duktiviti - Ilmu Online

DUKTIVITI
BIL. 4, JUN, 1988
PUSAT DAYA PENGELUARAN NEGARA
ISSN 0127-8223
PRODUCTIVITY THROUGH PEOPLE AND INNOVATION
— The Success of Public Bank
By
Ir. Hj, Arshad Hj. Marsidi
Director of National Productivity Centre, Petaling Jaya, Malaysia)
(Page 2)
MEMAHAMI KONFLIK DI TEMPAT KERJA
— Suatu Analisa
Oleh
Sabitha Marican
(Pensyarah Universiti Utara Malaysia)
(Page 23)
ASSESSMENT OF RELATIONSHIP BETWEEN
PRODUCTIVITY AND PROFITABILITY:
An Indian Example
By
R.P. Mohanty
S.C. Rastogi
(Prof, at National Institute for Training Engineering, Bombay, India)
(Page 43)
THE DELTA TECHNOLOGIES:
A Holistic Approach to Productivity Improvement
By
Dr. D.H. Groberg
(President, International Management Consultants, Salt Lake City, USA)
(Page 63)
PRODUCTIVITY:
A Bibliography
By
Annie Thomas
(Librarian, National Productivity Centre, Petaling Jaya, Malaysia)
(Page 76)
Serial
0000036157
JURNAL Procluktiviti - [Serial].
jurnof
HT1V1T1
Penerblt/Pu blisber
Pusat Daya Pengeluaran Negara
(National Productivity Centre)
Peti Surat 64,
Jalan Sultan 46904
Petaling Jaya, Malaysia
Tel 7557266
Penasihat/Advtser
It Haji Arshad Haji Marsidi
(Pengarah)
Pengarang/Erfzfor
Mah Lok Abdullah
Pen. Pengarang/5u& Editor
Sujaidi Dasuki
Ahli-ahli/A/em her s
Ha|i Ahmad Berek
Haji Ruslan Khatib
R Sugunarajah
Suhaimy Abdul Talib
Junna Abd Hamid
Nor Aim Amdzah
Ab Rahim Yusoff
Suhaimi Hamad
Pau?i Hanipi
Prema Kuman
Kami mcngalu-alukan sumbangan rencana untuk dimuatkan di dalam |urnal mi 'Jurnal
Produktiviti' ditcrbitkan enam bulan sekali, rnenampung semua aspek ekonomi dan
pengurusan serta lam-lain bidang yang ada hubungannya dengan komep produktiviti
Rencana-rencana yang tersiar akan dibenkan honorarium dan tidak semestinya merupakan
pendapat PDPN
'Jurnal Produktiviti' diterbitkan oleh Pusat Daya Pengeluaran Negara
(Kementerian Perdagangan dan Penndustnan) Peti Surat 64 Jalan Sultan,
46904 Petaling Jaya Selangor Malaysia Telefon 7557266 (15 tahan),
Teleks MA 36312 PDPN Telegram Dayapcng
Dlcetak oleh Mas'adah (M) Sdn Bhd untuk JPN Kuala Lumpur
editorial
KONFLIK DALAM ORGANISASI
Konflik biasanya terjadi di mana adanya interaksi sesama manusia.
Tetapi ianya janganlah dianggap sebagai suatu keadaan kusut yang
berterusan di antara individu-individu yang terlibat.
Konflik juga bukanlah suatu gejala buruk di dalam organisasi,
malahan setengah konflik menjadi 'hikmah' di dalam proses mengemaskinikan sesuatu sistem pengurusan.
Memanglah benar babawa tidak ada masalah yang tidak boleh
diselesaikan. Bagaimanapun konflik yang kita maksudkan di sini ialab
masalab dalaman yang lebib banyak dipengaruhi oleh sifat-sifat egoistik,
emosional dan sentimen. Dalam lain perkataan, penyelesaian terhadap
konflik yang terjadi di antara individu memerlukan kepada kesedaranra-
sional di mana penekanan barus diberikan terhadap koreksi diri dan
pengurusan terhadap diri sendiri.
Di sinilabpentingnya seorangpengurus personnel khususnya, dapat
mengenalpasti empat unsurpenting di dalam diripekerjanya yang sering
menimbulkan konflik di dalam organisasi. Keempat-empat unsur itu ialab
keilmuannya, kepakarannya, sikapnya dan sifatnya terhadap kerja. Sebab,
ada orangyang mempunyai ilmu di dalam sesuatu bidang, tetapi tidak
mempunyai kepakaran untuk melaksanakannya. Ada pula yang mempunyai kedua-dua keilmuan dan kepakaran, tetapi menyimpan sikap dan
sifat yang keji terhadap kerja, pekerja dan organisasi. Maka keaua-dua
personality itu bukan saja merugikan organisasi malahan masyarakat
lingkunga nnya.
Pekerja datang dan pergi dengan membawa berbagai pengetahuan
danpengalaman kepada organisasi. Namun hakikat semulajadi manusia
ingin melakukan sesuatu yang baik. Tetapi di dalam proses interaksi,
pekerja sering dipengarubi oleh ego, emosi dan sentimen yang kadangkadang melebihi dari ilmu dan pengetahuan yang ada padanya. Sebab
itulah ada orangyang berilmu, tetapi keilmuannya tidak boleh dikongsi
oleh organisasi. Sebaliknya ada pula orang yang tidak berilmu tetapi
dianggap pakar oleh organisasi sehingga pekerja lain merasa lebib tabu
dari penyelianya.
Seorangpenguruspersonnelyangpeka kepada persekitarannya bukan
sekadar menjadikannya sebagai 'kajian tees'yang hanya berpuasbatijika
masalah yting dibadapi itu selesai; malahan akan melibatnya sebagai
makmal sumber tenaga, yang dengannya melahirkan formula-formula
baru bagt diterapkan ke dalam sistem pengurusan yang kemudiannya
boleb dikongsi oleb semua golongan pengurus. Tegasnya, setiap
penyelesaian mestilab mengambilkira masalah dan kepentingan semua
babagian, supaya penemuan-penemuan baru yang diperoleh itu dapat
dilaksanakan secara menyelurub menurut konsep kaizen yang menganggap bari ini mesti lebib baik dari semalam dan esok mesti lebib
cemerlang dari bari ini.
