overlooked,
and help bring the discussion to a close. A scribe who takes minutes can record subjects,
decisions, and who will be responsible for actions taken. Drafting the next agenda at the
end of the meeting serves to set a plan of action for going forward. Evaluating the meeting
incorporates a continuous improvement step. Adhering to the 100-mile rule requires a
commitment to focus on the meeting so clearly that no one should be called from the
meeting unless it is so important that the disruption would occur even if the meeting was
100 miles away from the workplace.
20.

The nominal group technique (NGT) was developed to provide a way to prioritize and
focus on important project objectives in the project definition stage. One of the major
advantages of the technique is that it balances the power of each individual involved in the
decision process. Key steps in the process include the following:
1. Request that all participants (usually 510 persons) write or say which problem or issue
they feel is most important.
2. Record all problems or issues.

14
3. Develop a master list of problems or issues.
4. Generate and distribute to each participant a form that numbers the problems or issues
in no particular order.
5. Request that each participant rank the top five problems or issues by assigning five
points to their most important perceived problem and one point to the least important of
their top five.
6. Tally the results by adding the points for each problem or issue.
7. The problem or issue with the highest number is the most important one for the team as
a whole.
8. Discuss the results and generate a final ranked list for process improvement action
planning.
This approach provides a more democratic way of making decisions and helps individuals
to feel that they have contributed to the process.
21.

Without willing, sustained, individual effort and coordinated teamwork focused on

meeting organizational goals, TQ is an impossible dream. However, when organizations
ask employees to assume new challenges and responsibilities, the question Whats in it for
me? ultimately gets asked. Extrinsic and intrinsic rewards are the key to sustained
individual efforts. Compensation and recognition refer to all aspects of pay and reward,
including promotions, bonuses, and recognition, either monetary and non-monetary or
individual and group.
Compensation is always a sticky issue, closely tied to the subject of motivation and
employee satisfaction. Money is a motivator when people are at the bottom of Maslows
hierarchy (discussed later in this chapter). Pay for performance can diminish intrinsic
motivation. It causes most employees to believe they are being treated unfairly, and forces
managers to deliver negative messages. Eventually, it creates win/lose situations. The
objectives of a good compensation system should be to attract, retain, and not demotivate
employees. Other objectives include reducing unexplainable variation in pay (think about
Demings principles) and encouraging internal cooperation rather than competition. Most
companies still use traditional financial measures, such as revenue growth, profitability,
and cost management, as a basis for compensation; more progressive organizations use
quality measures such as customer satisfaction, defect prevention, and cycle time
reduction to make compensation decisions.
Many TQ-focused companies now base compensation on the market rate for an individual
with proven capabilities, and then make adjustments as capabilities are increased, along
with enhanced responsibilities, seniority, and business results. Many companies link
compensation to company track records, unit performance, team success, or individual
achievement. Team-based pay and gainsharing, an approach in which all employees share
savings equally, are gaining in popularity and importance. Compensation for individuals is
sometimes tied to the acquisition of new skills, often within the context of a continuous
improvement program in which all employees are given opportunities to broaden their

15
work-related competencies. However, there are legal restrictions in federal wage and hour
laws that make it difficult to implement some of these approaches.
22.

Key practices that lead to effective employee recognition and rewards include:
a.
Giving both individual and team awards.
b. Involving everyone, including both front-line employees and senior management.
c. Tying rewards to quality based on measurement objectives, rewarding for behavior, not
just results.
d. Allowing peers and customers to nominate and recognize superior performance.
e. Publicizing team and individual recognition extensively.
f. Making recognition fun.
In managing quality, it is important to separate individual compensation, i.e. pay and
promotion, from the performance appraisal. One way to do this is through gainsharing, where
all employees, regardless of rank, share savings equally. Another way to separate
compensation from performance is to have pay tied closely to the acquisition of new skills.
This can be done within the context of a continuous improvement program in which all
employees are given opportunities to broaden their work-related competencies.
Team incentives, gain sharing, and pay for skills should not be installed if individualized
measures, such as bonus systems and individual incentive systems are left in place. If
management is not willing to spend resources in training employees so that they can
continuously improve their skills, then they might as well not install such innovative pay
systems. Management needs to be very careful about sending mixed messages when they
design their reward systems.

23.

Performance appraisal is an exceedingly difficult workforce management activity to perform.

Dissatisfaction with conventional performance appraisal systems is common between both
managers, who are the appraisers, and workers, who are the appraised. Literally dozens of
research studies and analyses by experts have pointed out the problems and pitfalls of
performance appraisal. The controversy is over whether the conventional approach can be
improved, or whether a radical approach, such as suggested by Deming is the "right" answer.
The "conventional" school says that a formal process is necessary and desirable, but can be
improved upon. The "Deming followers" school says that a formal process is unnecessary
and should be eliminated due to flaws in any such process. Although the "anti-appraisal"
supporters are growing in number, theirs is the more controversial viewpoint, and would
require radical changes in both the appraisal and compensation practices of most
organizations. The "anti's" are strict followers of W. Edwards Deming, who condemned the
performance appraisal process as one of the "seven deadly diseases" of management. Deming
literally suggested that management eliminate the use of performance appraisal because it is
statistically unsound.

16

There is no one right answer to the question of whether conventional performance reviews
should be eliminated, or not. Obviously, a TQ-oriented organization must face the question of
what they reward and how they will do so. Performance appraisals are most effective in a TQ
environment when they are based on the objectives of the work teams that support the
organization. In this respect, they act as a diagnostic tool and review process for individual,
team, and organizational development and achievement. The performance appraisal can also
be a motivator when it is developed and used by the work team itself. Quality improvement is
one of the major dimensions on which employees are evaluated, and many companies use
peer review, customer evaluations, and self-assessments as part of the appraisal process.
Other companies are replacing performance evaluation all together with personal planning
and development systems; the thrust of the process is to develop each individual to the
fullest.
24.

360-degree feedback is a method whereby a group of individuals who frequently interact

with an employee or team participate in both the goal setting process and the performance
appraisal process. The group may include suppliers, clients, peers, internal customers,
managers, and subordinates. The process requires two-way communication on customer
client needs and often results in a written service contract. At the end of the performance
period, participants who were involved in goal setting evaluate how well objectives were
met, provide feedback, and their comments serve as input for the next round of goals that are
set. It differs from traditional performance review processes in that multiple raters are used
(instead of just one), the ratee is involved in setting measurable objectives and carrying them
out, and customers and suppliers from outside the organization are frequently involved in the
process. It supports TQ principles in that it is pointed toward continuous improvement, not
control of the ratee. Also multiple raters and involvement imply a team approach to
performance and not a highly individualistic one.

25.

Measurement of workforce engagement and employee satisfaction is needed to assess

linkages with company strategy and to provide a foundation for improvement. Commonly,
outcome measurements can be made of cost savings, productivity improvements, defect rate
and cycle time reductions, customer satisfaction levels, and employee turnover. These can be
applied to areas such as team and overall organizational progress and effectiveness,
suggestion processes, management support, the total quality system, training, and continuous
improvement.

