INTRODUCTION TO PERFORMANCE HUMAN RESOURCE SYSTEM
Performance human resource is the strategy and process for leveraging best practices, methodologies and technology to manage the performance of an organization and its business network by leveraging assets to achieve a common set of goals and objectives. Performance human resource focuses on aligning, optimizing and understanding action and decisions and ensuring the collaboration and empowerment of all individuals across the business network. This enables all individuals to work across strategic, tactical, and operational levels to align actions to ensure optimal performance. Performance Human resource can enable improved efficiency, quality and value of assets and resources to optimize the effectiveness of human resource and business processes.
One of the most crucial organizational challenges is to transition the culture and methods towards performance human resource. Established executive and organizational politics can fracture a company's ability to transform into a more transparent, bidirectional, performance-driven culture. Enlightened organizations address this issue with executive mandates and solutions that leverage collaboration and metric-driven applications. They actively coordinate and communicate direction and progress on performance goals to communities of individuals.Process of performance human resource system
A critical piece of this methodology is the process for managing performance in a framework that aligns to how organizations actually operate today. Venetian Research has simplified this process from years of research into a process called Performance Cycle. This process employs a three step, "align-optimize-understand", closed-loop process that links the business and user requirements for any level of the organization. This process then provides the mechanisms to assess and utilize technology that can provide people with information and through collaboration, reduce the cycle to making decisions or taking action.
INTRODUCTION TO SIX SIGMA
Six sigma is a business human resource strategy, originally developed by Motorola that today enjoys wide-spread application in many sectors of industry. Six sigma seeks to identify and remove the causes of defects and errors in manufacturing and/or service delivery and business processes. It uses a set of human resource methods, including statistical methods, and creates a dedicated infrastructure of people within the organization who are experts in these methods. Six sigma aims to deliver "Breakthrough Performance Improvement" from current levels) in business and customer relevant operational and performance measures.
Six sigma initiatives are planned and implemented in organizations on "Project by Project" basis. Each project aims not only to improve a chosen performance metric but also sustain the improvement achieved. Each Six sigma project carried out within an organization follows a defined sequence of steps and has quantified financial targets (revenue increase, cost reduction or profit increase). It is the systematic approach of process selection. Process is related to design manufacturing and administrative factions.
IMPORTANCE OF HR IN SIX SIGMA PROCESS
There are Chances we have heard of Six sigma, perhaps in connection with General Electric, the company that made it popular in the 1990s. In both manufacturing and service industries, We may know that Six sigma uses statistical techniques to improve processes.
But most of us do not know that there is an important role for performance human resource in the sophisticated approach of process improvement. We also do not know that initiatives of Six sigma are unlikely to succeed without Human resource's help.
At both strategic and tactical levels, Human resource professionals, with the right skills can contribute to the initiative of a Six sigma. In Six sigma decision-making and implementation, Human resource professionals can increase their chances of being included.
It is very important to study the critical factors in the successful implementation of, to appreciate the participation of HR people in the Six sigma. So let's start with the discussion about the crucial roles played by the other people in Six sigma.
DEFINITION OF SIX SIGMA:
This term is widely defined as follows:
- A structured method for improving business processes. This method, called DMAIC (define, measure, analyze, improve, and control), is supported by an assortment of statistical tools.
- A statistical measurement of how well a business process is performing. A process that performs at "Six sigma" produces only 3.4 defects out of every million opportunities to produce a defect. Processes that perform at lower sigma levels (such as One Sigma or Four Sigma) produce more defects per million opportunities. It is possible for a process to perform at an even higher level (and thus have even fewer defects), but Six sigma has become popular as the standard for excellent process performance.
ROLES OF SIX SIGMA
Six sigma has a martial arts convention for naming many of its professional roles. The chart below describes how these roles are typically defined.
ROLL OF PMS IN SIX SIGMA
In the above discussion we have discussed the crucial factors for the successful implementation of six sigma techniques, many of the factors there are, which contribute to the success of six sigma and falls within the arena of the performance human resource. Now we will discuss those factors:
SELECTION OF BLACK BELT CANDIDATES AND RETENTION
Rightly said by HR professionals:
"RIGHT PERSON AT RIGHT PLACE"
Therefore this is also a very crucial decision that to whom we have to select to impart the training of Black Belt role because the Persons in the Black Belt role are very critical to the success of the initiative of the Six sigma. Moreover, person in the Black Belts are the face of Six sigma that is visible. The capability and the efficiency of the people in the Black Belt shape the first impression of the Six sigma technique and consequently, the willingness of other employees to embrace the initiative. The huge investment is also the part of this technique's training, so people have to select very carefully.
