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Second Interim Report

Chapter 2: Innovative Human Resources Policies and Work Practices
Vincent M. Valvano

Table 2-1. Work Practice Variables and Definitions

Variable Definition
CROSS-FUNC TMS Cross-Functional Teams: structured groups in which employees from multiple work areas meet regularly to identify and suggest improvements to work-related problems.
CROSS TRAIN Cross Training (Technicians, Engineers): training employees in skills for more than one job.


Employment Security: company policy designed to avoid layoffs.
ESOP Employee Stock Ownership Plan.
GAINSHARE Gainsharing: monetary incentives based on a formula that uses local performance measures such as productivity, quality, or cost effectiveness instead of company profits.
INDIV INCEN Individual Performance Bonus/Incentives: compensation tied to short-term or long-term individual performance.
JOB ROTATION Job Rotation: a policy of rotating employees among different jobs, usually in the same area of the fab, at regular intervals.
KNOWLEDGE PAY Knowledge- or Skill-Based Pay: an alternative to job-based pay that sets pay levels based on how many skills employees have or how many jobs they can perform, in addition to their current job.
MATCH OFFER Matching Offer: made when competitor extends job offer to employee.
NONMON INCEN Non-Monetary Recognition Awards: awards such as gifts, gift certificates, dinners, or publicity for individual or group performance.
PROFIT SHARE Profit Sharing: a bonus plan that shares some percentage of the company's profits with employees.
QIT/QC Quality Improvement Teams / Quality Circles: structured groups in which employees from a particular work area meet regularly to identify and suggest improvements to work-related problems.
ALL-SALARY All-Salaried Pay System: all employees receive salaries, thus eliminating the distinction between hourly and salaried employees.
SELF DIR TEAMS Self-Directed Work Teams, Autonomous Work Groups: the group (in some cases acting without a supervisor) is responsible for work in its area of the fab, and it makes decisions about task assignments and work methods.
SUGGESTION PAY Pay-for-Suggestions: monetary awards for suggestions made by employees to improve work organization or productivity.
SHIFT ROTATION Rotation of employees across shifts (operators, technicians).
TEAM INCEN Team Performance Bonus / Incentives: bonuses or other financial compensation tied to short-term or long-term work group, permanent team, or temporary team performance.
TRAINING $ Financial Support for External Training / Coursework: financial reimbursement for tuition costs and/or paid time off for employees participating in off-site training or courses.

(Table 2-1. Continued)

Variable Definition

Operator-Specific Practices:
OJT-TECH/ENG On-the-Job Training by Equipment Technicians and/or Process Engineers.
CROSSTRN-DIFF Cross-Training on Equipment in Different Equipment Bays.
CROSSTRN-SAME Cross-Training on Equipment in Same Equipment Bay.
Technician-Specific Practices:
OJT-ENGR On-the-Job Training by Process and/or Equipment Engineers.
Engineer-Specific Practices:
NIGHTS Regular Assignments on Nights and Weekends.
SHIFT WORK Shift-Based Work Week instead of Standard (9-to-5) Work Week.

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