Rentana 'Memahami Konflik Di Tempat Kerja — Suatu Analisa 'yang
kamisiarkan dikeluaran ini merupakan perintis ke arab rencana-rencana
yang bertemakan sedemikian, Kita mengbarapkan lebib banyak lagi
rencana-rencana dari para penults, cendekiawan, ilmuan yang peka dan
'observant' terbadap perilaku dan trend pekerja.
in
BIODATA
Ir. Hj. Arshad Hj. Marsidi is currently the Director of
National Productivity Centre (NPC), Petaling Java,
Malaysia. He joined NPC as a Training & Investigating
Officer in 1968 and was appointed as Deputy Director
in 1973 and Director of the Centre in 1981. Prior to
joining the NPC he was with the mining industry where
he obtained practical working experience after graduating as a Production Engineer. His post-graduate
qualifications are in Management Consultancy and
Quality Control. He has wide-ranging experience in
management and supervisory development, research
and consultancy in the public and private sectors. He
has presented numerous papers at the national as well
as international levels, published articles in both local
and foreign journals and chaired several national
and international conferences on productivity related issues.
For his invaluable contribution to the nation he was awarded thhe K.M.N. (19^9} and
J.S.M. (1985) by His Majesty the King*.
This paper was presented by Ir. Hj. Arshad Hj. Marsidi at the 6th World Productivity
Congress, Montreal, Canada. The Congress took place between September 25—28, 1988.
The paper is reproduced here as the "Jurnal" feels it would be of interest to its readers as
it deals with productivity improvement in a service industry.
PRODUCTIVITY THROUGH
PEOPLE AND INNOVATION*
— THE SUCCESS OF PUBLIC BANK
BY
Ir Hj Arshad Hj Marsidi
(Director of National Productivity
Centre)
"The success of any organisation depends on the ability of the people in the organisation to work in unison towards achieving its Corporate
Mission. In the Public Bank Group the Corporate Mission is "To be the
most efficient, profitable and respected financial supermarket in the country". It is a mission that is perpetual and does not allow any part of the
organisation to stop and rest on its laurels. The mission calls for a continuously strong sense of unity, destiny, commitment and professionalism
among the management and staff of the Bank in order to draw out their
sustained enthusiasm, endless creativity and tireless energies. The staff
therefore need to be made constantly aware of the corporate mission and
to feel and see that any contribution by them for the organisation is also
an added boost to their self-esteem.
In short, it is only with Excellent input and efforts of the staff that
we beget Excellence."
10
BACKGROUND OF THE COMPANY
Public Bank founded by a Malaysian, Tan Sri Dato' Teh Hong Piow,
the then youngest top executive in the banking industry, opened its
doors to the public on 6 August 1966. The objective was to play its
role as a partner in the development efforts of the nation. As a
full-fledged bank, it offers services ranging from savings to current
accounts, fixed deposits, remittances, foreign exchange, travellers'
cheques, safe deposit boxes, import, export and other banking
facilities, and above all loans to individuals and organisations.
From a humble beginning, with a paid-up capital of MR12.75
million, the Bank has become a force to be reckoned with. The
growth in the paid-up capital of the Bank was gradual during the
Sixties and Seventies. This trend, however, changed dramatically in
the Eighties. Today Public Bank boasts of a 28 times increase in
paid-up capital to MR357 million within 22 years.
Amongst domestic banks, Public Bank is ranked second in
terms of market capitalisation in the Kuala Lumpur Stock Exchange.
As at 2nd June 1988, Public Bank had market capitalisation of MR
1.71 billion.
Table 1.1 summarises the growth of Public Bank as seen from
the perspective of paid-up capital.
Table 1.1 — Public Bank: Paid-up Capital, 1966 — 1988
Year
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
Paid-up Capital
('000)
Year
12,750
16,000
16,000
16,000
16,000
16,000
16,000
16,000
16,000
16,000
16,000
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
Paid-up Capital
('000)
16,000
20,000
20,000
20,000
25,000
70,000
168,000
210,000
210,000
210,000
210,000
357,000
Source. Public Bank Berhad's Annual Report, 1966 — 1987
US$1 = MR2.656 as at 12 August 1988.
In keeping with the promise to assist in the development
efforts of the nation, Public Bank has brought banking needs to the
suburban and rural areas with at least one branch in each of the
fourteen States in Malaysia within 22 years. Today, Public Bank
has a Pan-Malaysian branch network totalling 64. The inclusion of
its finance company, Public Finance, a wholly-owned subsidiary
would widen the Group's branch network to 120.
The Bank also has under its wings wholly-owned subsidiaries
involved in stockbroking, leasing and factoring services.
The Public Bank Group is currently served by 3,493 employees
working at headquartes in Kuala Lumpur, branches and a representative office in Hong Kong.
2.0
FINANCIAL PERFORMANCE AND PROFITABILITY
Public Bank is one of the most successful locally incorporated
banks in Malaysia. Being a financial institution, the performance of
Public Bank has to be assessed in terms of its financial growth. This
growth is reflected in a significant manner in the status of its deposits, assets, loans and advances. Together, these three indicators
may be used as criteria to assess the state of health of a financial
institution.
3
Table 2 1 summarises the overall growth for Public Bank in
relation to deposits, assets, loans and advances for the period 1967
to 1987 as well as the average annual growth rates for the three
financial indicators during the same period
Table 2.1 — Summary of growth rates of Public Bank, 1967 to 1987
Overall Growth
1967 — 1987
(No. of Times)
Total Deposits
Total Assets
Total Loans and Advances
121 3
973
1336
Average Annual
Growth (Percent)
29 1
276
305
For the period 1967 to 1987, total deposits, total assets, total loans
and advances increased by 121 3 times, 97 3 times and 133 6 times while
their average annual growth was 29 1%, 27 6% and 30 5% respectively
To assess Public Bank's performance in relation to other banks, a comparison is made and Table 2 2 summarises the difference'between Public
Bank and Domestic Banks in relation to the three growth indicators
Table 2.2 — Summary of Difference In Growth Between Public Bank and
Domestic Banks, 1967 to 1986
Average Annual Growth,
1967 — 1986
(Percent)
Overall Growth,
1967 — 1986
(No. of Times)
Deposits
Assets
Loans
Public
Bank
(1)
Domestic
Banks
d)-(2)
%
Public
Bank
(2)
(3)
1086
85 7
47 7
227 7
162 7
143
527
805
1755
(4)-(5)
%
(4)
Domestic
Banks
(5)
300
284
324
229
236
266
131 0
1203
121 8
(6)
Table 2 2 indicates that the financial growth of Public Bank
surpassed that of the average annual growth of the Domestic Banks
for the period 1967 to 1986 on each of the three financial criteria
used For deposits, the average annual growth surpassed was 31%,
for assets, 20 3%, and for loans and advances 21 8%
Through the years the financial performance of the Bank can
be gauged by its profitability trend One significant measure of
profitability is Return on Assets which is a ratio of Net Profits to
Total Assets
. 4
Table 2.3 shows the percentage return on assets of Public Bank
compared with the average from five other prominent banks in the
country.
