HR can be called the working capital of the organization. But what are the areas where Six Sigma can be applied? How would it be possible to find the 3.4 parts?

The explanation for this is the implementation of Six Sigma in functions that lead to employee satisfaction.

Selection of Projects

When organizations decide to undertake any Six Sigma projects for the HR department, it has to be ensured that there is good return on investment. The financial perspective and customer perspective is relevant, as are internal factors to consider and the goal to achieve organizational objectives.

The HR function is not just restricted to trainings and certification handling for other Six Sigma projects in other areas of the organization. Six Sigma certification can help find ways to satisfy the external customers as well as internal ones. Six Sigma can be useful to find employees with leadership qualities.

Appropriate Six Sigma training categorizes the team into either Black Belts or Green Belts.  However, the HR department should account for all this from their own database - and not on the basis of data from other departments.

Data collection may face some resistance, as there would be some power-based factors of the project. Additionally, upper management should assure teams of all departments that the data will not be used for any punitive action or to cut costs and jobs.

Areas for Improvement Opportunities

From the data collected, the HR department will find many areas where Six Sigma projects can be undertaken for implementation.

Payroll administration systems can be considered. Faster performance review systems for job evaluations, setting up systems for automatic paycheck deposits, projects to establish criteria and eligibility systems for employee stock options and so on could be considered and carried out.

Labor relations are also important, and the HR department has to handle issues such as absenteeism, indiscipline, union negotiations, drug abuse and alcoholism.  HR is also responsible for dispute resolutions of various types such as harassment, discrimination and so on. DFSS process design can be implemented for discipline and other areas for improvement.

A website can be developed with proper study of the problem areas of absenteeism and disputes, which can act as a discreet communication medium for all employees. Systems can be put into place to undertake discrimination and harassment compliance audits.

There are some legal issues which also need to be considered by the HR department regarding matters such as privacy of personal information, employee handbook publication and FMLA (Family Medical Leave Act) and ADA (Americans with Disabilities Act), which need accurate tracking to keep the details of all the employees updated.

The handbook can be utilized as an area for employees to have their questions sorted out, at least at an initial level.

There are also other areas for organizational development to bring about improvements in performance, workplace planning, and career planning and importantly employee satisfaction. Surveys and publication of the results of the ongoing improvements can help get good results. 

There are other areas, such as staff selection and retentions, undertaking training, employee orientation’s programs, provision for external education that need to be taken care of.

There are many projects possible for improvements in the work system. It is the internal customer, the employees, who should be considered when undertaking Six Sigma projects in the HR department.