26.

Workforce capability refers to an organizations ability to accomplish its work processes

through the knowledge, skills, abilities, and competencies of its people. Capability may
include the ability to build and sustain relationships with customers; to innovate and
transition to new technologies; to develop new products, services, and work processes;
and to meet changing business, market, and regulatory demands. Workforce capacity
refers to an organizations ability to ensure sufficient staffing levels to accomplish its work

17
processes and successfully deliver products and services to customers, including the ability
to meet seasonal or varying demand levels.
Workforce capability and capacity should consider not only current needs but also future
requirements based on strategic objectives and action plans. Thus, it is important to
consider both capability and capacity when designing and sustaining a high performance
work system. That is why we emphasized the importance of human resource planning in
conjunction with strategic planning in Chapter 4.
27.

Some modern practices for hiring, workforce learning, and career development represent a
break from the traditional personnel and human resources approaches of the 1980s and
90s. An important aspect of meeting workforce capability and capacity needs is an
organizations process for hiring the right people. First, one must identify what skills and
competencies they need. Some organizations come up with a list of core
behavioral/management competencies through an analysis of future leadership
requirements based on a vision and an assessment of the companys current capabilities.
They then identify job candidates based on the skills and competencies during the hiring
process.
Customer-contact employees make up a large segment of todays workforce. Traditional
hiring practices had formerly been based on cognitive or technical rather than interpersonal
skills. The criterion is now shifting to attributes such as enthusiasm, resourcefulness,
creativity, and the flexibility to learn new skills rapidly. Customer-focused employees
should exhibit calmness under stress, optimism, initiative, and a people-orientation, the ability
to listen well, and the ability to analyze, prevent, and solve problems.
In a culture of performance excellence, employees need to understand the importance of
customer satisfaction, to be given the training and responsibilities to achieve it, and to feel
that they do indeed make a difference. Training specific to performance excellence
generally includes quality awareness, leadership, project management, communications,
teamwork, problem solving, interpreting and using data, meeting customer requirements,
process analysis, process simplification, waste reduction, cycle time reduction, errorproofing, and other issues that affect employee effectiveness, efficiency, and safety. Many
large companies have formal training departments, whose systems and approaches evolved
along with their overall quality systems. Identifying training opportunities and
implementing them is a key business process. Education and training can be delivered in a
variety of ways, including on-the-job or traditional classroom environments. Today,
computer-based and distance learning education are becoming increasingly popular.
Capitalizing on todays technology and the demographics of its younger employees, many
companies are using or testing video iPods for training, as examples.
Career development is also changing because of a focus on quality and high performance.
As managerial roles shift from directing and controlling to coaching and facilitating,
managers, who must deal with cross-functional problems, benefit more from horizontal

18
movement than from upward movement in narrow functional areas. Flatter organizations
limit promotion opportunities. Thus, career development expands learning opportunities
and creates more challenging assignments rather than increasing spans of managerial
control.
28.

Category 5 of the 2009-10 Malcolm Baldrige National Quality Award Criteria for
Performance Excellence is Workforce Focus. It addresses how workforce management
practices are aligned with company objectives and strategy, and how the company assesses
workforce capability and capacity needs in order to build a high-performance work
environment. Item 5.1, Workforce Engagement, focuses on how an organization, engages,
compensates, and rewards the workforce to achieve high performance, how its employees
and leaders are developed, how workforce engagement is assessed, and how the results
are used to achieve higher performance. Item 5.2, Workforce Environment, focuses on
how an organization manages its workforce capability and capacity to accomplish the
work of the organization and maintains a safe, secure, and supportive work climate.
ISO 9000:2000 has also addressed workforce management issues, revolving primarily
around training and the work environment, but does not address the subject as
comprehensively as Baldrige does. The standards require that workers to be competent
on the basis of appropriate education, training, skills and experience, Also, that
organizations 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 also address the work environment from the standpoint of providing buildings,
workspace, utilities, equipment, and supporting services and determine and manage the
work environment including safety, ergonomics, and environmental factors.
Finally, Six Sigma efforts often result in significant change recommendations to the
organization work processes change and employees need to do things differently. In
addition to teams, which are an integral part of the Six Sigma process, selecting the right
people to serve on teams, training and skill development, and reward and recognition
approaches to drive behavior are vital to Six Sigma efforts. Understanding how changes
impact people is a necessary issue that organizations must address after Six Sigma projects
are completed; project champions, in particular, need to apply the principles discussed in
this chapter to their organizations.

ANSWERS TO DISCUSSION QUESTIONS

1.

Answers will vary, depending on the students perspectives on the centrality of human
resources as they relate to organizational success. Toyota takes special care to train,
empower, and value their workers as resources. Many companies pay lip service with the
old clich about Employees are our most important assets, but only a small percentage of
them really treat their employees as if they are valuable assets. However, because the mix

19
of employees, with their unique training, creativity, and organizational culture is only
contained in one company, it can be claimed, with some justification, that no other company
can duplicate that mix of skills and personality, anywhere else.
2.

Answers will vary depending on the students philosophical opinions and knowledge and
judgment of recent political and economic history. Drucker was reinforcing the importance
of Taylors contributions to systematic work processes (see answer to Review Question 1 for
background). Obviously, with the ongoing introduction of capitalism into formerly Marxist
economies, most students will agree that Taylor has triumphed over Marx. However, it is
possible that you will have a few students who hold Marxist beliefs (even some who dont
know Karl Marx from Groucho Marx) in management classes who will argue that the true
influence of Marxist economic doctrine has yet to be seen by the world.

3.

The answers will vary here, depending on students' perspectives on relevant organizations.
Fraternities are generally pretty democratic in organizational structure, but often do not
understand how to tie human resource plans to organizational strategy, develop leadership,
recognize and reward responsible and innovative behavior, and provide for continuous
improvement of routine processes. Also, because it is a membership organization, a fraternity
will have a few paid employees and a number of volunteers, some of who will consider
themselves in the roles of workers or leaders, and others who will not. The following
best practices may be adapted, as suggested, below:
Integration of human resource plans with strategic objectives and action plans to fully
address the needs and development of fraternity members/employees.
Job design of work to promote organizational learning, innovation, and flexibility with
changing fraternity needs.
Development of effective TQ systems, compensation (paid employees), and reward and
recognition approaches to support high performance and motivate members/employees.
Promotion of cooperation and collaboration through teamwork (members and
employees).
Empowerment of individuals and teams to make decisions that affect quality and
member satisfaction
Extensive investments in training and education (beyond the usual fraternity tradition
and ritual training)
Maintenance of a fraternity environment conducive to the well-being and growth of all
members/employees
*8 Monitoring the extent and effectiveness of human resource practices and measuring
employee/member satisfaction as a means of continuous improvement.

