pr&dukilmuonline.mpc.gov.my/elmu-cis/document/...hours etc., and measures of input viz: man...
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0000053819Jumal Produktiviti - [Journal].
PR&DUK
53813
jumoT
PR0DUHT1V111
Penerblt/PublisberPusat Daya Pengeluaran Negara(National Productivity Centre)
Pen Surat 64,Jalan Sultan 46904
Petalmg Jaya, MalaysiaTel 7557266
Peaaslhat/Adviserli Haji Arshad Haji Marsidl
(Pengarah)Pengarang/ZWtforMah Lok Abdullah
Pen. Pcngarang/Swft EditorSu)aidi Dasuki
Haji Ahmad BerekHaji Ruslan Khatib
R SugunarajahSuhaimy Abdul TalibJunna Abd HamidNor Aim AmdzahAb Rahim YusoffSuhaimi Hamad
Pauzi Hanipi
Kami mengalu alukan sumbangan rencana untuk dimuatkan di dalam jurnal mi 'JurnalProduktiviti' diterbitkan enam bulan sekali, menampung semua aspek ekonomi danpengurusan serta lam-lain bidang yang ada hubungannya dengan konsep produktivitiRencana-rencana yang tersiar akan dibenkan honorarium dan tidak semestinya merupakanpendapat PDPN
'Jurnal Produktiviti' diterbitkan oleh Pusat Daya Pengeluaran Negara(Kementenan Perdagangan dan Penndustrian) Pen Surat 64, Jalan Sultan,
46904 Petalmg Jaya, Selangor Malaysia Telefon 7557266 (15 talian),Teleks MA 36312 PDPN Telegram Dayapeng
cfiforidf
TREND YANG PERLU SUSULAN
Sesungguhnya kesedaran bagi mewujudkan 'budaya kerja' di kalanganmasyarakat pekerja di negara ini memang diyakini oleh kebanyakan sektor awamdan swasta. Ini terbukti dengan bertambahnya kehadiran kedua-dua sektor ini didalam menyertai semua program-program latihan yang dijalankan oleh PusatDaya Pengeluaran Negara (PDPN). Sektor swasta khususnya, bukan sekadarmenghantar dua atau tiga orang pegawai dan pekerjanya bagi mengikuti berbagaijenis kursus yang disediakan; malahan di akhir-akhir ini PDPN sendiri menerimalebih banyak permintaan bagi kursus-kursus dalaman atau 'In-House Training'.
Ttdak kira sama ada ianya diadakan di PDPN atau di dalam organisasi itusendiri, yangjelas kepada kita ialah kesungguhan dan kesediaan keduabelah pihak— majikan dan pekerja, bagi mewujudkan masyarakat pekerja yang dinamik danproduktif. Mereka sentiasa ingin membaharui kaedah kerja mengikutperkembangan teknologi semasa dengan sikap yang positif, iaitu ingin memajttkanprestasi diri bagi kepentingan syarikat, supaya organisasi tempat di mana merekabekerja dapat bertahan lama menghadapi persaingan pasaran yang semakinbergehra dan seterusnya menghadapi cabaran perdagangan yang semakinkompleks.
Sehubungan dengan trend dan minat pekerja yang sedemikian ghairahdengan pembahaman di dalam pembinaan sikap dan mental ini, hendaknya wujudsekumpulan para penyelidik dan pengkaji 'human side of enterprise' denganpemerhatian yang tertumpu khusus terhadap pekerja Malaysia yang berbudayaAsia yang masih berpegang teguh dengan adat resam, sopan santun dankomitmennya terhadap agama dan kepercayaan.
Ianya mungkin tidak memadai dengan memenuhi borang kaji selidik yangkadang-kadang terpaksa dipenuhi oleh pekerja, semata-mata sebagai memenuhikehendak para pengkaji. Justru itu, kami mengkagumi cara yang dilakukan olehseorang pensyarah wanita dan salah sebuah universiti tempatan yang sanggupmenyamar sebagai pekerja kilang dan bekerja untuk beberapa ketika bersama lain-lain pekerja di bahagian pengeluaran. Dan hasil dari orientast itu pensyarahberkenaan telah melahirkan sebuah buku.Syabas!.
in
BIODATA
Dr. M.R. Ramsay is currently United Na-tions ILO Senior Adviser to the NationalProductivity Centre, Malaysia. At the Uni-versity of Western Sydney, he is Director,Nepcan Productivity Centre. Past positionsinclude: Professor and Director, National Ins-titute for Training in Industrial EngineeringBombay, Head Operations Management, SouthAustralian Institute of Technology Adelaide,Productivity Adivser National ProductivityCouncil of India, Head Management and In-
dustrial Engineering Singapore Polytechnic.
He has wide and diversified consulting experience, and is presently Directorof ENDESCO Group - Productivity and Management Consultants in Aus-tralia and India. In 1980, Dr. Ramsay was awarded the Doctor of Science ofEngineering Degree, for his original contributions in Productivity Measure-ment Modelling which further led to his innovation - the RAPMODS Pro-ductivity Measurement, Productivity Budgeting, total Economic monitoringand Control System, which has been successfully implemented in manycountries including Malaysia.
THE CAPITAL EQUIVALENTAPPROACH TO PRODUCTIVITY
MEASUREMENT
ByDr M.R. Ramsay
United NationsjILO Consultantand
DirectorNepean Productivity Centre
School of BusinessUniversity of Western Sydney (Nepean)
Sydney, Australia
and
S. TheocharidesHead, Operations Development Section
Management Development BranchUnited Nations — International Labour Office
Geneva, Switzerland
INTRODUCTION
Over the years, various measures of systems and input factors ofproductivity have been developed which have considered different unitsfor measurement of "output" of systems viz: physical units, monetaryvalue, corrected monetary value, added value, work content in standardhours etc., and measures of input viz: man hours, machine hours, man-power equivalent, material, other indirect inputs and the like. Each of thesemeasures of productivity have contributed to a partial understanding of theeffectiveness of systems. The measures of "output" and measures of"input" when expressed in common units could provide dimensionlessvalues, leading to more like comparisons. Monetary values have been usedboth for the measures of "output" and measures of input which haveprovided the benefit of such useful comparisons2.
Economists have used the input of capital in defining and computing"capital productivity" and total productivity with a relevant weightascribed to capital input in relations to labour input. A whole range ofintermediate inputs do not appear to have been adequately considered inthe situation of operational reality which is of vital concern for effectivemonitoring and control of systems productivity.
The manpower equivalent approach assumes that the origins of basicinput at the genetic stage of production and generation of services ismanpower Hence, it proposes that all inputs for providing specific outputsare relatable to the genetic input of labour, which takes men (humanbemgs) to make mother machines and mother machines to make othermachines and so on In this technological age, the genetic relationshipbetween labour and the advanced tertiary level of technological resourceinputs could find gaps rather incomprehensible to concretely realise thislink
This paper which attempts to outline an approach hereinafter namedthe "Capital Equivalent Approach" to productivity measurementvisualises all inputs presented as "Capital Equivalent" also encompassingthe "flux capital" (i e the capital circulating in the system), for thecomputation of total and partial productivity The capital equivalentapproach to productivity measurement is also illustrated through anapplication carried out for the Prospect County Council in Sydney (NSW)electricity distribution operations and compared with the more establishedmethodologies of productivity measurement
THE PROSPECT COUNTY COUNCIL
The Prospect County Council (renamed Prospect Electricity - PE)was established on 1 January 1957, as the electricity distribution authorityfor the Western Sydney area The authority comes under the responsibilityof the ministers of Local Government and Energy, with powers outlinedunder the Local Government Act of 1919, and the Electricity DevelopmentAct of 1945 The PCC is the second largest electricity distribution authorityin NSW It provides power to more than 1 2 million people in an area of16,107 square kilometres The constituent councils include the cities ofBlacktown, Blue Mountains, Campbelltown, Fairfield, Lithgow,Liverpool, Parramatta and Pennth, the municipalities of Camden andHolroyd, and the shires of Baulkham Hills, Hawkesbury, Rylstone andWollondilly There are 3,078 employees serving 374,539 residentialproperties, 35,024 commercial and 2,242 industrial consumers as at June1987 Electricity is purchased in bulk from the Electricity Commission ofNSW at 132,000 volts and 33,000 volts from Blacktown bulk supply points,66,000 volts from Carlmgford, Ingleburn, Mt Piper, Nepean, Wallerwang,Lawson and Warnmoo bulk supply points, and further 33,000 volts fromBaulkham Hills, Camellia, Guildford, Pennth, Mt Druitt, West Liverpool,Hawkesbury and Nepean bulk supply points Through Prospect Zonesubstations, the electricity is reduced to 11,000 volts, then throughdistribution substation down to 415 and 240 volts to suit most customersElectricity is also exported to, or imported from West Cliff and Appmcollieries at Appm, under company generation arrangements
In addition to direct supply of electricity to its customers, Prospectalso offers customer services which include:-
* customer advisory service and community services
* payments by credit cards
* cookery demonstrations
* appliance sales and repairs
* 24 hour emergency service
* An off peak purchase assistance scheme (OPPAS) and thecommunity advisory retrofitting energy service (CARES)laundered in 1985 by the state government. OPPAS offers a $100subsidy plus a $100 interest free loan to new purchases of waterheaters connected to off-peak electricity supply. Grants and loansfor 1986/87 totalled $835,196.
As in all other major organisations, Prospect Electricity (PE), its newname, has its objectives to supply as follows:-
* To supply an electricity service to customers and the communitywith a reliability and quality to meet their requirements at thelowest rates consistent with sound economic operation, statutoryobligations and acknowledged environmental factors.
* To provide and maintain constructive and harmonious workingrelationships with customers, private enterprises, governmentbodies, and the electricity industry, and consider customer interestfirst in all policy and operational decisions.
* To promote the wise and economic use of electricity as a principalpart of assisting growth and well being of the community.
* To provide a fair remuneration, benefits and working conditionsfor employees, with opportunities for self improvement andpersonal initiative.
* To maintain a favourable climate for innovative technology andnew means with emphasis on the need for flexibility and two-waycommunication in planning, operations and'management.
THE CAPITAL EQUIVALENT APPROACH (K) TOPRODUCTIVITY MEASUREMENT
The capital equivalent approach to productivity measurement isexpressed as
"The system outputs for an accounting period in dollars dividedby the total system inputs that have been reflected in theirequivalent capital value in dollars for the same period".
(NOTE: If money values for both the outputs and inputs arecorrected for price change, it would result in "productivity"measurement, otherwise it is called a "performance"measurement. In case one of them only undergoes a price changethe expression "Productivity/Performance" measurement isused(3).
The equivalent capital of each input is represented by the amount ofcapital that would normally have been invested at a specific rate of interest(either a long term rate or short term rate) to yield a return on such notionalinvestment, to meet the actual expenditure for a particular input over aperiod of time for achieving the total system output (the output is measuredas the nett revenue earned by the system during the period underreference).
DATA
The data for all productivity/performance evaluations in this paperhas been drawn from annual records and published accounts, an extract ofwhich is shown in Appendix 1. The average national weekly wage has beenobtained from published literature by the Federal Government and leadingbanks. The cumulative inflation rate has been taken out of governmentdepartment publications relating to cost of living indices.
METHODOLOGY-CAPITAL EQUIVALENT APPROACH (K)LET:-
* Output (operating revenue) expressed in dollars = OINPUT IN DOLLARS:-
* Purchase of electricity ........................................ = A(considered equivalent to materials of aproduction system for the purpose of thisanalysis.)
* Distribution Expenses......................................... = B
* Management and General Expenses ................... = C
5
* Interest on loans and loan flotation expenses ..... = D
* Bad debts written of or provisioning..................... = E
* Depreciation....................................................... = F
* Special charges................................................... = G
* Public lighting, maintenance and repair............. = H
* Private works, appliance sales and service.......... = I
* Loss on sale of assets........................................... = J
"Flux Capital"
* Current assets = CA
* Fixed assets = FA
Interest Rates:
* Long term % = LT
* Short term % = ST
TOTAL PRODUCTIVITY/PERFORMANCE MEASURECAPITAL EQUIVALENT (TPM) - K (ANNUAL)
OTPM,'(K) A B C D E G H I
100 <—— + — + —— + —— + —— + —— + —— + ——> + CA + FA[LT LT ST LT ST ST ST ST,
(NOTE: The value of depreciation is reflected in "fixedassets")
EXEMPLIFICATION USING 1976 DATA
92956000<TPM)CEA =
(49255000 10623000 5975000 4J99000 76000 2871000 674000 6292000]100 <————— + ————— + ———— + ———— + ——— + ———— + ———— + ————> + 16858000 + 112393000
( 10.80 10.80 8.00 10.80 8.00 8.00 8.00 8.00 J
= 0.1009 + 16858000 + 112393000
FACTOR PRODUCTIVITY/PERFORMANCE MEASURESBASED ON (CAPITAL EQUIVALENT) FPM OUTPUT:
FPM,K(0) = o(0 = A to I except F) ——
100IXT or ST
EXEMPLIFIED WITH 1976 DATA
92956000(A) =
49255000100
10.8
FPMKj (A) = 0.2038
The TPM/K, model may be rewritten as follows to facilitate simulation:-
oo
TPM(K)1 1 1 1 1
-(- _______ 4. _______ 4. ________ J-I ———————————— T - __ —— _ _ — __ —— -j- H.^_^^___^_« -p1 1
J-I1 1
4.T^
FPMj(A) FPM^B) FPM^C) FPM^D) FPMjtE) FPM^G) FPM^H) FPM^I) NCt
WHERE NC, = \——[;NF, = \—>IcAj [FA]
O(0 = A to I, Except F) ~
EXAMPLE:
100e
ILT or ST
O
100 I-}ILTJ
FPM^A) =O
100
EXEMPLIFICATION USING 1976 DATA
TPM(K)1 1 1 1 1 1 1 14. ____ 4. ___ -f ____ -|- ___ -|- ___ 4.
0.2038 0.9450 1.2446 2.3909 97.8484 2.5902 11.0334 1.1819 5.5141 0.8271
= 0.1009
Appendix II shows TPM(K) values for the years (1976 -1985) and indices (base 1976), as also the FPMjKffl) valuesand their indices for the above period.
THE TPM (standard) METHODOLOGY - TPM(s)
TPM(s) = ——————————————-——————————————
EXEMPLIFICATION USING 1976 DATA
92956000TPM(s) =
1000 ̂49255 + 10623 + 5975 + 4199 + 76 + 2582 + 2871 + 674 + 6292 >
TPM(s) = 1.1126
FACTOR PRODUCTIVITY/PERFORMANCE MEASURES(STANDARD METHODOLOGY) FPMi (BASED ON OUTPUT)
Factor productivity/performance measures based on output iscomputed as follows:
FPM, (0) = -n i Q
6 = A to 1
EXEMPLIFIED WITH 1976 DATA
FPM^A) = -A
- 9295600Q
~ 49255000
= 1.8872
Appendix III gives the total productivity/performance measures andthe factor productivity/performance measures for the year 1976 to 1985.The indices have also been computed taking 1976 as base.
The simulation model linking factors' productivity/performance andtotal productivity/performance is shown below:-
1TPM(s) =
1 1 1 1 1 14. .„______ J. _________ -I- _________ -L ______^_ J- ________ J_-|- -r ————' ' " ~|- ~T ———————————————————————————————— ~T "I" ————————————————————————————— "I"
FPM^B) FPM:(C) FPM^D) FPM^E) FPM^F) FPM^G) FPM^H) FPM^l)
EXEMPLIFIED BY 1976 DATATPM,., =
1 1 1 1 1 1 1 1 1 14. _____ 4 _____ 4 ______ 4 _____ -j. _
.1.8872 8.7584 15.5575 22.1377 1223.1053 25.9509 32.3776 137.9169 14.7737 CO.