Table 2.3 — Percentage Return on Assets of Public Bank and (he Average of
Five Other Prominent Banks (excluding Public Bank)
Year
Public Bank
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
Average
1.67
1.87
1.80
1.66
1.34
1.61
1.57
1.97
1.98
2.11
1.92
1,04
0,29
0.40
1.52
Average of 5 Other Prominent
Banks (Excluding Public Bank)
1.31
1.67
1.57
1.38
1.25
1.06
0.86
0.84
0.85
0.90
(0.44)
0.28
(0.32)
(3-06)
0.58
Thus, on the basis of profitability measured by return on assets,
Public Bank was considerably superior to the other five prominent
locally incorporated banks.
3.0 INNOVATION
3.1 Entrepreneurship and Creativity
As in many successful organisations, the success story of
Public Bank is closely tied to the entrepreneurship of one
man. He is none other than its President and Chief Executive
Officer, Tan Sri Dato' Teh Hong Piow, a man of vision, able
to perceive and recognise opportunities and capitalise on
them.
Innovation, a hallmark of entrepreneurship, in Public
Bank has centred on the nature or quality of services provided
to customers, and in the marketing of its services.
A continuous flow of creative ideas exist in Public Bank
and these ideas are transformed into action through achievements either in business or in social responsibility events.
In a competitive banking environment where discerning
customers can pick any financial institution to bank with and
where interest rates offerred by the banks are no longer
distinctly different, Public Bank recognised the fact that the
provision of financial services had to be superior in order
to gain a competitive edge.
3.2 Campaigns
To provide increasingly more courteous and efficient service
to the customers, the Bank in recent years aggressively launched courtesy and efficiency campaigns with the built-in
element of competition to encourage the staff to veer towards
the desired direction. Believing that technology would improve productivity and customer services, it has invested
heavily in the computerisation of banking services to speed
up and upgrade the provision of services to customers.
To reinforce its business campaign, Public bank developed
a new corporate slogan — "Public Bank Your Neighbourhood
Friend.' 1 This slogan is an innovative marketing strategy used
by the Bank in its advertisements in conjunction with its
branch opening. This slogan is aimed at projecting the Bank
as a 'people-oriented' organisation, one which is professional,
responsible, approachable, courteous, caring and dependable,
all virtues of a good corporate citizen.
3-3
The Spirit of Being The First
The belief in convenience banking was translated into reality
when Public bank introduced Automated Teller Machines
(ATM) and located many of them for the purpose of giving
maximum convenience to the customers. Such locations include supermarkets, office complexes and shopping centres.
Public Bank enjoys the reputation of being and the first
bank to bring banking to the customer's car window when it
installed an ATM at a petrol station in 1985.
It also scored another first when it became the first bank
to extend its ATM services to its wholly-owned subsidiary,
Public Finance in 1985. Public Bank was also the first domestic
bank to link up its computer centres in Peninsular Malaysia
with that in East Malaysia.
The Bank has progressed further with its enrolment as a
charter member of Malaysia's largest ATM network, Malaysian
Electronic Payment System (MEPS), a consortium formed by
five leading domestic banks to enable customers to have
access to over 300 ATMs throughout the country.
3.4 More Innovations
Other innovative business strategies introduced more recently
by Public Bank to attract deposits from customers include
the following:-
a) Hire Purchase for New Cars
Under this scheme, personal account holders (savings,
current and fixed) enjoy a preferential rate of interest
from the Bank's fully-owned subsidiary, Public Finance,
for the purchase of new cars.
b) Personal Accident Insurance
Under this scheme, free insurance cover is given for
personal savings account holders in the Public Bank
Group on a dollar to dollar basis subject to a maximum
of $50,000.
An innovative loan, Special Loan Scheme for Petty
Traders, was first introduced in 1985 by Public Bank in
response to a call from Government for the purpose of assisting
hawkers and small traders. Under this scheme, loans of between SI,000 and $2,000 up to three years would carry a
preferential interest rate of 10% annually on a monthly
reducing basis and the usual security requirement is dispensed
with although a guarantor is preferred.
Although the loans would not be profitable to the Bank
in the short run, however, it would help to build up long-term
goodwill with the customers.
Public Bank has also been particularly innovative in the
choice of items to promote the Bank. Public Bank has com-
missioned skilled craftsmen to design and produce songket
diaries, Malaysian wood carvings, silvercraft, songket and
batik, In addition to these local handicrafts, the Bank is
reputed to be the first financial institution in the country
to extend the practice of distributing "gift" envelopes to its
Malay and Indian customers during the Hari Raya and Deepa-
vali festivals respectively.
Innovation of a different nature is evident in the personnel practice of Public Bank. In its headquarters, 27% or
9 out of 33 of the Higher Management (managerial rank and
above) positions are held by female employees. In the private
sector corporate scene where the traditional prejudice against
women holding high positions is still strong, this practice of
Public Bank is certainly innovative.
