Quản trị kinh doanh - Chapter 7: Job design

Chapter 7: Job Design3/29/20201Chapter 7: Job DesignPatterns of Job DesignOptimal Job Design: Skills, Tasks, and DecisionsMultiskilling and MultitaskingSkillsFlexibilityCommunicationInnovationTasksSpecialization versus MultitaskingLower Transactions CostsSupply ConsiderationsComplementarity in ProductionOn-the-job LearningMonitoring DifficultiesIntrinsic MotivationDecisionsComplementarity and Job DesignWhen to Use Different Job DesignsTaylorismFactors Pushing Toward Taylorism or Continuous Improvement Firm SizeComplexityPredictabilityTime HorizonIntrinsic MotivationSummary3/29/20202Chapter 7 – Job DesignOn being introduced to this chapter, you will be able to address the following questions:What are the three main economic goals in designing a job? What are the key features of a job design?How should we begin to think about decision authority?3/29/20203DefinitionJob: An aggregation or tasks that can be completed by an individual worker3/29/20204Patterns of Job Design3/29/20205“Classical” Job DesignAdam Smith, 1776: specializationefficiency in on-the-job learningeconomies of scale in performing tasks(& the benefits we already discussed)don’t forget specialization: it is the reason that we have economies!Frederick Taylor, 1920s: “Taylorism”figure out best practice thru industrial engineering, & have all do it that way (UPS)an extremely logical approachnote that it is centralizationEffectsnarrow jobs (few tasks), low skills, low discretion (little decentralization)jobs may be poorly motivating63/29/2020“Modern” Job Design: Intrinsic Motivation7Hackman, et al, 1970s:AutonomyResponsibility for Outcomes of WorkKnowledge of Actual Results of WorkFeedbackTask & Skill VarietyTask IdentityTask SignificanceMeaningfulness of WorkIntrinsic MotivationQualityJob Satisfaction (?)3/29/2020Classical v. Modern Job DesignThe Classical & Modern approaches are diametric oppositesjob enrichment is the opposite of specializationcontinuous, decentralized improvement is the opposite of TaylorismBoth work very well in some circumstancesyour job: figure out how much of each approach works best in your casemore precisely: what blend of the two approaches you should use83/29/2020Benefits of Modern & Classical ApproachesThe Classical approach emphasizes proficiencyemployees can be efficient, though motivation may be a problemis effective for optimization of specific tasks; control; uniformityemployees often can have lower skillsThe Modern approach emphasizes employee learningprovides better motivationis effective for adaptation; implementing change; customizationit requires more engaged employees with problem-solving skillsOrganizations use both; the question is the blend/ balancee.g., Ritz-Carlton under Marriott93/29/2020Optimal Job Design3/29/202010What Tips the Balance in Approach?11 Classical  Modernsimple product / service complexhomogeneous customers heterogeneousclosed relationship w/ customers openstandardized strategic emphasis customizedprice strategic emphasis qualitydownside risk opportunities upside potentialstable environment evolvingrigid ability to change adaptablelow skill employees high skillwant simple job employees want challenge3/29/2020Complementarity and Job Design3/29/202012Economics & Psychology of Job DesignThere is a very nice complementarity between the two effects of “Modern” job designpsychological: the worker is motivated to think & learneconomic: the approach applies in cases where there is more specific knowledge for the worker to learn133/29/2020When to Use Different Job Designs3/29/202014Concept – Taylorism/CMITaylorismA highly specified job design that minimizes the need for worker discretionContinuous ImprovementA means of reaching Tayloristic job design using collaborative efforts of workersFactors Influencing Continuous ImprovementThe firm’s: Size, Complexity, Predictability, HorizonQuestion: Have you encountered CI in your work?3/29/202015Other Notes on Job DesignNever forget the value of specialization & standardizationwhat can be standardized, probably should benot all jobs should be “enriched”not all workers want such jobs“Modern” structures can be costly to manageHistory repeats itselfindustrial engineering  mass production & narrow jobs, then automationreengineering  computerizationknowledge management  may lead to standardized procedures163/29/2020Specific KnowledgeFirst identify the knowledge that drives your strategy: Who/ What/ Where/ When/ Why has important knowledge?this is often the most important questionOf that, identify what parts are specific knowledgethese push you toward decentralizing some decisionsIdentify the importance of centralizationcoordination; control; economies of scalethese push you toward centralization, or coordination mechanismsMove decisions to specific knowledge; general kn. to decision makersAdopt a leadership style appropriate to (de)centralizationcommand & control, or