TPM(i) = 1.1126
THE OVERALL PRODUCTIVITY/PERFORMANCE ME-ASURE - STANDARD : OPM(s)<2)
r (o - A)OPM(s) = ——————————-—————-
H + ij
Exemplification using 1976 data:
(92956000 - 49255000)OPM(s) =
_1000 (10623 + 5975 + 4199 + 76 + 3582 + 2871 + 674 + 6292)J
OPM(s) = 1.2744
FACTOR PRODUCTIVITY/PERFORMANCE MEASURE(STANDARD METHODOLOGY) FPM2 BASED ON EQUIVA-LENT OF VALUE ADDED)
(O - A)'
= A to I
EXEMPLIFIED WITH 1976 DATA:-
(92956000 - 49255000)FPM2(A) =
49255000
= 0.8872
The simulation model linking factors' productivity/performance based onadded value (equivalent) and overall productivity/performance measure(s)is outlined below:-
OPM(S)+ —:— + ——:—— + —:— + —:— + ——=—— + ——-—— +
[FPM2(B) ' FPM2(C) ' FPM2(D) ' FPM2(E) ' FPM2(F) ' FPM2(G) ' FPM2(H) ' FPM2(I)
EXEMPLIFIED WITH 1976 DATA
lOPM(s) = -.—————————————————————————————————————————————-w f 1 1 1 1 1 1 1 1 ]4——— + ——— + ———— + ———— + ———— + ———— + ———— + ———>
,4.1138 7.3140 10.4075 575.0132 12.2002 15.2215 64.8383 6.9455J
= 1.2744
Appendix IV shows OPM(S) values for the years (1976 -1985) and indices(base - 1976), as also the FPM2(^) values and their indices for the aboveperiod.
THE OVERALL PRODUCTIVITY/PERFORMANCE MEASURE- (CAPITAL EQUIVALENT): OPM (K)
_______________(O - A)__________________B C D E G H I )
100 <—— + — + —— + — + —— + —— + ——> + CA + FA[LT ST LT ST ST ST STj
EXEMPLIFICATION WITH 1976 DATA YIELDS:-
92956000 - 49255000 ______(1062300 5975000 4199000 76000 2871000 674000 6292000}
1QQ < ___________ -|- __________ -|_ __________ _J_ ________ -j- __________ -|- _________ -(- __________ >
I 10.80 8.00 10.80 8.00 8.00 8.00 8.00 J
+ 16858000 + 112393000
= 0.0940
FACTOR PRODUCTIVITY/PERFORMANCE MEASURESBASED ON (CAPITAL EQUIVALENT) FPMFPM, ADDEDVALUE:
FPM2K(0) = (0) = (A to I except F) -
100 ,I LT or ST
EXEMPLIFIED WITH 1976 DATA
(92956000 - 49255000)FPM2K(B) =
100 <(10623000)( 10.8 J
= 0.4443
Appendix V shows FPM2(K), and OPM(K) values on an annual basisfor the period (1976- 1985) as also the respective indices taking 1976 as base.
The OPM(K) model may be rewritten as follows to facilitatesimulation :-OPl
1r i|FPM2K(B)
1 1f- ———— + ————— +FPM2K(C) FPM2K(D)
1
1 1FPM2K(E) FPMjKtF)
11 1 1 1 1
FPM2K(G) ' FPM2K(H) ' FPM2K(I) ' NC2 ' NF2j .
(0 - A) (0 - A)W/hwP Mr — - ISTP -1- * '
CA FA
Exemplifying using 1976 data:-
OPMn*(K)
0.4443 0.5851 1.1240 46.0011 1.2177 5.1871 0.5556 2.5923 0.3888
0.0940
TOTAL PRODUCTIVITY/PERFORMANCE MEASUREMANPOWER EQUUIVALENT TPM (M) APPROACH:
The manpower equivalent approach provides a measure of totalproductivity expressed as system output in real dollars per unit of man-power equivalent of total resources input.
TPMS output (real)
(M) Man years equivalent of total input
EXAMPLE (1976)
Average national weekly wage = $190.70
Total input = 83,547,000 - 19,300,000
(+ Note: Wages and salaries deducted from total input, to besubstituted by actual manpower employed during year)
Average number of employees = 1936
92,956,000TPM(M) =
(83547000 - 19300000) x 1190.70 x 521
+ 1936
Example 1977
Output
Number of employees
Total Input
Wages and Salaries
Inflation Factor = 1.094
= $105,225,000
= 1913
= $94252000
= $20,700,000
(1976:base = 1.0000)
Average National Weekly Wage = $209 = 501052255000
TPM(M]
L094|j1.094 |_(94252000 - 20700000) (209.50————— i + 1913J.50 x 52 J J
Appendix VI gives TPM(M) values on an annual basis for the period (1976 -1985)
15
GRAPHS
Appendix VII outlines graphs of TPM(S), TPM(K) and TPM(M)including OPM(S) and OPM(K), plotting the indices of the respectivemeasures (Base 1976), as also the differences in indices of the measures withrespect to TPM(S) and OPM(S) respectively.
CONCLUSION
The capital equivalent approach measurements provides a higherdegree of sensitivity to changes while the standard and manpowerequivalent approaches provide a greater degree of stability.
ACKNOWLEDGEMENTS
Grateful acknowledgements are due to:-
* University of Western Sydney, (NEPEAN), School of Businessfor the use of computer and other facilities.
* Final year students of the Operations Management and ComputerScience majors — Mark Drobiszewski, lan McArthur, ErrolParker, Steven Price, Jeffrey Thompson and Laurie Zucco for thecomputational support provided.
* Mrs. Neva Gregory for the typing and secretarial assistancerendered.
16
1. Annual Reports(1976 - 85)
2. Ramsay, M.R.
3. Ramsay, M.R.
4. Ramsay, M.R.
5. Ramsay, M.R.
BIBLIOGRAPHY
- Prospect Country Council (PE)
- Productivity Models in Techno EconomicInfrastructural Transition (1976).
- DSC (Engineering) Thesis IndianInstitute of Technology - Kharagpur
- Overall Productivity Measurement- PROC First World Productivity
Congress Bombay (1973).
- Infrastructural Change and the AggregateProductivity Function (1976). SingaporeEngineering Society Journal.
- RAPMODS Productivity BudgetingSystem.
- PROC of the National Conference onManagement, Institution of EngineersAustralia (1981).
17
CO
APPENDIX IDATA - PROSPECT ELECTRICITY
(1976 -1985)
DATA BASE (ALL FIGURES IN OOO'S OF DOLLARS)
01: OPERATING INCOMEOE: OPERATING EXPENDITURE (TOTAL)
A: Purchase of electricityB: Distribution expensesC: Management & General expensesD: Interest on loans, loan flotation expensesE: Bad debts written off or provisionF: DepreciationG: Special chargesH: Public lighting maintenance and repair
I: Private works, appliance sales and serviceJ: Loss on sale of Assets
CA: CURRENT ASSETSFA: FIXED ASSETS
WS: TOTAL WAGES AND SALARIESAE: AVERAGE NUMBER OF EMPLOYEES
NW: AVERAGE NATIONAL WEEKLY WAGE
IR: CUMULATIVE INFLATION RATE
1976 1977 1978 1979 1980 1981 1982
9295683547
49255106235975419976
3582287167462920
16858112393
10522594252
56647119586527453576
3964268677770820
21704123044
118882109469
6816113293694147621014373354599373000
23990133208
138130127596
80709156977753484910349303659116887280
27393149736
201265198247
120228229832662676150
1080200
99894
48126180393
249779249862
154532284443449685670
1225900
115595
51697210044
362076332475
219609337734331810822
014438
00
10395120
67417235944
19300 20700 22900 27200 37300 51400 569001.93600 1.91300 1.97800 2.06600 2.71200 2.92900 3.06500
0.19070 0.20950 0.22560 0.24790 0.28130 0.30350 0.33800
1.000 1.094 1.184 1.304 1.426 1.575 1.756
APPENDIX IDATA - PROSPECT ELECTRICITY
(1976 - 1985)
DATA BASE (ALL FIGURES IN OOO'S OF DOLLARS)
OI: OPERATING INCOME
OE: OPERATING EXPENDITURE (TOTAL)
A: Purchase of electricityB: Distribution expensesC: Management & General expensesD: Interest on lojins, loan flotaion expensesE: Bad debts written off or provisionF: DepreciationG: Special chargesH: Public lighting maintenance and repair
I: Private works, appliance sales and serviceJ: Loss on sale of assets
CA: CURRENT ASSETSFA: FIXED ASSETS
WS: TOTAL WAGES AND SALARIESAE: AVERAGE NUMBER OF EMPLOYEES
NW: AVERAGE NATIONAL WEEKLY WAGE
IR: CUMULATIVE INFLATION RATE
1983
431365
386957
259766375304934213053
017037
00
102236
1984
442800
419596
282878418645275414288
0182%
00
9499224
1985
482004
461520
304907535635758715279
019852
00
1030527
80053 87770 81159280559 306809 337677
58100 67000 743003.07700 3.11600 3.11700
0.36652 0.39140 0.41630
1.876 1.957 2.121
too
APPENDIX IITPM(K): (1976 - 1985)
TPM(K) - CAPITAL EQUIVALENT APPROACH - TOTAL PRODUCTIVITY/PERFORMANCE MEASURE
Years 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985
TPM(K)
TPM(K)INDEX
0.1009 0.1023
100 101.38
0.0913
90.48
0.0968
95.93
0.1065
105.55
0.1243
123.19
0.1605
159.07
0.1549
153.51
0.1301
128.93
0.1304
129.23
FPM,K<0) : (1976 - 1985)
FACTOR PRODUCTIVITY/PERFORMANCE MEASURES - CAPITAL EQUIVALENT APPROACH
Years 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985
FPMjKfA)INDEX
FPM,K(B)INDEX
FPMiK(C)INDEX
FPM,K(D)INDEX
FPM,K(E)INDEX
FPM,K(G)INDEX •
FP.MjKfH)INDEX
FPM)K(I)
NCjINDEX
NF,INDEX
0.2038100
0.9450100
1.2446100
2.3909100
97.8484100
2.5902• 10011.0334
1001.1819
5.5141100
0.8271100
0.203099.610.9618
101.771.2897
103.622.5361
106.07110.7632113.19
3.1340118.8110.834098.19
1.886
4.848287.920.8552
103.40
0.168582.660.8639
91.411.2846
103.212.4116
100.8688.278790.212.5151
88.128.9790
81.381.2214
4.953389.870.8925
107.90
0.181489.000.9328
98.701.2917
103.783.0195
126.2997.227499.362.7369
93.438.5740
77.701.1474
5.042591.440.9225
111.53
0.2098102.91
1.0973116.10
0.604748.583.3117
138.51-
-
-
1.6119
4.182075.841.1157
134.89
0.2329114.27
1.2654113.89
0.796563.994.2014
175.72-
—
—
2.3770
4.831687.621.1892
143.78
0.2861140.34
1.8601196.82
1.044883.945.8049
242.79-
-
—
4.3540
5.370797.40
1.5346185.54
0.2737134.26
1.8942200.43
0.961777.265.4462
227.79—
-
-
4.6415
5.388597.72
1.5375185.90
0.2173106.59
1,4681155,34
0.923374.184.3016
179.91—
-
-
5.1315
5.045091.49
1.4432174.50
0.2234109.59
1.2715134.54
0.899872.294.4576
186.44-
-
-
5.0282
5.9390107.70
1.4274172.58
Years
TPM(S)
TPM(S)INDEX
APPENDIX fflTPM<S): (1976 - 1985)
TPM(S) - TOTAL PRODUCTIVITY/PERFORMANCE MEASURE- STANDARD METHODOLOGY AND INDICES
1976
1.1126
19.77
1.1164
100 100.34
1978
1.0860
97.60
1979
1.0826
97.29
1980
1.0152
91.24
1981
0.9997
89.84
1982
1.0890
97.88
1983
1.1148
100.19
1984
1.0553
94.84
1985
1.0444
93.86
): (1976 - 1985)
FACTOR PRODUCTIVITY/PERFORMANCE MEASURES - STANDARD METHODOLOGY
Years 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985
FPM,(A)INDEX
FPM,(B)INDEX
FPM^C)INDEX
FPMi(D)INDEX
FPM,(E)INDEX
FPM,(F)INDEX
FPMj(G)INDEX
FPM^H)INDEX
FPM,(I)INDEX
1.8872100
8.7504100
15.5575100
22.1377100
1223.10100
25.9509100
32.3776100
137.9169100
14.7737100
1.857698.438.7995
100.5616.1215
103.6223.2029
104.811384.53113.1926.5452
102.2939.1754
120.99135.424798.1914.8581
100.57
1.744192.418.9432
102.2017.1275
110.0924.9647
112.771177.04
96.2327.1855
104.7533.5351
103.57119.720086.8016.2852
110.23
1.711590.688.7998
100.5617.8163
114.5128.4863
128.671341.06109.6428.0183
107.9637.7508
116.59118.262085.7415.8261
107.12
1.674088.708.7571
100.077.5590
48.5826.4301
119.38-
18.632271.79
-
20.1487136.38
1.616485.658.7814
100.357.2408
46.5429.1559
131.70-
20.375278.51
-
-
21.6090146.26
1.648787.3610.7209
122.518.3.586
53.7233.4574
151.13-
25.078096.63
-
-
34.8317235.76
1.660687.9911.4939
131.358.7423
56.1933.0472
149.28-
25.319397.56
-
-
42.1955285.61
1.565382.9410.5771
120.878.3937
53.9530.9910
139.99
24.202093.26
-
-
46.6498315.76
1.580883.768.9988
102 .838.3700
53.8031.5468
184.50-
24.279993.56
-
46.7738316.60
APPENDIX IVOPM(S): (1976-1985)
OPM(S) - OVERALL PRODUCTIVITY/PERFORMANCE MEASURE- STANDARD METHODOLOGY AND INDICES
Years
OPM(S)
INDEX
1976
1.2744
100
1977
1.2918
101.36
1978
1.2279
96.35
1979
1.2247
96.09
1980
1.0387
81.50
1981
0.9991
78.40
1982
1.2623
99.04
1983
1.3491
105.86
1984
1.1697
91.78
1985
1.1308
88.73
FPM2(/J) : (1976 - 1985)
FPM2(ji) - FACTOR PRODUCTIVITY/PERFORMANCE MEASURES (STANDARD METHODOLOGY)BASED ON EQUIVALENT OF ADDED VALUE, AND INDICES
Years 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985
FPM.,(B)INDEX
FPM2(C)INDEXFPM2(D)INDEX
FPM,(E)INDEX
FPM,(F)INDEX
FPM2(G)INDEX
FPM(H)INDEX
FPM(I)INDEX
4.1138100
7.3140100
10.4075100
575.0132100
12.2002100
15.2215100
64.8383100
6.9455100
4.062498.757.4426
101.7510.7118
102.92639.1842111.1512.2548
100.4418.0856
118.8162.519996.426.8594
98.76
3.815692.757.3074
99.9010.6512
102.34502.188187.3311.647395.0714.307893.9951.078578.776.9481
100.03
3.658188.92
7.4036101.2611.8418
113.78 '557.485496.9511.647395.4615.6931
103.0949.161875.826.5789
94.72
3.526085.713.0435
41.6110.6418
102.25-
7.502061.49
-
-
8.1126116.80
3.348681.39
2.761137-7511.1179
106.82-
7.769663.68
-
-
8,2401118.63
4.2184102.54
3.288944.9613.1646
126.49~
9.867580.87
-
-
13.7053197.32
4.5723111.14
3.477747.5413.1463
126.31-
10.072182.55
-
-
16.7856241.67
3.820092.853.0315
41.4411.1927
107.54-
8.740871.64
-
-
16.8481242.57
3.306380.373.0753
42.0411.5909
111.37-
8.920973.12
-
17.1855247.43
APPENDIX V
OPM(S): (1976-1985)
OPM(S) - OVERALL PRODUCTIVITY/PERFORMANCE MEASURE- STANDARD METHOLODOGY AND INDICES
Years
OPM(K)
OPM(K)INDEX
1976
0.0940
100
1977
0.00953
101.38
1978
0.0851
90.53
1979
0.0862
91.70
1980
0.0871
92.65
1981
01016
108.08
1982
0.1439
153.08
1983
0.1419
150.95
1984 1985
0.1172 0.1152
124.68 122.55
Years
APPENDIX V (Continued)
FPM2K(0) : (1976 - 1985)
FACTOR PRODUCTIVITY/PERFORMANCE - CAPITAL EQUIVALENT APPROACH
1976 1977 1978 1979 1980 1981 1982 1983 19841985
FPM2K(B)INDEX
FPM2K(C)INDEX
FPM2K(D)INDEX
FPM2K(E)INDEX
FPM2K(G)INDEX
FPM2K(H)INDEX
FPM2K(I)INDEX
NC2INDEX
NF2INDEX
0.4443100
0.5851100
1.1240100
46.0011
1.2177100
5.1871100
0.5556100
2.5923100
0.3888100
0.444099.930.5954
101.751.1708
104.1651.1347
0035 100
1.4469118.81
5.001696.420.5487
98.76
2.238286.34
0.3948101.53
0.368682.960.5481
93.661.0289
91.5337.6641
111.151.0731
88.123.8309
73.850.5211
93.78
2.114381.55
0.380879.92
0.387887.270.5370
91.761.2552
111.6740.4177
81.871.1377
93.433.5642
68.710.4770
85.84
2.096280.86
0.383598.62
0.441899.4300.243541.61
1.3334118.63
—
87.86~
-
0.6490116.80
1.683964.95
0.4492115.53
0.4825108.60
0.303751.901.6021
142.53—
-
:-0.9064
163.12
1.842471.07
0.4535116.62
0.7319164.73
0.411170.262.2841
203.20—
-~
-
1.7132308.32
2.113281.51
0.6038155.29
0.7535169.59
0.382665.382.1665
192.74—
-_
-
1.8464332.30
2.143682.68
0.6116157.30
0.5302119.34
0.333556.991.5536
138.21—
-
:—1.8533
333.54
1.822170.28
0.5212134.05
0.4672105.15
0.330656.501.6378
145.70—
-
:—1.8474
332.49
2.182184.17
0.5245134.88
APPENDIX VI
TPM(M): 1976-1985
TPM(M) - MANPOWER EQUIVALENT - TOTAL PRODUCTIVITY/PERFORMANCE MEASURE
to Years 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985C/i
TPM(M) 11046.64 11100.76 10730.25 10749.53 10290.91 10228.82 11000.48 11309.39 11069.59 10819.29
INDEX OF 100 100.49 97.13 97.31 93.15 92.59 99.58 102.37 100.20 97.94TPM(M)
BIODATA
Dr. D.H. (Dee) Groberg has been active in innovativetraining and people development for the past 27 years.He has live and worked in Japan for ten of those years.He has developed missionary training materials forhundreds of missionaries in Japan, created the TrainingDepartment for Mobil Japan where he managed thetraining of the 50,000 employees there, and establishedthe forerunner of the Pegasus Language Services. Hedeveloped the Training Analysis Systems CoursefTASC) and taught it to senoir executives throughout
Europe, South America, Africa, Asia, and the Middle East. His Vision-Skills-Reinforccment Model of training is being used in organisations as deverse as large restauranchains, private schools, oil companies, and religious training organizations. This model hasbeen effective in improving and enhancing training in a wide range of fields. Dr. Groberg isthe co-founder of the International Education Research and Analysis Corporation(1NTERAC), the largest language and communications training company now operationin Japan.