4.

In an organization that has a high level of workforce engagement workers take pride in their
work, are knowledgeable about every aspect of the process, and are eager to talk about it.
Frequently, they will make personal sacrifices when problems arise, such as volunteering to
stay late to fix a problem, or applying ingenuity in order to solve the problem. Typical

20
measures such as absenteeism, turnover, sickness and accident rates will all be favorable, as
will productivity and quality. Within an organization that has low levels of engagement, the
opposite will be true. The typical measures will all point in the wrong direction.
5.

Students answers to the question about personal motivation will vary, widely. However, since
motivation is based on individual responses to personal stimuli from the environment, this is
natural. Answers about new ways of teaching and learning may focus on how to individualize
learning, as is being done in distance education, and what the impact of group support and
pressure is in the traditional classroom setting.

6.

Simple theories, such as those of Maslow, Herzberg, and McGregor provide a "snapshot"
view of a limited number of dimensions of motivation. Complex models, such as Porter and
Lawlers, Bandura's, etc. are "richer" and more dynamic than other theories, thus helping
explain "real world" conditions and phenomena more fully.

7.

The answers will vary here, depending on students' experiences. See Figure 6.1 containing
the Hackman-Oldham model and the discussion in the text to answer this question.

8.

Answers will vary, depending on student experiences of job enlargement and enrichment. A
possible example of job enlargement might be a locally owned grocery store chain, where
part-time workers might be rotated between departments, instead of simply being assigned to
ne department. In that same type of store, workers who stock shelves might experience job
enrichment by also being given the responsibility of acting as the store liaison with local
distributors, to ensure that orders are placed in a timely fashion.

9.

This question is designed to further student awareness of the breadth of the "participative
movement" and empowerment practices to help them to confirm that the theory of quality is
being applied in a practical setting in business and industry. For example, one of the authors
had a reservation at an old hotel that was operated by a university. He arrived late at night
after a long drive, expecting to get a good nights rest before traveling on, the next day.
Instead, after preparing and falling into bed, exhausted, he became aware of periodic banging
of the old radiator, which was part of the heating system. Being too tired to get up and
demand a room change, he endured the crashing and banging that signaled every heating
cycle, on the quarter hour, for the entire night. The next morning as he was checking out, he
registered his complaint with the college desk clerk on duty. He asked for a discount, due to
the inconvenience. Imagine his surprise, when the desk clerk, without consultation with any
manager said, Well cancel your bill. You owe us nothing. Were sorry for your discomfort,
and well ensure that it doesnt happen to the next customer who uses that room.

10.

Students may be empowered to do anything that does not fall within the exclusive
responsibility or technical expertise of the professor. They could develop "regulations" about
the conduct of the classroom, participate in determining delivery methods, grade peers on
activities like group case presentations and internal operations of their groups on teamwork

21
dimensions, and participate in an advisory role to the professor in activities such as exam
formatting and content delivery.
11.

A team is defined as 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. A jazz quartet is an interesting metaphor for a team.
Generally, there is little cross-functional training, however. Bass players rarely play the
saxophone or trombone. Each member has individual expertise, similar to a baseball team
member. However, if all members are not on the same page with their music, there will
only be discord, instead of harmony. From time to time, each individual is allowed to have the
spotlight in order to solo, but then he/she must blend back into the group for the final
measures. Thus, there can be team creativity and individual expertise, but this must be
subordinate to the group goal of playing beautiful music.

12.

There is wide latitude for answers to this question. Slackers are a frequent problem in student
teams, as well as in many business contexts. Although not a specific topic of this chapter,
knowledge of conflict management skills, as well as a thorough understanding of the team
formation process will be helpful in answering this question. Too little time is spent in the
norming stage when most teams are formed.

13.

Kanos model of dissatisfiers, satisfiers, and exciter-delighters is certainly applicable to

employee needs and structuring the work environment to meet those needs. Although the
Kano model can certainly be related to Maslows Hierarchy, with its increasing levels, from
survival needs to self-actualization, it is even more closely aligned with Herzbergs
Motivation-Maintenance Theory. These two may be compared and contrasted (See Bonus
materials on motivation theories on the Premium website for this chapter).

14.

This controversial subject is left to the brave professors and eager students among our
readers who wish to tackle the issue of how to change our traditional grading system in the
U.S. You may want to explore more about how Mt. Edgecumbe High School (discussed in
Chapter 2) has moved toward implementing this concept.

15.

Team incentives, gainsharing, and pay for increased skills have certainly been effective for
certain organizations in different contexts. They usually work best where there are expanding
markets for a product or service, and the amount of product that must be supplied lags the
demand. For example, in a housing boom (despite its recent bad press), team incentives
might be given to completing houses ahead of schedule, under budget, and with high quality.
Gainsharing is designed to be a win-win situation for management and employees, who
split the increased profits attained by increasing productivity, generally in a manufacturing
environment. Pay for increased skills, is particularly effective in high tech, industries where
knowledge is the primary ingredient in the product or service being sold. Obviously, in a
housing bust a team incentive to finish the product ahead of schedule would have to be reexamined. Likewise, gainsharing doesnt work when there are few, if any, gains to share. If
there is no need for increased skills, or the organization cannot support the employees desire

22
to learn, due to cost or time constraints, then pay for increased skills provides for no
incentive.
16.

This issue is related to the concept of empowerment in Discussion Question 10, above. It
may be felt that such recognition approaches in classrooms are too childish for secondary
school and college level students. However, too little attention is probably paid to reward
systems, beyond standard grading practices.

17.

See Review Question 23, above, for a definition from which to begin discussion.
Understanding the system should be emphasized.

18.

The answers will vary here, depending on students' perspectives. For example, some
universities will use it as part of the performance review system, as well as for promotion and
tenure decisions. Some problems may arise from such use, especially if only one term is
examined, out of the context of long-term trends. A committee often designs the instrument
itself without any testing of validity and reliability. In general, universities, who should have
the in-house understanding and expertise to do a better job of applying TQ principles than
other organizations, often show that they are not learning organizations, either.

19.

This is one of Welchs most controversial management philosophies. It may have worked at
GE (and still be working under Jeffrey Immelt), because it is a large organization; because
GE-trained managers, even those in the bottom 10%, typically have high job mobility and
several opportunities elsewhere; and because it is unclear how GE went about the firing
process. In non-GE firms of moderate to small size, this would be difficult to implement, even
in a company that was not striving for TQ. In an organization striving for TQ, a 10% reject
rate for people every year would not be acceptable. While jobs cannot be guaranteed in the
current business environment, workers should have assurances that they will be given
opportunities to improve and obtain training to keep up their skill levels. Then, if there is such
a mismatch that an employee must be fired or asked to resign, they will have been treated
fairly and given a foundation on which to build and/or rebuild a career.

20.

