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Improving Productivity of

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1 Improving Productivity of
Chapter 16 Improving Productivity of Office Employees

2 Productivity Is the result obtained from dividing output by input. The more output an organization obtains from constant levels of input, the better its productivity.

3 Factors That Have Contributed to the Productivity Dilemma in the U.S.
1. Constraining nature of government regulations, actions, and policies. 2. Declining work ethic. 3. Declining research and development expenditures. 4. Declining capital investment. 5. Increasing number of service workers. 6. Changing characteristics of workforce. 7. Constraining practices, policies, and attitudes of management.

4 Productivity Improvement Program
Is an effective way for an organization to increase its productivity.

5 Characteristics of Successful Productivity
Improvement Programs 1. Have top-management support. 2. Have employee commitment. 3. Have top-priority status. 4. Have productivity goals. 5. Have employee participation. 6. Have an employee rewards feature. 7. Have effective program leadership. 8. Have an effective communication element. 9. Have effective measurement techniques/devices.

6 Steps in Carrying Out a Productivity
Improvement Program 1. Carry out preliminary planning. 2. Assess the current situation. 3. Select areas/activities to be included. 4. Develop alternative solutions. 5. Design the solution. 6. Develop an implementation plan and implement the solution. 7. Conduct a follow-up of the solution.

7 Step 1: Carry Out Preliminary Planning
Identify program objectives. Determine program’s scope. Identify individuals to be involved. Consider input and direction provided by the task force. Keep employees abreast of program developmental efforts.

8 Step 2: Assess the Current Situation
Measure the present productivity performance. Identify and analyze the nature of various departmental work processes and procedures. Evaluate ways in which employees perform their assigned duties.

9 Step 3: Select Areas/Activities
Select areas in greatest need of improvement (prioritize if not all areas can be included in the program).

10 Step 4: Develop Alternative Solutions
Consider various alternative solutions to helping increase productivity of areas to be included in program. Consider the potential impact of each of the alternative solutions. Calculate a cost-benefit ratio for each of the alternatives.

11 Step 5: Design the Solution
Attain top management approval when/where needed.

12 Step 6: Develop an Implementation Plan and Implement the Solution
Devote as much time to designing the imple- mentation plan and actual implementation of each solution as it needs. Involve unit managers and employees in areas that affect them as one way of attaining their commitment. Install the new equipment; train/retrain employees. Implement the solution on an orderly basis.

13 Step 7: Conduct a Follow-up of the Solution
Determine how well the solution is working a few months after its implementation by comparing actual performance against anticipated performance. Make changes when/where needed.

14 Measurable Office Tasks Have These Characteristics
Measuring office productivity is a critical aspect of productivity improvement efforts. Measurable Office Tasks Have These Characteristics 1. They can be isolated, which helps determine where they begin and end. 2. The amount of effort and time consumed are fairly constant from one undertaking to the next. 3. The task is easily countable.

15 Types of Data Obtained from
Measurement Process Obtained by dividing the amount of time consumed in producing the units by the total units of output produced. Quantitative Qualitative Obtained by counting the amount of poor-quality work that has to be redone. Obtained by pro-rating the cost of labor, equipment, and overhead per work unit produced. Per-Unit Cost

16 Suggestions for Improving the Effectiveness
of Productivity Measurement 1. Determine the measurement objective. 2. Consider the characteristics of the area/activity being measured and select the simplest, easiest-to-use technique that circumstances will allow. 3. Train those who are responsible for measurement to use the various techniques properly. 4. Use a sufficiently long measurement period to compensate for any abnormal fluctuation in the workload.

17 Areas in Which Productivity Can
Often Be Improved (1 of 2) Often accomplished by provid- ing employees with new equip- ment that enables them to per- form their tasks faster and with less effort. Office Technology Work Processes and Procedures Accomplished by providing employees with efficient work processes and procedures.

18 Areas in Which Productivity Can
Often Be Improved (2 of 2) Provide employees with a working environment that stimulates their desire to become more productive. Work Environment Personnel Help employees develop a positive attitude toward work.

19 A Variety of Techniques are Available
Some are costly; others are inexpensive or free. Some involve making substantial changes in organizational processes and procedures; others are simply accomplished.

20 Employees want task variety, importance,
Job Design Affects the amount of satisfaction employees derive from their work and the level of productivity they attain from their job functions. Employees want task variety, importance, and autonomy.

21 Types of Job Design (1 of 2) Allows employees to periodically exchange their work assignments with others. Job Rotation Removes the repetitive, dull tasks from employees’ jobs as well as awkward work flow and communication barriers. Job Simplification

22 Types of Job Design (2 of 2) Allows employees to assume greater levels of responsibility for and control over their jobs while increasing their job planning opportunities. Job Enrichment

23 Flextime Allows employees to set their own starting times, usually within a 2- or 3-hour block of time. All employees have to be at work during a core time--perhaps from 11 a.m. to 2 p.m.

24 Job Sharing Allows two people to share what was one full-time job. Salaries and fringe benefits are pro-rated according to the amount of each employee’s work contribution.

25 Job Security Provides employees with the assurance that even when they increase their output, their jobs are not in jeopardy. This is often a prerequisite to getting employees to increase their output.

26 Employee Participation
Gives employees an opportunity to provide input into the decision-making process. Employees want to be involved in situations that affect them.

27 Quality Circles Involve a voluntary group of 8-12 employees who meet on a regular basis to identify, analyze, and develop solutions to a variety of their work-related problems. Meetings are held on company time.

28 Quality of Work Life (QWL)
Involves these aspects regarding an employee’s position: working conditions, economic rewards and benefits, interpersonal relations, and a variety of organizational contributions. Some of the QWL techniques used are flextime, MBO, job enrichment, job security, job rotation, TQM, and employee participation.

29 Employee Assistance Programs
Provide a variety of assistance to employees to help them deal with situations that impact negatively on their productivity. Typically involves providing employees with counseling sessions.

30 Communication Involves increasing the amount of communication between management and employees. Feedback is a critical aspect of the managerial process.

31 Burnout Reduction Involves helping employees reduce burnout or stress that impacts negatively on their productivity. May involve some employee counseling.

32 Incentives Provides employees with rewards for increasing their productivity. Some programs are group based; others are individual based.

33 Mental and Emotional Stress Reduction
Involves helping employees overcome the stress that keeps them from maximizing their productivity. Stress may arise from unsatisfactory interpersonal relations, low self-esteem, tension, worry, job boredom, job isolation, job insecurity, and unpleasant working conditions.

34 Team Building Is designed to enable a team to identify, diagnose, and solve their own problems. Results in empowering employees to assume greater responsibility over their jobs.

35 Problem Solving Often involves helping employees learn to deal with complex situations. May involve the use of a problem-solving approach.

36 Time Management Involves helping employees make better use of their time and to manage their time more effectively. Being able to estimate accurately how long a given task will take to complete is useful.

37 Alternative Workweek Involves giving employees an opportunity to work four days, perhaps extending the length of the workday. Often reduces absenteeism and tardiness.

38 Total Quality Management (TQM)
Is a program designed to help an organization improve the quality of its products and/or services. Is based on teamwork and empowerment.

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