
_______________________________________________
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| Blue-Collar Workers
a) Physical workers b) Goes to a place to work c) Non professional d) Output easily inventoried e) Productivity can be forced f) Uses equipment tools |
White-Collar Workers
b) Work completed anywhere c) Professional d) Output not easily inventoried e) Productivity cannot be forced f) Uses skills, information & time |







9. MANAGEMENT SKILLS FROM TARGETS TO BE REACHED





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1. Boss sets Goals and Delegates
2. Five Processes of Management spread out in time
implementation sort of in-process planning 3. Evaluation at the end of implementation 4. Accountability centralized 5. Decision-making with nebulous
alternatives 6. Focus on Activities
7. Problem-solving in past
orientation 8. Management systems coordinated with people 9. Leadership by personality 10. Improvements a random process (luck factor high) 11. Objectives only in top Management |
1. Boss and subordinates sets Goals mutually 2. Five Processes of Management executed in Planning period-sophisticated planning-everything laid out before it begins 3. Evaluation at planning period during operation and at end 4. Accountability Decentralized 5. Decision making with alternatives in a priority array (shopping) ; consequences of alternatives clear 6. Focus on Results and achievements 7. Problem-solving in future orientation 8. Management system coordinated through
objectives 10. Improvements a way of (central sense of mission) 11. Objectives on all levels of management |
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Identity (goals) |
Areas of Results (subgoals) |
Key Measurements (indicators) |
Objectives (Performance Expectations) | |||
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Reduce rework | Cost of
rework
Customer complaints |
Reduce cost of rework 30%
by January 1.
Achieve complaint-handling process in 2 days by end of year | |||
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Redesign circuit breakers | Innovations for
competitive edge
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Achieved a speed of closure
of 5 seconds with new material by January 1.
Reduce weight of closure cradle 20% in new materials design by January 1. | |||
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Control and reduce crime | Street
muggings
Auto Thefts |
Reduce street mugging 30%
in county by January 1.
Achieve 95% car-locking in parking areas by January 1. | |||
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Reduce costs | Sales to costs ratios | Improve sales to costs ratio 15% with the same sales volume by July 1. | |||
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Value added | Value added per employee | Increase value added rate 5% in Division A by January 1. | |||
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R&D feasibility studies | Ratio feasible ideas to marketable opportunities | Achieve 10 to 1 feasibility
to marketable ideas for R&D dept. by Jan. 1.
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All key jobs | Number of jobs completed | Achieve 10% completion rate for each quarter in establishing standards of performance | |||








6.
POLICIES
•
Organization
•
New Guidelines
•
Resource Priorities
8. SCHEDULE
& PRIORITIES
• Deadlines / Time
sequences
•
Milestones of Progress
9. AGREEMENT
& SUPPORT
•
Support of Boss
• Linking with other
Depts
10.
CONTINGENCIES
•
Analysis of Possible Problems
• Contingency
Actions
11.
EVALUATION
•
Measures
•
Feed forward

Example of MBO Planning Apraisal :

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| PERSONAL | |||
| SECTION
OR DEPARTEMENT |
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| COMPANY OR ORGANIZATION |
| Low profits | Backlogs | Conflicts |
| High costs | Rejects | Poor morale |
| Loss of key customers | High pollution | High accident rate |
| Missed schedules | Defects | Faulty attitude |
| Waste and spoilage | Excessive repairs | Rivalries |
| Budget variance | Rework | Non cooperation |
| High downtime | High pilferage | Low morale |
| Low productivity | Duplication | Hostility |
| Disagreements | Maturing of products | Obsolete inventory |
| Low sales | High overhead | Excessive turnover |
| Tight deadlines | No backup of key people |
| Objectives unattainable | Sequence of elements critical |
| New, complex, or unfamiliar process or equipment to be used | Rising
costs
Production rate slowdown |
| New employee without sufficient skills or experience | Excessive
handling
Labor unrest emerging |
| Changed priorities | Idle time with no abatement |
| Objectives not understood | Red tape in process |
| No
alternatives
More than one person involved |
Errors and poor skills that produced them |
| Bottleneck exists | Excessive rework |
| Two or more objectives set and not coordinated | Objectives not
measurable
Repetition of past problems |
| Ripple effect through Depts | Scarcity of resources |
| Easy solutions | Changing management's |

| High costs | Excessive handling | Excessive rework |
| Bottlenecks | Errors | High empl. turnover |
| Low production rates | Labor troubles | Delays |
| Idle time | Red tape | Backtracking |
| Questioning techniques | Problems definition |
| Purposeful observations | "What went wrong facts" |
| Before and after measurements | Cause-effect analysis |
| Simplify | Maximize | Compare |
| Minify | Rearrange | Expand |
| Eliminate | Utilize completely | Reduce motion |
| Combine | Substitute | Reduce handling |
| Balance | Change | Remove |
| Flow charting | Generating alternatives | Task analysis |
| Multiple activity charts | Brainstorming | Breakdown |
| Process charts | Checklists | Steps |
| Work distribution charts | Consulting | Interrelations |
| Operations charts | Group discussion | Interactions |
| Modeling | Analogy | Formula |
| Definitions | Comparisons | Structuring |
| Measurements | Reasoning | Effects |
| Manipulate | Differences | System |
| Optimize | Carryover | Routine |


