Category Archives: Human Resource Issues in Operations Management

Employee Turnover Costs

Employee Turnover Costs The cost of employee turnover has several components, some of which are readily quantifiable.others being less easily measured. Every time an employee leaves. these costs are incurred .

Employee Turnover

Employee Turnover It should come as no surprise that those.firms that treat their workers well have very low employee turnover as compared to the average turnover within their respective industries. Ritz-Carlton Hotels, for example, has an employee turnover rate of less than 20 percent in an industry that averages more than 100 percent annually. Similarly, Southwest Airlines’ employee turnover rate of 4.5

Cross Functional Work Teams

Cross Functional Work Teams Cross-functional work teams come together to tackle large complex projects or solve organizational problems that cut across traditional functional lines and that therefore, require the input and expertise from several areas within an organization. The members of a cross-functional team may come from the same organizational level but represent different departments and areas of expert

Self-Managed or Self-Directed Work Teams

Self-Managed or Self-Directed Work Teams Unlike traditional work groups. self managed work teams tend to operate very autonomously. They have responsibility not only for solving problems, but also for implementing solutions and measuring outcomes. Typically composed of 10 to 15 employees, these teams take on many of the activities and responsibilities that were formerly the duties of their supervisors. Members

Increasing Emphasis on Teamwork

Increasing Emphasis on Teamwork Nowhere is the need for effective management and the focus on employee empowerment  more obvious than in the increasing use of teamwork by organizations. Although some organizations, such as Volvo and Toyota, have successfully used team models for organizing work for more than 20 years, the surge in the number of American organizations now using teams has been relatively recent. T

Increase in Training and Development

Increase in Training and Development Continued advances in state-of-the-art technology are requiring firms to spend more on employee training and development. No longer is this considered to be a one-shot deal, but rather it must be done on an annual basis. In 1997. for example, U.S. businesses budgeted more than $59.8 billion to provide formal training and development courses to over 49.6 million employees, or


Telecommuting The decrease in the communications cost coupled with the increase in the speed of transmission allows many businesses to employ  worker that  live in geographically remote locations. There were approximately 2 million telecommuter in  the United States in 1990, and this number is expected to increase to 50 million by 2030.4 Telecommuting also has an added advantage for the company in that it does


Recruitment The Internet has removed many of the geographical harriers and logistics that were previously associated with recruiting. Websites such as, and provide electronic marketplaces that bring buyer and seller  together from literally every corner of the world. However not do those sites provide companies with the ability to reach a larger audience of potential employe

The Impact of Technology

The Impact of Technology Technology has impacted the workplace in many ways, from recruiting  to the types of work available to how the work itself is accomplished.

Increased Use of Temporary Labor

Increased Use of  Temporary Labor As we will see shortly, the cost of hiring and firing workers is expensive in some countries such as Germany and France, it is almost impossible to fire an employee (although there are signs that this is changing). As a result, there  as been a growing trend toward the use of temporary workers. In addition to providing the firm with the ability to quickly adjust its workforce