This type of new employee performance software will definitely improve productivity, but
from a TQ perspective, it is open to question as to what behaviors it will encourage. Unless
management is satisfied that it only wants to tap into employees narrowly defined job skills,
instead of their creative an problem-solving skills, they may be making a big mistake, as they
try to reduce variation by their Big Brother is watching you system.

21.

Companies are increasingly asking colleges and universities to take on more responsibility for
teaching TQ principles and other common business practices before the students reach them.
This would indicate that in the future, if colleges and universities do not form a closer
customer-supplier partnership that companies may simply set up their own accredited
colleges and recruit trainable high school students that will be sent to their own "in-house"
colleges.

23
22.

Every organization faces the problem of what to do with people who arent good with
numbers. This may be somewhat of a question of make or buy. It is essential that
measurement be used to set quality goals and measure quality progress. Thus, it might be
argued that, if employees and managers cannot handle the numbers, the organization will
have to buy experts who can handle them. However, the argument may also be put forth
that quality experts can be made of a large number of current employees. If they must
become Green Belts and Black Belts to be promoted, and the organization feels that
executives must understand the numbers, then employees must and will find a way to
understand the numbers. The major obstacles would be resistance to change, lack of
leadership commitment, or fear of changing from the familiar to the unknown. Opinions may
vary, but the philosophy of the firm and the need to engrain the quality process may require
stretch goals for every manager.

23.

It is likely that instead of improving quality that this approach will alienate employees. Its
purpose is probably to catch employees who dont follow procedures; no, an empowering
organization would not need to use such methods. As a colleague observed, true workforce
management is a behavior. Trust must be built between employees and managers, and they
must walk the talk, together.

24.

The Xerox training strategy seems to have several advantages, including the basic quality
values of customer focus, teamwork, top management leadership, and repeatable and
measurable processes. Disadvantages are its "lock step" nature, which might lack flexibility to
meet local needs, and mass training, which may not be closely tied to the problems that
people need to work on. The approach would tend to work in more highly structured
businesses and those that have the financial resources to do extensive training.

25.

Student opinions will vary. However, union-management relations are being affected by TQ
in the workplace. In the past, there was a highly structured, "rules-based," generally
adversarial relationship between the parties. The emphasis on teamwork, employee
empowerment, and flexibility is requiring a new look at the traditional areas of: a) work
operations ad design, b) pay systems, c) training, and d) system governance. Unfortunately,
while many companies and unions seem to be willing to consider fresh points of view, the
NLRB's recent rulings seem to have raised the possibility that forming and using teams will
be more difficult in the future because of restrictions that suggest that they must be
representative organizational units, free from management control, and difficult to set up in
non-union environments without the company agreeing to bringing in a union.

SUGGESTIONS FOR PROJECTS, ETC.

1.

This library exercise is designed to encourage students to investigate organizations that are
perceived by their employees (and others) as great places to work. It gets at an underlying
question: Are great companies that have inspiring workforce management practices also great
companies along quality and performance management dimensions?

24
2.

This is a library exercise that will encourage the interested student to research one particular
branch of workforce management and tie in the findings to quality management issues.
Students should especially be encouraged to discover new workforce management trends
that may affect TQ practices. For example, one interesting area for investigation may be the
increasing use of temporary employees in many organizations. What impact does/can this
have on quality, commitment, and employee morale?

3.

The answers will vary here, depending on the organizations that students contact and
whether they are progressive or conservative in work and job design practices.

4.

The answers will vary here, depending on students' experiences in relevant organizations and
whether/how they use suggestion systems.

5.

The answers will vary here, depending on students' experiences in relevant organizations and
whether/how they use team participation for effective performance management.

6.

Besides raising student awareness of Six Sigma use in organizations, this exercise will help
them to determine the workforce management focus of Six Sigma in target organizations and
to see that Six Sigma is not a one size fits all concept.

7.

This exercise is a "field" research project to encourage the students to go out and talk to "real
world" managers at various organization levels to ascertain their depth and breadth of
knowledge and use of the management concept of motivation.

8.

This exercise is a "field" research project to encourage the students to research the impact of
the Internet on human resource practices in actual companies.

9.

Besides raising student awareness of use of surveys to assess engagement, satisfaction and
the work environment in organizations, this exercise will help them to discover that best
practices of workforce management may not always be adopted at the schools that teach
them.

ANSWERS TO CASE QUESTIONS

I.

Golden Plaza Hotels

Sandra had a number of tough issues to address, summarized as follows:

Child care obligations, classes, and other outside commitments made it difficult for
some associates to meet before or after shifts.
Many of the custodial workers who were functionally illiterate seemed to be
uncomfortable in interaction with other associates.

25

Several associates feel that their current jobs are simply too demanding to take on the
additional meetings that would be necessary.
One assistant manager felt that some of her people preferred to work alone and usually
disrupted meetings in which they were involved.
Because of the previous general manager, there was a lot of cynicism among the
associates and many didnt trust management. They felt that teams were simply a
political ploy to get support for unpopular decisions, many associates were bitter and
had conflicts with other departments and there seemed to be a widespread attitude of
Whats in it for me?
Some associates thought that the expectations of team processes would be
overwhelming and were afraid if the team fails, they would be held personally
responsible and their careers would be in jeopardy. Others thought that their jobs
might be eliminated.

It seems obvious that she cant just transplant the team approach used in Denver to San
Francisco. The workforce is different and so is the environment. The first challenge would
seem to be building trust in the employees that they will not be manipulated or harmed by
the new team approach. This might be done by holding several all hands meetings with
various groups of employees. Sandra could assure them that she was taking a new
approach to listen to, and empower employees. She should also give assurances that no
one would be fired or demoted due to improvement activities. She should also point out
that the only way to remain competitive was to improve in order to better serve
customers. Job security would also depend increasingly on customer focus.
Group issues might be handled by: 1) holding brief training meetings on company time; 2)
providing literacy training for custodial workers; 3) realigning work to give relief to
overloaded workers; 4) training lone workers in how teamwork could help improve
their jobs; 5) establishing a climate of success, but permitting failure to be used as a
learning tool.
II.

The Hopeful Telecommuter

1.

There are a number of benefits and challenges to telecommuting, as follows1:

BENEFITS AND CHALLENGES
Telecommuting benefits:
Improved quality of worklife: morale, stress, personal control, work/family/personal
life balance, commute pressures

Several of these points were adapted from the: WRITTEN TESTIMONY OF THE INTERNATIONAL
TELEWORK ASSOCIATION & COUNCIL (ITAC). Presented by: John M. H. Edwards, President ITAC, Gail
Martin, Executive Director, ITAC to the Subcommittee On Oversight And Investigations Committee On Education
And The Workforce, U.S. House Of Representatives, October 28, 1999.