| Weekly Resource Allocation |
Increase
Sales Revenues 15% |
Expand Territorial Coverage to 60% |
Reduce
Customer Complaints from 50 to 20 |
Hold
Travel Expense to 6% of Billing |
Total |
| Frank
Thomas Sales Manager |
Sales Planning 4
Customer conferenc. 8 Sales proposals 2 Sales Reports 4 |
Sales Planning
4 Customer conf. 14 Sales proposals 4 |
Interviewing clients 3 Follow-up 1 |
Dept. meetings 3 Expense report 1 |
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Hours |
18 |
22 |
4 |
4 |
48 |
| Joseph
Sully Sales Rep. |
Telephone calls 3 Customer contacts 12 Correspondence 1 Travel 7 Sales reports 1 |
Telephone calls 2 Customer contacts 9 Correspondence 1 Travel 2 Sales reports 2 |
Quality checks 3 | Dept. meetings 3 Expense reports 2 |
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Hours |
24 |
16 |
3 |
5 |
48 |
| Harry
Bane Sales Rep. |
Telephone calls 2 Customer contacts 10 Correspondence 2 Travel 9 Sales reports 1 |
Telephone calls 1 Customer contacts 9 Correspondence 2 Travel 2 Sales reports 2 |
Quality checks 3 | Dept. meetings 3 Expense reports 2 |
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Hours |
24 |
16 |
3 |
5 |
48 |
| Mary
Clarc Administrative |
Processing orders 7 Preparing reports 3 |
Assembling prop. 6 Handling calls 4 Corresp. 6 Take dictation 2 |
Interviewing clients 5 Checking 2 |
Checking office expenses 5 | |
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Hours |
10 |
18 |
7 |
5 |
40 |
| Helen
Case Steno Pool |
Take dictation 2 Typing 12 Handling calls 3 Filing 1 |
Take dictation 2 Typing 5 Handling calls 1 Filing 2 |
Errands 10 Filing 2 |
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Hours |
18 |
10 |
12 |
40 | |
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Total
Hours |
94 |
82 |
17 |
31 |
224 |
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125
100
Time 75
allocation 50
profile 25
0 |
| Division : Central | Department : Plastics |
| Originator : Harvey Small Date:
3/10/ |
Approved : P. A. Beck Date: 3/15/ |
| TYPE : | CONFIDENCE : |
| ________ Cost Avoidance | __________ Valid and immediate |
| ________ Cost Reduction | __________ Valid but long range |
| ________ Cost Control | __________ Non-valid, needs work |
| ________ Cost Effectiveness | |
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| a) At the Plastics dept., acrylic plastic
is cut by four knife jigs, each having 20 rotor knives and one bit knife. |
a) Recent evaluation indicates
total number of knives not needed |
| b) Knife jig system in operation over 30 years. | b) Suggest using new knife jigs, each having 8 rotor knives and two bit knives. (Number reduces from 84 to 40). |
| c) Knives purchased for these jigs come
from various domestic suppliers and are purchased 4 times per year. |
c) Located source in England that can be shown knives are equal or better in quality for 40 to 50 percent less if purchased for annual quantity. |
| Costs: | Costs: |
| Labor $ 4,500 Materials $ 64,000 Other ______ TOTAL $ 68,500 |
Labor $ 2,500 Materials $ 37,000 Other ______ TOTAL $ 39,500 |
| Summary. Saving per year Cost to Implement Change Net Savings per year Time to write off one year(s) |
$ 29,000 400 $ 28,600 Approved by : /S/ Operations mgr. Follow Up |
| Date Remarks | Date Remarks |
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(b) Performance : weld
40 plates, 50 assemblies weekly
with no more that plate rejects (5%).
(c) Resources : two workers, welding machine,
40 hours/week
STEP 2. Quantify
productivity.
(b) After
:
PI = = = = 0.03 (3%)
reject rate
STEP 3. Specify
productivity objective: Archieve 60 plate-welding
results weekly, 30 plates/worker, with no more than two
plte
rejects (3%) by January 1.
STEP 4. Develop a plan:
Install new semiautomatic welding machine,
and provide 80 hours training for welders.
STEP 5. Control with
milestones of progress.
| | |
40 plates worker 50 plates worker 60 plates worker
STEP 6. Evaluate
productivity: By January 1, 60 plates are welded in 40
hours
(50% productivity improvement), while a two-plate rejection rate
is
maintained (40% quality improvement).
| SYMPTOMS OF A PROBLEM |
CONDITIONS Creating the PROBLEM |
IMPROVEMENT ALTERNATIVES |
COSTS | IMAGE | FEASIBLE | TIME | TOTAL RANK ACROSS |
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| INCREASED TURNOVER |
LOW
MOTIVATION TO STAY IN COMPANY |
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| LOW SKILLS | Better Selection |
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COMPLETE NEW SELEC- | |||||||||
| ENORMOUS | IN NEW | Training |
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TION PROCEDURE BY | ||||||||
| ERROR | EMPLOYEES | Error control |
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JANUARY 1, 19XX | ||||||||
| NOT
ENOUGH TIME FOR PAPERWORK |
NEVER ENDING
SERIES OF EMERGENCIES |
+INVESTIGATE PROCEDURES +DESIGN NEW PROCEDURES | ||||||||||||||
| MISSED DELIVERIES
|
NO TIME
PRIOR- ITIES IN WORK ALLOCATION |
+TRY-OUT +REVISE | ||||||||||||||
| +
IMPLEMENT + ORIENT OTHERS | ||||||||||||||||
40-
Effectiveness Practices
Of Productivity Management
(class A Companies)
_______________________________________________

