Employee productivity


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Employee productivity

  1. 1. Broader & specific action plan: Gain two times of employee productivity Perspective: PRAN-RFL Group
  2. 2. Corporate philosophy & employee productivity : <ul><li>Employee motivation and interests are primary related to ascending needs for security, safety, purpose, recognition, identity and the realization of one’s full potential. </li></ul><ul><li>Our corporate goals are best achieved in an environment that encourages and assists employees to achieve their personal goals while helping PRAN-RFL Group to achieve its goal. </li></ul>
  3. 3. Corporate philosophy & employee productivity … .. .. <ul><li>Our goals are to offer our employees a challenging and stable working environment, above-average competition, and unrestricted opportunity for personal advancement irrespective of race, creed, color, sex or national origin. </li></ul><ul><li>Our objective is to build mutual respect, confidence, and trust in our personal relationships based upon commitments to integrity, honesty, openness and competence. </li></ul><ul><li>Our policy is to share PRAN-RFL Group’s success with the employee who make it possible. </li></ul>
  4. 4. Abstract: <ul><li>Employee productivity is a relative terminology that stems from the following steps of company planning will, by defaults, gradually work & generate in both monolithic & multi-facets way. </li></ul><ul><li>Steps as under: </li></ul><ul><ul><li>budgeting & financial control </li></ul></ul><ul><ul><li>long-range planning </li></ul></ul><ul><ul><li>business strategic planning </li></ul></ul><ul><ul><li>corporate strategic planning </li></ul></ul><ul><ul><li>strategic management. </li></ul></ul>
  5. 5. Abstract… .. .. <ul><li>Employees will try to cultivate productivity all the best at day & night who are prone to: </li></ul><ul><ul><li>strategic vision & thinking </li></ul></ul><ul><ul><li>professional and careerist attitude. </li></ul></ul><ul><li>Employee productivity greatly depends on: </li></ul><ul><ul><li>Degree of complexity of firms business </li></ul></ul><ul><ul><li>every administrative system </li></ul></ul><ul><ul><li>recognition of the central role to be played by employees. </li></ul></ul><ul><ul><li>its resulting internal culture. </li></ul></ul>
  6. 6. Abstract… .. .. <ul><li>Company is to facilitate the employee to adopt in: </li></ul><ul><ul><li>the types of business </li></ul></ul><ul><ul><li>the managerial competence </li></ul></ul><ul><ul><li>the intensity of competition </li></ul></ul><ul><ul><li>the turbulence in the environment </li></ul></ul><ul><ul><li>different cultural conditions. </li></ul></ul>
  7. 7. Abstract… .. .. <ul><li>Rather than looking for the process, business firms should tailor their systems to fit their: </li></ul><ul><ul><li>corporate culture </li></ul></ul><ul><ul><li>organizational structure, and </li></ul></ul><ul><ul><li>administrative processes. </li></ul></ul>
  8. 8. Employee productivity and employee mind:
  9. 9. Nature of human mind: <ul><li>A man is the sailor of his own soul. </li></ul><ul><li>A human mind is very complex and it’s always changing. </li></ul><ul><li>A man is tuff-difficult to be studied. </li></ul><ul><li>A human soul is more powerful than the universe. </li></ul><ul><li>A human mind is more creative than the creation of universe. </li></ul>Productivity lies in the mind of employee… .. ..
  10. 10. Management implications of human mind: <ul><li>Positive leadership can sail the mind of employee to the expected directions. </li></ul><ul><li>Leader can lead by influencing and give worthy of right directions to the expected & positive changes of always changing human mind. </li></ul><ul><li>Leader can glide the company by harnessing the power of employee mind & soul that is more powerful than the universe. </li></ul><ul><li>The employ will create the organization by extracting the beauty & resources of mind & soul evolving at haven & earth. </li></ul>Productivity lies in the mind of employee… .. ..
  11. 11. <ul><li>A continual employee study should remain constant to take hold of the tendency of employee mind & soul corresponding to inside & outside changes of greater environment. </li></ul><ul><li>Finally, if employee gets social & financial security and recognition to the ownership of organization, they will not leave & forget the organization even facing like dooms day that is called “employee loyalty.” </li></ul>Management implications of human mind… .. .. Productivity lies in the mind of employee… .. ..
  12. 12. Management implications of human mind… .. .. <ul><li>In the aftermath the employee will take & make the organization as sacred as the place of worship. </li></ul><ul><li>“ Trickle Down Theory of Leadership” can be best applicable to the mind mapping of employee of PRAN-RFL Group. </li></ul>Productivity lies in the mind of employee… .. ..
