As a student of the University of Washington I was instructed to present an evaluation project proposal for a MIS (Management of Information Systems) course.

1. Business Value:
Improving Employee Efficiency
Project 6 – BBUS 330 – Fall 2015
Team 1: Megan McDaniel, Karishma Sharma, Derek Dougan, Zach Baker

2. Executive Statement
Business Objective: Achieve a higher level of operational excellence by
improving employee productivity.
Business Improvement Needs:
> Improve Morale
> Increase Profitability
> Reduce Costs
> Improve Competitive Advantage
Implementation (Investment) Cost: $4.3 million
5 Year Savings: $7.2 million
5 Year Costs: $14.1 million
Net Loss: $6.9 million
Recommendation: Do not implement a rewards system

3. What is the problem?
Employee Productivity is Below Industry Average
What causes the problem?
> Lack of time management and activity controls
> Poor leadership/training
> Low morale
> Bad hiring decisions
> Obsolete/insufficient technology
What causes the problem?
> Change resistant culture
> Lack of understanding
> Too busy or consumed by current tasks
> Lack of expertise

4. Alternative Analysis
Employee Monitoring SystemAlternative 1
• Creates privacy conflicts
• Lowers employee morale
Time & Task AnalysisAlternative 2
• High internal implementation costs
• UW professional staff are tasked with diverse responsibilities
Rewards ProgramAlternative 3
• Creates a competitive environment
• High yearly service costs

5. Rewards Program
What is a rewards program?
Incentives employee’s to work outside of their job description an
help other staff with monetary rewards.
> Merchandise
– Electronics
– Video Games
– Home & Garden
– Books
– Fashion & Accessories
> Gift cards
> Certificates
> Travel & Experiential

6. S.W.O.T. ANALYSIS – REWARDS PROGRAM
Strengths:
• Increases productivity
• Enhances performance
• Contributes to employee retention
• Easy way to influence specific behaviors
• Promotes good working relationships
between management & employees
• Improves morale and motivation
Weaknesses:
• Contrary to teamwork
• Implementation comes with costs,
time and internal efforts to set-up and
track rewards
• Can de-motivate employees
• Creates competitive conflict
Opportunities:
• Promotion identifier
• Recruiting tool
Threats:
• Over time could become an entitlement
rather than incentive
• Eventually becoming de-motivating
• Potential to over-look members within
a successful group

7. Transformation Challenges
People Issues
> Reward actions performed outside of regular job descriptions to avoid
incentives becoming entitlements
> Recognize all members within a team effort to avoid de-motivating staff or
making them feel unappreciated
> Avoid a sales based incentive program to keep away from “shark”
environments promoting hostility
Organizational Issues
> Provide unique feedback rather than a scripted thank you to build an
authentic employee to employer work environment
Technical Issues
> Ensuring rewards are correctly provided to staff in a timely manner through
the system provided

8. Long Term (People) Challenges

9. Business Value - Cost
Year 1 Year 2 Year 3 Year 4 Year 5 Totals
Hardware -$36,225 $0 $0 $0 $0 -$36,225
Software and Prizes -$2,017,275 -$2,057,640 -$2,098,785 -$2,140,775 -$2,183,545 -$10,498,020
Maintenance -$280,517.76 -$288,933.29 -$297,601.29 -$306,529.33 -$315,725.21 -$894,104
Training Year 1 -$1,950,239.40 $0 $0 $0 $0 -$1,950,239
Training Ongoing $0 -$40,194 -$42,200 -$44,358 -$46,538 -$173,292
Total Net Loss -$4,284,257 -$2,386,768 -$2,438,586 -$2,491,663 -$2,545,809 -$13,551,880
Financial Considerations:
Hardware Costs (23 departments * $525 per device * 3 campuses = $36,225)
Software & Prizes Costs (year 1) ($65/employee * 31,035 employees = $2,017,275)
Maintenance ($31/hour * 8 hours/day * 12 days/year * 23 department heads * 3
campuses = $205,344)
Training (year 1) ($31/hour * 31,035 employees * 2 hours/employee = $195,0239)
Training (ongoing) ($32.36/hour * 621 employee/year * 2 hours/employee = $40,194)

10. Business Value Opportunities:
Overview
Year 1 Year 2 Year 3 Year 4 Year 5
Primary Data
# of Employees 31,035 31,656 32,289 32,935 33,593
Cost Avoidance
Productivity Loss 3% 3% 3% 3% 3%
Hours Lost in a Year 80,691 82,306 83,951 85,631 87,342
Avg. Hourly Wage $31.42 $32.36 $33.33 $34.33 $35.36
Cost to Replace $2,535,311 $2,663,623 $2,798,392 $2,940,010 $3,088,711
% Loss Yearly 12.5% 10% 7.5% 6% 5%
Total $316,914 $266,362 $209,879 $176,401 $154,436
Cost Reduction
Hours Not Worked 8,069,100 6,584,448 5,037,084 4,110,288 3,493,672
Days Not Worked 42,027 34,294 26,235 21,408 18,196
Avg. Hourly Wage $31.42 $32.36 $33.33 $34.33 $35.36
Total $1,320,475 $1,109,843 $874,498 $735,003 $643,481
Net Savings $1,637,388 $2,034,650 $1,462,158 $1,158,021 $972,601

