The Impact of Employee Involvement and Empowerment in Lean Manufacturing System Implementation towards Organizational Performances

Eida Nadirah Roslin, Shamsuddin Ahmed, Mohamad Asmidzam Ahamat, Mohd Zaki Bahrom, Norazlin Ibrahim

Abstract


Lean Manufacturing System (LMS) implementations in Malaysia’s automotive industry has not been extensive in its expected reach, as extensive inquiries revealed it being adopted as a “pick-and-choose” system for certain processes or only upon determined levels within the industry. Current implementation strategy does not permit the industry to gain total benefits from the system itself. Undeniably, a few significant factors are being given less significance in multiple stages of LMS’ execution. Employee involvement and employee empowerment have been identified as part of these contributing factors in a successful implementation of LMS in an organization. However, important criterion with its contributing aspects of these factors is not given the necessary attention, translating into a lamer impact upon companies embarking on a LMS deployment. This paper examines the impact of these two factors in the implementation of a lean manufacturing system towards achieving organizational performances in the automotive industry. A questionnaire-survey was administered to gauge the impact of these two factors in an implementation process of a lean manufacturing system and later analyzing the effect towards their organizational performances. Data from 204 automotive parts manufacturers were gathered and analyzed. The correlation between the influencing factors, 5 lean activities and 6 organizational performances were measured. The results gained suggest that the integration between employee involvement and employee empowerment will be a valuable critical organizational capability impacting organizational performances towards the successful implementation of LMS in the Malaysian automotive industry.


Keywords


employee involvement; employee empowerment; lean manufacturing system; organizational performances.

Full Text:

PDF

References


Santos, Z.G.d., L. Vieira, and G. Balbinotti, Lean Manufacturing and Ergonomic Working Conditions in the Automotive Industry. Procedia Manufacturing, 2015. 3: p. 5947-5954.

De Felice, F. and A. Petrillo, Optimization of Manufacturing System through World Class Manufacturing. IFAC-Papers Online, 2015. 48(3): p. 741-746.

Vinodh, S., & Joy, D., Structural Equation Modelling of Lean Manufacturing Practices. International Journal of Production Research, 2012. 50(6).

Shah, R. and P.T. Ward, Defining and developing measures of lean production. Journal of Operations Management, 2007. 25(4): p. 785-805.

Sanjay Bhasin, P.B., Lean Viewed as a Philosophy. Journal of Manufacturing Technology Management, .2006. 17(1): p. 56-72.

Deflorin, P., & Scherrer-Rathje, M., Challenges in the Transformation to Lean Production from different Manufacturing-Process Choices: a Path-Dependent Perspective International Journal of Production Research, 2011 p. 1-18.

Pius, A., Esam, S., Rajkumar, R., & Geoff, N., Critical Success Factors for Lean Implementation within SMEs Journal of Manufacturing Technology Management, 2006. 17(4): p. 460-471.

Eida Nadirah Roslin, A Model for Full-Blown Implementation of Lean Manufacturing System in Malaysian Automotive Industry, Unpublished PhD Thesis, 2013, Faculty of Engineering, University of Malaya, Kuala Lumpur, Malaysia. .

Pius, C.A., Development of an Impact Assessment Framework for Lean Manufacturing within SMEs. Unpublished PhD Thesis 2007, CRANFIELD UNIVERSITY.

Perumal Puvaneswaran, H.M., Tang Sai Hong, & Razali, M. M. , Lean Process Management Implementation through Enhanced Problem Solving Capabilities Journal of Industrial Engineering and Management, 2010. 3(3): p. 447-493.

Pun, K., Chin, K., & Gill, R., Determinants of Employee Involvement Practices in Manufacturing Enterprises. Total Quality Management, 2001. 12(1): p. 95-109.

Ugboro, I.O., & Obeng, K. , Top Management Leadership, Employee Empowerment, Job Satisfaction, and Customer Satisfaction in TQM Organizations: An Empirical Study Journal of Quality Management, 2000. 5(2): p. 247-272.

Da´vid, L., Krisztina, D., & Jenei, L. N., Factors Influencing Employee Perceptions in Lean Transformations. Int. J. Production Economics, 2011. 131: p. 30-43.

Farris, J.A., Van Aken, E. M., Doolen, T. L., & Worley, J., Critical Success Factors for Human Resource Outcomes in Kaizen events: An Empirical Study International Journal of Production Economics, 2009. 117(1): p. 42-65.

Holden, L., The Perception Gap in Employee Empowerment: A Comparative Study of Banks in Sweden and Britain. . Personnel Review, 1999. 28(3): p. 222 - 241.

Mabry, B.G. and K.R. Morrison, Transformation to lean manufacturing by an automotive component supplier. Computers & Industrial Engineering, 1996. 31(12): p. 95-98.

Shah, R. and P.T. Ward, Lean manufacturing: context, practice bundles, and performance. Journal of Operations Management, 2003. 21(2): p. 129-149.