Professionals of HR can help the Six sigma's Leader to find the competent people for Black Belt profile and ensure that they will remain in these positions for at least typical two-year's rotation. Potential HR contributions in this area include:
- Building that kind of competency model which will help in identifying the candidates with the exact mix of technical, team, and leadership skills and abilities.
- Creation of job descriptions that provide assistance to candidates to fully understand the place and expectations before signing on.
- Developing a retention strategy that will help ensure Black Belts complete their rotation and the organization recoups its investment in training and development.
REWARD AND RECOGNITION
It is very complex to Reward and recognizing Black Belts and it is more complex than it may appear. Six sigma initiatives are joined by Black Belts from various places in the organization where they are likely to have been at different job levels with differing compensation arrangements. It is both tricky as well as critical it determine that how to impart appropriate adjustments in different levels and compensations.
At the level of the project team, same kinds of complexities are seen to be faced. There is saving of thousands of rupees in the 6 sigma projects which are led by Black Belts typically. It is not easy to determine that how reward and recognition should be made. In case HR people ignore these issues than it may lead to resentment, reluctance to get involved in the six sigma projects. It may lead to the failure of potential initiative.
Professionals of HR can help the Six sigma Leader in tackling the challenges of establishing the appropriate rewards/recognition. Potential Human resource's contributions in this arena include:
- To analyzing the existing compensation arrangements to easily identify the extent to which these arrangements will support the Six sigma initiative.
- To create a strategic compensation plan which better support Six sigma.
- To develop a non-monetary rewards also for Six sigma's teams.
PROJECT TEAM EFFECTIVENESS
The project of 6 Sigma is mostly done at the project team level in the leadership of Black Belts through the steps of the DMAIC method. If these teams itself do not function well or do not interact effectively with others in the organization, who are ultimately going to support and carry out the process changes, the project will unlikely to be successful. After such a huge cost investment in project's potential payback, failure can be expensive.
Human resource professionals can help the project teams work together more effectively. Potential contributions of HR in this area include:
- To Ensure team leaders and members to get training and/or coaching in teamwork, conflict human resource, communications, dealing with difficult team members, and other team effectiveness skills.
- To provide teams with the tools that can allow them to diagnose teams own performance and identify that when and where they need help.
- To acting as a resource for Black Belts people who encounter team-related challenges they cannot surmount.
CREATING A SIX SIGMA CULTURE
Many Sponsors, Champions, and Leaders look to Six sigma as a way to change an organization's culture to one that is more data-driven, proactive, decisive, and customer-oriented. But they often have little idea about how to achieve successful culture change.
Human resource professionals may help executive's approach to culture change in a way that it addresses the underlying business goals that too without creating any organizational resistance. Potential Human resource contributions in this area include:
- To working with the Six sigma Sponsors and Leaders as well as with the Champions to identify the elements of the culture that might bind the achievements of Six sigma goals.
- To advising on changing the plans that may target those specific cultural elements.
- To identify that how the Six sigma can be rolled out in such a way that it works with, rather than against, the current culture.
CHANGE HUMAN RESOURCE AND COMMUNICATIONS
The process of introducing the Six sigma in an organization can be a major change which will have a profound effect on not only employees but on broad group of stakeholders also. Managers and employees of the organization at many levels of the organization may be asked to engage in new behaviors. In so many cases, those leading other initiatives will see Six sigma as a source of competition for resources, executive attention, and organizational power. Some employees may see it as an indictment of their respective past performance. And so many will be confused about how Six sigma fits with the large number of other ongoing organizational initiatives.
Professionals of HR can help reduce the uncertainties and anxieties that surround the Six sigma and increase the levels of acceptance and also of cooperation in the organization. Potential Human resource contributions in this arena include:
- To draft a change in the human resource/ communications plan that addresses the people side of the Six sigma rollout.
- To help in creating a "case for change" that describes:
- The reasons for and the benefits of Six sigma.
- How the organization will help employees succeed in new ways of working.
- How Six sigma fits with other ongoing initiatives.
- To counsel Six sigma Leaders and Champions to teach that how their behavior can help or hinder the Six sigma's acceptance throughout the organization.
BEING INCULDED IN 6 SIGMA
Just because Human resource professionals can play a vital role in the success of Six sigma, therefore it doesn't automatically follow that those professionals will be asked to participate. Unless you are in an organization that views HR as a partner in all business initiatives, you may have to push to be included in Six sigma.
HR can greatly increase its chances of being included in the Six sigma initiative by:
- To Ensure HR professionals have the required skills and knowledge.
- To marketing its potential contribution early stage of the initiative.
