South-Western - Management  
Today's Mantra for Employees: More, More, More!
Topic Job Design
Key Words Productivity
News Story

Many companies are feeling the pinch of competition. Rather than cost cutting, cost containment is the norm. To remain competitive it is not feasible to raise prices, so they are looking to their employees to produce more.

W.R. Grace has 3400 employees nationwide and has been using productivity initiatives to help them stay ahead of inflation. One successful change was the Rapid Close Project which took the reconciliation process in the firm's 50 person accounting department from eight days each month to three days. They saved a total of 3500 people days. Another initiative, called the Invoice Accuracy Project, reduced the error rate in invoices by analyzing time and money spent correcting errors.

Regardless of the technique, corporations are boosting productivity by expecting their workers to do more. It seems to be working - productivity among American workers is growing at a pace not seen since the Korean War era. However, the push for productivity is backfiring in some instances.

Sears, Roebuck and Co. sought to boost the number of visits by repair workers each morning. The result was that employees were asked to start their day from home via a hand held computer. Rather than loading the parts from a company loading dock, Sears sent the parts to the home of the employee and required them to load the trucks on their own time. A class-action suit was filed in 2001 seeking unpaid overtime to the retailer's repair-product employees. The suit alleges that Sear's benefited from the productivity gains by asking workers to perform duties off the clock.

Small businesses have more success pushing workers to work more hours during lean times than large companies, but only for a short time. Otherwise employees will experience burnout.

Other companies have had similar successes using different productivity methods. Those who shared the wealth of their corporate successes, and listened and implemented employees' suggestions for productive change, are reaping the results. Along with better productivity numbers they have employees who feel appreciated and motivated.

Pushing employees during hard times may be a method of survival. The message is to treat employees with respect, acknowledge their sacrifice and to reward them.

Questions
1.

Do pressures on cost containment work against effective management of people? Why or why not?

2.

The article refers to a program called Six Sigma. Go to Sixsigma.com and write the description of Six Sigma. What are the three distinct levels of Six Sigma?

3.

Why is it sometimes easier for small companies to get short term productivity gains from employees that it is for large companies?

Source "Today's Mantra for Employees: More, More, More!" Workforce Management, May 2004, pp. 41-44.
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