Balakrishnan, J., J.B. Eliasson, and T.R.C. Sweet, Factors affecting the evolution of manufacturing in Canada: An historical perspective. Journal of Operations Management, 2007. 25(2): p. 260-283.

Holweg, M., The genealogy of lean production. Journal of Operations Management, 2007. 25(2): p. 420-437.

Jannis, A., Robert, C., Cary, C., & Colin, G., Building a High-Commitment Lean Culture Journal of Manufacturing Technology Management, 2010. 22(5): p. 569-586.

Rosalind, F., Implications of Lean Manufacturing for Human Resource Strategy. Work Study 1995. 44(3): p. 20-24.

Farris, J.A., et al., Critical success factors for human resource outcomes in Kaizen events: An empirical study. International Journal of Production Economics, 2009. 117(1): p. 42-65.

Glover, W.J., et al., Critical success factors for the sustainability of Kaizen event human resource outcomes: An empirical study. International Journal of Production Economics, 2011. 132(2): p. 197-213.

Losonci, D., K. Demeter, and I. Jenei, Factors influencing employee perceptions in lean transformations. International Journal of Production Economics, 2011. 131(1): p. 30-43.

Zhao, X., et al., The impact of internal integration and relationship commitment on external integration. Journal of Operations Management, 2011. 29(12): p. 17-32.

Gulshan, C., & Singh, T. P., Measuring Parameters of Lean Manufacturing Realization. Measuring Business Excellence, 2012. 16(3): p. 51-65.

Jayaram, J., Vickery, S., & Droge, C., Relationship Building, Lean Strategy and Firm Performance: An Exploratory Study in the Automotive Supplier Industry. International Journal of Production Research, 2008. 46(20): p. 5633-5649.

L. Jawahar, N., & Gary D, H., Assessment of Organisational Involvement in Implementing Empowerment. Integrated Manufacturing Systems, 2002. 13(4): p. 201 -211.

Papadopoulou, T.C., & Ãzbayrak, M., Leanness: Experiences from the Journey to Date. Journal of Manufacturing Technology Management, 2005. 16(7): p. 784-807.

Paul, S., Andy, D., Mike, R., & Valeria, P., Workers' Experiences of Skill, Training and Participation in Lean and High Performance Workplaces in Britain and Italy. . Employee Relations, 2010. 32(6): p. 606-624.

Tomas, B., & Juan, A. M.-G., Integrating Human Resource Management into Lean Production and their Impact on Organizational Performance. International Journal of Manpower, 2011. 32(8): p. 923-938.

Tung;, A., Baird; K., & Schoch, H. P. , Factors Influencing the Effectiveness of Performance International Journal of Operations & Production Management, 2011. 31(12): p. 1287-1312.

Bhasin, S., Performance of Lean in large organisations. Journal of Manufacturing Systems, 2012. 31(3): p. 349-357.

Norani Nordin, B.M.D., & Dzuraidah Abdul Wahab. , A Survey on Lean Manufacturing Implementation in Malaysian Automotive Industry International Journal of Innovation, Management and Technology, 2010. 1(4): p. 7.

Fullerton, R.R., & Wempe, W. F. , Lean Manufacturing, Non-Financial Performance Measures, and Financial Performance International Journal of Operations & Production Management, 2009. 29(3): p. 214-240.

Yang, M.G., P. Hong, and S.B. Modi, Impact of lean manufacturing and environmental management on business performance: An empirical study of manufacturing firms. International Journal of Production Economics, 2011. 129(2): p. 251-261.

Anderson, J.C., & Gerbing, D. W., Structural Equation Modeling in Practice: A Review and Recommended Two-Step Approach. Psychological Bulletin, 1998. 103(3): p. 411-423.

Fornell, C. and F.L. Bookstein, Two structural equation models: LISREL and PLS applied to consumer exit-voice theory. Journal of marketing research, 1982. 19(4): p. 440-452.

Ho, R., Handbook of univariate and multivariate data analysis and interpretation with SPSS. 2006, New York: CRC Press.

Hair, J.F., et al., Multivariate Data Analysis. 6 ed. 2006: Upper Saddle River, NJ: Prentice Hall.

Rai, A., R. Patnayakuni, and N. Seth, Firm performance impacts of digitally-enabled supply chain integration capabilities. MIS Quarterly, 2006. 30(2): p. 225-246.

Sohal, A.S., Developing a Lean Production Organization: An Australian Case Study. International Journal of Operations & Production Management, 1996. 16(2): p. 91-102.

Pun, K., K. Chin, and R. Gill, Determinants of employee involvement practices in manufacturing enterprises. Total Quality Management, 2001. 12(1): p. 95-109.

Ugboro, I.O. and K. Obeng, Top management leadership, employee empowerment, job satisfaction, and customer satisfaction in TQM organizations: an empirical study. Journal of Quality Management, 2000. 5(2): p. 247-272.




DOI: http://dx.doi.org/10.18517/ijaseit.9.1.7116

Refbacks

  • There are currently no refbacks.



Published by INSIGHT - Indonesian Society for Knowledge and Human Development