Dr. Groberg has academic specialities in the areas of Asian Studies, Applied Linguistics,Intructional Science and Organizational Behaviour. He is the author of numerous articles,books and training, materials including the Diagnostic Analysis Test of English (DATETest), INTER AC-TIVE ENGLISH, and MNEMONIC JAPANESE. He has been asked togive presentations troughout the world on the topics of language learning, careerdevelopment, customer service, personal productivity, and cross-cultural communications.Among his clients are; Mobil, Oil, Denny's Restaurant, the US Peace Corps, UnitedCalifornia Bank, Brigham Young University, and Sumitomo 3M.
26
DYNAMIC TRAININGA System To Get Natural Inertia On Your Side
ByDr. D. H. Groberg
PresidentInternational Management Consultants
UTAH, USA
"You mean to tell me it hasn't made a difference?" Verl's, voice literallyboomed across the board room table. "Why'd we spend all that money?Why'd we buy all those video machines? Why'd we put all of our peoplethrough those courses? Seems like a million dollar fiasco to me!"
As CEO of Daniel's large restaurant chain, Verl knew the value oftraining. It was basic to business. If people didn't know how to do theirjobs — especially at the unit level where the customer and the restaurantstaff met face to face — the business wouldn't succeed. It was that sim-ple. And if by spending some money — even a million dollars — we couldget them to do their jobs, it would be worth it. Customers would be moresatisfied; they'd come more often; they'd spend more money; and thebusiness would prosper. That's why he had gone along with — even ac-tively supported — the waitress training program. But now, according tocustomer surveys, after spending close to a million dollars, after putting20,000 waitresses through training sessions, after producing special filmsand video equipment for each restaurant for follow-up and new-hire train-ing, the level of service was the same as before. It seemed that the train-ing effort hadn't made a bit of difference.
"We've got to hire better people," insisted Harley, the vice presidentof operations. "It's not a training problem, it's an attitude problem. Ourpeople know how to give good service. They just don't do it. They don'tcare. We've got to find people who are more service oriented in the firstplace."
"We hire as well as anyone," said Mark. As personnel director, hehad been one of the driving forces behind the new training effort."Everyone you hire isn't going to be tender-loving-care service oriented.But once we get them, if we train them, they'll do o.k."
"You can't train attitude," Harley countered. "That's something theyeither have or don't have."
27
That had been a basic dispute from the beginning. If the people youhired didn't really care about giving good service, would training themmake any difference? Mark believed it would. And with the CEO's sup-port, the training program had been approved, developed, and im-plemented. At first it seemed to make a difference. People were excitedabout it. There were many positive comments about it. But now, overa year later, judging by the customer surveys, it hadn't made a difference.Things were the same as they were before; except for the year's time andthe million dollars spent.
"I'd like to know what went wrong," Verl demanded. "Why hasn'tthe training program paid off? I'm going to get an outside expert to lookat it."
That was when I was called in to look at things as an outside consul-tant, and to make recommendations. For six weeks I did nothing butlooked. I talked with people at all levels. I attended meetings. I interview-ed cooks and waitresses, restaurant managers and district managers, vicepresidents and the CEO. At the end of six weeks I knew the companyand its environment as well as anyone. And I knew why the trainingprogram hadn't worked, and what needed to be done to "fix" it: theirapproach to training was "static." They needed a "dynamic" approach.
Among my observations, three things stood out:
1. The hands-on training by the unit and district managers had notbeen carried out in at least half of the restaurants. And with thehigh turnover of employees, many of those who were trained,were no longer with the company. Where the training had beencarried out, it didn't transfer back to the job. The waitressesliked it alright — especially like the time off from work withpay — but when they got back on the job they behaved aboutthe same as they had before. It didn't seem to make a differenceto them whether they behaved differently as a result of thetraining. And they were tired of hearing about it. It appearedthat inertia, not training, was the primary force at work.
2. The training materials provided for each restaurant — especiallythe videos and the equipment to show them — were still sittingunopened in almost half of the stores. Where they were openedand available, they were almost never used. And it didn't seemto make a difference to anyone whether they were opened orunopened, used or unused. They were not a part of what washappening.
3. Perhaps the most significant observation was the differences that
28
I found in the employees. I categorized them into three groups:The first group I identified were the poor performers. Therewere 25 to 30 percent of the employees in this category, alloperating below standards. The next group were the averageperformers — neither really good, nor really bad, but just"hanging in there," giving average service. This group made upabout 60 to 70 percent of the total,
! I
25-30% 60-70% 5-10%
poor average
Figure I: The Three Groups of Employees
excellent
The last group, the one that was most significant to me, wasthe excellent performers. It was the smallest in size — onlyabout 5 to 10 percent of the total — but it was definitely there.Sometimes I found only an individual employee. Sometimes itwas a whole unit or district. This group was significant becauseit showed me that giving excellent service was possible. If somecould do it, why not more? But it wasn't clear that the trainingprogram had made the difference. It seemed to be more theresult of a vision or spirit — the "dynamics" — that existed inthese people or units, or districts.
I concluded that the problem — and the solution — centered on onething: Dynamics. The company had been trying to implement a "static"program, focusing only on the core training itself. What was needed wasa "dynamic" program, one that considered what was happening before,during and after the core training, and included activities to impact oneach phase on a continuing basis.
t rNothing The focus had
been only here
Figure 2: Example of "Static" Training
29
Nothing
As a result, what usually happens happened: the natural forces ofinertia and time kept the behavior where it was originally. The trainingdidn't transfer back to job. in the few cases where some of it did transfer,it was quickly extinguished by peer pressure of what everyone else was(or wasn't) doing.
Behavior before Training
Time and Inertia
Behavior after
Figure ^: The Effect of Time and Inertia on the Transfer of Training
I understood the need to work with rather than against these naturalforces. So the solution — the way to get improved service — was clear:use a dynamic approach to get inertia working for you instead of againstyou; create a DYNAMIC TRAINING program.
A year later we had developed and implemented our DYNAMICTRAINING program. It worked. There were at least five areas of positiveresults:
1. Service improved significantly in the units where it was im-plemented. Through customer surveys, the company measuredthe effect of the advanced training with the following results:
CATEGORY
Hospitality;Service:Food:Cleanliness:Overall:
BEIORE
73%71%76%84%78%
AFTER
85%83%84%88%90%
INCREASED
+ 12%+ 12%+ 8%+ 4%+ 12%
Figure 4: Chart of Improved Service
2. The average guest checks increased. Almost without exception,waitresses and store managers reported that the average amountof customer purchases increased. This was most significant toprofits because there were few additional expenses associatedwith the increases. Most of it went straight to the bottom line.
30
GUEST CHECK AVERAGES(Same Shifts, Different Waitresses)
LOW AVERAGE HIGH VARIANCE
2.07 2.47 2.86 .741.97 2.48 2.98 1.012.24 2.67 3-07 .932.48 2.83 3.18 .702.20 2.60 3-01 .812.28 2.61 2.93 .65
AVERAGE: 2.21 2.61 3.01 .81
Figure 5; Chart of Typical Increases
3. Morale, team spirit, and vision improved. Managers and servicepersonnel reported significant increases in the cooperationamong the staff. Hundreds of comments such as the followingwere expressed by managers and employees:
I hope this program continues non-stop, throughout the com-pany. It motivates people, makes us want to improve not onlyfor ourselves, but also for the company, our managers, but mostof all for the customer. This personal growth approach hasproven to build a great deal of enthusiasm and self esteemthrough the unit. It has had far reaching positive service andprofessionalism effects — even before we look at the dollarsgenerated.
Guest check averages are increasing in the unit and team-work is more evident than ever in the unit. Employees are moremotivated to do a better job in the area of customer service.
Girls who once were clashing or working totally indepen-dently have joined together and now work as a team. Theirenthusiasm has, spread and lifted morale 150%. Now everyoneis fighting to be a part of this positive team.
4. Waitress tips increased. Because tips are usually based on thequality of the service and the amount of the check, it was notsurprising that waitresses consistently reported increases in tips.Comments such as the following were common:
Tips are increasing as well as profits. Employees feel good aboutthemselves and the results they are achieving. This is a very good returnon investment.
5. Employee turnover decreased. Unit managers reported less turn-
31
over of unit employees. They reported that because employeesfelt that they were growing and progressing on their jobs, theynow tended to stay longer. Several waitresses reported thateven though they had made a decision to leave the company, theDYNAMIC TRAINING program gave them reason to stay.
What had made the difference? What made the second approach suc-cessful? It was a dynamic rather than a static training approach. To ex-plain how it worked, I must first give some background on the theoryand thinking behind DYNAMIC TRAINING, and compare and contrast itwith the usual static training.
The dictionary says that dynamics are...."the various forces, physical, moral, orotherwise, operating in any field."
This isn't a bad definition for our purpose. In this sense, all trainingprograms are dynamic because there are various forces at work. But inmost training programs the dynamics work against you instead of for you.My definition of a DYNAMIC TRAINING program is one which putsdynamics on your side so that they help achieve the goals rather than workagainst them. DYNAMIC TRAINING says:
CONSIDERING THE VARIOUS FORCES AT WORK, DESIGNTHE TRAINING PROGRAM SO THAT IT TAKES AD-VANTAGE OF THE FORCES, GETTING THEM ON YOURSIDE, WORKING FOR YOU INSTEAD OF AGAINST YOUAND YOUR GOALS.
And what are the forces at work? There are many. Some of them are"outer" forces — outside the individual — and others are "inner forces— inside the individual. Because the only permanent changes in peopleare those that happen inside them, "inner" changes, building andstrengthening the "inner" person is the best and quickest — perhaps theonly — way to effect outer changes.
FIVE DYNAMIC TRAINING PRINCIPLES AND GUIDELINESI have boiled many of these "inner" forces down to five principles.
Each principle leads to a guideline for action in the DYNAMIC TRAININGapproach. They are:
PRINCIPLE 1: PEOPLE WANT TO GROW AND DEVELOP. They Want tobe contributing members of winning teams going somewhere. The veryprocess of growing and developing can be rewarding. As Andrew Grove,President of Intel says, people expect more than money from their jobs:
32
"Money is not the predominant force in the workplace. People expectto enjoy their job and be good at it."
GUIDELINE 1: MAKE GROWING /DEVELOPING A REWARD, NOT APUNISHMENT.
PRINCIPLE 2: PRODUCTIVITY IS AFFECTED MOST BY INNER INTANGI-BLE FORCES. How well people perform is determined more by inner feel-ings (motivation, spirit, vision, pride, etc.) than by outer facts. The totalwork environment can lift up and release potential or beat down and bot-tle it up.
GUIDELINE 2: CONSIDER THE IMPACT OF ANY DECISION ON THE"INTANGIBLES".
PRINCIPLE 3: PRODUCTIVITY IS DRAINED BY CONFLICTING VEC-TORS. Getting people working towards the same goals (lining up the vec-tors) is a primary source of productivity improvement. Conflicting goals,even informal ones, are among the biggest drains on personal and organiza-tional productivity.
GUIDELINE 3: ASSURE THAT INDIVIDUAL AND GROUP GOALS AREUNIFIED.
PRINCIPLE 4: PROGRESS AND GROWTH MUST BE REINFORCED TOCONTINUE. Natural inertia seems to be downward. In order to sustainprogress and growth, positive reinforcement (especially in the form ofrecognition and appreciation) is required on a continuous basis.
GUIDELINE 4: GIVE RECOGNITION/APPRECIATION FOR GOODPERFORMANCE.
PRINCIPLE 5: A DEEPER AND MORE LASTING IMPACT IS MADE BYWORKING INTENSELY WITH THE "TOP" PEOPLE THAN SUPERFICIAL-LY WITH EVERYONE. They are the most receptive and motivated, theywill influence the others most, and they will raise the vision and standardfor everyone. And people tend to move toward where the attention, ex-citement, and emphasis are.
GUIDELINE 5: RECOGNIZE AND BUILD PEOPLE FROM THE "BEST"ON DOWN,
A NEW DYNAMIC MODEL FOR IMPROVING TRAINING: THE VSRBALANCE MODEL
From the above principles and guidelines, we can derive two critical"inner" factors which influence employees to perform more productive-
33
ly. They are the "want to" (which I label vision), and the "how to" (whichI label skills). For vision and skills to be effective in promoting growth,they must also be in proper proportion to each other (balance), and bothmust be translated into action and continue to grow, sustained by cons-tant reinforcement. These factors are the theoretical foundation ofDYNAMIC TRAINING.
Therefore, the steps.that a DYNAMIC TRAINING system (and theleader implementing that system) must take are:
• IMPLANT VISION (implant the "want to" by providing an understanding of the overall goals and purposes, individual roles andbenefits to those carrying them out, confidence in their abilityto carry them out, etc.)
• BUILD SKILLS (build the "how to" by helping them to developthe knowledge and skills necessary to achieve their vision).
• REINFORCE PROGRESS (initiate and support the actual imple-mentation by reinforcing and rewarding progress made towardsthe achievement of the vision, thereby reinforcing the growingvisions and skills).