26

Improved job performance for Jennifer, individually and organizationally

Reduced absenteeism; maternity leave can be minimized
Ability to retain an employee with valuable skills, productivity, and company loyalty
Ability to engage in management by results, not merely face time in the office
Potential expansion of underutilized segments of the workforce such as retirees, the
disabled, and those workers in geographically remote areas by giving the company
experience in managing a telecommuter.
Real estate savings (if telecommuting is expanded as the company grows)
Reduced toxic gas emissions (long term)

Telecommuting challenges:
Resistance to change and requirement to develop new ways to work/manage Jennifers
job
Overcoming telework myths; "If employee is not visible, he/she is not controlled"
Rapid advancement of new technologies ahead of worker familiarity/acceptance;
technical support
Need for data security measures
Equitable selection of telecommuters vs. non-telecommuters (some of Jennifers coworkers may be jealous)
Funding for equipping Jennifers teleworkstation
Underlying these points are the realities of Jennifers and fellow telecommuters situations,
which often raise questions, such as what can be done about the lack of social networking;
the need for support services, such as availability of daycare; for other telecommuters,
what are the options for employees who dont have a spouse, significant others, or
children? Finally, what should be done about employees who want more interaction by
going to the office periodically, versus the need for the organization to get a return on its
investment for the employee teleworkstation?
2.

The VP of human resources would probably raise policy issues, such as what sort of
precedents are we setting for current and future employees regarding the ability to design
their own jobs, structure work during maternity leaves, performance appraisal systems, and
general motivation and morale issues. The VP of operations would probably be concerned
about costs, productivity, and quality issues. What about the costs of equipping Jennifers
teleworkstation? Will Jennifer be able to be productive at home, or will she be distracted by
the home environment (baby, pets, neighbors visiting, non-work telephone interruptions,
etc.). Will the quality of her work be as good as it was in the office (availability of files,
interactions with store managers and product line suppliers, consultations with fellow
employees on work issues, etc.)?

27
3.

For Jennifer, empowerment means giving her authority and power to make decisions, gain
greater control over her work, and thus more easily satisfy customers. Successful
empowerment, for her, requires that:

She is provided with resources and encouragement.

Policies and procedures be examined for needless restrictions on the her ability to serve
customers, inside and outside the firm
An atmosphere of trust is fostered.
Jennifer is made to feel that her efforts are desired and needed for the success of the
organization.
Her managers are given the support and training to adopt a "hands off" leadership style
with Jennifer (and perhaps others in the organization).
Jennifer is advised on the amount of latitude she is allowed to take.
Her managers relinquish some power, but also take on new responsibilities for developing
and using their people effectively while empowering them to telecommute, encouraging
risk-taking, and recognizing achievements.

The Hackman and Oldham job characteristics model can be used to assess how motivating
potential would be designed into Jennifers job, thus enhancing quality. As shown in Figure
6.1, the five core job characteristics of task significance, task identity, skill variety, autonomy,
and feedback from the job can all be related to quality. For example, her job redesign would
involve development of new self-management skills, quality checks (which may formerly
have been done by someone else), identity with managerial tasks of keeping equipment in
order and getting supplies as required for her work, and more control over work elements.
This would provide for a greater feeling of task identity and significance, an opportunity for
greater use of skills, and more autonomy and feedback from "customers" in the firm with
whom she would have to work.
III.

Nordam Europe, Ltd.

1.

The approaches used by Nordam Europe seem to support high-performance work, in a

number of ways, as expressed in ideas presented in this chapter. The HR theory suggests
that employers need to:

Communicate the importance of each employees contribution to total quality.

Stress quality-related synergies available through teamwork.
Empower employees to make a difference.
Reinforce individual and team commitment to quality with a wide range of rewards
and reinforcements.

These goals are realized by leading companies through the following best practices:

28
1. They design, organize, and manage work and jobs to promote cooperation, initiative,
empowerment, innovation, and the culture of the organization, capitalizing on the diverse
ideas and thinking of employees.
2. They promote teamwork and skill sharing across work units and locations.
3. They empower individuals and teams to make decisions that affect quality and
customer satisfaction.
4. They develop effective performance management systems, compensation, and reward
and recognition approaches to support high-performance work and a customer focus and
to motivate employees.
5. They have effective processes for hiring and career progression.
6. They make extensive investments in training and education.
7. They motivate employees to develop and use their full potential.
8. They maintain a work environment conducive to the well-being and growth of all
employees.
9. They monitor the extent and effectiveness of human resource practices and measure
employee satisfaction as a means of continuous improvement.
While Nordam does not exemplify all of these practices, many are applied in their
everyday HR work. It is obvious that they stress the role of quality, safety, and teamwork
in policy development and application of those policies. They hire, promote, and assess
employees based on ability, attitude, skills, commitment and approach to work. They do
training and education and help employees to grow and develop. They work to provide
stability in their workforce.
2.

Education, training, and development at Nordam address the organizational needs based
on the companys mission of maintaining jet engine nacelles and thrust reversers. By
focusing on individuals background and job experience, rather than race, gender,
nationality, disability, religion or age, the best qualified workers are hired, trained,
promoted, and retained. The hiring process reflects this in such steps as:
a. Applicants rsums are received.
b. Screening of applicants is performed by a departmental manager and a personnel officer
to develop a short list of those they would like to interview.
c. The short-listed applicants are invited for an interview with the departmental manager
and personnel officer. The latter is a trained, experienced interviewer who provides
consistency within the interviewing process, ensuring that equal opportunity issues are
taken into consideration where appropriate. The company is clear that all decisions
relating to job offers are made on the basis of suitability for the post and that age, or other
nonjob-related factors, are irrelevant.
In addition to promoting diversity and being age-friendly, the company uses clear,
published criteria when dealing with redundancy (layoff) issues, with a non-discriminatory
policy

29
3.

Leadership and motivation advantages may accrue from using older workers, especially
where quality, reliability, and attention to detail are required. Skills in using tools have
often been developed over years or decades. In addition, attitudes of older workers are
frequently less confrontational, and such workers are often more reliable in showing up for
work each day, and focusing on job requirements. Company loyalty is often higher among
older workers, as well.

4.

Problems of age discrimination are somewhat different in the United Kingdom than in the
U.S. The workforce is older in the U.K. than in the U.S., on average. Support services for
older people are probably more widely available in the U.K. than in the U.S. The equal
opportunity laws are somewhat different, but awareness of the need to avoid
discrimination against workers, regardless of age is probably recognized somewhat equally
in both countries. It is important because workforces are aging, worldwide. Social
responsibility involves (see Chapter 5):
Practicing good citizenship refers to leadership and supportwithin the limits of an
organizations resourcesof publicly important purposes, including improving
education, community health, environmental excellence, resource conservation,
community service, and professional practices.

IV.

Novel Connect: Workforce Focus

1.