  13. 13. Leadership role and employee productivity
  14. 14. Nature of leadership: <ul><li>Leadership is not the worship. </li></ul><ul><li>The only definition of a leader is someone who has followers. </li></ul><ul><ul><li>Peter Drucker. </li></ul></ul><ul><li>Leadership is influence—nothing more, nothing less. </li></ul><ul><ul><li>John C Maxwell. </li></ul></ul>Productivity lies in the mind of employee… .. ..
  15. 15. Trickle Down Theory: Productivity lies in the mind of employee… .. .. <ul><li>One is leader and rest is followers. </li></ul><ul><li>The influence of getting to destination is trickled down from leader to followers. </li></ul>Leader Follower Follower Follower Leader Follower Follower Follower Follower Follower Follower Follower
  16. 16. Exemplify: Productivity lies in the mind of employee… .. .. <ul><li>What about Martin Luther, Ghandi, etc. </li></ul>
  17. 17. Productivity lies in the mind of employee… .. .. <ul><li>Classic Hero. </li></ul><ul><ul><li>What about Alekgendar the Great, Boktier Khilji. </li></ul></ul>
  18. 18. Morality & Leadership: Productivity lies in the mind of employee… .. .. <ul><li>What makes a good leaders? </li></ul><ul><ul><li>Vision </li></ul></ul><ul><ul><li>Securing of followers </li></ul></ul><ul><ul><li>Achieving aims </li></ul></ul><ul><ul><li>Charisma. </li></ul></ul><ul><li>Power </li></ul><ul><ul><li>All leadership rests on power </li></ul></ul><ul><ul><li>Usually direct </li></ul></ul><ul><ul><li>Rarely charismatic. </li></ul></ul>
  19. 19. Limits of Leadership: Productivity lies in the mind of employee… .. .. <ul><li>Resources </li></ul><ul><li>Shareholders </li></ul><ul><li>Law </li></ul><ul><li>E mployees . </li></ul>
  20. 20. The success of Leadership lies in the mind of Employee: Productivity lies in the mind of employee… .. .. <ul><li>Guide & earn the mind of employee; not routine jobs performed & followed by in-punch and out-punch. </li></ul><ul><li>Then, every reporting Boss must comply to: </li></ul><ul><ul><li>Assigned Task </li></ul></ul><ul><ul><li>Task Performed by Management Efficiency & Effectiveness </li></ul></ul><ul><ul><ul><li>Input </li></ul></ul></ul><ul><ul><ul><li>Process </li></ul></ul></ul><ul><ul><ul><li>Output </li></ul></ul></ul><ul><ul><ul><li>Outcome </li></ul></ul></ul><ul><ul><li>Employee satisfaction & retention. </li></ul></ul>
  21. 21. Bridging Leadership Productivity lies in the mind of employee… .. .. <ul><li>Fostering synergy and reinforcing behavior and motivation through the use of communication to create climate of trust and confidence. </li></ul><ul><li>Projection of confidence on the face of a difficult challenge. </li></ul>
  22. 22. Creative Leadership Productivity lies in the mind of employee… .. .. <ul><li>To complex and readily changing situations </li></ul><ul><ul><li>Ability to uniquely inspire people. </li></ul></ul><ul><ul><li>To generate shared innovative responses and solutions. </li></ul></ul>
  23. 23. Corrective Leadership Productivity lies in the mind of employee… .. .. <ul><li>Empowers staff to facilitate collaborative and synergism. </li></ul>
  24. 24. Behavioral Science and employee productivity:
  25. 25. Improve productivity by efficient & effective learning: <ul><li>Learning by the process of trial and error. </li></ul><ul><li>Learning by observation and imitation. </li></ul><ul><li>Learning by doing, by practicing and by repetition. </li></ul><ul><ul><li>The chinese proverb: “If I hear, I forget; if I see, I remember something; but if I do, I actually know the thing”. </li></ul></ul><ul><li>Learning by remembering (memorizing). To study to remember things need planning, rehearsal, organization, feedback, review and over learning. </li></ul>
  26. 26. Improve productivity by efficient & effective learning… .. .. <ul><li>Learning by insight, solves many difficult problems through mental exploration, brain storming. </li></ul><ul><li>The learning must be a realistic goal. I brings a definite change in human’s behavior. The learner must share responsibilities to determine this goal. </li></ul><ul><li>All forms of learning are meant to benefit the “PRAN-RFL Group”. </li></ul>
  27. 27. Improve productivity by Thinking: <ul><li>The man is a great thinker and thinking is form of exercise of conscious mind. </li></ul><ul><li>It is a sign of intellectual activity with an alert mind and active mental process. </li></ul><ul><li>Thinking is of two types: </li></ul><ul><ul><li>the one is of imaginative type, and </li></ul></ul><ul><ul><li>the other is creative type. </li></ul></ul><ul><li>The thinking and language are closely related. </li></ul>
