University of Kentucky

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1 University of Kentucky True Lean Human Resources Management: the People Side of Lean Institute of Research for Technology Development College of Engineering University of Kentucky Copyright University of Kentucky/Toyota Motor Engineering & Manufacturing North America, Inc. (TEMA) All Rights Reserved

2 Toyota Production System Kaizen Foundation Goals/ Desired Outcomes Philosophies J I D O K A Most Essential Element For the Customer Highest Quality Lowest Cost Shortest Lead-Time Flexible, Motivated Employees Maintenance of Standards Standardization For the Employees Job Satisfaction Job Security Consistent Income Critical Activities J I T For the Company Market Flexibility Profit (from Cost reduction) Customer First Respect for Humanity Elimination of Waste Many focus only on this element 2 Source: Ken Kreafle, UK Lean Systems

3 Mutual Understanding of Needs Interdependence of Company & Team Member = Mutual TRUST and Success Expectations: Continuous Improvement, Competitiveness, Productivity, Flexibility Profit Interactive Two-Way Communications Expectations: Improved Pay / Benefits, Improved & Safe Work Environment, Stable Employment, Reduced Burden, Family Balance Company Focus Team Member A Balanced System

4 Four Essentials To Build Mutual Trust Establish Mutual Trust ONE: Create environment where team members can work with their trust in the company FOUR: Promote teamwork to achieve individual roles & optimal company performance TWO: Build mechanism for promoting constant and voluntary continuous improvement THREE: Fully committed and thorough people development

5 Establish Mutual Trust ONE: Create environment where team members can work with their trust in the company A. Stable Employment; layoff/dismissal as last resort B. Ensure fairness and consistency C. Ensure high employee morale D. Steadily maintain and improve working conditions with long-term perspective

6 Four Essentials To Build Mutual Trust Establish Mutual Trust ONE: Create environment where team members can work with their trust in the company FOUR: Promote teamwork to achieve individual roles & optimal company performance TWO: Build mechanism for promoting constant and voluntary continuous improvement THREE: Fully committed and thorough people development

7 Roles / Responsibilities Management And Employees Fulfill Their Own Roles / Responsibilities To Achieve The Company s Prosperity Positive Place To Work Company Long Term Prosperity Shared Values Maximum Effort / Cooperation Employee Stability, Improving Work Environment Self Achievement Mutual Trust

8 The Essence of Mutual Trust Hands, Head, Heart When you hire me, you get my HANDS Lean requires HANDS AND HEAD HR systems = Mutual Trust which results in HANDS, HEAD and HEART!

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10 Lean Throughout Employee Lifecycle Competencies should align with building blocks and be clearly communicated, reinforced and measured throughout lifecycle Mgmt training for supervisors Create workplace where t/m can elevate issues to supervisor Quick i.d. of daily problems T/m Opinion Survey I.d. problems that cannot be grasped/resolved in supervisor/t/m relationship Optimization of fixed headcount Stable employment where layoff/dismissal not readily made Ensure no favoritism Ensure fairness & consistency Key Points Speedy resolution of daily problems Understand t/m sentiment & reflect in company measures Ensure high t/m morale ONE Creating workplace environment where employee can work with trust in the company Four Basic Principles Establishing relationship of mutual trust and respect Principles of HR Management Embodiment of management that respects people to create perpetual prosperity of the company Purpose of HR Management Stability: t/m livelihood & optimization of fixed costs Steadily improve work conditions from mid- to long-term perspective

11 Orientation: Foundation, Principles, Uniform Expectations, Measurements Recruiting / Hiring: Clearly State Performance and Behavior Expectations New T/M Performance Management: Monthly Review (first 6 months) followed by Annual Review with Individual Development Plans for Identified Gaps; Recognition & Rewards Team Member Lifecycle Continuous Development: Development / Growth Opportunities & Learning to Fill Identified Gaps Succession Planning: Compare Talent for High-Potentials and Specific Leadership Opportunities, Direct More Intense Investment for Development Recruiting Team Member Performance Continuous Succession & Hiring Orientation Management Development Planning Clear Expectations for People Performance and Behaviors to realize Company Foundation -Sustainability Uniform Expectations for People Performance and Behaviors ONE: Create workplace environment where employee can work with their trust in the company TWO: Create mechanism which promotes constant initiative in continuous improvement THREE: Fully committed and thorough people development 1 2 FOUR: Promoting teamwork to achieve individual roles and company performance 4 3 Four Basic Principles Establishing relationship of mutual trust and respect Principles of HR Management Embodiment of management that respects people to create perpetual prosperity of the company Purpose of HR Management Deliver to Stakeholders based upon Vision, Mission, Operating Principles, Company Goals and Objectives Company Foundation

12 Contact Information College of Engineering University of Kentucky 220 Robotics Bldg. Lexington, KY Phone: Fax: Copyright University of Kentucky/Toyota Motor Engineering & Manufacturing North America, Inc. (TEMA) All Rights Reserved File name revised 03/31/11