Corporate Citizenship
Public Bank manifests its corporate citizenship role in many
spheres of civic activities The major ones include programmes in the educational, student adventure, professional,
cultural, academic/linguistic, welfare, community and environmental as well as in the sports arena
In April 1986, Public Bank pioneered the Student Adventure Project in collaboration with the Federal Territory Education Department, Radio Television Malaysia (RTM), Utusan
Malaysia and Express National Bhd
In keeping with national aspirations to promote racial
integration through outdoor activities as well as to instill the
spirit of adventure among schoolchildren, teams of students
were chosen with each team comprising 5 members, one from
each of the three major races to go on an inter-state tour
through hitchhiking Financial support and a complete set of
travel gear were given to the students for the duration of
the tour
In January 1985, Public Bank became the first financial
institution to appoint a full-time Resident artist reflecting its
positive role in the promotion of "local talents in art and
cultural matters"
The first ethno-botanic garden developed in 1985 in
Malaysia, located at the Karyaneka Garden in Jalan Raja Chulan
serves as a major tourist attraction in Kuala Lumpur Through
its financial contributions, Public Bank became the first bank
in the country to sponsor the development of an ethnobotanic garden
A direct comparison of Public Bank's record in terms of
corporate citizenship with those of other corporate entities in
Malaysia is unfortunately not possible owing to the absence of
such research which focuses on the performance of individual
companies However, on the basis of an existing work on
corporate social responsibilities by Teoh Hai Yap and Thong
Tin Sin, Gregory entitled, "An Empirical Research on Cor-
porate Social Responsibilities Undertaken by Malaysian Companies , Dr Doh Joon Chien of University Malaya concluded
that the corporate citizenship role of Public Bank has been an
outstanding one He further commented that, "In a developing country, like Malaysia, business is not under as much
pressure for social responsibility as in the West Against this
background, Public Bank deserves to be congratulated for its
leadership role in corporate citizenship. Thus we have in
Malaysia our example of business with a social conscience."
3.6 Fitness and Productivity
The Public Bank Group believes that fitness and productivity
go hand-in-glove. In March 1984, the Group became the first
bank in the country to have a Health and Fitness Centre near
its Headquarters for its staff. The centre is fully equipped with
treadmills, cycles, rowing machines, belt massages, slimmer
rollers and an eleven-station sports trainer.
To encourage its sportsmen and sportswomen to develop
their full potential, Public Bank was the first to launch a Sports
Training Assistance Scheme for its staff in July 1984. Under
this Scheme the selected athletes were given monthly financial
subsidies to cover food, equipment and travel.
4.0
THE COMPANY'S CORPORATE PHILOSOPHY
To repeat, the Public Bank Group's corporate mission is "To be the
most efficient, profitable and respectable financial supermarket in the
country."
This clear sense of mission which is well communicated to all levels
of staff, provides the framework to steer the company through its growth
and development.
The corporate mission reflects all the positive attributes, such as a
strong sense of unity, destiny, commitment, professionalism, respon-
sibility, urgency and pride that require to be imbibed in every member
of the management and staff in order to draw out their best to rise
above mediocrity to enable them to reach out for excellence in their
performance.
In addition to this corporate mission, Public Bank has a written
corporate philosophy which highlights the Bank's attitude towards it*
customers, its employees, the community it serves and its shareholders'.
This corporate philosophy has been well-communicated and since
1982, has been documented in every issue of the Public Bank Annual
Report.
The philosophy depicts the Bank as a caring, progressive and resporv
sible organisation as visualised below:PUBLIC BANK CARES ......
FOR ITS CUSTOMERS
by providing the most courteous and efficient service in every aspect
of its business.
by being innovative in the development of new banking facilities.
FOR ITS EMPLOYEES
by promoting the well-being of its staff through attractive remuneration
and fringe benefits.
by promoting good staff morale through proper staff training and development and provision of opportunities for career advancement.
FOR THE COMMUNITY IT SERVES
by assuming its role as a socially responsible corporate citizen in a
tangible manner.
by adhering closely to national policies and objectives thereby contributing towards the progress and development of the nation.
FOR ITS SHAREHOLDERS
by forging ahead and consolidating its position as a stable and progressive financial institution.
by generating profits for a fair return for their investment.
..............WITH INTEGRITY.
5-0 THE ORGANISATIONAL CLIMATE AND CULTURE
To realise its corporate mission, strong support from top management is essential. In Public Bank, conscious efforts are made by
everyone especially the President and Chief Executive Officer,
Tan Sri Dato' Teh Hong Piow himself to ensure that a motivating
and conducive working environment exists. This is reflected by
the results obtained from a research study jointly conducted by
the National Productivity Centre (NPC) and the National University of Malaysia (UKM) in 1985 to determine Public Bank's
organisational climate and work values. A cross-section of 74
employees from the Bank participated in this study.
5.1
Favourable Climate/Culture
The results as depicted in Table 5.1 indicate that the Bank's
overall organisational climate was favourably rated by 88%
of the respondents based on factors such as organisation
support, openness and supervisory style.
10
Table 5.1 — Public Bank: Organisational Climate/Culture
Description
Percentage of Respondents who
viewed good and above
Organisational Climate
Organisational support
Openness
Supervisory style
88
93
77
91
Source: Abu Hassan Othman and Man Lok Abdullah, Productivity Through
People in the Age of Changing Technology, Malaysia Country Report 1985
The factors, openness and supervisory style, were
rated positively by 77% and 91% of the respondents
respectively.
The respondents were also asked to state the degree
in which the organisational climate and culture had created the
environment for them to achieve the various motivational
needs such as security, social and self-esteem, autonomy
and self-realisation.
Table 5.2 — Public Bank: Organisational Culture Satisfying
Employee Needs
Description
Security Need
Social Need
Self-Esteem Need
Autonomy
Self- Realisation
Percentage of Respondent
90
97
95
94
92
The results in Table 5.2 indicate that more than 90%
of the respondents viewed that the present organisational
climate and culture had helped them fulfil both their lower
and higher order needs, ie. security, social and self-esteem,
autonomy and self-realisation. The respondents felt that
they have a sense of belonging in the Bank because they
were able to strongly identify themselves with the Bank
and with their peers. Their interaction patterns with peers
and/or with the managerial and/or supervisory groups
vertically and laterally were relatively open and supportive
of each other. They had self-respect and received respect
from others as well. Such a situation would generate
loyalty and positive attitudes towards work and thereby
enhance their productivity and efficiency.
This conducive organisational climate and culture is
ail exemplification of the Bank's philosophy. Its philosophy
has been reflected through its actions and programmes
and the management has gained the respect, confidence
and trust of the staff.