  28. 28. Improve productivity by Thinking… .. .. <ul><li>The creative thinking finds out solution into two stage-wise. </li></ul><ul><ul><li>Stage-1: Stage of preparation </li></ul></ul><ul><ul><li>Stage-2: Stage of initiation or the period of incubation. </li></ul></ul><ul><ul><li>Stage-3: Stage of illumination. </li></ul></ul><ul><ul><li>Stage4: Stage of revision and modification. </li></ul></ul>
  29. 29. Improve productivity by Thinking… .. .. <ul><li>The imaginative type of thinking is sort of day dreaming and planning for future. </li></ul>Imaginative Thinking:
  30. 30. Improve productivity by Thinking… .. .. <ul><li>The creative type of thinking is some form of thinking especial and is considered to be the highest form of thinking. </li></ul><ul><li>The higher centre of the brain, the cerebral cortex is the basis of this kind of thinking process. </li></ul><ul><li>The thinking involves perception, good memory, power of imagination, reasoning and problem-solving. </li></ul><ul><li>The correct thinking can always find out a correct solution to any kind of problem. </li></ul>Creative Thinking:
  31. 31. Improve productivity by Observation: <ul><li>The observation is a scientific process. </li></ul><ul><li>The employee should always keep his eye open– observing even when asleep. </li></ul><ul><li>All that the employees need to observe the think; they want to observe to the best of ability or capacity. </li></ul><ul><li>The observation can also be called a sustained form of attention. </li></ul>
  32. 32. Improve productivity by Counseling: <ul><li>The process of counseling informs and helps the employees for proper application of informed knowledge and ideas prevailing over the matters of counselling. </li></ul><ul><ul><li>Individual counseling; and </li></ul></ul><ul><ul><li>Group counseling. </li></ul></ul>
  33. 33. Improve productivity by Counseling… … .. <ul><li>a pleasing personality; </li></ul><ul><li>emotionally matured; </li></ul><ul><li>a good leader; </li></ul><ul><li>a good listener with a positive attitude to employee’s problem and not biased; </li></ul><ul><li>very sympathetic to employee’s problems and feelings; </li></ul><ul><li>have patience and tolerance; </li></ul><ul><li>very trust worthy and be able to converse freely. </li></ul>Good Counselor:
  34. 34. Improve productivity by BCC: <ul><li>BCC=Behavioral Change Communication. </li></ul><ul><li>The ‘Behavior’ is defined as collective voluntary movements of the body in response to motives, attitude and decisions of an individual employee. </li></ul>
  35. 35. Improve productivity by BCC… … .. <ul><li>Responses are: </li></ul><ul><ul><li>Physical responses: habits, skills. </li></ul></ul><ul><ul><li>Organic responses: emotions, feelings, reasoning. </li></ul></ul><ul><ul><li>Social response or social pressure. </li></ul></ul>
  36. 36. Improve productivity by BCC… … .. <ul><li>Man’s motivation: </li></ul><ul><ul><li>The motivation is an inner force, which drives an individual employee to certain kinds of actions. </li></ul></ul><ul><ul><li>It is therefore at the back of employee’s mind, which ultimately change his behavior. </li></ul></ul>
  37. 37. Improve productivity by BCC… … .. <ul><li>Intellectual perception: </li></ul><ul><ul><li>A employee’s intellectual perception, his thinking and reasoning can very well influence his behavior at any given situations. </li></ul></ul>
  38. 38. Improve productivity by BCC… … .. <ul><li>The Innate Behavior: </li></ul><ul><ul><li>The individual employee is a product of both heredity and working environment. </li></ul></ul><ul><li>Group Behavior: </li></ul><ul><ul><li>The group behavior is the behavior and habits of the group or sect to which the employee belongs. </li></ul></ul>
  39. 39. Improve productivity by BCC… … .. <ul><li>Group morale: </li></ul><ul><ul><li>Every group of employee must have leaders who are virtually responsible for keeping solidarity within the group and therefore they play very vital role for mending group behavior and also the moral of the PRAN-RFL Group. </li></ul></ul>