This theoretical foundation is called the VSR BALANCE model.Building employee productivity is a function of balancing the three fac-tors by VISION, SKILLS, REINFORCEMENT BALANCE in an upwardgrowth. The VSR Balance model says that improved personal productivi-ty is a function of both the "want to" (Vision), the "how to" (Skills), andtheir balanced preservation and growth (through Reinforcement). (SeeFigure 6 below).
INCREASED PRODUCTIVITY
VISION(want to)
REINFORCEMENT(of Vision and Skills)
SKILLS(how to)
Figure 6: The VSR Balance Model
For almost any task, someone who both wants to (has VISION) andknows how to (has SKILLS), can expect to. And as the VISION and SKILLSincrease (through REINFORCEMENT), so do personal expectations — andresults.
What is critical in the VSR model is not the absolute magnitude of34
any of the variables but rather the balance among them. (These variablesare defined and further explained in other articles. See "Inner Productivi-ty," by D.H. Groberg in Productivity Through People in the Age ofChanging Technology, Asian Productivity Organization, 1987, Tokyo.)
APPLICATION OF DYNAMIC TRAINING TO THE RESTAURANTCASE
Now for the application of all of this to the restaurant case. OurDYNAMIC TRAINING dealt with that which happens before, that whichhappens during, and that which happens after training. In accordancewith underlying theory and VSR Balance model, the effect on vision, skillsand reinforcement were considered in everything.
BEFORE TRAINING ACTIVITIES:1. Understanding the dynamics. (Even though this is not one of
the training steps, it is one of the most important steps, m orderto work with the dynamics, one must first understand them andhow they function in the environment).
The goal of the consulting arrangement was to improve thelevel of customer service, suggestive selling, and the overallenvironment of the restaurant. Daniel's had identified excellentcustomer service, suggestive selling, and a warm, friendly envi-ronment as its primary means of achieving its overall missionwhich was to increase corporate profits or return on assets.Even though the company already had many training programsdesigned to accomplish these goals, they had not been effective.First, they were not widely implemented, and second, wherethey were implemented, they produced only temporary resultsor affected only a small number of personnel. They were "static"programs.
The training problem was compounded by a high turnoverof unit level employees (up to 250 percent per year in someunits) typical of the restaurant industry. Some personnel stayedfor many years, others worked for only a few weeks or months.
Interview with restaurant personnel and other informal sur-veys indicated that only between 5 to 10 percent of the per-sonnel were performing excellently. A larger number, between25 to 30 percent were performing poorly. The remaining 60 to70 percent were somewhere in between, neither excellent, norpoor, but adequate. (See figure 1 on page 2).
I first analyzed the current operations to determine possiblereasons why more employees were not giving the desired ex-
35
cellent service. I determined that only occasionally was it solelythe result of poor hiring or inadequate staffing on the floor. Iconcluded that most of the time it was a lack of a clear expecta-tion, lack of knowledge or skill in doing it, or lack of desire todo it. These corresponded to the three factors in the VSR Ba-lance model, and fit perfectly into the DYNAMIC TRAININGapproach. Armed with an understanding of the dynamics atwork, we were ready to design and implement a program tomake them work for us.
2. Announcing "advanced" training. Before we did anything, weannounced what we were going to do. And what we were goingto do was key to getting the dynamics on our side. We knewwe had some poor performers, some average performers, andsome excellent performers in the company. We had to decidewhere to focus our effort. On the poor performers? On poorand average? On everyone? Considering the impact on visionmade it dear what we should do: focus only on the excellentperformers initially.
At first, that might seem contradictory. The excellent per-formers were already doing well. It was the poor performerswho needed to change. But such thinking ignores the dynamics.This was the mistake the company had made before. They hadattempted to train everyone at the same time. Considerhow employees in each group reacted to that (CONSIDER THEIMPACT OF ANY DECISION ON THE "INTANGIBLES"):
POOR PERFORMER : Oh, no, not another training program.Why is the company always on my backtrying to train me? I'm not changing!
AVE. PERFORMER : Big deal, another training program. I'mdoing a lot better than some people Iknow. Why do I have to get re-trained?
EXCEL. PERFORMER : I've been trying real hard and I thought Iwas doing quite well. But I guess not.May be I should find a new job?
• Even if they had succeeded in changing the poor performers,the most they could expect would be to move them into the"average" category, with no effect on anyone else.
36
5-30% 60-70% 5-10%
poor average excellent
Figure 7: "Looping" Poor Performers into the Average Category
We decided that one of the best ways to build vision ofcustomer service was by giving advanced training tothose employees who were already providing excellent service.(A DEEPER AND MORE LASTING IMPACT IS MADE BY WORK-ING INTENSELY WITH THE "TOP" PEOPLE THAN SUPERFI-CIALLY WITH EVERYONE). This would both reward the ex-cellent performers (MAKE GROWING/DEVELOPING A REWARD,NOT A PUNISHMENT), and make them even better at the sametime (PEOPLE WANT TO GROW AND DEVELOP). As the ex-cellent employees became even better, and their standards (vi-sions) raised, it was expected that other employees would wantto reach and qualify for the advanced training.
This is how employees in each group reacted to the con-cept of advanced training:
EXCEL.- PERFORMER : Great! I've been trying real hard and thecompany has recognized how well I'vebeen doing. Now I get the advanced train-ing which is going to make me even better.I think I can go places here.
AVE. PERFORMER : Advanced training? How do I get into it?I'm not doing too bad. With a little moreeffort I think I could make it, too.
POOR PERFORMER : Those good waitresses are really movingahead. I wish it were me. If I don't startmaking some progress now I'll really getleft behind. I either have to start per-forming or get out.
By focusing on the excellent performers first, everyone inthe organization was affected (ASSURE THAT INDIVIDUAL AND
GROUP GOALS ARE UNIFIED). First, the excellent performersstill had a lot of room to grow. And they wanted to do it. They
37
were more receptive to and willing to learn from the trainingthan anyone. The amount of progress they made surprisedeveryone. And as they moved forward, it created a vacuum orsuction that tended to pull everyone forward.
25-30% 60-70% 5-10%
poor , average excellent
Figure 8: The Whole Organization Moves Forward
But before the training actually began, managers from unitsin three pilot areas were first given an overview of the advancedtraining program. They almost fought to be included in theprogram. Based on performance standards, three units in eachpilot area were selected for the first round of advanced trainingseminars. These managers announced the program to theiremployees, explaining the criteria which would be used to selectthe initial participants.
3. Observing employees' performance. During the next severalweeks the managers monitored their employees' performance.Service began to improve even before any training took place.With the announcement of the advanced training and theexplanation of the criteria for selection of participants, almosteveryone began to do better. Unit managers reported improve-ments by almost all employees — even the poor performers —prior-to the final selection of participants for the training.
4. Selecting the "best". Using the previously announced criteria,the managers then selected the top performing waitresses tobegin the advanced training. There was some disappointmentfrom those who didn't make it, but the managers 'explainedwhat had kept each from qualifying, showed them where theyneeded to improve more, and congratulated and encouragedthem to qualify for the next round of advanced training sessions.Thus, most of them continued to improve even without the formaltraining.
DURING TRAINING ACTIVITIES:Following the form of the VSR Balance model, the top waitresses in
each pilot area met together with top waitresses from several other units
38
and their managers for a series of three seminar/workshops; one on ex-panding visions, one on building new skills, and one on role play simula-tions to reinforce and share the vision and skills. The first two were heldon contiguous days focusing on the following content:
1. Advanced Training Part I:a. Provide an overview of the program so that the employees
see what they are doing in perspective of everything elsethat is happening in the business (BUILD VISION).
b. Expand their vision/confidence/understanding of what theycan do in their roles, and have them think about goals forthemselves that would make them reach and strain (PEOPLEWANT TO GROW AND DEVELOP).
c. Get feedback from these top employees on possible thingsto do to improve things, and begin to turn the advancedtraining to them (PEOPLE WANT TO BE CONTRIBUTINGMEMBERS OF WINNING TEAMS GOING PLACES).
2. Advanced Training Part II: Skillsa. Get feedback on the employees understanding of the program.
Summarize the main "principles and guidelines". Continueto build their vision/perspective/hope (BUILD VISION).
b. Lay foundation assumptions about people and present anddiscuss ideas that would help them give better customer service(BUILD SKILLS).
c. Have employees set goals for improving their service forthe period between this seminar and the next one on sharingand reinforcement (PROGRESS AND GROWTH MUST BEREINFORCED TO CONTINUE).
Managers noted even more dramatic improvements when the initialparticipants returned to their units after the first two days training. Theseimprovements were not limited to the participants, but were observedwidely among the personnel. Those who had attended the advanced train-ing began sharing their new ideas with everyone in the unit, teamworkincreased, and everyone began to grow together (ASSURE THAT IN-DIVIDUAL AND GROUP GOALS ARE UNIFIED).
AFTER TRAINING ACTIVITIES:The third seminar (reinforcement) was taught one to two weeks later
to allow time for the waitresses to practice and apply what they had learnedon the job. Knowing that they would soon be back with their peers from
39
other units to demonstrate how they had been implementing the advanc-ed training, and knowing that they would be watched by their fellowworkers back at the unit, they immediately began using what they hadlearned (PROGRESS AND GROWTH MUST BE REINFORCED TOCONTINUE)
1. Advanced Training Part III: Reinforcementa. Review, practice, share, and reinforce the concepts and
techniques learned in the visions and skills sessions throughparticipant role plays.
b. Follow up on and share progress made in the implementa-tion of the advanced training program by district, unit andindividual employee.
c. Share ideas, answer questions, solve problems and challengesconfronting them in the continued successful implementationof the program.
2. Letting them help train others. After the first group ofemployees had participated in the advanced training sessions andhad demonstrated the effectiveness of the training on the job,they assisted .in the training of subsequent waves of employeeswho had then qualified for the same training. Some of the bestof these employees also assisted in implementing the advancedtraining in other units, districts and regions of the company(GIVE RECOGNITION/APPRECIATION FOR GOOD PERFOR-MANCE).
The DYNAMIC TRAINING continued to build upwards. Thesuccess of each phase helped to ensure the success of thenext phase.Upward progress was not limited to the core training, butoccurred before and after the training as well.
Training IIIRole plays
Let's train
AnnouncingObserving
SelectingTraining I
Training II
Before trainingpreparation
Core training After trainingreinforcement
The focus is on the dynamic process (before, during and after training)
Figure 9: Graph of DYNAMIC TRAINING
40
There are problems in implementing DYNAMIC TRAINING: Managersmay not be objective in selecting the "best" employees; poor performersmay feel jealous; managers may not recognize and reward the improvedperformance. But there are ways of preventing or solving most of theseproblems. The key is understanding the dynamics at work and then get-ting them to work for you. That's the essence of DYNAMIC TRAINING.
There was one more result in this particular DYNAMIC TRAININGcase: The Daniel's company mission statement was changed to reflect theimportance of customer service. Previously the mission statement hadreferred only to profits, i.e., return on assets. It was changed to somethingthat each employee could contribute to directly (ASSURE THAT IN-DIVIDUAL AND GROUP GOALS ARE UNIFIED):
...attain the highest level of guest satisfaction and valuethrough quality food products, courteous and attentiveservice, a clean environment and a warm and friendlyatmosphere.
IMPROVING PRODUCTIVITY is our goal. We believe in untappedpotential, and that productivity — whether it be more sales, higher pro-fits, fewer defects, less turnover, or any other of hundreds of areas — canbe improved. We believe that the things which will improve productivitymost are usually internal factors rather than external ones. Thus, our cen-tral focus is on the.....
"INNER" factors. We believe-that'building and strengthening the in-tangible "inner" items is the best and quickest way — often the only way— to improve things externally. "Inner" factors may consist of systems,values, processes, products, or people. We believe that people are at thecore of the "inner" factors. Thus, building and strengthening the "inner"items almost always involves.....
BUILDING PEOPLE. Desirable change includes changing people.And the only permanent changes in people are those that happen insidethem, "inner" changes. We believe that building and strengthening the"inner" person is the best and quickest way to effect external changes.But people are not easy to change. They are complex and sensitive,operating as much on feelings as on facts. Thus, to build and strengthenthe "inner" person, it is necessary to work with.....
THE WHOLE PERSON. This can only be done by working with thebasic factors that empower people, that release their creativity and makethem more productive. In simple terms, there are only two such factors.The first is the inner desire or "want to," called...,.
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VISION. Vision includes such things as motivation, self-esteem, con-fidence, and even faith. We believe that vision is the driving force behindalmost all sustained action. But vision alone is not sufficient. Even whenpeople want to do something, they won't do it unless they know howto. A second basic factor, then, is the "how to" or ability. Grouped togetherwith knowledge we call this factor.....
SKILLS. Whether or not people acquire skills in the first placedepends largely upon their vision or "want to." We believe that whenthey want to — and when they are taught effectively — most people canand will learn to do things better. Thus, we believe that vision and skillsmust work together for lasting "inner" growth. We believe that for vi-sion and skills to continue this upward growth.....
REINFORCEMENT is necessary. But to be effective, reinforcementmust be directed towards both vision and skills. Reinforcement is like thescaffolding that allows for continuous upward growth. To ensure con-tinuous and stable upward growth, vision, skills, and reinforcement mustbe kept in relative.....
BALANCE. Thus, by continuously planting, nurturing, and reinforc-ing vision and skills, the whole person is built in a balanced "inner"growth, and our goal of IMPROVING PRODUCTIVITY is achieved.
42
BIODATA
1973 13. EC (Hon) Universiti Malaya1977 Dip. Ed. Univcrsiti Malaya1988 M.Ed (Adulc & Continuing Education) Universityof Warwick, U.K.
Prior to 1981 Mr. Maliamauv was involved in theformal education sector and subsequently in mana-ging a project under the United Nations refugee pro-gramme in Malaysia Since 1981, he has been with theNational Productivity Centre, Malaysia where he hashad extensive experience in the design and implemen-
tation of training programmes for the private sector. Mr. Maliamauv has also been activitelyinvolved in QCC training and consultancy work with private sector organisations.
Abstract
This article focusses on the importance of clearly analysing andidentifying needs before a training programme is carried out. It discussesvarious ways to ensure that a training programme addresses the correctneeds. The article concludes by emphasising that a training programmecan be successful only if the trainees themselves accept the need for training.
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ANALYSIS AND DETERMINATIONOF NEEDS - A VITAL
PREREQUISITE FOR SUCCESSFULTRAINING
ByJoseph Paul Maliamauv
Note: 1. In this article, the term 'andragogy' is used to refer to the principles andpractice of teaching adults.
2. In order to avoid the cumbersome 'he/she' 'his/her' formulae, the feminineform is used to denote both genders.
INTRODUCTION
Training has been recognised as an important means of improvingproductivity in organisations. Training is important for enhancingemployee skills, introducing new methods and techniques and ineliminating inefficient ways of doing things. Attempts to increaceproductivity in organisations cannot be limited to improvements intechnology. As Marsidi (1988b p. 43) states, "..ultimately how effectivelyand efficiently the resources (inputs) are utilised is dependent on the humanelement......" The recognition of the importance of the human factor isreflected in the fact that expenditure on human resources training is an on-going feature of many organisations, involving large sums of money. Forexample, the Central Bank of Malaysia (Bank Negara Malaysia)recommends that a minimum of 1.5% of total gross salaries be spent ontraining (c.f. Marsidi, 1988, p.19).
In view of the large amount of resources that is spent on training, it isimportant that managers have a good understanding of the variousfactors that make for effective training.
THE TRAINING CYCLE
A review of the literature on training and development over the lasttwenty years shows a great deal of unanimity about how a training anddevelopment model is conceived of. Typically, it comprises the followingstages:
i. identify training needs
ii. define training objectives
44
iii. design a training programme to achieve these objectives
iv. implement the training programme
v. evaluate the training programme(for example, see Smith 1977, p. 95)
This concept of the training model is also reflected by Hall when herefers to the "normal methodology of a successful training programme ascommonly quoted by most training specialists" as:
i. Identification of training needs
ii. Formulation of training policy
iii. Implementation of this policy
iv. Assessment of this policy(Hall 1984, p. 172)
However, in this paper I will examine in some detail only the firststage of the training cycle as mentioned above.