5.2 Reviewing The Climate/Culture
To review the Bank's organisational climate and work
values, the Bank had recently conducted an internal staff
motivation survey amongst its total staff force of 2397 to
determine the acceptability of six major factors, namely
physical working environment, present job duties, working
relations with peers and subordinates, type of supervision
received, opportunities for training and career development
and general management climate of branch/department. A
total of 2,003 or 84% of the staff, comprising all categories,
responded to the survey.
From Table 5.3, it can be deduced that more than 75%
of the respondents have found almost all the aforementioned
factors favourable.
Table 5.3 — Public Bank Staff Motivation Survey Results
Factors Surveyed
1.
2.
3-
4.
5.
6.
Physical working environment
Present Job Duties
a. Working Relations with Peers
b. Working Relations with
Subordinates
Type of Supervision Received
Opportunities for Training and
Career Development
General Management Climate
of Branch/Department
Percentage of Respondents
Who Found the Factor
Favourable
92.0
87.4
92.1
97.0
81.0
61,1
76,3
Source.- Manpower Division, Public Bank
Thus' the earlier findings from the NPC/UKM survey
conducted in 1985 are reinforced.
5.3 Reinforcement Efforts
To reinforce the existing favourable working environment
and the existing culture that had evolved and been developed
over time, the President and Chief Executive Officer sends
out New Year Messages to all his staff at their home addresses.
This is an effective 'means of encouraging staff at all levels
to renew their vigour and enthusiasm to face each challenging
year ahead.
Staff recognising his sincerity and caring attitude would
accord him great respect. This respect and recognition
from staff has created strong staff loyalty as evidenced
by the fact that most of the core senior management staff
have served the Chief Executive Officer from the very start
of the day they joined the organisation.
Reinforcement of staff loyalty may also be linked with
the development of a corporate identity in Public Bank. It
has a flag of its own, a staff choir to sing the Public Bank
Anthem at corporate functions; ladies are encouraged to
wear the corporate jackets and men, corporate ties. It is
also common for staff to display proudly the Bank's
corporate logo pin. Staff shelter themselves with Public
Bank umbrellas during the rain while their children carry
Public Bank school bags.
6.0 TEAM BUILDING AND PRODUCTIVITY
6.1 Leadership by Example
Behind every success story of an organisation always lies
an outstanding leader. This is true of Public Bank whose
leader is none other than the President and Chief Executive
Officer himself who constantly encourages the "leadership
by example" style of management.
It is here in Public Bank that one can find even the
President and Chief Executive Officer himself paying visits
not of cursory nature to the branches to communicate
and interact with the management and staff there. The
demonstration of such genuine interest in the performance
and welfare of the staff at "grass-root" level is surely a
strong motivating force to encourage staff to give their best
in their performance of duties. It is the President and Chief
Executive Officer's quality of single-mindedness that
distinguishes him from others thus leading to the culmination of staff loyalty to him.
It is also a common feature in the Bank even during a
weekend, to find the President and Chief Executive Officer
present at most sporting events or competitions where the
Bank is a participant. His presence strongly encourages
not only the management staff but also staff at all other
13
levels to attend such events to give moral support to the
participants. Here is a fine illustration of leadership by
example.
The essence of team building therefore is reflected in
the above leadership by example illustrations.
6.2 Corporate Sense of Identity
The Bank places strong emphasis on corporate culture
aimed at providing each and every staff a sense of identity
and belonging. As mentioned before, corporate products
from ties to umbrellas are used by staff as a show of
loyalty. In addition, school kits are used by the staffs
children, an illustration that a sense of belonging extends
even to the staffs immediate family. Family days are also
organised each year, aimed towards fostering better ties
among the families of the Bank. The Bank staff are one
close-knit family demonstrated by the support given by
them to the Bank's team participating in games or other
sporting activities.
The strong team spirit is extended even to nonbanking activities such as competitive sporting events and
the National Day Parade Competition. The staff are bound
by a strong spirit of togetherness which is reflected in
their motto for competitive events, "Together We Are The
Best".
One can witness the unified fighting spirit of the
team — so apparent that it is no wonder that the Bank
does not compromise in its endeavours to be the leader in
whatever field it chooses. Such determination in the
players and supporters gives the Bank a corrfpetitive advantage in facing the challenges, whether in business or
play, of today and tomorrow.
6.3 The Spirit of "Gotong-Royong"
The President and Chief Executive Officer has always
stressed on the importance of full co-operation and coordination amongst all levels of staff to increase productivity and to ensure fulfilment of the corporate mission. He
had called on his staff not to look upon management as
givers and they as takers, but instead the two parties
should co-operate as "givers-cum-takers". He has also
constantly emphasised to staff to work beyond normal
service requirement and to readily extend assistance to
14
fellow colleagues whenever they finish their assignments as
a way to increase productivity and also enhance their skills.
He advocated the spirit of ' 'gotong-royong'', which is
self-help and community team spirit, as the this would inculcate
good teamwork, goodwill and loyalty amongst the employees.
Believing that productivity is the responsibility of
everyone, the Bank's President and Chief Executive Officer
had once said, "You cannot under-estimate the abilities of
your subordinates — even the clerks and the messenger
boys. They are the ones who can help you achieve your
aspirations. The Bank is like a human being, with the brain,
legs and arms. If you have the brain, but don't have the
legs and arms you might move towards the wrong direction.
So it must be a combination of all the parts."
6.4 Productivity Campaigns
With teamwork and productivity in mind, the Bank organised
an Inter-Branch Productivity Comparison with the assistance
of the National Productivity Centre in 1984, using the concept
of interfirm comparison and business clinics.
It was the first bank in the country that launched such
a campaign to create productivity consciousness and interest
amongst its employees, in its efforts to raise productivity.
It was participated by 16 of its branches which had been
established for more than two years. Since then the Bank
has, on its own, continued with the Inter-Branch Productivity
Comparative study on a yearly basis.
The Bank, in addition, launched its Productivity
Campaign in August 1985, with the theme "Productivity
Begins With Us". The aim of the campaign is to create an
awareness on productivity among the staff so that they
would contribute to the improvement of the bank's productivity and, to its customers, its commitment for excellence.
A commitment pledge was made and signed by all
employees of the Bank. They pledged to endeavour to
increase productivity and profitability of the organisation
by:
a.