  40. 40. Improve productivity by BCC… … .. <ul><li>Morale/ morality of employees or workers: </li></ul><ul><ul><li>Morale implies a employee’s attitude towards his job, organizations and the administrative bosses or superiors. </li></ul></ul><ul><ul><li>Morale is best understood by individual employee’s attitude and commitment toward his assigned duties and responsibilities. </li></ul></ul><ul><ul><li>Basically morale is a group phenomenon. </li></ul></ul><ul><ul><li>This concept therefore explains favorable and unfavourable attitudes of employees or workers in any particular organization or settings. </li></ul></ul><ul><ul><li>This attitude clearly indicates employee’s own thinking, feeling and objective goal of any particular organization or group. </li></ul></ul>
  41. 41. Improve productivity by BCC… … .. <ul><li>Morality and employee productivity: </li></ul><ul><ul><li>The morality and productivity in employee behavior go side by side. </li></ul></ul><ul><ul><li>The employee with high morality and is more productive and creative in the organization. </li></ul></ul><ul><ul><li>On the other hand the person with low morality shows less active interest and so produces less creative activities in the society. </li></ul></ul><ul><ul><li>But sometimes employee with low morality can produce more if he or she is afraid of organizational pressure or punishment. </li></ul></ul>
  42. 42. Improve productivity by BCC… … .. <ul><li>Behavioral Change Communication: </li></ul><ul><ul><li>It is a systematic process or way of disseminating information about an aspect of employee behavior in order to persuade employees collectively and effectively to change their behavior towards achieving the organizational objective goal. </li></ul></ul>
  43. 43. Improve productivity by BCC… … .. <ul><li>Instinct: </li></ul><ul><ul><li>An instinct is an inborn natural tendency to perform certain pattern of action without previous training. </li></ul></ul><ul><ul><li>It usually refers to complex patterns of behavior, which are largely innate, genetic and unlearned. </li></ul></ul>
  44. 44. Improve productivity by BCC… … .. <ul><li>The process of change in human attitude & behavior: </li></ul><ul><ul><li>The information, proper communication and training etc. are all interrelated to change employee behavior. </li></ul></ul><ul><ul><li>The relevant information are communicated enough to motivate employees substantially that employees concerned are ready to go for the stage of action and practice in order to achieve the objective goal. </li></ul></ul>
  45. 45. Improve productivity by BCC… … .. <ul><li>Life style: </li></ul><ul><ul><li>It is a style of living individual life. </li></ul></ul><ul><ul><li>It simply donates, ‘the ways the people live’ in any particular area or geographical territory. </li></ul></ul><ul><ul><li>It very much reflects people’s habit of living, social character, values, attitudes and all other activities. </li></ul></ul><ul><ul><li>It includes personal hygiene, personal habits, culture, and behavioral patterns. </li></ul></ul><ul><ul><li>The life style is a learned behavior. </li></ul></ul><ul><ul><li>It is learned through social interaction, starting with close associates such as parents, relatives, friends, colleagues, school or college mates and association with medias. </li></ul></ul>
  46. 46. Improve productivity by BCC… … .. <ul><li>Life style: </li></ul><ul><ul><li>It is a style of living individual life. </li></ul></ul><ul><ul><li>It simply donates, ‘the ways the people live’ in any particular area or geographical territory. </li></ul></ul><ul><ul><li>It very much reflects people’s habit of living, social character, values, attitudes and all other activities. </li></ul></ul><ul><ul><li>It includes personal hygiene, personal habits, culture, and behavioral patterns. </li></ul></ul><ul><ul><li>The life style is a learned behavior. </li></ul></ul><ul><ul><li>It is learned through social interaction, starting with close associates such as parents, relatives, friends, colleagues, school or college mates and association with medias. </li></ul></ul>
  47. 47. Improve productivity by BCC… … .. <ul><li>Adaptation, Adjustments and Maladjustments: </li></ul><ul><ul><li>Adaptation: It is the ability of a employee to adjust to the organizational environment. </li></ul></ul><ul><ul><ul><li>It usually is: </li></ul></ul></ul><ul><ul><ul><ul><li>meeting the performance requirements; </li></ul></ul></ul></ul><ul><ul><ul><ul><li>role demand of working situation; and </li></ul></ul></ul></ul><ul><ul><ul><ul><li>it is a sort of socialization in organization in terms of flexibility and acceptance. </li></ul></ul></ul></ul><ul><ul><li>Adjustment: It is defined as a balanced behavior; where the individual is mutually prepared to settled down differences or “peaceful co-existence” that is considered to be the highest form of art and act of maturity. </li></ul></ul><ul><ul><li>Maladjustment: Just opposite of adjustment. </li></ul></ul>