facilitation & support173/29/2020Intrinsic Movitation3/29/202018Specific Knowledge & Modern Job DesignThe last two parts of the Intrinsic Motivation model are simply decentralizationAutonomy = decentralizationFeedback = providing information about effects of decisionsDoes the intrinsic motivation approach have anything to do with making use of the worker’s specific knowledge?it turns out it has a lot to do with this conceptto see why, let’s compare these two approaches 193/29/2020Organizational Change & Job DesignYou are implementing a large organizational change. How should this affect job design?you should almost certainly shift toward Modern design approach why?here is some evidence from firms undergoing org. change in Britain:203/29/2020The Right Person for the JobRecruiting & training should match job designfirst, personality should fit a job with more “psychological involvement”second, you need higher skills for Modern jobsthird, you need more of a certain kind of skillTo get a feel for these issues, listen to the experts Juran & TaylornotesModern job design may create job satisfaction, or stress (or both)it is generally not true that you can pay less if the job is more intrinsically motivating213/29/2020StructureFor overall structure, respect hierarchy & functional specializationIdentify integration problems, & apply lateral coordination mechanismsAvoid complexitystructures designed to solve integration problems are costly in many waysoverall dis-economies of scale tend to come from this (bureaucracy)what to do?focus on core competence & spin off non-essential divisionsoutsource non-core functionsmodularizehybrid structures (joint ventures; partially owned subsidiaries; long-term relationships with key partners)223/29/2020Creativity v. ControlWe have seen a theme in several ways, at four levels (economy, firm structure, decision making & job design)decentralization v. centralizationcreativity v. controlcontinuous improvement v. ex ante optimizationHow does this play out? Your situation determines your best approachis risk management important?are gains from centralization, such as economies of scale or need for coordination, important?is your product simple or complex?is your strategy one of standardization or customization?is your industry & technology stable or unpredictable?233/29/2020Choose the Right MixWe tend to think about the ideas in this course as “either-or,” but don’t use one approach; use a mixspecialization combined w/ teamsdecentralization of some stages of decisions; centralization of othersex ante optimization, standard operating procedures, automation & computerization where possible & continuous improvement, job enrichment, deep & broad skills243/29/2020Rigor, Not BuzzwordsTrendy is not always effective: don’t ignore classic ideasfunctional hierarchyspecialization & narrow, low-skilled jobsautomation & computerizationBut trends do have reasonsgreater complexity, instability & unpredictability in recent decades253/29/2020Terminology and Issues in Job DesignMulti-skilling vs. multi-taskingSpecialization vs. multi-taskingTransaction costsComplementarity in production or supplyMonitoringOJT/OJLIntrinsic motivation3/29/202026Interpreting Intrinsic MotivationThe idea is to make the job psychologically motivatingHow? Partly just reducing boredomAir Florida crash, Washington DC, January 1982More importantly, design the job so the worker is constantly learningTask & Skill Variety (“job enrichment”)the job is a “stretch” & thus challengingthe result (hopefully): the worker is more motivated, is thinking, & there is continuous improvement273/29/2020What Drives Employee Engagement?[Helliwell & Huang 2006]trust of your manager (worth a 36% pay raise)a job with a variety of tasks to perform (worth 21%)a job requiring high levels of skills (worth 19%)having enough time to finish assigned work (worth 11%)better pay#2-3  Task & Skill Variety283/29/2020Key IdeasSpecialization (again)Taylorisman example of centralization controlIntrinsic Motivationpsychological effecteconomic effectan example of decentralization creativityEx ante v. continuous improvement293/29/2020Job DesignIdentify areas with much to learn on the jobsome jobs will be Classical, some Modern, in the same org.Modularize to put closely related tasks in the same jobteams may come in handy, but are a means, not an end in themselvesChange recruiting to get the right type of person & skillsThen train more, emphasizing problem-solving skillsthe last two points lead us right into our next Module 303/29/2020Chapter 7 – RecapJob design goals:Improve worker efficiencyCreate and use knowledgeAddress motivationTwo key dimensions of job design:Multitasking (enrichment)Centralization (empowerment)Multitasking & Decentralization can be appropriate when:Tasks are complementary, transaction costs are highProblem-solving is importantThere is an unambiguous trend toward specialization3/29/202031