Seeking new and innovative ideas to improve on work
methods.
15
b. Producing the best quality of work and service possible
within an effective time frame.
c. Helping to conserve resources, materials and consumables.
d. Improving work environment through the practice of
good housekeeping.
e. Having the right mental attitude towards work; working
to the fullest beyond service requirements.
f.
Fostering good human relations with others.
g. Demonstrating effective communication skills.
h. Ensuring the smooth flow of information dissemination.
i.
Improving our own capabilities through active participation in self-development programmes.
j.
Displaying good team spirit at all times and enhancing
staff morale.
7.0 PARTICIPATION IN DECISION MAKING AND EFFECTIVE
COMMUNICATION
7.1
Participative Management
The President and Chief Exective Officer and his management
team believe strongly in participative management. This
style of management opens up opportunities for its employees
to contribute creative and innovative ideas for the improvement of its banking operations and systems.
The participative management style is manifested in
many examples, such as the holding of the annual Management Seminars which is an established tradition in the Bank
since 1987. These Management Seminars evolved from
telling sessions in the late seventies to participative sessions
run workshop style.
The President and Chief Executive Officer also convenes
regular Management Committee Meetings with his senior
management staff at least twice a month on the second and
fourth Wednesdays of each month. It is at such meetings
that critical issues confronting the Bank are raised for
16
discussion, and solutions found. The latest developments in
each division are reported by the divisional head who is
either of Senior Manager or Director rank.
Several other working committees also convene regular
meetings to discuss problems and issues relating to specific
areas of operation of the Bank. There are also departmental
meetings where the programmes, plans and achievements are
discussed creating a platform to discuss departmental
problems.
The Bank also has a suggestion scheme which encourages
employees to give ideas and suggestions for improvement. All
suggestions are evaluated and practical ones are forwarded
to the relevant departments for implementation. A letter
of appreciation will be issued to show recognition.
This participation and involvement in decision-making
by the employees have made them more committed to
realising the organisational goals and aspirations.
7.2 Communicating Effectively
With a view to facilitate the promulgation of the organisation
culture and philosophy, effective communication has
been established through its annual reports, quarterly
newsletters, messages from the President and Chief Executive
Officer, internal circulars and memoranda.
Achievements, whether in sporting or business events,
are announced over the PA System to keep staff informed
and also to cultivate a sense of pride in them.
Productivity messages are also played everyday over
the PA System to serve as a reminder to all the staff of
their role in attaining the highest productivity.
8.0 STAFF WELFARE AND DEVELOPMENT
8.1 Personnel Philosophy
Public Bank being a people-oriented organisation naturally
attaches great value to its prime asset, its employees. In
line with its corporate philosophy to promote the wellbeing of its employees, the Bank has a large and dynamic
manpower division to look after its employee welfare and
development. It believes that employees who are well
looked after would produce their best.
17
Attractive remuneration and fringe benefits such as
housing and vehicle loans for staff are offered at preferential rates. The Bank is a firm believer that it can attain
professionalism at its highest level. To enhance professionalism, the staff are encouraged to sit for banking
examinations. Those who pass the examinations are rewarded
with cash awards and salary adjustments and also reimbursed
the cost of the examination fees. In addition, the staff
will have an added advantage for promotion.
8.2
kecruitment and Promotion Practices
For promotion, the Bank believes in giving priority to
existing staff. Other than serving as a means of retaining
employees, it provides opportunities for career advancement
and development which is an extremely strong motivating
factor for staff to demonstrate their talents and contribute
towards the well-being of the organisation.
The Bank believes in recruiting good quality employees.
Only potential candidates with the right work attitudes
who can fit into the organisation's plans are recruited;
made possible through the backing of a pool of experienced
interviewers who screen applicants thoroughly.
For the recruitment of management staff, the President and
Chief Executive Officer himself will meet the short-listed
candidates.
8.3 Induction and Placement Practices
The Bank takes pride in its comprehensive induction
programmes which include the briefing of new recruits that
will ensure that they begin their job on the right footing.
In order to draw out the sustained enthusiasm, endless creativity and tireless energies of the staff, the Manpower Division places considerable emphasis on careful
placement of staff in departments where they can derive job
satisfaction and produce desirable results.
Since 1977, the Bank has been having a full-fledged
Training Department, which is well-staffed and highly
efficient. In consonance with the existing policy of giving
priority to existing staff for promotion, the Bank firmly
believes in training its own human resources. For example,
the Bank between 1981 to 1984 had recruited 222 graduates
and placed them in the six month Programme for Executive
18
Development. This programme gives the participants a
broad based knowledge and experience in various aspects
of banking operations. Such training programmes ensure
continuity in the Bank's corporate culture.
The majority of the training is in-house, as greater
emphasis is placed on specific courses aimed at meeting the
individual employee's needs relating to his/her job function.
8.4 Training Budget
The bank practises job rotation as a means to enrich the job
duties as well as to upgrade the employees' skills to increase
their versatility in order to meet the needs of the organisation.
Job rotation therefore improves job satisfaction which in turn
leads to higher productivity. The Bank attaches great importance to human resource development. For the past three
years, the Bank had exceeded the requirement stipulated by
the Central Bank, Bank Negara Malaysia, on the minimum
expenditure on training of 1.5% of total gross salaries. Measured
as a percentage of total gross salaries, the annual training
expenditures of the Bank for 1985 to 1987 were 2.77%,
2.73% and 1.57% respectively. This works out in terms of
an annual training expenditures per employee for the same
period as MR355, MR3344 and MR258 respectively. Thus,
both in terms of training and human resource development
as a whole, the performance of Public Bank has been remarkably outstanding.
9.0
TECHNOLOGICAL DEVELOPMENT
Rationalisation is one of the priorities of the Bank. The Organisation
and Methods Department carries out studies of the Bank's operations with the view to continuously improve and simplify the
procedures without sacrificing quality. This department has very
close rapport with the various departments and branches, holding
discussions and talks to get feedback and opinions for its improvement studies.
The Bank started its computerisation programme in 1979 for its
banking operations. Three years later, due to expansion and its
emphasis on customer service, the Bank acquired a new and more
advanced computer. As at April 1988, it had 57 ATMs in 46 inbranch and 11 off-branch locations. Daily balancing of accounts
and transactions were all performed by computers. The computers
can now process 25,000 accounts in two hours.