The starting point of most training programmes is the analysis oftraining needs. It is from the training needs that course objectives are set.There are various ways in which training needs are analysed and identified.
PREDETERMINED TRAINING NEEDS
Many organisations have a predetermined plan for training theirsupervisors and managers, based on how the management of theseorganisations want them to be managed. For example, Peugeot-Talbot, alarge automobile manufacturing company in the U.K. has a six-weekgroup training programme for all new supervisors. This trainingprogramme includes courses such as personnel and industrial relations,quality control, man-management and finance. The training programme isbased on what the various departmental managers have found/ram experience to benecessary for supervisors to be competent in, in order to carry out their jobs.
In good training practice, it is very common to find that training isrelated to how a job is to be done and to the objectives of the company. Forexample, Gagne in describing a successful training system, stresses theimportance of'relating training to on-the-job performance' and to 'carefulspecification of objectives' (Gagne, 1972, p. 23). In situations like these, it isoften the managers who decide what skills their subordinates require for a
45
certain standard of job performance or to achieve certain objectives. Forexample, if the company is planning to introduce a new work system, it isthe managers and other specialists who have to decide what are the areas inwhich training would be needed.
This practice (of predetermining training needs and requiring thenewly recruited supervisors and managers to attend the training course) isinconsistent with the andragogical principle that learners should determinetheir own training needs. It is quite obvious however, that no businessorganisation can take this principle too seriously. As one training managercommented, managers are recruited to do a job according to how thecompany wants them to do it. It is the responsibility of the company toprovide the necessary training so that they can do the job. No company canafford to allow its managers and supervisors to 'experiment' with variousways of doing their job, right from the first day of employment, until they'discover' what their training needs are.
It is not always possible or practical for trainers to be regarded asautonomous learners — who are 'able to identify learning needs, when facedwith problems to be solved, as well as skills they don't have andinformation they are lacking' (Moore, 1983, p. 159). Although writers likeMoore seem to suggest that adult learners should be given such a degree ofautonomy, the need for planning and scheduling of courses in the world ofbusiness and industry makes it unworkable in practice. It is useful andindeed necessary for those responsible for training to take a more proactivestance in determining needs and scheduling training.
Most good companies attempt to provide their new, young managerswith a basic body of knowledge and skills soon after recruitment. In termsof effectiveness of such training, the common comment from trainingpractitioners is that new managers are usually very highly motivated toparticipate and complete the initial training, provided the training involvesmany periods of actually doing a job. One company had initiallyexperimented with a twelve week, off-the-job, initial training programmeand discovered that motivation level fell very rapidly after about twoweeks. This phenomenon can be explained in terms of the andragogicalprinciple that adult learners seek to immediately put into practice whatthey have learnt; their time orientation in learning is one of immediacy ofapplication. This is one of the reasons why companies usually prefer a seriesof modular, short training programmes to one, long protracted coursewhich attempts to cover 'everything the manager would need to know'.
TRAINING ROLE OF LINE MANAGERS
Line managers play an important role in determining the trainingneeds of their subordinates. One way of ensuring that they do take this
46
responsibility seriously is to give them a large measure of control over thetype of courses that are put on offer by the training department. Accordingto the report of the Institute of Personnel Managers (IPM), the'Line manager's responsibility for training is best fostered via a needs iden-tification system which is under their control - or which they belive canbe controlled by them as and when needed' (IPM, 1986 p. 24). The linemanagers are the ones who are responsible for the performance of theirrespective divisions or departments and usually they would have a goodidea of the training needs of those under their charge. In order to ensure agreater accuracy in the process of training needs analysis, it is good practicefor the line managers to discuss with their subordinates, aspects of theirwork which could be improved through training. However, the problemis that line managers do not always see it as their responsiblity to identify'training needs. It is therefore one of the responsibilities of the trainingdepartment to foster an organisational culture that encourages linemanagers to play an active role in planning the training of theirsubordinates. Knowles refers to this role of the human resources develop-ment specialist when he says that one of her major responsibilities 'is toserve as consultants to line managers (and to create) a closer and morefunctional relationship' (Knowles, 1985, p. 25)
At least one company in the U.K has what it calls 'training agents' inall its divisions. The 'training agents' role is really a part-time role played bysome regular employees in the company (e.g. a training officer, a personnelofficer or an industrial relations officer) who are trained (by the trainingdepartment) to assist line managers in identifying the training needs in their(line manager's) areas of work, for example, an industrial relations officerwho has been trained in training needs analysis, would be seconded as atraining agent for a few days to work with the manager of the purchasingdepartment to assist her in preparing the training plan for employees in thepurchasing department. In this way, indirect pressure is put on the linemanagers to become more involved in analysing the training needs of theirdepartment.
TRAINEE INVOLVEMENT IN NEEDS IDENTIFICATION
Many organisations have found that it is beneficial and important forthe employee to be involved in her own training needs analysis, as far as thisis possible. A vivid account of how painstakingly this was done is given byThorne and Marshall in their account of a managerial skills developmentprogramme at General Electric (USA). They began with the assumptionthat managers are self-directing adults who can best identify their owntraining needs. Then, through a process of consultations with one anotherand with their managers they drew up a list of development needs forthemselves (cf. Thorne and Marshall, 1984, p. 34 - 38).
47
The practice of involving the trainees in identifying and acceptingtheir training needs is very much in line with the principles of andragogy.In my own experience, I have come across many training courses where theparticipants do not share any sense of ownership of the course. They are at acourse merely because they have been sent there. I sometimes suspect that atleast part of the reason why many training centres pay so much attention tothe peripheral aspects of training such as providing superbaccommodation, sumptuous meals and facilities such as a well-stockedlounge bar, swimming pool, etc. is to ensure that the participants at least'enjoy' their break from work, even if the course proper is the leastinteresting part of the whole experience. In my view tl^ese peripheralsbecome extra significant when the trainees are not committed to the actualcontents of the course. It certainly cannot be denied that a conduciveatmosphere for learning, discussions and social interaction away frominterruptions arising from one's job is usually very beneficial. However,more importance should be placed on ensuring that the needs addressedduring a course are really what the participants want. It is my experiencethat when the trainees are convinced that the course is important for them,and that it is serving their needs, the physical facilities become much lessimportant.
In a sense, one can draw a parallel between this and Herzberg's (1966)idea of hygiene factors and motivators, in explaining employee motivation.According to this theory, when the employee finds her work intrinsicallyinteresting and challenging, she is less sensitive to the hygiene factors i.e.factors that are extrinsic to the job eg. physical conditions of work, wagesand company regulations. On the other hand, even superb hygiene factorsare unlikely to really motivate employees if there is no intrinsic satisfactionto be derived from the job; at the most, they prevent dissatisfaction. In thesame way, when trainees find their training programmes intrinsicallysatisfying, they are likely to place much less importance on the 'hygiene'factors in training.
PERFORMANCE APPRAISAL AND NEEDS ANALYSIS
The analysis of training needs is an on-going process in organisations wherethe training function is taken seriously. One of the ways in which this isdone is through the process of performance appraisal. Many companieshave a system of annual performance review of each employee, duringwhich the training needs of individual employees can be discussed andidentified. The British Institute of Management reports that this is the mostfrequently used method of establishing training needs among thecompanies surveyed (69% out of the 194 companies) (cf. Peel, 1984, p. 27).This method of identifying training needs, if properly done, is truly anandragogical method in that the individual employee and her superiordiscuss past and future performance and mutually agree upon certain
48
training requirements that need to be addressed. Based on the informationgenerated from the performance appraisals of all the employees in theorganisation, the training department draws up a calendar of courses for thecoming period.
TRAINING IMPLICATIONS OF MANAGEMENT DECISIONS
Another way of identifying training needs is by closely analysing thetraining implications of all managerial decisions. In order for this tohappen, it is important for the training manager to be privy to all impor-tant decisions affecting the organisation. For example, a managementdecision to implement quality circles in the company has importanttraining implications. An analysis of training needs may indicate that,among other things, there is need to. provide for an appreciation andunderstanding of quality circles throughout the organisation as well as fortraining in participative management methods for all supervisors andmanagers. Thus, based on the management decision to implement qualitycircles the training manager decides on a number of training activitieswhich are essential if the management decision is to be implementedeffectively.
It has been stressed that it is important for the trainees to accept forthemselves the validity of any training need that is ultimately decidedupon. Sometimes, this is done by involving the trainees in the process oftraining needs analysis. At other times however, the superiors decide on thetraining needs without much reference to the trainees. In such cases it isimportant that the training needs are 'sold' to the trainees through a processof consultation and discussion before they are sent on a course. In any case,the importance of training needs analysis cannot be over-emphasised,because the effectiveness and usefulness of all the other stages in the trainingcycle depend on this first step.
49
REFERENCES
Gagne, C (1972). Managing the Training Function, George Alien &Unwin Ltd. London, 1972.
Hall, Ken (1984). "The Practice of Management Education" in TheFuture of Management Education. Kakabadse, A and Mukhi, S(ed.), Grower Publishing Company Ltd. England, 1984.
Herzberg, F. (1966). Work and the Nature of Man, World Publishing,New York (1966).
IPM (The Institute of Personnel Management), (1986). A Partnership inLearning: How to Implement Effective Employer CollegePartnerships for Adult Learning. A report prepared for PICKUP,Department of Education and Science, Britain, 1986.
Knowles, Malcolm, (1985). "Shifting to an HRD Systems Approach," inTraining and Development Journal, May 1985.
Marsidi, Hj. Arshad, (1988) "Productivity Through People andInnovation" in Jurnal Produktiviti (Productivity Journal ofNational Productivity Centre, Malaysia), June 1988.
Marsidi, Hj. Arshad (1986b) "A Review of PIP in Malaysia," in JurnalProduktiviti (op. cit) December 1988.
Moore, Michael, (1983). "The Individual Learner" in Adult Learningand Education, Tight, M (ed.), Croom Helm Ltd. Kent 1983.
Peel, Malcolm (1984). Management Development And Training, aSurvey of current policy and practice, Professional Publishing Ltd.and British Institute of Management.
Smith, Mike (1977) "Adult Learning and Industrial Training" in AdultLearning And Education, Tight, M (ed) (op. cit).
Thorne, EJ and Marshal J.L. (1976) "Managerial Skills Development atGeneral Electric" in Andragogy in Action: Applying ModernPrinciples of Adult Learning, Knowles, M and Associates (ed),Jossey-Bass, San Francisco, 1984.
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BIODATA
Dllahirkan di Kampung Panjang Banggu Kelantanpada tahun 1955. Pada tahun 1962 - 1967 mendapatpendidikan awal di Sckolah Kcbang-saan Mentuan,Kelantan. Kemudian melanjut-kan pelajaran ke kelasperalihan Inggeris di Se-kolah Menengah Kota Bharu.Pada tahun 1969 - 1971 bclajar di Sckolah MenengahRendah Kuantan sehingga mendapat Sijil LCE. Ta-hun 1972 - 1973 belajar di Sekolah Menengah SultanAbu Bakar sehingga mendapat 'Malaysian Certificateof Education'.
Encik Ab. Aziz kcmudian melanjutkan pelajaran ke Univcrsiti Pertanian Malaysiapada tahun 1974 sehingga tahun 1977. Dari tahun 1977 hingga tahun 1982 Encik Ab. Azizbertugas di Institute Pcnyclidikan dan Kemajuan Pertanian Malaysia (MARDI). Semasa diMARDI beliau bertugas sebagai Penolong Pegawai Penyelidik di Bahagian PenyelidikanKelapa Sawit, dan kemudian ditugaskan sebagai Pengurus Ladang di MARDI Kota Bharu.
Pada tahun 1983 melanjutkan pelajaran di Amerika Syarikat dan mendapat IjazahSarjana Muda (Pengurusan Perniagaantani) dari Iowa State University dan kemudianmendapat Ijazah Sarjana Pengurusan dari University of Arkansas pada tahun 1986. Padatahun yang sama Encik Ab. Aziz melapor diri sebagai Pensyarah di Universiti UtaraMalaysia. Bidang pengkhususan beliau ialah Pengurusan dan Pemasaran. Sebagai Pensyarahdi Univcrsiti Utara Malaysia beliau telah menulis beberapa artikel penyclidikan dan tclahbebcrapa kali mcmbcntangkan kertas penyelidikan dalam seminar dan persidangan diperingkat nasional dan antarabangsa.
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IMPACT OF RAPIDTECHNOLOGICAL CHANGE
ON MANAGEMENTBy
Abdul Aziz Abd. Latif
School of Management and AccountingUniversiti Utara Malaysia
INTRODUCTION
Organizations across the country are facing major changes due torapidly changing technology. Business are experimenting with paperlessoffices in which all information is stored electronically and is madeavailable to selected personnel. Secretaries are becoming assistantadministrators and typing is done by the word processing pool. Newspaperreporters are taking their word processing terminals home, patching theirmachines into that of their editor by telephone. Product design in industriesranging from technical to textile is being done in three dimensions utilizingcomputer technology. This rapid pace of change casts institutions into aclimate of uncertainty, complexity, and emotion, as well as, greatopportunity.
Technological change is the pace of inventions, innovations, andincreasing diffusion of knowledge in man's relationship to his physical,economic, and social environments (Stephens, 1977:185). Stephens(1977:184) states that technology spurred on by science appears to bedoubling every 15 years. This rapid change is revolutionizing the workplace.
In response to this change, work environments may have to berestructured allowing for human factors and ergonomic design principles.Information which was previously scattered will now be electronicallyconsolidated, thereby reducing the clutter of the work station (Galitz, 1984:62 - 64).
Electronic Information Processing
Electronic information consolidation will eliminate the need for largeareas to store information on paper and the materials needed for paperhandling. At the same time, greater visual and auditory privacy will beneeded. Computerization has generated mountains of information; dealingwith this abundance presents a challenge to management (Keen, 1981:54 -
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67). More people are now working at home; however, offices andconference rooms will still exist as electronic meetings are poor substitutesfor some varieties of communications requiring interpersonal interaction(Glitz, 1984:62-64).
The introduction of increasingly sophisticated informationtechnology has resulted in the faster flow of information through theinformation channel, bringing sender and receiver closer together, thuscollapsing the information float — the amount of time information spendsin the communication channel (Naibett, 1982:11 - 16).
IMPACT OF TECHNOLOGY ON MANAGERS
For many managers dealing with the rapidly changing technologicalenvironment will create problems and challengers. Managers will bechallenged to become translators and multipliers of advancing technologyfor the welfare of mankind (Stephens, 1977:192). In order for managers toadapt to this changing technological environment their styles and strategiesmust also change.
Managerial Styles and Strategies
Teamwork and nonformal work organizations will become the normfor innovative high tech organizations. To manage this organizationalform management style must move away from direct control tounstructured relationships based upon information exchange andcoordination (Stephens, 1977:193).
Professionals will form the core of work teams in many innovativehigh tech companies. Management style will evolve to support theprofessional search for problem solutions. Table I, developed by Stephens(1977:190), summarizes the way in which modern engineering andscientific laboratories group centered activities will require a differentmanagerial style that releases the potential energy of the expertised workforce.
Mintzberg (1981:111) calls the structure most suited to the newinnovating work place adhocracy. He calls this structure of interactingproject teams the structure for our age. Industries such as aerospace,petrochemical, think-tank consulting, and film making are examples oforganizations most suited to an adhocracy structure. Informal interactionand communication by experts in project teams are the norm and power isunevenly distributed and based on expertise. Managers abound inadhocracy - functional managers, project managers, integrating managers.They often have professional expertise, outside management, and their
53
primary function is a linkage and communication function (Mintzberg,1981:112).
TABLE I
CHANGING MANAGEMENT STYLES
Rind of Work Degree of Technology Managerial Style
Factory Line Mechanization & Total Work ControlAssembly Automaticity & Machine Paced
Work Groups Great Variety Freedom and CreativeClimate
Teamwork and Great Variety Individual CenteredNonformal
Professional Scientific with Nondirective && Artisan Multifields Freedom
As Mintzberg (1977:107) demonstrates in Table II the central focus ofan adhocracy is to encourage experts to work together creating new pro-ducts and services rather than working apart to perfect established skills.However, Mintzberg (1981:113) points out that adhocracy is plagued byinefficiency and ambiguity given its emphasis on costly liaison andcommunication. Yet adhocracy is justified in that it is extraordinarily,effective at innovation.