To answer the questions of what are Novel Connects strengths, weaknesses, and
opportunities for improvement? -- use the Baldrige Business Criteria for Performance
Excellence for Category 5, as found in the Baldrige folder in the Bonus materials. Thus, it
can be seen that:

5.1 Workforce Engagement

STRENGTHS

To assess workforce engagement and satisfaction, Novel Connect uses the annual Trot
Engage 14 survey, which comprises an overall satisfaction measure and 13 other
measurement dimensions (Figure 7.4-1). The survey is augmented with other measures
and indicators, including the percentage of employees participating on cross-functional
teams, the voluntary turnover rate, the percentage of employees completing advanced
proficiency training, the percentage of positions filled internally or through employee
referrals, and safety at the manufacturing facility. The survey results, statistical analyses
from the survey vendor, and other indicators are reviewed by a cross-functional Workforce
Development Team with representation from each job classification. The team prepares
analyses resulting in recommendations for improving workforce engagement and
adjustments to key factors that affect workforce engagement. The teams analysis and

30
recommendations are communicated to the Chief Workforce Officer and then used as input
to the SPP.

In order to foster a culture conducive to high performance and a motivated workforce,

Novel Connect uses a systematic process to select and hire employees who have the
potential to be successful in Novel Connects virtual workplace environment. The process
includes the use of a formal instrument to screen candidates for team and communication
skills, initiative, innovation, and creativity. The instrument also helps determine personality
types, which supervisors use after hiring to leverage diverse personalities on teams. To
reinforce the desired culture, the performance management system (Figure 5.1-1) provides
incentives for team participation, and all employees are expected to dedicate 10% of their
time to generating innovative ideas.

Novel Connect uses PMaps to establish professional development plans and to set
individual performance goals that support the achievement of organizational action plans.
Leadership development plans have a specific focus on projects based on core values. The
PMaps are supplemented with a variety of methods to support career progression for all
employees; for example, mentors are assigned to and training is available for all
employees. Succession plans are used for all key individual contributor and leadership
positions.

OPPORTUNITIES FOR IMPROVEMENT

Many of the methods Novel Connect uses to promote and assess workforce engagement
show little evidence of refinement and improvement. These include the process for
screening potential employees, the use of a cross-functional Workforce Development Team
to analyze employee survey results, the workforce survey instrument, the methods used to
determine the effectiveness of workforce and leader development systems, the Knowledge
Management Database and its supporting processes, and the performance management
system. Without fact-based improvement and organizational learning applied to workforce
engagement systems and processes, Novel Connect may find it difficult to address its
strategic challenge of ensuring the availability of a highly skilled workforce.

Novel Connects workforce development and learning system does not appear to be fully
aligned with organizational needs. For example, it is unclear how the workforce
development and learning system is linked to and addresses organizational performance
improvement. Additionally, while Novel Connect uses a Knowledge Management
Database, it is unclear how this technology ensures the transfer of knowledge from
departing workers or how it reinforces new knowledge and skills on the job. It also is
unclear how the development and learning system for leaders and their implementation of
projects based on core values addresses the development of needed organizational
knowledge. Further, while PMaps are adjusted each year to tie back to Novel Connects
core competencies, strategic challenges, and goals, a process is not described for leaders

31
to use these plans to enhance core competencies, address strategic challenges, or
contribute to the accomplishment of action plans.

Novel Connect demonstrates little evidence of a systematic approach to evaluate the

effectiveness of its workforce and leader development and learning systems. For example,
it is unclear who performs the analyses of performance metrics and training feedback
sheets to determine the effectiveness of the systems, what methods are used to perform
such analyses, or how the determinations are used to identify opportunities for system
improvements.

Beyond the statistical analysis received from the Trot organization, it is unclear what
method the Workforce Development Team uses to relate results from the Trot survey and
other measures of workforce engagement (e.g., the voluntary turnover rate and training
data) to key business results. Further, a systematic process is not evident for using the
survey and other results to improve both workforce engagement and business results.
Without a systematic approach to the analysis and identification of needed improvements,
Novel Connect may find that the input provided by the team to the SPP may be insufficient
to enable effective strategic capability and capacity planning that addresses the availability
of a highly skilled workforce, a strategic challenge.

5.2 Workforce Environment

STRENGTHS

To assess workforce capability, the Chief Workforce Officer uses reports generated by the
IT/IC Team that are developed from the aggregation of PMaps and information in the
Knowledge Management Database. This information also is used during the SPP to
determine the development of target capacity levels (Figure 2.1-1). Collectively, these
approaches provide a method to assess workforce capability and capacity.

To recruit and hire new employees, Novel Connect uses a nine-step recruitment process
(Figure 5.2-1) that preferentially uses internal sources of candidates and referrals from
employees, workforce boards, and partners, as well as from national and local
rehabilitation centers. Candidates are screened for team and communication skills,
initiative, innovation, and creativity. A Workforce Development Team reviews hiring
demographics, and, if a gap appears in the diversity analysis, a PIP Team is formed to
develop and deploy improvement plans. To help ensure retention, new hires are supported
by mentors, employee referral bonuses are due on a new hires six-month anniversary, and
the screening tool includes a personality type determination to assist supervisors in
leveraging the diversity of the workforce after the hiring process is complete. Collectively,
these methods provide a systematic approach to recruit, hire, and retain a highly skilled
workforce, addressing one of Novel Connects strategic challenges.

32

Novel Connect uses a combination of matrix management and a pod- and team-based
structure to organize and manage its workforce. Teams are used for product development,
product support, process management, process improvement, and resolution of crossfunctional issues. Teams can be formed by either employees or the senior leadership, they
have charters and assigned leaders, and they can meet either in person or virtually.
Rewards for performance and innovation are used at both the team and individual levels to
reinforce the work of the organization. This approach to the organization and management
of work reinforces Novel Connects core competencies of communication and agility,
which are the center of its organizational culture.

Novel Connect uses a variety of methods, with related measures and goals (Figure 5.2-2),
to help ensure workplace health and safety. To address office safety, Novel Connect uses
third party ergonomic assessments, individual office equipment allocations, and a specialneeds fund for disabled employees. Manufacturing safety is addressed through the use of a
safety team that meets monthly, conducts safety audits, reviews results, and develops and
deploys appropriate corrective actions. Efforts from these two environmentally specific
approaches are augmented with employee safety training and a voluntary employee
wellness program. Safety and health issues and data are integrated and reviewed by a
companywide, cross-functional, national safety team that reports results and makes
recommendations to the SLT.

OPPORTUNITIES FOR IMPROVEMENT

A systematic, well-deployed process is not apparent for preparing the workforce for
changing capability and capacity needs. For example, it is unclear how workforce
capability and capacity assessments are translated into training and development actions
that are then deployed across the organization in the event of changing needs. Without a
well-deployed approach to capability and capacity planning that is linked to effective
workforce preparation, Novel Connect may find it difficult to achieve its strategic
objectives and to successfully address market volatility issues, one of its strategic
challenges.

There is little evidence of fact-based methods that lead to systematic improvements for
several of the processes used by Novel Connect to build an effective workforce
environment. For example, there is no evidence of refinement or innovation for PMaps, for
the SPP target capacity determination, or for the recruiting process. Without approaches
to learning that reliably lead to improvement cycles for the processes used to build an
effective workforce environment, Novel Connect may find it difficult to sustain its core
competencies of communication and agility.