11. Net Business Value
Year 1 Year 2 Year 3 Year 4 Year 5
Total Yearly
Savings $1,637,388 $2,034,650 $1,462,158 $1,158,021 $972,601
Total Yearly
Costs
-$4,284,257 -$2,386,768 -$2,438,586 -$2,491,663 -$2,545,809
Total Yearly
Net Loss -$2,646,869 -$352,118 -$976,428 -$1,333,642 -$1,573,208

12. Hockey Stick - Recommendation

13. LESSONS LEARNED
> It’s challenging to measure employee productivity levels in large
organizations with diverse positions with varying responsibilities.
> The size of an organization greatly influences the potential threats
they face in implementing a change. Larger organizations for
example require greater attention to avoid potential back lash from
unsatisfied employees.
> It takes strong leaders and thorough communicators to facilitate
change within a company. They face challenges in shifting the
company culture and educating employees in the benefits of
change.

14. REFERENCES
Sanchez, W. (n.d.). The Best Employee Monitoring Software of 2015. Retrieved November 10, 2015,
from http://employee-monitoring-software-review.toptenreviews.com/
Morgan, K. (n.d.). Types of Employee Monitoring in the Workplace. Retrieved November 10, 2015,
from http://www.stfrancis.edu/content/ba/ghkickul/stuwebs/btopics/works/monitoring1a.htm
Spector 360 Recon. (n.d.). Retrieved November 22, 2015,
from http://www.spectorsoft.com/
NetVizor Software Helps Resolve Most Employee Problems! (n.d.). Retrieved November 22, 2015,
from http://www.netvizor.net/
StaffCop. (n.d.). Retrieved November 22, 2015,
from http://www.staffcop.com/
The Best Employee Monitoring Software of 2016. (n.d.). Retrieved November 22, 2015,
from http://employee-monitoring-software-review.toptenreviews.com/
Employee Monitoring: How Far is Too Far? (n.d.). Retrieved November 22, 2015,
from http://www.innovativeemployeesolutions.com/articles/employee-monitoring-how-far-is-too-far/
G. Mujtaba, B. (n.d.). The Journal of Applied Management and Entrepreneurship. Retrieved November 22, 2015,
from http://www.business.nova.edu/JAME/articles/employee-monitoring.cfm

15. REFERENCES
Schulman, M. (n.d.). Little Brother is Watching You: Employee Monitoring. Retrieved November 22, 2015,
from http://www.scu.edu/ethics/publications/iie/v9n2/brother.html
Richmond, R. (2012, May 31). 3 Tips for Legally and Ethically Monitoring Employees Online. Retrieved November
22, 2015, from http://www.entrepreneur.com/article/223686
Yerby, J. (2013). Legal and ethical issues of employee monitoring. Retrieved November 22, 2015,
from http://www.iiakm.org/ojakm/articles/2013/volume1_2/OJAKM_Volume1_2pp44-55.pdf
Benefits of Using Employee Monitoring Software. (2012, February 6). Retrieved November 22, 2015,
from http://www.geekbusiness.com/2012/11/benefits-of-using-employee-monitoring-software/
Alaniz, R. (2008, July 1). The Advantages and Pitfalls of Employee Monitoring. Retrieved November 22, 2015,
from http://www.fleetfinancials.com/article/story/2008/07/the-advantages-and-pitfalls-of-employee-monitoring.aspx
White, F. (2015, November 8). Employee Monitoring - Keylogger | Mobile Phone Spy. Retrieved November 22, 2015,
from http://keyloggers.mobi/employee-monitoring/
Employee Monitoring: Are You Crossing The Line? (2014, January 14). Retrieved November 22, 2015,
from http://good.co/blog/2014/01/14/employee-monitoring-crossing-line/
Patrick, E. (n.d.). Society for Human Resource Management. Retrieved November 22, 2015,
from http://www.shrm.org/publications/hrmagazine/editorialcontent/pages/cms_006514.aspx

16. REFERENCES
Study: Americans Spend Up To 80 Percent Of Internet Time 'Cyberloafing' (2013, February 5). Retrieved November
22, 2015, from http://stlouis.cbslocal.com/2013/02/05/study-americans-spend-up-to-80-percent-of-work-time-
cyberloafing/
Moffa, M. (2013, February 6). Cyberloafing: Really an Epidemic? Retrieved November 22, 2015,
from https://www.recruiter.com/i/cyberloafing-really-an-epidemic/
Lim, V. (2009, September 16). Cyberloafing at the workplace: Gain or drain on work? Retrieved November 22, 2015,
from http://bizfaculty.nus.edu/media_rp/publications/WLzRE1422936695.pdf