Another theory proposed for managing change and innovation isWeick's self-designing system theory.
Weick's (1977:33 - 46) six characteristics of self-design are:
1. Self-design involves arranging and patterning, linking anddecoupling sets of elements to change the consequences from
*- those currently occurring.
2. Self-designing systems must contain provisions for and support ofthe continuous evaluation of ongoing designs.
3. Issues of self-design typically focus, not on the designs themselves,but on the processes responsible for the designs.
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4. A self-designing system wrestles chronically with the stubbornreality that specific adaptations often restrict subsequentadaptability.
5. Design must often be fabricated in the absence of specificperformance criteria.
6. Self-design is often hard to separate from implementation.
TABLE II
DIMENSIONS OF ADHOCRACY
Key Means of Coordination
Key Part of Organization
Specialization of Jobs
Training & Indoctrination
Formalization of Behaviour
Grouping
Unit
Planning & Control Systems
Liaison Devices
Age and Size
Technical System
Environment
Power
Mutual Adjustment
Support Staff (with operatingcore in operating adhocracy)
Much Horizontal Specialization
Much Training
Little Formalization
Functional & Market
Size Narrow Throughout
Limited Action Planning
Many Devices Throughout
Typically Young
Very Complex, Often AutomatedNot Regulated or Complex
Complex and Dynamic;Sometimes Disparate
Expert Control;Very Fashionable
Weick's theory is an example of the challenging ideas that impact onchanging strategies and styles of management. A new type of manager willevolve given a technologically advanced workplace. A key characteristicneeded by the new.manager is the ability to tolerate change. Managers
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should recognize that all things change with time and that flexibility is akey factor leading to successful utilization of technological resources. Astechnology increases and the pace of change accelerates the new managershould look upon this rapid change as a creative, thought-provoking,dynamic way of life (Morgan, 1972:17).
Managerial Psychology
Managers should also be aware that there's positive and negativephysiological, psychological, and role adaptation effects given thechanging environment. On the positive side, human ability has beengreatly expanded by control over computerized operations and the time inwhich many work tasks can be completed has been dramatically reduced.On the negative side, physical, psychological, and role adaptationproblems have arisen.
Managers need to be aware that there are physical problems associatedwith operating high tech equipment. These problems include back andneck pain, headaches and eye strain (Illinois Banker, 1984:22 - 23). Inaddition, whether or not daily exposure to low level radiation, emitted bycathode ray tubes, is harmful is still an unsettled question, but it has causedconsiderable controversy (McAulirTe, 1985:102). Managers need to designwork so that these negative physical impacts are minimized.
Compounding the human physical problems are the psychologicaladaptation problems. The word technostress is used today to describe theinability to cope with the new computer technologies in a healthy manner.Technostress manifests itself in two distinct but related ways - in thestruggle to accept computer technology, and in the more specialized formof over-identification with computer technology (Brod, 1984:16).
Brod (1985:125 - 127) describes the stress created by unfulfilledexpectations concerning the introduction to computer technology. Forexample, managers are told by computer vendors that the machine andsoftware are user-friendly. This friendly experience may become a nerve-wracking struggle. An unsucessful struggle engenders feelings ofincompetence and as a consequence managers blame themselves for theirlack of adaptability. One strategy for managers to negate the potentiallystressful introduction to the new technology is to recognize that initialproblems should be expected.
Another extreme is over-identification with the computer.Technocentered people tend to be highly motivated and eager to adapt tonew technology. However, they often begin to adopt a mindset thatmirrors the computer itself. Evidence of this condition is demonstrated by ahigh degree of factual thinking, poor access to feelings, an insistence on
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efficiency and speed, a lack of empathy for others, and a low tolerance forthe ambiguities of human behavior and communication (Brod, 1984:29-32).
Brod (1985:127) indicates that a major source of this technologicalstress associated with computer use is due to the fact that this is the firstcomputer generation. There is no previous generation's advice to learnfrom and follow. This generation is its own guinea pig.
Schwartz and Neikirk (1983:191), in studying the de-skilling of thework force via electronic technology, found that some companiesencouraged managers to develop strategies to customize work proceduresin order to combine positive aspects of older procedures with newertechnologies.
If appropriate strategies are not developed to combine the old with thenew, obsolescence will result. This is a major managerial problem given therapid technological environment. According to Shearer and Steger(1975:265 - 266) people are obsolescent to the degree that, relative to othermembers of their profession, they are not familiar with, or are otherwiseunfitted to apply the knowledge, methods, and techniques that generallyare considered to be important by other members of their profession.
Two implications are drawn from this definition. The first concludesthat managers may become obsolete even if their job is not changed andtheir performance does not deteriorate. The second states that there is nodistinction between obsolescence and incompetence (Shearer & Steger,1975:265 - 266).
A manager's anxiety concerning self-obsolescence is compounded byobserving fellow manager's termination in a technologically generatedretrenchment. Managers in high tech organizations who are survivors ofcontinuous corporate primings often describe themselves as demoralizedby such an experience (Levinson, 1981:25) (Mahler, 1965:16).
A number of researchers have examined whether or not factors such asage, education, and experience were correlated with obsolescence. Aresearch study by Shearer and Steger (1975:273) supports the conclusionthat obsolescence is correlated with the synthesis of education andexperience. Nevertheless, the conclusion applies differentially tononmanagerial professionals and managers. Nonmanagerial professionalobsolescence is closely linked to education while managerial obsolescence isclosely linked to experience. In addition correlations of educational leveland year graduated with obsolescence are highly significant fornonmanagerial professionals but not for managers.
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Dalton and Thompson (1976:107) found a negative correlation inanother research project between age and performance after age 35. Insimiliar research study conducted in 1976 Dalton and Thompson found thatthe challenge of the assignment seemed to be more closely related to per-formance than were educational programmes. A conclusion of the studiessuggested that obsolescence is not inevitable and that age is not the majordeterminant of performance differences.
An additional finding of significance observed by Shearer and Steger(1975:273) is that participation in the decision making process was positivelycorrelated with avoiding obsolescence. Dalton and Thompson (1976:114)report that a critical incentive and reward for experienced engineers orscientists is confidence that they are influential in making importantdecisions. Therefore, it appears that participatory decision making may bean important factor in reducing obsolescence by personnel.
Another contributing factor to the problem or obsolescence is theobsolete content of management graduate training programme.According to Dubin (1972:490 - 497), Perloff proposed a method ofreducing obsolescence in graduate training programme by improvingcounseling programmes procedures, sharpening selection and classificationsystems in industry and government, and relocating professional graduatetraining programmes.
While the relationship between education and organizationaleffectiveness is very complex, Lawler (1985:3-25) makes a prediction thateducation will increase effectiveness if it fits the management style and thetechnology which is used.
Confirming the findings of the Perloff study, Lawler (1985:20 - 21)says that organizations which use complex technologies will requireorganizational designs that attract and retain effectively educated people.Situations in which the environment is turbulent will require a highlyeducated managerial force. This type of environment will requiredecentralized decision making with knowledgeable decision makers spreadthroughout the organization.
External environment and technology factors have an impact on therelationship between management and organizational effectiveness. Anargument which rests on the assumption that in order to be more effective,organizations will have to move toward participative management(Lawler, 1985:20-21).
Managerial Roles
Changing technology is forcing an adaptation of traditional roles. Thenew younger, better educated people now emerging in the work force,
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may be particularly suited to the newly developing structure of rolesdictated by the changing work environment (Kerr & Rosow, 1979:10).
With regard to technological impact on roles, Schwartz and Neikirk(1983:187) state that the traditional supervisor/employee roles are beingaltered as technology changes work tasks in factories, stores, and offices.For example, in an office situation managers may now have easy access tocomputerized word processing and therefore have little need for secretarialhelp. The computer literate secretary with access to managerial softwareprogrammes can assume limited management functions. Without the po-wer of superior knowledge or skills, the lines between support staff andprofessional managerial staff will tend to blur given the computerrevolution. For some workers and supervisors who are not comfortablewith role change, not knowing where they stand with fuzzy lines ofdemarcation between responsiblities, may reduce both effectiveness andefficiency (Schwartz & Neikirk, 1983:190 - 192).
Another example of how roles and technology are linked is theinterrelationship of the boundary role and the product innovation process.Information accuracy and flow is particularly important in productinnovation and the boundary role is crucial in that communication process.
Rather than look upon the whole organization as the communicationlink with its external environment, special boundry roles perform thecommunication function. These communication roles are carried out byindividual members of the organization. The role links the internalinformation network with external information sources. In addition, thereare intraorganizational boundary roles which link department and productinnovation units. Organizations rely upon the expertise and discretion ofboundary role personnel to transmit vital information without distortion(Aldrich & Herken, 1977:227).
A study of special boundary roles by Tushman (1977:602) found thatcommunication with external areas is not distributed equally among theinnovation units but takes place through a limited set of individuals able totranslate between several coding schemes. Tushman (1977:602) specificallysays:
These individuals, or special boundary roles, are well-connected toexternal information areas and are frequently consulted within theinnovation unit. These boundary roles exist to mediatecommunication across several organizational interfaces (Tushman,1977:602).
From his studies Tushman (1977:602) draws the following pragmaticimplications for managers concerning boundary roles:
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1. Those interested in managing innovations should explicitlyrecognize the importance of key individuals in the system'scommunication network.
2. Managers (should) actively encourage the development of theboundary roles ... (they should) facilitate boundary-role status.
3. Managers (need to be) sensitive to the impact of taskcharacteristics on boundary roles. The number of boundary rolesper work area should be tailored to meet the units informationprocessing needs.
ORGANIZATIONAL RESPONSES AND STRATEGIES
Given the psychological and role demands on the manager bothorganizations and individuals must develop response strategies to copewith rapid technological change. Technological obsolescence amongexecutives is an annoyance- for the organization and a disaster for theindividual (Morano, 1973:106 - 112).
Many organizations, today, have attempted to alleviate obsolescenceby instituting on-the-job-training, technical seminars, in-house coursesand tuition aid for college and university courses. Obsolescence varies withindividuals which suggests that the solution to individual problemsdepends upon their particular pattern of obsolescence (Morano, 1973:106-112).
From the standpoint of the organization, managers must keep up withcurrent developments and techniques, not only in their own field, but alsoin associated areas. This will give impetus to the acceptance of the conceptof life-long learning.
Dubin (1972:490) cited a study done by the National Committee onthe Utilization of Manpower in which it was recommended that highlytrained personnel undergo continuous self-renewal to maintain creativepotential. To implement this recommendation the committee consideredthe necessity to institute a system whereby individuals can re-enterprofessional schools at appropriate intervals to update knowledge and skill.Dubin (1972:487 - 488) suggested that a month of every year or threemonths every third year might be an acceptable pattern of re-education.Sink (1983:32) predicts that two out of every five working years will haveto be invested in education to be able to keep pace with technologicaladvances. Dubin (1972:488) concludes from an article by Barett, Boss, andMiller that the skil and knowledge required of future professionals wouldbe different from that sufficient today and that the great majority of today's
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professionals would require selective training if they were to survive in therapidly changing world of work
In addition to life-long learning organizations are developing pro-grammes for combating obsolescence and providing a means of personalgrowth. Morano, (1972:106 - 112) suggests strategies to assist in self-development. These strategies include meetings with guest speakers, specialtechnical sessions and the general opportunity to meet and exchange ideasand experiences with fellow practitioners. All of these offer opportunitiesfor professional growth. Organizational programs must serve bothimmediate job requirements and long-range professional career objectives(Miller, 1976:34 - 36) In order to detect knowledge and skill deficienciesDubin (1972:490) suggests the use of periodic objective testing andcontinuing education as a tool to combat these deficiencies. A projectivestudy of attitudes toward continuing education indicated that activeparticipation (masters's degree or taking seven courses as opposed to takingjust one course) was perceived by supervisors as making professionals lessobsolete, and more able to think clearly (Dubin, 1972:492).
In the same study, it was also indicated that the degree of technicalchallenge experienced early in careers was correlated positively withprofessional competence as well as job performance. Organizations shouldinitiate changes in job design using intrinsic motivational effects as a meansof stimulating good performance and professional development (Dubin,1972:492).
Another organizational strategy suggested by Dubin (1972:493) is thatorganizations establish updating panels. The use of panels is a technique fordetermining, in a systematic way, the educational needs of professional andnonprofessional people working in organizations. The panels shouldconsist of selected persons such as management professions, theorganization's own management development staff, psychologists,economists, and others Recommended areas of instruction should emergefrom discusssions for current and long-range organizational development.
Changing technology is not only a contributing factor ofobsolescence but it also may be a major source of executive burnout andstress. Levmson (1981:78) suggests that a change of pace, changes indemand, and a shift in situation will mitigate the occurrence of executiveburnout.
Time constraints are crucial in burnout prevention. Individualmanagers need to be aware that spending too many hours on criticalproblem solutions could lead to burnout. Yet organizations tend to rely ontheir best people, and these people are more vulnerable to becomingburned out (Levisnon, 1981:80).
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The alleviation of mental strain, fatigue and introspection is the key toreducing the effects of burnout. Retreats, seminars, and workshopstherefore should be oriented toward cognitive and physical rather than theemotional (Levinson, 1981:81).
CONCLUSION
One can view the managerial environment of rapid technologicalchange positively or negatively. Viewing change positively ensures that themanager will consider it an opportunity and a challenge. Carefulobservation and planning are prerequisites when taking advantage of theseopportunities.
When managers have learned the techniques and have developed themindset necessary to be able to make critical observations and develop thesubsequent plans needed, they will then be able to develop organizationalstructures and managerial styles which successfully adapt to the newenvironment.
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BIBLIOGRAPHY
Abbot, Lewis F. TECHNOLOGICAL DEVELOPMENTS ININDUSTRY. Manchester, England: Industrial Systems Research,(1981)
Aldrich, H. and Herken D. "Boundary Spanning Roles andOrganizational Structure." ACADEMY OF MANAGEMENTREVIEW. (April 1977), 217 - 230.
Braden, P.L. TECHNOLOGY ENTREPRENEURSHIP. Ann Arbor,Michigan: University of Michigan, (1977).
Bred,- Craig. "How to Deal with 'Technostress." OFFICEADMINISTRATION AND AUTOMATION, (August 1984), 29-32.
Brod, Craig. TECHNOSTRESS: THE HUMAN COST OF THECOMPUTER REVOLUTION. Reading, Massachusetts: WesleyPublishing Co., Inc., (1984).
Brod, Craig. "What is the Human Cost of Computerization?"ASSOCIATION OF MANAGEMENT, (January 1985), 125-127.
Cawood, David. "Managing Innovation: Military Strategy in Business."BUSINESS HORIZONS, (November/December 1984), 62 - 66..
"Coping with the Computer in the Open Plan." OFFICEADMINISTRATION AND AUTOMATION. (September 1984),80-92.
Dalton, Gene W. and Thompson, Paul H. "Are R & D OrganizationsObsolete? HARVARD BUSINESS REVIEW,(November/December 1976), 105 - 116.
Dubin, Samuel S. "Obsolescence or Lifelong Education." AMERICANPSYCHOLOGIST, (1972), 486 - 498.
Dubin, Samuel S. PROFESSIONAL OBSOLESCENCE. Lexington,Massachusetts: Lexington Books, D.C. Health, (1972).
"Evolving Information Handling Technology and Its Impact OnResource Managers." ARMED FORCES COMPTROLLER,(1983), 28 - 31,46.
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Galitz, Wilbert O. "What the Office of the 19905 Will Be Like." OFFICEADMINISTRATION AND AUTOMATION. (October 1984), 62-64.
Gottschalk, E.G. Jr. "Firms Hiring New Type of Manager to Study Issues,Emerging Troubles." WALL STREET JOURNAL, (June 10,1982),33.