It is not clear what approaches are used to ensure workplace security or how they are
deployed to Novel Connects various workforce segments and sites. Without an effective,
well-deployed approach, Novel Connect may find it difficult to address its identified

33
workforce requirement of personal security, especially since the majority of Novel
Connects workforce is physically located outside of the organizations facilities.
Additionally, without physical security ensured, Novel Connect may find that its
information security methods are insufficient to protect its intellectual property, a strategic
challenge.
2.

Based on OFIs for Category 5.1, Novel Connect should work to refine and improve
processes that promote and assess workforce engagement. These include the process for
screening potential employees, the use of a cross-functional Workforce Development Team
to analyze employee survey results, the workforce survey instrument, the methods used to
determine the effectiveness of workforce and leader development systems, the Knowledge
Management Database and its supporting processes, and the performance management
system. Novel Connects workforce development and learning system does not appear to
be fully aligned with organizational needs.
In addition, steps need to be taken to link the workforce development and learning system
to address organizational performance improvement. Also, since Novel Connect uses a
Knowledge Management Database, this technology should be used to ensure the transfer
of knowledge from departing workers reinforces new knowledge and skills on the job.
Steps should be taken to clarify and improve the development and learning system for
leaders and their implementation of projects based on core values in order to address the
development of needed organizational knowledge. Finally a process should be developed
for leaders to use employee PMap plans to enhance core competencies, address strategic
challenges, or contribute to the accomplishment of action plans.

3.

Based on OFIs for Category 5.2, Novel Connect should develop a systematic, welldeployed process for preparing the workforce for changing capability and capacity needs.
For example, it is unclear how workforce capability and capacity assessments are
translated into training and development actions that are then deployed across the
organization in the event of changing needs. In addition, Novel Connect should implement
fact-based methods that lead to systemic improvements of processes needed to build an
effective workforce environment. For example, they could begin to refine or innovate the
processses for using PMaps, for the SPP target capacity determination, or for the
recruiting process. Finally, Novel Connct should explore approaches used to ensure
workplace security and deploy them to Novel Connects various workforce segments and
sites. Without an effective, well-deployed approach, Novel Connect may find it difficult to
address its identified workforce requirement of personal security, especially since the
majority of Novel Connects workforce is physically located outside of the organizations
facilities.

Bonus Materials
Case - Baldrige Assessment of Workforce Focus Share Foods Part 1

34
The Baldrige Documents Bonus Materials folder contains an example of a fictitious Baldrige
application the 2007 Share Food Case Study.
Assignment 1: The most important business or organizational factors relevant to this item in the
Organizational Profile include:
10.5 full-time equivalent (FTE) employees (8 full-time and 5 part-time); 8 of 13 employees with
bachelor-level or above degrees, 5 employees with high school diplomas or associate degrees
More than 500 volunteers, including a core team of 20 volunteers, contributed 28,600 hours in
2006. Volunteers include university nutrition and management students, government and
foundation fellows, and court-ordered community-service placements. Nearly half of
volunteers are over age 55.
Workforce key requirements: security; food safety; training; honesty, integrity, and
accountability; regulatory and standards compliance; supervision/mentoring/guidance
Workforce expectations: focus on the MVV; respectful, nondiscriminatory communications and
actions; collaboration and teamwork; stewardship of resources
Employee benefits include health and dental insurance and flexible work schedules; other
benefits, such as in-kind gifts from donors, are shared equitably among employees and
volunteers.
Strategic challenge: Optimize human resources and partnerships
Assignment 2: After reviewing the strengths and opportunities for improvement as identified by an
experienced team of Baldrige examiners for the Share Foods case and comparing that with the
2008 Baldrige Criteria questions, the organization clearly has strengths, which can be related to,
and strongly answer the Criteria questions.
a. Strengths 1 and 2 clearly address and answer the questions posed in paragraphs 5.1a(1) and
5.1a(2) in the Baldrige criteria, of:
WORKFORCE Enrichment
(1) HOW do you determine the KEY factors that affect WORKFORCE ENGAGEMENT? HOW
do you determine the KEY factors that affect WORKFORCE satisfaction? HOW are these factors
determined for different WORKFORCE groups and SEGMENTS?
(2) HOW do you foster an organizational culture conducive to HIGH PERFORMANCE and a
motivated WORKFORCE to accomplish the following:
cooperation, EFFECTIVE communication, and skill sharing within and across work units,
operating units, and locations, as appropriate
EFFECTIVE information flow and two-way communication with supervisors and managers
individual goal setting, EMPOWERMENT, and initiative
INNOVATION in the work environment
the ability to benefit from the diverse ideas, cultures, and thinking of your WORKFORCE

35
b. Similarly, the third and fourth strengths relate closely to 5.1b. WORKFORCE and Leader
Development and provide comprehensive answers to:
(1) HOW does your WORKFORCE development and LEARNING system address the following:
needs and desires for LEARNING and development identified by your WORKFORCE,
including supervisors and managers
your CORE COMPETENCIES, STRATEGIC CHALLENGES, and accomplishment of your
ACTION PLANS, both short-term and long-term
organizational PERFORMANCE improvement, technological change, and INNOVATION
the breadth of development opportunities, including education, training, coaching, mentoring,
and work-related experiences, as appropriate
the transfer of knowledge from departing or retiring workers
the reinforcement of new knowledge and skills on the job
(2) HOW does your development and LEARNING system for leaders address the following:
development of personal leadership attributes
development of organizational knowledge
ethical business practices
your CORE COMPETENCIES, STRATEGIC CHALLENGES, and accomplishment of your
ACTION PLANS, both short-term and long-term
c. Concerning the opportunities for improvement (OFIs), the examiners have discovered some
gaps that exist in their approach, deployment and/or outcomes of their workforce enrichment,
workforce and leader development, and workforce assessment.
1) The first OFI points to a lack of development or explanation of its workforce performance
management system and how it considers compensation, reward, recognition, and incentive
practices for its employees and many volunteers. Thus, the questions raised in Category 5.1a(3),
as follows, have not been adequately answered.
5.1a (3) HOW does your WORKFORCE PERFORMANCE management system support HIGHPERFORMANCE WORK and WORKFORCE ENGAGEMENT? HOW does your
WORKFORCE PERFORMANCE management system consider WORKFORCE compensation,
reward, recognition, and incentive practices? HOW does your WORKFORCE PERFORMANCE
management system reinforce a CUSTOMER and business focus and achievement of your
ACTION PLANS?
2) The second OFI points out a gap in the organizations development and learning system for
leaders and states the fact that the application fails to address the development of personal
leadership attributes, the development of organizational knowledge, ethical business practices,
core competencies, strategic challenges, accomplishment of action plans, or improvement and
innovation for its Senior Leaders. Thus, the Criteria questions in 5.1b(2), below, have not been
answered.
5.1b(2) HOW does your development and LEARNING system for leaders address the following:

