Chapter 6: Summary of Key Points and Terminology
• The human resource is the only one that competitors cannot copy, and the only one
that can synergize—that is, produce output whose value is greater than the sum of its
Employee satisfaction has a strong correlation to customer satisfaction, so
organizations are learning that to satisfy customers, they must first satisfy the
Key workforce-focused practices for performance excellence include understanding
the key factors that drive workforce engagement, satisfaction, and motivation;
designing and managing work and jobs to promote effective communication,
cooperation, skill sharing, empowerment, innovation, diverse thinking, and an
organizational culture conducive to high performance and motivation; creating a
supportive and safe work environment;
developing compensation, recognition,
reward, and incentives that support high performance work and workforce
engagement; assessing workforce engagement and satisfaction and using results for
improvement; assessing workforce capability and capacity needs, recruiting and
retaining skilled and competent people; making appropriate investments in
development and learning; and managing career progression for the entire workforce
and succession planning for management and leadership positions.
• The Taylor system, upon which much of modern manufacturing is designed, failed
to exploit the knowledge and creativity of the workforce.
TQ and many of
Deming’s principles have provided a renewed focus on the role of people in work.
Workforce management (
also known as
human resource management, or HRM)
consists of activities designed to provide for and coordinate all the people of an
recruiting, selecting, developing, counseling, and rewarding employees; acting as a
liaison between unions and government organizations; and handling other matters
concerning employee well-being.