"Is High Tech Reducing Your Productivity?" ILLINOIS BANKER(1984), 22 - 23.
Kahn, R.L., Wolfe, D.M,, Quinn, R.P. Snosk. J.D. and Rosenthal. R.A.ORGANIZATIONAL STRESS: STUDIES IN ROLE CON-FLICT AND AMBIGUITY. New York: John Wiley & Sons, (1964).
Keen, "Communications in the 21st Century: Telecommunication andBusiness Policy." ORGANIZATIONAL DYNAMICS, (1981), 54-67.
Kerr, Clark and Rostow, Jerome, WORK IN AMERICA: THEDECADE AHEAD. New York: Van Nostrand Reinhoid, (1979).
Landy, Frank J. and Trumbo, Dan A. PSYCHOLOGY OF WORKBEHAVIOR. Hanewook, Illinois: The Dorsey Press, (1980).
Lawler, III, Edward E. "Education. Management Style, andOrganizational Effectiveness." PERSONNEL PSYCHOLOGY,(Spring 1985), 3-25.
Levine, H.Z. "Robotics and Technology: How to Manage Technostress."PERSONNEL, (July/August 1984), 51 - 52.
Levinson, Harry. "When Executive Burn Out." HARVARDBUSINESS REVIEW, (May/June 1981), 78 - 81. '
Lippitt, Gordon, Lippitt, Ronald, and Lafferty, Clayton. "Cutting EdgeTrends in Organizational Development." TRAINING ANDDEVELOPMENT JOURNAL, (July 1984), 59-62.
"Manpower Obsolescence: A New Definition and Empirical Investigationof Personal Variables." ACADEMY OF MANAGEMENTJOURNAL, 18, No. 2 (1985), 263 - 275.
McAuliffe, Kalthleen. "The Mind Fields." OMNI, (February, 1985), 41 -104.
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Miller, James E. "Eliminate Your Obsolescence." JOURNAL OFSYSTEMS MANAGEMENT, (November 1976), 34 - 36.
Mmtzberg, Henry. "Organization Design: Fashion of Fit?" HARVARDBUSINESS REVIEW, (January/February 1981), 103- 116.
Morano, Richard. "Continuing Education 111 Industry." PERSONNELJOURNAL, (February 1973), 106- 112.
Naisbett, John. MEGATRENDS New York: Warner Books, (1982).
Paync,, Roy and Cooper, Gary L. CURRENT CONCEPTS INOCCUPATIONAL STRESS. Chichester, England: John Wiley &Sons, (1980).
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BIODATA
Beliau dihhirkan di Sungei Glugor, Pulau Pinang.Mctidapat didikan awal di Sekolah Rendah InggcrisGlugor (1967 1971) dan Sekolah Menengah Pcrem-puan St. George, Pulau Pinang (1972- 1078). Scterus-nya, mclanjutkan petajarannya pada peringkat ijazahpertama dalarn jurusan Pcrniagaantani di UnivcrsitiPcrtanian Malaysia, Sclangor (1979 - 1983). Sclepasitu, bcliau telah ditawarkan bcrkhidmat scbagai Pe-nolong Sctiausaha di Kcmcntcrian Kewangan, KuaiaLumpur. Pada bulan Ogos 1984, bcliau telah ber-
pindah kc Univcrsiti Utara Malaysia, Kedah uruuk bcrkhidmat scbagai tutor dalam bidangckonomi. Pada tahun bcrikutnya, Cik Aizzat telah bcrangkat kc Amcrika Syarikat nntukmelanjutkan pcngajiaimya pada peringkat sarjana dalam bidang Pcngurusan Pcrniagaan diWestern Michigan University. Sekembalinya bcliau dilantik scbagai pensyarah dalambidang pengurusan di Sekolah Pcngurusan dan Perakaunan, Univcrsiti Utara Malaysiaschingga sekarang.
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THE PRACTICAL MANAGER- AN INTEGRATED APPROACH
ByAzizzat Hj. Mohd. Nasurdin
School of Management and AccountingUniversiti Vtara Malaysia
1.0 INTRODUCTION
Throughout the world, the labor force has dramatically becomelarger and more diverse especially in the last ten years orso.Today,changing values and beliefs of the employees as a result ofthe increasing number of younger, more educated and more femalesworking in organizations has placed unique demands on themanager. Correspondingly, the role of the manager (regardless of thelevel of managerial position he/she holds and the type of organizationhe/she works with) has become more complex and challenging.
In order for the manager to fulfil his responsibilities, he/she mustbe able to practise and apply the art of planning, organizing, directingand control efficiently and effectively.Managers at all levels of theorganization's hierarchy need to possess three basic skills (namelytechnical, human and conceptual) before they can successfully playtheir functional roles.
Henry Mintzberg, a well-known management researcher hassubdivided the role of a manager into three major categories asfollows:-
Role Description
A. Interpersonal Communicates verbally and inwriting to people inside/outside thework unit by virtue of the formalauthority to "command" others.
i) Figurehead Symbolic representative of theorganization, performs routine legaland social duties.
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Role Description
ii) Leader
iii) Liaison
B. Informational
iv) Monitor
v) Disseminator
vi) Spokesperson
C. Decisional
vii) Entrepreneur
viii) DisturbanceHandler
ix) ResourceAllocater
x) Negotiator
Integrates, develops and maintains thework force. Responsible for motiva-ting subordinates towards greaterperformance.
Maintains a network of contacts (bothinternal and external) for organization.
Seeks, inteprets and analyzes datagathered before undertaking furtheractions.Seeks, receives information relating tointernal operation and externalenvironment to better understand theorganization.
Seeks information (both factual andsubjective) to relevant personnel.
Transmit organizational informationsuch as policies, rules, goals tooutsiders.
Utilizes relevant information usingone's analytical and diagnostic skills tomake better decisions and solveproblems.
Continuous searching of opportuni-ties/bottlenecks in the environment,initiates action to exploit and improvesituation.
Undertakes corrective action to resolveinterpersonal/interorganizational crisis,reduces wastages/loss of resources.
Responsible for allocating organiza-tion's human/monetary/other resour-ces according to priorities.
Represents the organization in nego-tations with individuals/groups/otherorganizations e.g. clients/labor unions.
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Therefore, this simple article would focus on the manager'sduties and responsibilities in the four major areas of planning,organizing, directing and control. In this respect, certain conduct isrecommended that a manager should pay attention to in order to beefficient and effective.
2.0 PLANNING
Every manager does planning for the organization though theextent varies according to his/her managerial position in theorganization. In simple term, planning can be defined as 'thedetermination of anything in advance of action."1 Thus, planning is amental effort whereby the individual tries to envision what he/shewould like to happen (i.e. desired goals) and then determine a schemeor course of action that will make that vision real (i.e. in order toaccomplish the predetermined goals).
Basically, effective planning sets the state for an integrated actionto take place, reduces the number and frequency of unforeseeablecontingencies, promotes the use of a more efficient method in data-gathering, decision-making and prolem-solving and lastly, providesthe basis for control — thereby, assuring the accomplishment of goals.
A good manager must be a good planner in that:-
i) he/she must determine, define and list down goals that need tobe achieved;
ii) he/she needs to enumerate the tasks necessary to accomplish thepredetermined goals;
iii) he/she must constantly monitor the environment (both internaland external), look out for clues and cues that can be potentially•useful/harmful to his/her stated plans. If possible, adjust/modifythe plans accordingly.
2.1 DECISION-MAKING
In the act of planning, managers must decide on a particularcourse of action. A decision is a choice between two or morealternatives.2 All too often, managers tend to make hasty or wrongdecisions due to certain personal limitations such as lack ofknowledge/intelligence, inadequate resources, limited authority,time and physical abilities.
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In general, there are two categories of decisions that a managerhas to make in the course of his/her duties:-
1. Programmed decisions which are repetitive and routine. Theseare the decisions that a manager ought to delegate to his/hercompetent subordinates, so that the manager can devote his/hertime to more important matters.
2. Nonprogrammed decisions are novel and nonroutine. Eventhough such decisions are rarely made, the manager needs topossess a thorough knowledge of relevant data, make carefuljudgement and think creatively before he/she is able to makebetter decisions.
2.2 GUIDELINES FOR PLANNING
Although planning is complex and difficult, it has to be doneproperly and carefully in order to achieve organizational effectiveness.A simple guideline which can improve planning is as follows:-
1. Develop plans that are clear and understandable
Plans must be clear to you and every staffunder your supervision.Confusing plans lead to wastage and misunderstandings.Subordinate must have a clear picture of what you want them todo and what results you expect out of them.
2. Develop plans with purpose
The plans, whether strategic plans or operating plans must focuson specific goals/objectives of the organization.
3. Develop feasible plans
The.plan you make must be realistic and practical. It would beuseless to have a well-written plan yet impossible to carry out dueto certain limitations, particularly due to inadequate resourcesand lack of time.
4. Develop plans that are complex
The plan you design must be thorough and exact with regard todetails. Each task/activity necessary must be listed downaccording to priority. Incomplete plans cannot be implementedsuccessfully.
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5. Develop plans that are flexible
A good plan must be flexible enough to allow for modificationsshould circumstances change with the passage of time. Providecertain alternative actions that can be used to modify the originalplan should any unexpected development occur later on — this iscalled contingency planning.
Good, effective planning will not eliminate all problems - itcan only reduce them. However, the importance of planningcannot be ignored. Planning provides a sense of direction; it helpscoordinate and expedite your work. As Richard S. Sloma oncesaid "Although it takes to plan, it is time well spent."3
3.0 ORGANIZING
Organizing is one of the most challenging tasks performed bythe manager. It can be defined as the "process of dividing work intomanageable components and coordinating the results to serve aspecific purpose."4 The way in which a manager carries out his/herjob is defined and limited by the structure of the organization he/sheserves. The manager must understand the difference between line andstaff relationships. A line manager has the authority to commandhis/her subordinates whilst a staff specialist is one who can only adviseand assist the line superior. Therefore, the manager, particularly at thesupervisory le.vel, has to define the job of his/her subordinates, assignthe various tasks to be done within his work units, allocate thenecessary supporting resources such as equipment and stationery tothem and finally, coordinates and synchronize the work effortscontributed by others from different departments/ divisions withinthe organization.
3.1 EFFECTIVE ORGANIZING
The measure of managerial competence in organizing can beseen as the sum of all desired results achieved by all individuals underhis/her control. As such, the manager is accountable and responsiblefor ensuring that his/her subordinate at least maintains the minimumstandard of performance he/she has established.
Therefore, the manager's major activities at this stage wouldinclude:-
1. Determining the so-called standards of performance (with thehelp of the production engineer in manufacturing industries or
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top-level executives, including the personnel manager for non-manufacturing industries);
2. Communicating the above standards to the workers in the bestpossible manner so that they understand theirduties/responsibilities;
3. Setting the work system and establishing deadlines for taskcompletion which includes who should be assigned to undertakeeach task, when should one complete the tasks, who should assistthe doer (if necessary), and whom should one seek when facedwith problems.
For effective organizing, the manager needs to prepare workschedules, graphs or flowcharts in a systematic manner so that he/shewill be able to gain control of the situation on a daily basis. Hence,results can be achieved in a timely and expected manner. Continuousappraisal of the subordinate's performance is crucial — you have toidentify good workers (i.e. those achieving desired results) andunsatisfactory workers (i.e. those who failed to attain yourpredetermined standards). In both cases, you ought to take some kindof practical and rational action.
For those high-performers, you have to motivate them furthertowards greater performance either through praise, promotion orgiving out of monetary rewards. Do not allow biases, prejudices andother sentiments to cloud your decision pertaining to the abovebecause the need to be recognized for their efforts is an importanthuman element that has an impact on one's behaviour. Failure torecognize and appreciate your worker's efforts can lead to low moralewhich in turn affects their attitudes towards work.
Likewise, penalize those individuals who not only fail to achievethe desired results but also refuse to respond to job challenges. Lookout for symptoms/signs of inefficiency (such as failure to achieve thetargetted production/sales volume, postponed deadlines, failure torecover losses, etc.) and proceed to establish a time-to-act interval. Ifyour subordinates have failed to perform according to standards,leave your room and personally go to the scene of action. Interviewthe relevant personnel for reasons behind such inadequacy andproceed to establish step-by-step measurable corrective actions.
As the manager, you should ensure that your subordinatesunderstand what you are trying to accomplish in line with theorganization's goals. The amount of respect awarded to you wouldbe based upon your ability to decide and solve problems promptly.
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Lastly, attention should also be given to employee's health and safetyin order to ensure that your work force on hand are reliable andcapable (both physically and mentally) of carrying out their dailytasks.
4.0 DIRECTING
According to Edwin B. Flippo, directing refers to the "task ofgetting people to go to work willingly and effectively."5 Activitiesinvolved include the difficult process of leading, guiding, motivating,teaching as well as supervising employees. In order for the manager tobe able to succeed as a leader, he/she requires the knowledge and skillsin all aspects of interpersonal relations — communication, motivationand group dynamics.
The amount of direction a manager provides to his/her workforce may vary. He/She is accountable to the organization for thetime, quantity and quality of work produced by his/her subordinates.Therefore, in order to bring forth the best efforts from workers, themanagers must understand human nature - i.e. why people act theway they do and how different is one person from another. A goodmanager would structure the jobs under his/her control in such a waythat each individual's needs are satisfied while work important to theorganization is being accomplished.
4.1 LEADERSHIP
As leaders, managers should be good at using power andauthority in ways that can influence others to work hard and applytheir efforts towards the attainment of organizational goals. Peopleare often confused with these two terms:-
a) Authority is the right/privilege of directing or requestingworkers to do or to refrain from doing something. It includes thetight to take disciplinary action if a subordinate refuses to do ashe/she is told.6
b) Power is the ability to get the workers to achieve the expectedoutcomes.
Bear in mind that formal authority is given by virtue of the manager'sposition in the organization whereas informal authority is conferredupon the manager by his/her subordinates.
A good manager can be measured by his/her continuous questfor productivity within the work unit. He/She always ensures that
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his/her subordinates strive harder to achieve better results. Forinstance, in a manufacturing firm, a good manager would alwaysensure that his/her workers at least meet the daily production targets(both quantity and quality-wise) and if possible, try to furtherimprove the work force's performance. Nevertheless, you cannotexpect more in performance and commitment than what youyourself (as a leader) are willing to give. In fact, your support staffwould have preconceived idea of the level of performance theyexpect from you. Therefore, to be effective and well-respected byyour subordinates, you must possess a deep personal yearning forexcellence, drive for improvement, dedication and commitment toseek and accept more responsibilities and lastly, loyalty towards bothsubordinates and organization.
4.2 DEALINGS WITH SUBORDINATES - STRATEGIES
When managing people, you have no choice but to manipulatethem towards organizational goals. Have a firm stand by consistentlyand persistently enforcing work demands on them. Do not allowyourself the luxury of granting pity or inflicting malice in yourdealings with the staffs; otherwise, you are jeopardizing the authoritygiven to you by the organization. Not all workers are willing tocommit themselves to greater work responsibilities. Some self-motivated ones are easier to supervise and you should provide themwith positive reinforcement in the form of praises orrecommendation for pay increase/promotion as a token ofappreciation for their increased work effort.
Others may be unresponsive i.e. they tend to resist your attemptsto direct them resulting in unpleasant situations such as decliningproduction, increasing tardiness, higher absenteeism, geater resourcespoilage/wastage and higher turnover rate. These people simply donot want to understand why you set such high performance standardsdespite your best efforts at human relations. Never accept mediocrityjust because you have failed to obtain 100% understanding amongyour work force. In such cases two strategies that a manager can adoptare:-
1. Punishment defined as the process of administering an unpleasantconsequence contingent upon the occurrence of an undesirablebehavior.7 For instance, to punish an employee for being absentwithout proper justifications:-
a) The manager may deny the individual a valued extrinsicreward such as praise or merit pay; or
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b) The manager may administer an adverse or obnoxiousstimulus such as reprimand or impose a monetary fine.
2. Extinction defined as the act of decreasing the frequency of orweakening an undesirable behavior by withholding a desirableconsequence that previously was contingent with the behavior.8For instance, to stop an employee from continuously breakingestablished work ethics, the manager may counsel and requestother co-workers to ignore the person and avoid giving approvalto his disruptive behavior.