19
Under the old manual system, the Bank required six tellers to
handle about 15,000 accounts whereas after computerisation in
1986, four tellers could handle 20,000 accounts. This resulted in
a reduction in manpower at the bank end stage.
The management being far-sighted and flexible in adopting
strategies to suit the changing environment had no problems with
the excess manpower. During the computerisation stage, the bank
went on a rapid expansion programme opening up new branches
which absorbed the excess manpower.
Office automation is another significant part of the Bank's
computerisation programme. It has installed office automation
systems at its headquarters to enhance productivity to provide
better backup and support service to its operations.
10.0 CONCLUSION
The experience drawn from Public Bank certainly confirms the
following characteristics which are common among successful
companies :-
i) A Chief Executive Officer with entrepreneurship qualities
to take cognizance of changing economic, social and
political situations.
ii) Participative Management approach with the Chief Executive Officer providing the sense of direction and drive to
the Management Team with his foresight.
iii) Staff commitment at every level towards productivity
enhancement is essential.
iv) A strong conducive organisational climate and culture
that will motivate employees to reach out for excellence.
v) Managerial ability to motivate staff by being responsive
to staffs needs and to tap the potential of the employees
and to enhance team spirit.
vi) Recognition of human resource as a company's primary
asset and according due emphasis to human resource development.
vii) Implemention of appropriate recognition schemes, both
financial and non-financial to reinforce and maintain the
productivity enhancement process.
viii) Up-to-date technological support to stay in forefront to
upgrade services and reduce cost.
REFERENCE
1.
Malaysian Management Review, Supplementary Issue, August 1981,
20
2.
3.
4.
5.
6.
7.
Dr Doh Joon Chien — Public Bank: Enterpreneurship and Corporate
Citizenship.
Doh Joon Chien, Public Bank — Entrepreneurship and Corporate
Citizenship, Kuala Lumpur, Public Bank Berhad, 1987.
Maslow, A.H., Motivation and Personality, New York, Harper, 1954.
Abu Hassan Othman & Mah Lok Abdullah, Productivity Through
People in the Age of Changing Technology, Malaysia Country
Report, Asian Productivity Organisation Basic Research HI, 1985
(unpublished).
Public Bank Berhad. Annual Reports.
Public Bank Staff Motivation Survey Results, 10 February 1988
(unpublished).
ACKNOWLEDGEMENT
The author is indebted to The Public Bank Group, in particular its
President and Chief Executive Officer, Tan Sri Dato' Teh Hong Piow, for
his keen support and permission to have this Paper published. Gratitude
also goes to Ms Patricia Teoh Kim Seing, Y.B. Senator Dr. Nordin Selat,
Ms Joyce Ritchie, Ms Yap Yow Moy and Mr. Tee Hong Thek of the Public
Bank Group and Ir Mah Lok Abdullah of National Productivity Centre,
Malaysia for their contribution in the writing of this paper.
21
BIODATA
Sahitha binti Marican dilahirkan dijohor. Mendapat
Diploma dalam bidang Mikrobiologi tlari Institut Tcknologi Mara tahun 1982. Kcmudian bekerja scbagai
Penoloug Pegawai Penyelidik selama 3 bulan, dan 7
bulan scbagai Pegawai Perhubungan Awam di Mardi,
Sdangor. Kcmudian melanjutkan pelajaran di Amcrika
Syarikat dahim bidang Kcsihatan Alam Sckitarllan mc-
nerima Ija/ah Sarjana Muda dari Point Park College
tahun 1985. Kcmudian diberi pcluang pula mcnjalankan praktikal sdaina 2 bulan di Department of Environment Resources Pittsburgh. Setcrusnya melanjuikan pelajaran ke peringkat Ijazah Lanjutan dan menerima Ijazah Pcntadbiran Awarn di Universiti Pittsburgh. !'c}/iisylriinici pada tahun 1987. Pada masa ini bertugas scbagai Pensyarab di Universiti I'tara Malaysia dalam Bahagian Pentadbiran Awam.
Bidangpcngkhususan ialah 'Dasar Awam', 'Stress Management', 'Conflict Management'
dan 'Career Development'. Pernah juga mcnjalankan penyelidikan tentang kesan kependudukan setinggan di Bandaraya Kuala Lumpur.
22
MEMAHAMI KONFLIK DI TEMPAT
KERJA — SATU ANALISA
oleh
Sabitha MarJean
(Pensyarah Universal L'tara Malaysia)
A. PENGENALAN
Konflik ialah satu suasana di mana seseorang itu terperangkap di antara dua keadaan atau matlamat yang tidak boleh dicapainya tanpa
mengenepikan yang satu lagi. Oleh kerana konflik akan muncul di mana
sahaja ada interaksi manusia, maka kita tidak akan dapat melarikan diri dari
konflik dalam organisasi kerja, yang hanya boleh bergerak ke hadapan
melalui interaksi sedemikian. Perbincangan konflik di dalam artikel ini akan
tertumpu di tempat kerja sahaja.
Hasil dari satu kajiselidik yang dilakukan oleh American Management
Association telah menunjukkan bahawa responden (ketua eksekutif,
penolong pengarah dan pegawai biasa) menggunakan 24% daripada masa
mereka untuk menguruskan konflik. Tumpuan yang diberikan pada
pengurusan konflik adalah lebih sedikit jika dibandingkan dengan perancangan, komunikasi, motivasi atau membuat keputusan. Di sini jelas
bahawa banyak masa yang terbuang disebabkan oleh konflik. Dari
pandangan-pandangan responden tadi, konflik selalunya dianggap sebagai
sesuatu yang tidak dapat dihindari. la juga sering diamati sebagai suatu
kegagalan dalam kepimpinan, atau sesuatu yang berpunca dari konflik
dalam personaliti. Tidak kurang juga yang menganggapnya sebagai satu
pengalaman yang negatif. Tetapi bukan semua konflik itu buruk. Ada
konflik yang boleh memberikan maklumat yang diagnostik. Misalnya
apabila selalu terdapat keadaan yang tegang (konflik) antara ketua jabatan
dan pekerjanya, ini menggambarkan bahawa ada masalah yang wujud
dalam hubungan antara ketua jabatan dan orang bawahannya. Kadangkala
konflik juga boleh membuat seseorang/kumpulan/jabatan itu mengeluarkan
pendapat yang lebih innovatif dan bernas jika dibandingkan dengan harihari yang biasa, tanpa tekanan dari konflik. Kandangkala satu situasi konflik
boleh membawa pihak yang berkonflik itu berkonfrontasi antara satu sama
lain. Selalunya selepas meluahkan perasaan masing-masing, mereka akan
lebih bersefahaman, dengan itu merapatkan lagi hubungan mereka. Melalui
penyelesaian sesuatu konflik itu juga boleh mengingatkan organisasi akan
perkara-perkara yang telah membawa pada keadaan yang menimbulkan
konflik itu.