  48. 48. Improve productivity by other behavioral study: <ul><li>Personality </li></ul><ul><li>Leadership </li></ul><ul><li>Interpersonal & intra-group relations </li></ul><ul><li>Development of human habits </li></ul><ul><li>Attitudes </li></ul><ul><li>Emotion </li></ul><ul><li>Perception </li></ul><ul><li>Motivation </li></ul><ul><li>Sleep </li></ul><ul><li>Mental health. </li></ul>
  49. 49. Experience curve and employee productivity:
  50. 50. Fig: An 85% Experiene curve Deflated direct cost per unit Accumulated volume of production (units) 30 40 50 60 70 80 90 100 110 120 140 130 120 110 100 90 80 70 60 50 40 30 20 10 0
  51. 51. Presentation of the Experience Curve: <ul><li>The experience curve shows that the cost of doing a repetitive task decreases by a fixed percentage each time the total accumulated volume of production (units) doubles. </li></ul><ul><li>In example given in the figure, the total cost drops from 100 when the total production was 10 units, to 85 (=100x0.85) when it increased to 20 units, and to 72.25 (=100x0.85) when it reached 40 units. </li></ul><ul><li>The relationship between accumulated volume of production and deflated direct cost is expressed in a log-log graph as a straight line, which is easier to work with. </li></ul>
  52. 52. Fig: Annual percentage of cost reduction due to experience effects 30% 10% 5% 2% 17.6 6.8 3.5 1.4 60% 12.6 4.8 2.5 1.0 70% 8.1 3.0 1.6 0.6 80% 3.9 1.4 0.7 0.3 90% Annual Market-Growth Rate Experience curve slope
  53. 53. Conventional strategic implications of the experience curve: High Profitability Low Unit Cost High Accumulated Volume High Market Share
  54. 54. Experience Curve and Employee Retention: <ul><li>Count down the time length of company and its success history. </li></ul><ul><li>Who were path-finder of the success? </li></ul><ul><li>How the know-how of success come to a revolutionary documentary? </li></ul><ul><li>Plan the future direction by generating a “Experience Curve” in term of experience, skill & competency, time & cost dynamics. </li></ul><ul><li>Harvest the opportunity as competitive edge over competitive & external environment. </li></ul>
  55. 55. Managing the experience curve: Reasons for the reduction of cost with improved productivity <ul><li>Learning: </li></ul><ul><ul><li>The repetitive performance of a task allows a person to develop a specialized set of skills which permits the completion of assignment in a more efficient way. </li></ul></ul><ul><ul><li>For this reason, the productivity per worker is expected to raise with the increased dexterity to handle the job’s responsibilities. </li></ul></ul>
  56. 56. Managing the experience curve… ... <ul><li>Specialization & redesign of labor task: </li></ul><ul><ul><li>The increased volume of production lends itself to a divisionalization of labor that allows for specialization and standardization to take place, thus contributing greatly to productivity improvement. </li></ul></ul>
  57. 57. Managing the experience curve… ... <ul><li>Product & process improvement: </li></ul><ul><ul><li>As volume incerases, many opportunities become available for product and process improvements leading toward higher productivity and cost reduction. </li></ul></ul>
  58. 58. Managing the experience curve… ... <ul><li>Method & system realization: </li></ul><ul><ul><li>Improving the performance by introducing more up-to-date technology in the handling of operational activities. </li></ul></ul><ul><ul><li>By introducing rationalization of procedures and extensive use of computer & automaton that changes in the normal administrative and managerial duties. </li></ul></ul><ul><ul><li>But large productivity improvements related with computerization to reach a certain volume of production associated the higher fixed cost with introduction of that technology. </li></ul></ul>
  59. 59. Managing the experience curve… ... <ul><li>Economies of scale: </li></ul><ul><ul><li>The availability of improved technological processes for high-volume production. </li></ul></ul><ul><ul><li>The indivisibility of many resources that can only be profitably used when adopted in fairly large operation. </li></ul></ul><ul><ul><li>The backward and forward integration of manufacturing processes and business activities, which can be justified only for very large firms operating in stable environment. </li></ul></ul><ul><ul><li>The share of resources. </li></ul></ul>
