IMPROVING HR DEPARTMENT BY SIX SIGMA PROCESS
The high turnover rate and low morale in all departments due HR dept is a matter of deep concern.
Why Six-Sigma?
A comparison between Six-Sigma and HRM conducted by Patterson for Allied Bombardier in 1997 proved that they shared
similar core values in social and technical systems. Motorola developed Six-Sigma, a logical and methodical approach to
achieve continuous improvements in areas critical to the success of any business in the early 1980's
To combat this situation, let us first define 6 processes fundamental for the HR function:
(a) Organisation Environment.
(b) Employee Development.
(c) Recruitment.
(d) Reward.
(e) Communication.
(f) Organisation Improvement.
Process definition was followed by definition of HR structure, roles and responsibilities, and measures of performance.
Objective of HR improvement plan
Quantum primarily aimed to develop and implement HR processes and measure performance with a focus on complete internal customer satisfaction. The secondary objective was to increase job satisfaction in the HR department, reduce turnover, boost their morale and create empowered, high-performance teams.
Improvement team
The team responsible for making these improvements consisted of the HR dept, facilitators (Six-Sigma Black /Green Belt) and a mentor (the HR Director). Internal customers were employees ie critical stakeholders and their participation was elicited through direct/indirect representation or feedback.
The role of the stakeholders
1. Internal customers: They will participate in l determining the objectives and targets. They will also get involved in selection of particular measures of performance for the HR dept.
2. The HR dept: Besides assisting and guiding the internal customers, they will have to learn the Six-Sigma improvement tools and implement them to sustain a continuous improvement of their processes.
3. Facilitator: The Black /Green Belt team assisted right from problem identification to the sustained improvement plan.
They are needed to train the various employees in effective utilisation of the Six-Sigma tools.
4. The mentor: Defining the core values and prompting them, leading the change, gaining commitment, motivating,
coaching and building trust are a few roles the mentor will be playing.
5 Methodology
The Six-Sigma (prioritise-measure-analyse-improve-control) change model will be followed.
A. Prioritise
It will began with the identification of the services the HR are suppose to be provid. Internal customers ie the employee too were asked to prioritise the vital functions of the department.
B. Measure The role of measurements is to find out new parameters for measuring performance of HR function. Quality Function
Deployment method will be used to identify and analyse the measures of performance.
The analysis will start with the development of HR process maps. This will reveal shortcomings in the processes. Immediate remedies and benefits are to be suggested. Communication, resourcing, rewarding and development are selected as the first processes to be analysed.
The main objectives for the measures of performance (MOPS) are to:
1. Ensure alignment of HR with business strategic objectives.
2. Define Critical-To-Quality measures (CTQ).
3. Define Critical-To-Cost measures (CTX).
4. Define Critical-To-Throughput time measures (CTT).
5. Be valuable to the organisation.
6. Be valuable to the individual.
C. Analysis
All the data that will enter the analysis phase will be tested against the CHART test (Complete-Honest-Accurate-Relevant-
Timely). Appropriate Six-Sigma tools will be deployed to monitor and analyse performance of processes.
For example: The statistical control chart will be used to monitor the quality level of communication. The control chart was used to monitor the recruitment process.
The run chart will be used to monitor the feedback process.
Process owners, with assistance of Six-Sigma will conduct the analysis. Targets are set based on customer requirements and process capabilities.
The analysis is aimed to identify the vital parameters that affects process results.
They are identified by using the experience of process participants, correlation analysis and customer feedback.
Other Six-Sigma tools will be also deployed. For instance, Pareto analysis will be used to analyse reasons for employees leaving the company.
D. Improvement
Action will be followed by analysis. The HR database will be updated regularly to monitor the improvements after implementation.
The focus is to began to shift from monitoring measures of performance (MOPS) to controlling inputs that control the MOPS.
E. Control
A quarterly HR review will be developed and issued by the HR. It will contain all the process analysis results and
implementation. It will also contained a detailed Six-Sigma Score Chart.
F Achievements Expected
The cost of the HR function should be reduced by 34%
The turnover should be reduced by 15%.
HR systems to be transformed into a cost-effective, fast, proactive department that averted probable problems.
The morale of all the department should rise including of HR departments that they will evolve from being mere back room boys to strategic planners.
The reduction of throughput time, defects and rework will contribute to the tangible cost saving. The intangible cost
such as poor quality management will be also averted.
Six-Sigma help will evolve a participative management and teamwork.
Six-Sigma should now became a way of thinking.
Six-Sigma will thus proved to be an effective approach for Quantum to improve its HR processes.