HELP IN GAINING THE RIGHT SKILLS AND KNOWLEDGE
In addition to Human resource/organizational development-related areas, Human resource professionals need a familiarity with Six sigma techniques and implementation. Without a basic knowledge of the DMAIC method, supporting tools, roles, jargon, and even simple statistical methods, Human resource will not have any credibility. And it needs to be considered a potential contributor to the initiative.
The time to get this knowledge is now. Even if your organization is not rolling out--or even considering -- Six sigma today, there are two reasons why it's worth a HR professional's time to become familiar with the concepts now. If the organization does decide to implement Six sigma, there won't be enough time to catch up. HR has to be involved at the very beginning of the initiative. In addition, there are many applications of Six sigma to HR's processes themselves, e.g., the payroll process, benefits administration, selection, and recruiting. HR might even consider setting an example for the rest of the organization by adopting Six sigma techniques to enhance its own processes.
The Six sigma methodology takes a step-by-step approach to process improvement, beginning with the definition of a problem (or opportunity); understanding and measuring the current process; analyzing the performance of the current process, taking steps to improve the process and instituting systems for controlling and monitoring the changed process.
DEFINED OF DMAIC
- Define: Identifying, prioritizing and selecting the right project(s).
- Measure: Key product characteristics, process parameters and performance.
- Analyze: Identifying key causes and process determinants.
- Improve: Changing the process and optimizing performance.
- Control: Holding the gains.
List of the tools of Six sigma that are often used in the project are as follows:-
- The Quality Function Deployment (QFD)
- The Supplier Input Process Output Customer (SIPOC)
- The Stakeholder Analysis
- The Failure Mode and Effect Analysis (FMEA)
- The Pareto Analysis
- The Kano Model
- The Root Cause Analysis
- The Ishikawa Diagram / Cause and effect diagram
- The Control Charts
House of Quality (HOQ)
Once we have analyzed the data collected, we required to prepare a House of Quality which helped the team in the identification of the Critical to Quality (CTQs). A relationship is established between the both, voice of the customer and the various processes that exist within the company.
Supplier Input Process Output Customer (SIPOC)
After the Identification of three CTQs that helped in further analysis in terms of 'AS-IS analysis'. Every and Each process is analyzed in detail and a gap is identified and a plan is executed to fill it up.
Failure Mode Effect Analysis (FMEA)
This technique offered a methodology to facilitate process improvement. To delineate all possible failures, their effect on the system, the likelihood of occurrence, and the probability that they will go undetected. The output of FMEA is -
Risk Priority Number = Severity * Occurrence * Detection
Scale was fixed for each of the parameters by the team and on the basis of that it was easy for the team to evaluate the functions within the process on the basis of Risk Priority Number.
The processes which were identified through the house of quality were then analyzed further with the help of SIPOC and FMEA.
MARKETING PERFORMANCE HUMAN RESOURCE'S POTENTIAL CONTRIBUTION
The challenge of marketing is twofold. Firstly, senior employees may not believe that the people issues are just as seriously critical to the success of the Six sigma as are its many technical components. In this case, HR will need to sell the importance of the people side. Secondly, executives must perceive HR as being able to make a significant contribution on the people side of Six sigma. Besides ensuring that it has both the required skills and knowledge described above, Human resource can meet those challenges by:
- To gathering the data that supports the need for taking the attention of the people in favor of Six sigma. Potential sources include Six sigma publications, case studies, conference sessions, and executives in companies that have already implemented Six sigma.
- Deriving lessons from previous organizational initiatives in which people issues and/or HR actions played an acknowledged role in success or failure.
- Meeting with senior executives to discuss their business/Six sigma goals and then identifying areas where HR could provide very specific and measurable help.
- Speaking to Six sigma Leaders and Champions in the language of Six sigma, not the language of HR. These executives are typically interested in improving efficiency (i.e., internal cost) and effectiveness (i.e., what the customer sees as "defects"). HR needs to understand what the executives care about and pitch HR's services in relevant terms.
- Taking the lead and applying Six sigma successfully within the HR function..
HR has a substantial role to play in the success of a Six sigma initiative. But it will have the opportunity to contribute only if its professionals have the right skills and knowledge and are able to show Six sigma executives the value they can add. Gain those skills now and make sure senior leadership knows how HR can help support the success of the initiative.
ANALYSIS OF ARTICLE 1
In addition to creating the training and leading the cultural change, human resource leaders are using Six sigma to improve customer satisfaction and reduce costs in everyday HR functions.
Renaldo Costa Pinto, HRD global process leader for Dow Chemical's HR resource center and an HR Six sigma champion, says Dow's HR group surpassed its $1 million savings goal for 2003, achieving $3.2 million in financial benefit from Six sigma.