Understanding employee morale (individual or group) isvery important. Failure to fulfil the needs of your workers,especially their security, social and esteem needs may lead themto collaborate among themselves to form pressure groups whichcan jeopardize organizational goals.
4.3 MOTIVATING WORKERS
Simultaneously, the manager has to motivate his/hersubordinates towards superior performance. To combat monotonyin their jobs, you can do the following:-
1. Enrich their jobs by applying the "whole-job" concept wherebyyou let the worker be responsible for assembling, finishing andtesting the completed unit instead of performing one specializedand repetitive task. This is usually applied in manufacturing/salesilrms.
2. Shift their jobs to provide variety. You can design a workschedule whereby the staffs within the same work unit would berotated to perform different tasks. Switching chores providesnew challenges to the workers.
3. Utilize quality circles whereby each separatedepartment/division divides their work force into small groupsof five to ten people. The idea of setting up quality circles is togenerate new ideas as to ways of improving their jobperformance and solving problems that may arise in their courseof duty.
4. Conduct some kind of informal discussion or brainstormingsession with your subordinates at least on a monthly basiswhereby you allow them to participate in decision-making andproblem-solving activities of the department/division. Youshould encourage them to think creatively and critically -
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challenge them to come up with ways of improving their currentwork systems. Listen to their suggestions and assign them toimplement those practical ones. Workers would feel a sense ofaccomplishment once their ideas are recognized by theirsuperiors.
5.0 CONTROLLING
In general, controlling is the process of periodic monitoring ofperformance (regardless of individual or organization) and takingaction to ensure the accomplishment of desired results. The purposeof control is:-
a) To make sure that work is being carried out in accordance toprior plans;
b) To assess the extent to which organizational goals are beingattained;
c) To formulate corrective actions (if any) should any deviations inresults exist.
The importance of control is further enhanced by the presence ofcertain factors such as uncertainty, environmental complexity,human limitations and decentralized organizational structure.Control should be continuous and timely, rigid and tough yet fair andattainable. Act immediately once discrepancies are detected; delayingcorrective actions would be at the firm's risk and cost. Unrealisticcontrols will demotivate the workers and cause them to give up theirwork. On the other hand, lax and too flexible control may be takenlightly by your subordinates. As the manager, you should ensure thatno significant decisions affecting the viability of your department/division/organization are made without your prior knowledge andconsent.
5.1 EFFECTIVE AND PRACTICAL CONTROL SYSTEMS
Control should commence at the onset of the implementationprocess. The control cycle should be short in order to reduce theprobability of occurrence of any intervening developments whichtend to distract the control focus. Therefore, the manager shouldsegmentize his/her control timespan for each project/task into shorterperiods to enable your relevant staff to quickly measure theperformance, compare it to the standard and make corrections (ifnecessary). Quantitative tools ranging from simple (namely breakeven/cost-benefit analysis) to complex ones (such as decision tree
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models, network models, inventory models, queuing models, linearprogramming and project scheduling) can be utilized to monitorproject progress.
Controlling people is a tedious task for a manager. When youreview interim results submitted by your subordinates, make surethat the report consists not only of quantitative information but alsoprovides some kind of qualitative rational conclusion. Emphasize theusefulness of judgemental and logical statements in the report so thatyour precious time will not be spent on intepreting the raw datagiven. For instance, a break-even analysis will accurately present adetailed graph of revenue and cost figures yet fail to indicate in wordsthat, it would be wise to stop production after the break-even point,otherwise, the company would lose.
The manager should also be aware that employees frequentlyfear control systems and consequently resist their use and application.Therefore, you should specify clearly the standards you will be usingto appraise their performance - such as production quotas, targetcompletion dates, amount of cost savings, etc. Individual interviewsor group meeting should be conducted to communicate your workexpectations.
5.2 CRITICAL CONTROL MEASURES
Six critical control measures that a manager should pay attentionare as follows:-
1. Quality
Prepare a record of expected product quality and evaluate ifresults are consistent with record. If not, investigate to determinethe cause of the problem and undertake corrective actions.
2. Quantity
Prepare a schedule of expected volume for your product/department. Analyze daily results and establish patterns/trends. Ifvariances occur, develop a plan to correct the change. Such actionmust be done continuously and consistently.
3. Cost
.Refer to your department/division's budget to determine theoperating capital available at your disposal. As money isexpended, compare and evaluate those expenses with results/
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benefits obtained. Review expenses on a daily, weekly andmonthly basis to make sure that the amount of money spent isproportional to performance. Evaluate material and equipmentcosts so that any variances can be addressed quickly.
4. People
Often, poor employee performance leads to quantity, quality ortime problems. The manager (as a superior) must evaluate theperformance of his/her subordinates on a regular basis. The usualpractice is to appraise them every six-months or one-year so thatany discrepancy in work performance can be rectified.
5. Safety
All employers have a legal obligation to ensure that theiremployees are provided with safe and healthy workingconditions according to the Occupational, Safety and Health Actof the respective countries. Alarm systems and safety mechanismsmust be installed, especially in factories; rules and regulationsshould be imposed on the workers to minimize occupationalaccidents and sickness. As the manager, it is your responsibility toensure that all employees adhere to the above and any variancesshould be remedied immediately.
6. Inventory
If any task is to be done efficiently and effectively, the managermust be able to regulate materials, human resource and money ina timely manner. Limited stocks especially in raw materials, canresult in production delays. Excessive inventory, on the otherhand, is extremely costly. Therefore, it is imperative that themanager establishes a simple inventory system that is able to servethe needs of the work unit so that completion deadlines can bemet.
6.0 TIME MANAGEMENT
"Everyone has 24 hours a day, but some people use them betterthan others."9 Although man cannot inhibit the flow of time, mancan use time wisely. Successful managers are those determinedindividuals who constantly seek ways to utilize the flow of time toreach both personal and organizational goals. To them, time is aprecious and limited resource which has to be used in the best possiblemanner. You should take time to think, devise suitable plans andprioritize each task that needs to be done. Without proper time
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management, you tend to allocate more time than necessary finishingwhatever work that happens to land on your desk which may be oflittle importance to you.
6.1 CONSERVATION OF TIME: SUCCESS FACTORS
Spend the first 15 minutes or so of your time making a list ofthings to be done for the day according to priority. Never squanderyour precious time on low-impact matters. Whenever you feelobliged to listen to your subordinate's personal problems or make anymove to modify your unit's routine financial reports or makeattempts to supervise your staffs' seating arrangement, consider the"opportunity-gained" and "opportunity-lost" factors. If you findyourself losing more than you are gaining, then, you ought toreevaluate your activities and refrain from continuing with thewrong ones.
Use a time log or time inventory chart (Refer to Appendix A)and rank your activities according to priorities as stated below:-
Priority A: Must do today
Priority B: Should do today
Priority C: Could put off to a later date
Priority D: Can delegate
Then, proceed by doing the most important activity of the day andwork your way down the list stated in your time chart.
Bear in mind that it is highly unlikely that you can devote allyour working hours finishing the tasks you set out to do due to severalreasons:-
1. You may be lacking in self-discipline by allowing your deeply-rooted habit of procrastination to weaken your purpose;
2. You may be lacking in self-confidence by being pessimistic aboutyour own ability to successfully achieve your desired goals;
3. You may lack the ability to establish interpersonal relationshipswith others resulting in failure to communicate yourneeds/wants to your subordinates/peers/superiors;
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4. You may lack the commitment to complete the tasks probablybecause your attention is geared elsewhere.
However, you should be satisfied if you have at leastaccomplished half the items listed in your time chart.
Four basic rules to get the most out of each working dayfollowed by those individuals who not only are successful in their jobsbut also lead a satisfying personal life off their jobs are:-
1. Decide what you want from your time.
2. Plan your time and establish priorities.
3. Delegation (whenever possible).
4. Learn to save time.
1. Decide that you want from your time
All too often, people get overworked for the wrongreasons. For instance, managers overtax themselves unnecessarilyby possessing a strong desire to be busy and the fear of failing tofulfil their duties. Others, fail to balance the satisfaction derivedfrom working and that from leisure activities. Thus,"the managermust decide what he/she wants. To get the most out of yourwork life, you need to spend some of your working hours onsomething creative. Therefore, spend only one-half to two-thirds of your time on finishing routine and repetitive tasks andreserve the remaining one-half or one-third on "extra" activitiesfor the benefit of your organization (such as designing a networkmodel that can minimize the time it takes to transport your firm'sproducts to their respective destinations).
2. Plan your time and establish priorities
Because time is irrecoverable once it is lost, people ought tomanage it properly. Victor Hugo once wrote, "When thedisposal of time is surrendered to the chance of incidents, chaoswill reign."10 As a manager, you need to plan ways of utilizingyour working hours without spending more time than necessaryon interruptions (like telephone calls, unscheduled visitors, officegossips, rest breaks, etc.) Time planning should not be donementally but has to be written on paper so that one canremember.
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3. Delegation
Regardless of how effective a manager is, he/she can onlyacepmplish a certain amount of work for the day.- In many cases,delegation would be appropriate in stopping the displacementflow of your time. If managers delegate their simpler routinetasks to their subordinates, they can devote more time foraccomplishing far more challenging tasks.
For instance, your most important tasks for the day mightbe to prepare a report on the international seminar you haveattended the week before and this would take up most of youreight-hour working time. You have also identified several minorand routine tasks that can be delegated. A good time managerwould spend a few minutes explaining briefly and assigning thesetasks to his/her subordinates instead of proceeding straight awaywith the report-writing. In this way, the manager would be ableto concentrate on his/her project, rest assured that the otherminor duties are being simultaneously handled by his/hersubordinates. Do not be trapped by the 'I can do it better' fallacy.Similarly, try not to be a perfectionist especially when youreview the work of your subordinates — ask yourself this question"Would spending more time redoing the work increase itsquality?" In fact, delegation helps to develop better support staff.
4. Learn to save time
Self-discipline is necessary in order to use time efficientlyand effectively. Managers (regardless of the level of managerialpositions they hold) ought to:-
i) Avoid Self-imposed Burdens
A good manager must try to gain control of both his/hertime and work. Refrain yourself from taking on someoneelse's burden, especially subordinate's problem. Always askyourself the simple question — "Who is working forwhom?" Remember that you have a job to do and yoursubordinates have their jobs too. They should take theinitiative to solve their own problems. If you accept theextra burden, you would be working under pressure whichultimately leads to delays, resentment and frustration.
ii) Control work clutter
Take time out to reorganize your desk because clutters ofpaper can hinder mental concentration and at times create
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tension and frustration. Therefore, it would be advisable foryou to go through all your papers/mail and divide them intofour categories:-
1. Immediate action
2. Low priority
3. Pending (Action has to be taken by someone else first)
4. Reading material
Give your attention only to the highest priority item;putting everything else out of sight. In this way, you are ableto concentrate only on one thing at a time.
iii) Stop Procrastination
One of the biggest human shortcomings is the act ofprocrastination. It is described as the "art of keeping up withyesterday by avoiding today."11 People procrastinate fordifferent reasons. Basically, the leading causes ofprocrastination are:-a) We would much rather spend time doing things that
interest us even though those things may not bebeneficial to us;
b) Putting things off allows us to escape from someunpleasant activities;
c) We can elimmte change and all the risks associated withit by putting things off;
d) We delay things hoping that those things might getbetter;
e) We can avoid failure by putting things off;
f) Putting things off allows us to escape from doubtingourselves;
g) By delaying things, we might be able to get someoneelse to do the job for us.
Procrastination is a time-wasting habit that drains ourvitality and has a tendency to grow. The only cure is to
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change things otherwise. Steps that can be taken to stopprocrastination are:-
1) Start now - Get started on something you have beenputting off so far.
2) Prepare a list of those tasks you have been delaying.Prioritize them according to their degree of importanceand establish deadlines for completion.
3) Begin by tackling the most important project.
4) Do not be afraid to fail. Give yourself a chance tosucceed.
5) Have confidence in yourself— Start thinking positivelyin terms of "I will" or "I can" instead of "I can't".Always remember that things can turn out to be better ifyou are willing to change.
7.0 CONCLUSION
The role of the manager has become more complex, dynamicand challenging as the organization's human resource becomes largerand more diverse over time. To succeed in managing the four basicfunctions of planning, organizing, directing and controlling, themanager needs to rely on his/her technical, human and conceptualskills. Lower and middle-level managers use more of technical andhuman skills in the running of the organization's operations. Top-level managers need to rely heavily on their conceptual skills to beable to visualize the organization in future and make plans.
To be a good planner, a manager has to determine and definehis/her goals, enumerate each separate task to accomplish the goalsand keep a close watch for clues and cues in the environment (bothinternal and external) that can be potentially useful/harmful to his/herplans and adjust them accordingly.
In organizing, the manager has to determine his/hersubordinate's standard of performance, communicate theseexpectations to the workers, set up a work system and establishdeadlines for completion within his/her work unit. Scheduling usinggraphs, tables and flowcharts will enable the manager to gain controlof the situation in a timely manner; hence, increasing organizingeffectiveness.
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Activities involved in directing include leading, guiding,motivating, teaching and supervising the work force. Utilize yourauthority and power to manipulate your workers towardsorganizational goals. For high-achievers, you can provide them withpositive reinforcement in the form of praises, monetary rewards andpromotion. Likewise, behavior modification strategies, namelypunishment and extinction, can be applied to unresponsive and weakperformers. To motivate employees, you can enrich their jobs eitherby applying the "whole-job" concept, shifting, forming qualitycircles and conducting informal decision-making and problem-solving sessions.
Controlling is the process of periodic monitoring ofperformance and taking actions to ensure the accomplishment ofdesired results. Usually, quantitative tools ranging from simple tocomplex ones can be employed to monitor project progress.Emphasis should be given to six critical areas namely quality,quantity, cost, people, safety and stocks. According to Richard S.Sloma, "The mark of a successful manager is that he/she conservestime."12 Since time is precious and limited, a manager should taketime to think, devise suitable plans for the day and rank each taskaccording to priority — must do today, should do today, could put ofTor can delegate. They should learn to save time by simply avoidingself-imposed burdens, controlling work clutter and forcingthemselves to stop procrastination.
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APPENDIX A: TIME INVENTORY CHARTS
GOALS FOR THE DA-Y
MUST DO TODAY
SHOULD DO TODAY
COULD PUT OFF
CAN DELEGATE
GOALS FOR THE DAY GOALS FOR THE DAY GOALS FOR THE DAY
COQl
ACTUALUSE OF
TIME
8-00- 9.00a.m.
9.00 - 10.00a.m.
10.00- 11.00a.m.
11.00 - 12.00a.m
12.00- 1.00p.m.
1.00- 2.00p.m.
3.00- 4.00p.m.
TOTAL
PREFERENCE
MUST DO SHOULD DO COULD PUT OFF CANDELEGATE
RECORD TIME SPENT
SPECIALPROJECTS
(CREATIVE)WORK)
EVALUATION SUMMARY
FOOTNOTES1 Edwin B Fhppo, Personnel Management ( U S A McGraw-Hill, Inc 1984) pg 49
2 Jack Halloran and George L Frunzi, Supervision: The Art of Management (NewJersey Prentice-Hall, Inc , 1986) pg 92
3 Richard S Sloma, No-Nonsense Management (New York Bantam Books Inc ,1981) pg 60
4 John R Schcrmerhon, Jr , Management For Productivity ( U S A John Wiley &Sons Inc , 1986) pg 161
5 Edwin B Fhppo, pg 6
8 Jack Halloran and George L Frunzi, pg 10
7 John R Schermerhorn, J r , James G Hunt and Richard N Osborn, ManagingOrganizational Behavior ( U S A John Wiley & Sons, Inc , 1985) pg 1979-1980
8 John R Schermerhon, Jr , James G Hunt and Richard N Osborn, pg 171
9 Jack Halloran and George L Frunzi, pg 150
10 Jack Halloran and George L Frunzi, pg 152
11 Jack Halloran and George L Frunzi, pg 162
12 Richard S Sloma, pg 58
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