36
development of personal leadership attributes
development of organizational knowledge
ethical business practices
your CORE COMPETENCIES, STRATEGIC CHALLENGES, and accomplishment of your
ACTION PLANS, both short-term and long-term
3) The third OFI points out another gap in how the organization relates assessment findings to key
business results to identify opportunities to improve workforce engagement and business results.
Also, systematic approaches are not evident to determine workforce satisfaction or to transfer
information from departing volunteers. These gaps are directly related to, yet do not answer, the
questions raised in the Criteria section 5.1c of:
5.1c. Assessment of WORKFORCE ENGAGEMENT
(1) HOW do you assess WORKFORCE ENGAGEMENT? What formal and informal assessment
methods and MEASURES do you use to determine WORKFORCE ENGAGEMENT and
WORKFORCE satisfaction? How do these methods and MEASURES differ across
WORKFORCE groups and SEGMENTS? HOW do you use other INDICATORS, such as
WORKFORCE retention, absenteeism, grievances, safety, and PRODUCTIVITY to assess and
improve WORKFORCE ENGAGEMENT?
In summary, the examiners used the criteria to judge whether (and ultimately, to what degree)
Share Foods has developed a complete, well deployed, and effective workforce management
system.

c. Concerning the questions of: How do they (strengths and OFIs) relate to the key factors you
identified in the question in Assignment 1? Would you agree that these are key strengths and
opportunities for improvement for this organization? Can you suggest any others that the team
did not identify?
1) The strengths and OFIs relate well with the key factors, which have to do with the makeup of
the workforce, the workforce key requirements, the workforce expectations, the employee
benefits, and the strategic challenge, as related to the workforce.
2) It would be hard to disagree that the strengths and OFIs presented were not the key ones for
Share Foods.
3) Another strength that the team did not emphasize might be pointed out in the area of
motivation and morale, relating to the Criteria section 5.1a(2). The application states [actually
contained in section 5.1a(3)]:
Motivation is an important issue in an organization that is so heavily volunteer-based. In general,
SFs volunteers are intrinsically motivated to be part of the mission to help the foodinsecure. Not

37
infrequently, they have had personal experiences with being food-insecure and have a special sense
of giving back to their communities.
Thus, the strength might be stated as:
The organization depends on and attempts to select employees and volunteers who are
intrinsically motivated to strongly support the MVVs of Share Foods, thus fostering an
organizational culture conducive to high performance and a motivated workforce to
accomplish successful cooperation, effective information flow and two-way communication
with supervisors and managers, individual goal setting, empowerment, and initiative,
innovation in the work environment, and the ability to benefit from the diverse ideas, cultures,
and thinking of your workforce.
Case - Baldrige Assessment of Workforce Focus Share Foods Part
2
Acting as a Baldrige examiner, and using the 2008 criteria, the following are relevant to Section
5.2 of the Baldrige Criteria:
1. The most relevant business and organization factors from the Organizational Profile:
10.5 full-time equivalent (FTE) employees (8 full-time and 5 part-time); 8 of 13
employees with bachelor-level or above degrees, 5 employees with high school
diplomas or associate degrees
More than 500 volunteers, including a core team of 20 volunteers, contributed 28,600
hours in 2006. Volunteers include university nutrition and management students,
government and foundation fellows, and court-ordered community-service placements.
Nearly half of volunteers are over age 55.
Workforce key requirements: security; food safety; training; honesty, integrity, and
accountability; regulatory and standards compliance; supervision/mentoring/guidance
Employee benefits include health and dental insurance and flexible work schedules;
other benefits, such as in-kind gifts from donors, are shared equitably among employees
and volunteers.
Strategic challenges: Optimize human resources and partnerships; recruit volunteers
from a broad range of age segments
2. Strengths that the organization has relative to the criteria questions
SF uses various processes to assess its current workforce capability and capacity needs,
including skills, competencies, and staffing levels. For example, these issues are addressed
during the biennial SPP, which includes human resource planning activities and uses data
sources such as surveys, shift-to-shift communications, quarterly reviews, Balanced Plate
Scorecard results, surveys of member agencies, and information from the FBLC and FBA.

38
With the help of student interns, SF created process maps for critical skills and task
descriptions for all jobs in 2004, and it updates task descriptions annually in alignment with
regulatory requirements (Figure 5.2-1).
SF uses a variety of recruitment approaches (Figure 5.2-2), with community outreach and
word-of-mouth being the most powerful volunteer recruitment platforms. Program/Operations
Committee members also have used focus groups to improve volunteer recruitment in the
growing Hmong and Hispanic communities.
Various teams are used to manage and organize the workforce, capitalize on core
competencies, reinforce a customer focus, address strategic challenges and action plans, and
achieve the agility to address changing business needs. On V-teams, for example, the skills and
abilities of individual employees and volunteers are matched to the work that needs to be
accomplished. All employees and volunteers take part in cross-training and job rotation to
provide job variety and new learning and to encourage improvements. Cross-functional,
diverse teams help prepare employees, volunteers, and the organization for changing capability
and capacity needs.
3. Opportunities for improvement relative to the criteria questions.
Assessment of workforce capability and capacity occurs within the SPP as human resources are
considered. However, this assessment deals primarily with current strategies and needs of the
organization, and there is no evidence of a systematic approach to assess or plan for future
and changing capacity and capability needs. This may be important to SF in order to ensure its
ability to meet the requirements of its longer-term strategic directions, such as increasing
employee and volunteer retention and volunteer hours.
While SF has developed a variety of recruitment mechanisms (Figure 5.2-2), most of them
appear to focus on volunteer recruitment; it is not clear whether these or other mechanisms
target potential employees. In addition, while focus groups help recruit volunteers from the
Hmong and Hispanic communities, it is not clear how other diversity factors are addressed
(e.g., diversity in volunteers ages). Further, a systematic approach to retain SFs employees
and volunteers is not evident. The lack of a systematic process in these areas may limit SFs
ability to recruit volunteers from a broad range of age segments and consistently optimize
human resources, two of its five strategic challenges.
No performance measures are provided for workplace security, even though SF notes a security
concern related to court-ordered placements. In addition, no improvement goals for
workplace health and safety are provided. Further, other than segmented measures for
transportation and warehouse accidents and injuries, there are no segmented or different
measures for the safety and health requirements of differing groups of employees and
volunteers. Without a fact-based, systematic approach to organizational health, safety, and
security, SF may be challenged in addressing its workforces key requirements (Figure P.1-2a).

39

While SF provides health and dental insurance, as well flexible work schedules, for its
employees, it is not apparent what policies and services, if any, support the organizations
volunteers, including its core volunteer team. This may hamper SFs ability to build an
effective and supportive workforce environment and to support its key success factor of
dedicated and experienced employees and volunteers.