"Applying Six sigma to HR is really no different than applying it anywhere else in the organization," says Jackie Nelson, HR master black belt for GE Consumer Finance, Americas. "The key is, 'What are the gaps?' Once you understand what the problem is, it's like a mathematical problem you apply the right formula to solve."
One of the keys to Six sigma is breaking down processes into manageable pieces and improving each piece to affect the overall performance. After mapping the process, Six sigma forces a look at the internal workings of the department, sometimes flying in the face of decisions that experienced managers would have made otherwise.
It's not that Six sigma doesn't value experience, Schlesinger says, it's that the data speaks for itself. "A lot of Six sigma is just being disciplined about collecting the data, and when you do that, all of a sudden some pretty obvious answers just jump out at you," he says.
In one such instance, a Colorado manufacturer was having trouble recruiting for a 24/7 operation where local unemployment was 2 percent, Schlesinger says. As a result, the company was paying excessive overtime to experienced workers. Human resources proposed what experience had taught them would workraise the entry-level salary to be more competitive.
"Wrong answer," says Schlesinger. The right answer was found by applying Six sigma quality tools to the process. The internal hiring process required candidates to return week after weekapply one week, test the next, interview the next, undergo a blood test, then receive an offer. Motivated applicants found jobs elsewhere. By mapping the process and removing barriers, the company reduced hiring time from six weeks to one. Today an applicant is tested, interviewed and gets an offer, contingent on the blood test. The company saves the money it would have paid in higher salaries and overtime.
The data gives the Six sigma project team leverage to implement its solutions, which is one reason Six sigma requires a companywide culture change. Once a process is mapped, an experienced manager often wants to jump right in to solve the problem, according to James Roberts, executive director of human resources information technology at Seagate in Scotts Valley, Calif. Success depends on "having the discipline to stay with the process and not jump ahead," he says.
But managers often need to experience that before they are convinced, McCarty says. "You don't move from define to improve," he says, referring to the steps in DMAIC. "They [managers] don't change until they actually see it. Boy, is it something to be in the room when you hear [something] from a team that disproves whatever the underlying human resource conclusion was."
Before DuPont's project on long-term disability, Miller says the team, which included people from outlying company sites and the vendor that processed claims, clearly thought the problem was that some company facilities lagged at processing requests: The applications process ranged from 10 days to 180 days.
Improving employee benefits call centers has been a successful Six sigma project at DuPont, Ford and GE. Nelson said GE Consumer Finance's HR team doubled employee satisfaction with HR service delivery by improving the HR Assist Center, a service that employees may call or e-mail with questions about benefits, payroll and other topics.
ARTICLE ANALYSIS 2CASE STUDY OF RELIANCE IMPLEMENTATION OF SIX SIGMA
With a mission to achieve Zero Defect work culture, Reliance launched the
Six sigma initiative in February 2004. Six sigma was deployed across all aspects of businesses, manufacturing and service functions to help us improve processes, boost productivity, reduce inventory and improve quality.
A team of 25 full-time Black Belts is spearheading cross-functional high impact projects throughout the company. Benefits from ongoing projects have been assessed at Rs 140 crore.
Three of our Six sigma projects were rated as the top three projects at the 50th year celebrations of the Indian Statistical Institute, Bangalore in March 2005.
One Six sigma project at Hazira has won an award at the American Society for Quality conference held at Seattle in 2005.
By March 2006 we plan to train about 40 percent of our supervisory staff in Six sigma methodology. This will motivate them to work towards achieving world-class performance. In turn, this is expected to bring about increased satisfaction for the customer and the shareholder.
They are incorporating new techniques to improve the quality of their products.
During the year, several new initiatives were taken to improve and strengthen quality human resource systems at the sites.
At the newly acquired RPCL facility, QA/QC systems were put in place at the time of plant start up - resulting in reliable results from the start.
Total Quality Human resource was introduced in all the laboratories at Jamnagar.
The 5 S programme was introduced at laboratories for inventory and document human resource. Inter laboratory testing across the Reliance group has been made a regular feature to monitor the reliability of analytical services.
Suggestion schemes have been introduced to encourage the involvement of all employees in quality related activities - eighteen employees received awards.
Reliance's efforts on the quality front continued to receive recognitions.
The Jamnagar laboratory received recognition on the analytical front from CEMILAC (Centre for Military Airworthiness and Certification) for its high level of Quality Confidence and Control Measures.
For each month during the year, Reliance received Golden certificates from Shell Global Services for Excellence in Reliability of Testing and Results.
Reliance's laboratory was accredited for conforming to QMS as per