  60. 60. Managing the experience curve… ... <ul><li>Know-how: </li></ul><ul><ul><li>A subtle and overall encompassing result of the benefits to be derived from experience can be collected under the label “know-how”. </li></ul></ul><ul><ul><li>This represents an enriched understanding of the managerial, technological, and operational factors that contribute to the efficiency of the firm. </li></ul></ul><ul><ul><li>Know-how is hard to transfer because it represents the accumulated experience that has been gained through the passage of time. </li></ul></ul><ul><ul><li>If know-how is properly consolidated and projected, it can give a significant competitive edge to that firm which is the leader in its industry. </li></ul></ul>
  61. 61. Cost dynamics and employee productivity
  62. 62. Accountability for cost validity and cost effectiveness: <ul><li>Valid reasons for allotting cost. </li></ul><ul><li>Analysis & measurement of effectiveness against allotted cost. </li></ul><ul><li>Job performed by members of team to the realization of cost & benefits. </li></ul><ul><li>Total time & money spent by each members holding position in the entire team. </li></ul><ul><li>Leaders will depict the complete action plan, resources allocated and its outcomes. </li></ul><ul><li>Cost-validity as per achieving goals of management. </li></ul><ul><li>Cost-effectiveness as per validity. </li></ul>
  63. 63. Action Program: Broad & Specific Milestones Statement of performance & goals Statement of Benefits Resources Requested Specific Action Programs (7-9 Months) Broad Action Program (1-5 yrs)
  64. 64. Specific Action Program: Gain market leadership: A=Absolute First Priority, B=Highly Desirable, C=Desirable Marketing Chief of Staff October 2011 Marketing staff and external consultants 2 persons 200000 C 4. Improve market intelligence through marketing research efforts Marketing Manager June 2011 Marketing Organization 14 persons 1200000 B 3. Promotion based on rebates Marketing Manager September 2011 Advertising Department 2 persons 500000 A 2. Advertising Dealer Coordinator December 2011 Dealer coordination Department 14 persons 400000 A 1. Dealer training Responsibilities Scheduled Competition Manpower Requirements $ Cost Priority* Program Description
  65. 65. Trade-off relations and employee productivity
  66. 66. Dynamics in forward integration and backward integration in employee management : <ul><li>Bargaining power of the employees of PRAN-RFL Group. </li></ul><ul><li>Bargaining power of PRAN-RFL Group itself. </li></ul><ul><li>Trade-Offs stemming from Win-Win relations. </li></ul><ul><li>Outcome is employee productivity and achievement motivation. </li></ul>
  67. 67. Dynamics in forward integration and backward integration in employee management … .. .. <ul><li>Bargaining power of employee. </li></ul><ul><ul><li>Forward integration </li></ul></ul><ul><ul><ul><ul><ul><li>Present role & responsibilities in the company </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Power & politics </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Representation. </li></ul></ul></ul></ul></ul><ul><ul><li>Backward integration </li></ul></ul><ul><ul><ul><ul><ul><li>Lucrative job opportunity </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Mobility of manpower </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Statutory Law. </li></ul></ul></ul></ul></ul>
  68. 68. Dynamics in forward integration and backward integration in employee management … .. .. <ul><li>Bargaining power of PRAN-RFL Group. </li></ul><ul><ul><li>Forward integration </li></ul></ul><ul><ul><ul><ul><ul><li>Company Image </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Durable & legible company </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Competitive edge. </li></ul></ul></ul></ul></ul><ul><ul><li>Backward integration </li></ul></ul><ul><ul><ul><ul><ul><li>Structured & systematic organization </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Opportunities of career development </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Good time & mode of payment. </li></ul></ul></ul></ul></ul>
  69. 69. Business environment and employee productivity
  70. 70. Company rules, law and policy: <ul><li>Employee service rules & policy embedded in “Employee Service Book” of the company. </li></ul><ul><li>Statuary law of the country. </li></ul>
  71. 71. Action programs as per the changes of internal and external environment to eradicate the system losses of employee productivity.
