Chapter 10.docx

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University of Guelph
Food Agricultural and Resource Economics
FARE 3310
Jamie Gruman

Chapter 10 – Human Resources, Job Design and Work Measurment Constraints on Human Resource Strategy Product Strategy Process strategy -skills needed -technology -talents needed What procedure -machinery and equipment used -materials used -safety -safety Schedules Human Individual differences -time of day when Resource who -strength and fatigue -time of year (seasonal) Strategy -information processing and -stability of schedules response Location strategy Layout strategy -climate -fixed position -temperature where how -process -noise -assembly line -light -work cell -air quality -product Labour Standards Labour standards-amount of time required to perform a job or part of a job -accurate labour standards help determine labour requirements, costs, and fair work -effective operations management requires meaningful standards that help a firm determine: 1. labour content of items produced-labour costs 2. staffing needs –how many people it will take to meet required production 3. cost and time estimates-to assist in a variety of decisions, from cost estimates to make-or-buy decisions 4. crew size and work balance does what in a group activity or on an assembly line 5. expected production – so that both managers and workers known what constitutes a fair day’s work 6. basis of wage incentive plans- what provides a reasonable incentives 7. efficiency of employees – a standard is necessary against which to determine efficiency -among the commonly used processes for setting standard times are: 1. historical experience (not recommended): -how the task was performed last time -easy and inexpensive -data available from production records or time cards -data is not objective and may be inaccurate 2. time studies-set standard time based on timed observations of one employee taken over a number of cycles. A cycle includes all the elements of the job. (applied to all workers doing the job) -involves timing a sample of a workers performance and using it to set a standard -requires trained and experienced observers -cannot be set before the work is performed Steps: 1. define task to be studied (choose job for time study) 2. divide task into precise elements (break the job into easily recognizable units) 3. decide how many times to measure task (calculate number of cycles that must be observed) 4. time each element, record the times, and rate workers performance 5. compute average observed time (AOT)-mean of times for each element measured Average observed time: AOT= ∑ ti - the time recorded to perform each element; n - # of observations 6. determine performanc
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