1

Chapter

14

Productivity, Technology, and Participative Management

After completing this chapter, you should be able to:

1. 2. 3. 4. 5. 6. 7. 8. 9.

Explain the three ways to increase productivity. Explain how to increase productivity through resources. Describe the training cycle and how training is used to increase productivity. List and explain the steps in the increasing-productivity (coaching) model. List and explain the five steps of performance appraisals and state how performance appraisals can lead to increased productivity. Discuss some of the ways that technology affects behavior, human relations, and performance. Explain the relationship between suggestion and reward systems. Discuss the differences among quality of work life, quality circles, and work teams. Define the following 19 key terms (in order of appearance in the chapter): productivity performance appraisal compensation training standards gainsharing development increasing-productivity model quality of work life (QWL) training cycle participative management techniques quality circles job instructional training reward systems work teams

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Productivity
Productivity: a performance measure of inputs to outputs. Three ways to increase productivity:
Increase the value of the outputs while maintaining the value of the inputs. Maintain the value of the outputs while decreasing the value of the inputs. Increase the value of the outputs while decreasing the value of the inputs.

( O I) ( O I) ( O I)

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Increasing Productivity through Resources

Capital (financial and physical resources of an organization).

Capital equipment Reduce waste Inventories

Raw materials WIP (work-in-process) JIT (just-in-time)

Budgets Space

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Increasing Productivity through Training

Training: the process of developing the necessary skills to perform the present job. Vestibule training, or off-the-job training, develops technical skills in a simulated setting. OJT, on-the-job training, occurs at the job site. Development: the process of developing the ability to perform both present and future jobs.

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The Training Cycle

Step 1 Needs assessment

Step 5 Measure and evaluate

Step 2 Set objectives

Step 4 Conduct the training

Step 3 Prepare for training

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Performance Appraisal Steps

Organizations purpose, strategic and operational objectives, and plans Step 1 Step 5 Conduct the formal performance appraisal reviews Step 4 Prepare the formal performance appraisal reviews State job responsibilities Step 2 Develop standards and measurement method(s) Step 3 Conduct informal performance appraisals coaching

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Performance Appraisal Methods

The critical incidents file Managers ongoing written record of positive and negative performance behavior throughout the performance period. The rating scale Check list of areas of performance, including quantity of work, quality of work, dependability, judgment, attitude, cooperation, initiative. Behaviorally anchored rating scales (BARS) Combines critical incidents and rating scale methods. More accurate than either when developed properly. Ranking Compares employee to other employees. Includes forced distribution which is similar to grading on a curve. Management by objectives (MBO) Managers and employees jointly set objectives and evaluation compares achievement to objectives that were set. Narrative Manager writes a statement about the employees performance. Usually combined with another method.
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Coaching

Increasing-productivity model:

Step 1.Refer to past feedback.

If

no prior feedback has been given to the employee, explain the situation. specific examples.

Step 2.Describe current performance.

Use

Step 3.Describe desired performance.

Describe

the performance in detail. Have the employee tell why it is important. Provide training. Explain importance of change.

Step 4.Get a commitment to the change.

Increases

likelihood employee will make the change.

Step 5. Follow up.

Tell

the employee how you will follow up. Follow up when and how you told the employee you would.
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Participative Management Techniques

Participative management techniques: move information, knowledge, rewards, and power farther down the organization.
Reward systems Suggestion systems Survey feedback

Job enrichment

Participative Participative Quality of work life management techniques management techniques High-performance work systems Work teams

Quality circles

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Suggestion Systems
Make participation voluntary. Stress all improvements, not just major ideas worth thousands of dollars in savings. Evaluate all suggestions fairly. Give employees quick feedback on their suggestions. Clearly explain to employees the reason for not implementing a change. The person doing the job should implement the change. Reward employees whose suggestions are used.

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Reward Systems

The mechanisms for defining, evaluating, and rewarding employee performance. Compensation is the direct and indirect pay that employees receive. Indirect pay (benefits) may include insurance, sick pay, paid vacation, etc. Incentives are rewards for improvements May include non-cash rewards. May be given to individual employees, teams, departments, the organization as a whole. Gain-sharing is the sharing of cost savings with employees using an organizational formula. Profit sharing distributes a percentage of profits among employees.
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Other Systems (I)

Survey feedback

Commonly used as a tool to facilitate change to a more participative level. Horizontallyvariety, more steps, etc. Verticallyscheduling, responsibility, method selection, etc.

Job enrichment

Quality of work life (QWL) is an organizational attempt to balance business, human, and social needs.

Must include rewards Job sharing, flex-time, work-at-home

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13

Other Systems (II)

Quality circles are groups that meet regularly to spot and solve problems in their work area.

Also called continuous improvement groups/teams. Newest trend in business. To be most effective, members need training in group dynamics. Incorporates most participative management techniques. Integrates all other techniques into one system. Entire plant is structures around work teams. Commonly implemented in new plants (greenfields).

Work teams are self-managed groups.

High-performance work systems

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