  72. 72. Action programs for internal environment: <ul><li>Maintain R&D and Technical standing above leading competitor level. </li></ul><ul><li>Improve an automation program leading toward significant increases in labor productivity. </li></ul><ul><li>Improve the distribution network countrywide and worldwide, developing a sense of priorities according to the attractiveness of each individual market. </li></ul>
  73. 73. Action programs for internal environment … … .. <ul><li>Reduce manufacturing costs through proper rationalization in every stage of the production process. </li></ul><ul><li>Increase number of qualified managers via proper hiring, developing, and promotional procedures. </li></ul><ul><li>Maintain market positioning by the allocation of financial and human resources compatible with competitive challenges. </li></ul>
  74. 74. Action programs for external environment: <ul><li>Profit from a possibly temporarily favorable currency situation by taking advantages of strong purchasing power, in terms of: </li></ul><ul><ul><li>Switching from national to foreign suppliers. </li></ul></ul><ul><ul><li>Engaging in an active acquisition of manufacturing facilities abroad. </li></ul></ul>
  75. 75. Action programs for external environment … … .. <ul><li>Set up a task force to study the legal, financial, and sales implications of currency transfer. </li></ul><ul><li>Use local manufacturing, distribution, and marketing facilities wherever possible, seeking partnerships to neutralize trends toward nationalization. </li></ul><ul><li>Stockpile raw materials on critical items, and firm up long term contracts for the procurement of those raw materials, taking advantages of the temporary strong currency situation. </li></ul>
  76. 76. Action programs for external environment … … .. <ul><li>Address the issue of manpower shortage by: </li></ul><ul><ul><li>Internal development of qualified manpower at all levels. </li></ul></ul><ul><ul><li>Seeking an increased government support. </li></ul></ul><ul><li>Establish the base for a systematic information gathering conducive toward a better understanding of competitors and market opportunities. </li></ul>
  77. 77. Delegation of Authority & Responsibility: <ul><li>Reporting Bosses will shoulder the whole responsibilities--so subordinates cannot be more smart that the Boss. </li></ul><ul><li>For this, every Manager should spend at least two hours in study of Books relating to managerial skill development and soft skill development to enhance the productivity of whole team. </li></ul>
  78. 78. Competitiveness and employee productivity: <ul><li>Competitive position </li></ul><ul><li>Competitive performance </li></ul><ul><li>Competitive profile </li></ul><ul><li>Competitive strength </li></ul><ul><li>Competitive leadership </li></ul>
  79. 79. Competitive position and employee productivity: <ul><li>Measuring performance in all of departments of company according to the eight key result areas. </li></ul>
  80. 80. Key Result Area & Performance Measurements: -All previous factors have short and long-term dimensions. Balance between short & long-rang goals -Surveys Public responsibility -Statistical indicators -Periodic employee surveys Employee attitudes -Development programs -Inventory of portable people -Effectiveness of program implementation Personnel Department -Competitive standing -R&D and innovation in Engineering, Manufacturing, and Marketing Product leadership Output (value added)/Input (Payroll+Depreciation) Productivity Market share Market position Residual Income Profitability Performance Measurement Area
  81. 81. Competitive performance and employee productivity: <ul><li>Designing for top-management information system. </li></ul><ul><li>The limited number of areas in which results, if the are satisfactory, will ensure successful competitive performance for the organization. </li></ul>
  82. 82. Critical success factors: Job cost budget/actual Performance to budget on major jobs -Turnover, absenteeism, etc. -Informal feedback. Company morale Bid profit margin as ratio of profit on similar jobs in this product line Profit margin on jobs -Company’s year of experience with similar products. -New or old customer -Prior customer relationship Risk recognition in bids and contracts -Change in market share (each product) -Growth rates of company markets Market success -Orders/Bids ratio - Customer ‘perception’ interview review Technological reputation with customers Price/Earnings ratio Image in financial markets Prime measures Critical success factors
  83. 83. Fig: The Data Cube Division A Division A Division A Consolidated International Division D Division C Division B Division A Business variables Business units Competitors Customers Industries Past Time Future
  84. 84. The Data Cube: <ul><li>A framework for the development of an Executive Information System (EIS). </li></ul><ul><li>This system is supported by a common core of data, identified as “data cube”. </li></ul>
  85. 85. Competitive profile and employee productivity:
  86. 86. Competitive profile: *=current, o=future, ++=extremely strong, +=strong, E=even, --=extremely weak, -=weak * * * o * o* * o o * o* * o o o o* o Location and number of plants Sizes of plants Ages of plants Integration Human resources Logistics of management systems Quality Procurement Capacity utilization Unionization Manufacturing ++ + E - - - Factors Area
