SIx Sigma in HR

Six Sigma originated as a set of practices designed to improve manufacturing processes and eliminate defects, but its application was subsequently extended to HR and other types of business processes as well. In Six Sigma, a defect is defined as any process output that does not meet customer specifications, or that could lead to creating an output that does not meet customer specifications and in HR defects defined as follows;

• Extended time taken to fill the position and adverse recruitment.

• Performance less Appraisals and bonus distribution.

• Unsubstantiated TNAs for Organization by HR

• Policies not aligned with Organizational Environment , Mission & Business Practices etc.

The idea of Six Sigma was actually “born” a Motorola in the 1970s, when senior executive Art Sundry was criticizing Motorola’s bad quality. Through this criticism, the company discovered the connection between increasing quality and decreasing costs in the production process. Before, everybody thought that quality would cost extra money. In fact, it was reducing costs, as costs for repair or control sank. Then, Bill Smith first formulated the particulars of the methodology at Motorola in 1986;

The DMAIC project methodology has five phases:

• Define the problem, the voice of the customer, and the project goals, specifically.

• Measure key aspects of the current process and collect relevant data.

• Analyze the data to investigate and verify cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered. Seek out root cause of the defect under investigation.

• Improve or optimize the current process based upon data analysis using techniques such as design of experiments mistake proofing, and standard work to create a new, future state process. Set up pilot runs to establish process capability

• Control the future state process to ensure that any deviations from target are corrected before they result in defects. Implement control systems such as statistical process control, production boards, and visual workplaces, and continuously monitor the process.

By adopting DMAIC approach in HR for implementing Six Sigma;

 • HR has to devise such policies & follows the such practices that enhance the employees performance quality and creativity without incurring the extra dollar.

• Employ such work force that they take the responsibility rather than doing a Job. Once you have best people under your belt then HR does not need to motivate people because best people are self motivated and they perform responsibilities than Job.

• HR must create a cost centers for every activity so that ROI should be calculated along with performance assessment.

• Once you a have concrete results with cost centers then we have an every opportunity to optimize our current practices as per six sigma standards.

• Construct an HR metrics against every HR activity to control & make it accountable.

• Implement the MBOs ( Management By Objectives) instead of conventional PMS System and evaluate the assigned objectives on monthly basis .

• Performance base reward system evolution .

• Correlated the MBOs performance based promotions to succession planning .

by : Syed Shahzad Ali

HR Expert in Pakistan