Traditional Human Resource Approach
- Philosophy: A fair day’s work for a fair day’s pay
- Business objective: Increase productivity and profitability. Quality is secondary
- Quality objective: Adequate quality to remain in business. Staff driven quality improvement approaches
- Information sharing: Limited information sharing as needed for job execution.
- Major decision makers: Manager, shareholders, customers, employees
- Employee involvement: Programme suggestions , plans individual employee awards, no formal system
- Education and training: On the job training, feedback on the job performance
- Reward structure: Design and administered by management
Job security: Labour consider as a variable cost. Lay-off common during business downturn
Total Quality Human Resource Approach
- Philosophy: Shared responsibility, commitments, rewards
- Business objective: Increase quality, customer satisfaction, productivity and employee satisfaction
- Quality objective: Total quality management and continuous quality improvement at and across each level.
- Information sharing: Broad information sharing on profit, quality, productivity, coast, capital spending plans
- Major decision makers: Customer, employees, shareholders
- Employee involvement: Extensive involvement within levels and functions
- Education and training: Quality and economic education. Training to improve multiple skills, problem solving skills, group spirit
- Reward structure: Designed and administered by management-employee committee. Formal early union involvement.
- Job security: Formal commitment, all possible job surety even during business downturn.