  87. 87. Competitive profile… … .. *=current, o=future, ++=extremely strong, +=strong, E=even, --=extremely weak, -=weak Location & number of sales offices Location & number of warehouses Human resources Distribution system Market research Price competitiveness Breadth of product line Brand loyalty Sales for productivity Distribution & service productivity Business image Marketing ++ + E - - - Factors Area
  88. 88. Competitive profile… … .. *=current, o=future, ++=extremely strong, +=strong, E=even, --=extremely weak, -=weak R&D Facilities Human resources Development of new products R&D funding Patents R&D and Engineering ++ + E - - - Factors Area
  89. 89. Competitive profile… … .. *=current, o=future, ++=extremely strong, +=strong, E=even, --=extremely weak, -=weak Location of corporate headquarters Management competence Planning & control systems Reward system Delegation of authority Fitness of organizational culture & values Corporate image Quality of corporate staff Capability of negotiating with the environment Financial strength Management ++ + E - - - Factors Area
  90. 90. Competitive profile… … .. *=current, o=future, ++=extremely strong, +=strong, E=even, --=extremely weak, -=weak Market share Sales growth Return on investment Return on equity Asset turnover Financial results ++ + E - - - Factors Area
  91. 91. Competitive profile… … .. *=current, o=future, ++=extremely strong, +=strong, E=even, --=extremely weak, -=weak Product mix Quality Price Image Product lines ++ + E - - - Factors Area
  92. 92. Competitive strength and employee productivity:
  93. 93. Competitive strength: √ √ OVERALL ASSESSMENTS √ √ √ √ √ √ √ √ √ √ √ √ Manufacturing Marketing R&D and Engineering Management Financial results Product lines High Medium Low High Medium Low Future Current Areas
  94. 94. Competitive leadership and employee productivity:
  95. 95. Competitive leadership: <ul><li>Ways to achieve competitive leadership: </li></ul><ul><ul><li>achieving full integration </li></ul></ul><ul><ul><li>modernizing plants </li></ul></ul><ul><ul><li>improving manufacturing process efficiencies </li></ul></ul><ul><ul><li>locating plants where there are tax advantages of low energy costs. </li></ul></ul>
  96. 96. Employee Citizenship Behavior: <ul><li>VERY IMPORTANT is to reconsider, rebuild and redesign of the mechanism to developing the loyal employees. </li></ul>
  97. 97. Motivation and Reward system in the strategic mode: Observed group performance Observed individual performance Period of observation Short term Long term Fig: Determinants of managerial compensation Stock Options Bonus Incentive Plan Salary Increase
  98. 98. Employee Citizenship Behavior: <ul><li>VERY IMPORTANT is to reconsider, rebuild and redesign of the mechanism to developing the loyal employees. </li></ul>
  99. 99. Employee Retention Parameter: <ul><li>Strong recruitment policy & process headed by nationally & internationally renowned leader & recruitment specialists. </li></ul><ul><li>Justice & judgment in yearly appraisal based on continual information flow process and study. </li></ul><ul><li>Justification unfolded in the eye of employee in the wake of punishment, reward & recognition. </li></ul><ul><li>“ Failure is the pillar of success” is believed to be proven slogan for next appraisal. </li></ul>
  100. 100. Employee Retention Parameter… .. .. <ul><li>Performance & ability based employee study, training, development and positioning process followed by transparent & valid checklists. </li></ul><ul><li>At least 5 yrs ahead of future projection at staffing of new projects. </li></ul><ul><li>Strictly success & responsibilities follow-up count-down and corrective actions. </li></ul>
  101. 101. ROADMAP: Position of PRAN-RFL Group <ul><li>At Budgeting and financial control stage; </li></ul><ul><li>Huge growth opportunity; </li></ul><ul><li>Huge employment </li></ul><ul><ul><li>Unpredictable of manpower need; </li></ul></ul><ul><ul><li>Manpower planning is impossible; </li></ul></ul><ul><ul><li>Cost & risk of employment is huge. </li></ul></ul><ul><li>It will continue until growth rate is resilient to 10% & below. </li></ul>
  102. 102. ROADMAP: Position of PRAN-RFL Group <ul><li>So it is imperative to ensure the proper utilization of experience curve. </li></ul><ul><li>Otherwise the employee will use the PRAN-RFL GROUP as jumping pad and company will bear the cost & risk of hiring the experience & JUST employee. </li></ul>
  103. 103. ROADMAP: Position of PRAN-RFL Group <ul><li>As a result, uncontrolled employee retention problem will worsen to double in addition to the cost & risk of huge employment and unpredictable of manpower need. </li></ul>
  104. 104. ROADMAP: Position of PRAN-RFL Group <ul><li>So challenges is two-facets: </li></ul><ul><ul><li>One: Control the employee lower retention rate; and </li></ul></ul><ul><ul><li>Two: Increase productivity of employee to two times. </li></ul></ul>
  105. 105. Recommendation & findings: <ul><li>Follow-up of employee retention parameters. </li></ul><ul><li>No employee should feel that HE/SHE is not getting as much as he/she invests him/herself to organization compare to others. </li></ul><ul><li>Put to strong resistance against “MISRECRUITMENT.” </li></ul><ul><li>Come down to the cost & risk of huge employment to a minimum level. </li></ul>
  106. 106. Thanking with gratitude