B. Opportunity Analysis
C. Personnel Analysis
D. Schedule Analysis
E. Methods Analysis
F. Categories of waste

2 Generally, do you think it's worth the
effort to explain to subordinates
the reasons for a decision or policy before putting it
into effect ? ___ ___
3. Do you prefer the administrative end
of your leadership job-planning,
paperwork, etc- to supervising or working with
your subordinates ? ___ ___
4. A stranger comes into your department
and you know he's the new
employee hired by one of your assistants. On
approaching him, would
you first ask his name and introduce yourself ?
___ ___
5. Do you keep your people up to date on developments affecting them ? ___ ___
6. Do you find that in giving out
assignments you tend to state the goals,
leave methods to your
subordinates ? ___ ___
7. Do you think that it's good common
sense for a leader to keep aloof
from his people, because in the long run
familiarity lessens respect ? ___ ___
8. Comes time to decide about a group
outing. The majority prefer to
have it on Wednesday, but you're pretty sure
Thursday is better for
all concerned. Would you put the question to a
vote rather than make
the decision yourself ? ___ ___
9. If you had your way, would you make
running your group a push-button
affair, with personal communications held to a
minimum ? ___ ___
10. Do you find it fairly easy to fire someone ? ___ ___
11. The friendlier you are with your
people, the better you can lead them.
Correct ? ___
___
12. After considerable time, you dope
out the answer to a work problem.
Your assistant promptly pokes it full
of holes. Would you be annoyed
that the problem is still unsolved,
rather than become angry with the assistant? ___ ___
13. Do you agree that one of the best
ways to avoid problems of discipline
is to provide adequate punishment for
violations of rules ? ___ ___
14. Your way of handling a situation is
being criticized. Would you try to
sell your viewpoint rather than state
that, as boss, your word is final ? ___ ___
15. Do you generally leave it up to your
subordinates to contact you, as far
as informal day-to-day communications
are concerned ? ___ ___
16. Do you expect subordinates to feel personally loyal to you ? ___ ___
17. Do you favor the practice of
appointing a committee to settle a problem
rather than
stepping in to decide on it yourself ? ___ ___
18. Some experts say differences of opinion within a group are healthy. Agree? ___ ___

45- POWER STRATEGIES
_______________________________________________


3. GENERAL MOTIVATORS INEFFECTIVE
4. WORKERS
EXPERIENCE
UNFULLFILLING
WORK


2.Independance Need to delegate Need for freedom
3.Recognition Need for good work Need for self-worth
4.Participation
Need for commitments Need to know what is going
to
complete work before and why; opportunity work commences exert
influence
5.Achievement Need
to see that extended Need to see that efforts resources are being
used
lead to advancement in
meaningful milestones toward a long-range goal
6.Innovations Need new ideas to improve Need to have ideas processes accepted and used
7.Enlargements Need to get maximum Need to avoid boredom use of time and fatigue
8.Enrichment Need
for management Need to feel job assign- succession to perpetuate
ments are stepping-stones organization toward advancement
9.Overview Need to
have individual Need to see where contri-perform at a high
level
butions fit in the
overall for the
organization organization
10.Learning Need
for personnel who Need for interesting work can handle new and
different
assignments
B. EMOTIONAL
CULTURE
· Morale (satisfaction)
·
Security (degree of need)
· Safety
(protection)
·
Conflicts (harmony)
C. SOCIAL
CULTURE
· Friendliness (trust)
·
Traditions (degree of departure)
· Interactions (group
involvement's)
·
External Activities (socializing)
D. TEAM
CULTURE
·
Pride for group (identification)
· Tolerance for
differences (humanness)
·
Empathy for difficulties (sharing)
· Cooperation for work
(degree of support)
| Team Output |
Team Principle | Probable causes |
| Unacceptable results | Polarity | a. Team non-existant b. No direction nor organization c. Value of team not seen by members d. Lack of leadership |
| Small results, Mediocrity | Focus | a. No priorities b. Practices c. Poor alternatives d. Improvement not a mission |
| Execive Conflicts or frustration | Cohesiveness | a. Goals divergent conflicts or b. Plurality of leaders c. Unwilling to compromise d. Failure to resolve conflicts |
| Results come hard | Potency | a. Motivators non-existent b. Low incentives c. Innovations poor d. Lack of measure and evaluations |
| Same performance | Obsolescence | a. Neglect of opportunity results b. Failure to innovate c. Failure to improve |