23
Dengan itu pengurusan harus berusaha supaya konflik itu dapat dilihat
sebagai satu kejadian yang kreatif dan positif. Pengurusan dan pekerja juga
mesti berusaha untuk menerimanya sebagai satu konsekuens yang tidak
dapat dielakkan dalam proses organisasi khasnya dan hidup kita
amnya.
B. BENTUK-BENTUK KONFLIK
Ada berbagai-bagai bentuk konflik. Situasi konflik yang paling biasa
ialah:
a)
b)
c)
d)
Konflik
Konflik
Konflik
Konflik
dalam diri individu itu sendiri
antara individu
antara kumpulan
antara organisasi
Secara am konflik ini boleh terjadi disebabkan perbezaan dari segi
fakta, tatacara, matlamat atau nilai antara pihak yang berkenaan. Perbezaanperbezaan ini boleh ditunjukkan seperti dalam contoh
berikut.
Katakan pengarah sebuah syarikat yang kecil ingin memperkenalkan
penggunaan komputer dalam menyimpan rekod akaun secara serta merta, tetapi ketua jabatan akaun tidak bersetuju dengan tindakan ini. Di sini
nyata terdapat perbezaan yang boleh menimbulkan konflik. Konflik yang
timbul di sini boleh diterangkan seperti berikut.
1. Perbezaan dari segi fakta
Pengarah
— 'Sistem yang baru ini akan mengurangkan
perbelanjaan'
Ketua Jabatan
Akaun
— 'Sistem ini akan memakan belanja yang lebih
banyak'
2. Perbezaan dari segi cara
Pengarah
— 'Pertukaran ini mesti dilakukan secepat mungkin'
Ketua Jabatan
— 'Biarlah kita lakukan pertukaran ini perlahanlahan'
3. Perbezaan dari segi matlamat
Pengarah
'Bila kita kehendakkan sesuatu maklumat, kita
perlukan satu sistem yang cepat dan tepat
untuk mendapatkannya'.
24
Ketuajabatan
— 'Kita perlukan satu sistem yang fleksibel bagi
pegawai-pegawai akaun kita, agar mereka dapat
menyelesaikan sesuatu masalah yang timbul
secara tidak disangka'.
4. Perbezaan dari segi nilai seseorang
Pengarah
— 'Kita patut utamakan keberkesanan'
Ketua Pengarah— 'Kita mesti fikirkan akan kebajikan pekerja
kita yang setia'
C. TANDA-TANDA KONFLIK DI TEMPAT
Berbagai-bagai konflik terdapat di tempat kerja di mana pengurusan
mesti berusaha untuk mengesan unsur-unsur konflik tersebut. Ada
beberapa tanda yang boleh digunakan oleh pengurusan sebagai panduan
untuk menunjukkan wujudnya konflik dalam sesebuah organisasi. Di antaranya ialah rungutan-rungutan itu seperti:
"mereka tidak pernah bertanya dahulu sebelum berbuat apa-apa",
"mereka itu bukan tahu apa yang berlaku di sini",
"kitalah orang yang penghabisan sekali mendapat maklumat dalam
apa-apa hal",
"mereka itu bodoh",
"itu bukan kerja saya" dan lain-lain akan sering terdengar dalam
organisasi itu.
Satu lagi tanda untuk mengenalpasti kewujudan konflik ialah melalui
kekerapan berlakunya pusing ganti. Misalnya jawatan sebagai Pendaftar itu
telah ditukar ganti sebanyak lima kali dalam setahun. Ini jelas menunjukkan ada masalah dalam pekerjaan itu, dan salah satu daripadanya mungkin
konflik. Konflik juga dapat dikenali apabila ramai pekerja-pekerja
menyalahkan antara satu sama lain, sesuatu jabatan itu dibenci oleh satu
jabatan yang lain, berlaku sabotaj, banyak terjadi kerosakan harta benda
dan lain-lain hal yang menggangu kelicinan organisasi. Konflik juga dapat
dirasakan apabila wujud suasana di mana susah mendapat pertolongan
daripada orang lain kerana ramai yang sengaja suka seseorang itu dipandang "jahat" oleh orang lain, dan lain-lain keadaan yang tidak
menyenangkan.
25
Salah satu cara menyelesaikan masalah konflik ialah dengan memahami
proses konflik itu. Dari itu mari kita menganalisa peringkat-peringkat dari
mana konflik itu berkembang seperti yang ditunjukkan dalam rajah yang
berikut.
Kewujudan suasana sebelum
menimbulkan konflik
Kesamaran dalam peranan
j
Sumbcr-sumber aiam yang terhad j
Persepsi ]
terhadap I
konflik
Kerja-kcrja yang saling bergantung
Pcrbcxaan antara individu
Konflik yang tidak diselcsaikan
Halangan dalam komunikasi
!
j
]
I
Pengurusan harus
bercampur tangan
Konflik bcrmanifcstasi
Konflik itu diselcsaikan
i) Kalau disclesaikan maka tidaklah
in akan Ix-rpanjangan.
ii) J-K.i f i i , v irlamkan pada satu mav
M i i ' ' . 1 , ' .ikan bcrada
t - p t n p i nr.ipi akan mula
n < ( --kan individu itu.
Kesudahan Konflik
Konflik itu menjejaskan
konflik yang menguntungkan
26
Kita juga patut mengetahui samada sesuatu konflik itu baik atau buruk
bergantung pada tahap konflik itu. la boleh dibayangkan seperti dalam gam-
barajah di bawah.
Baik
Kesan
ke atas
IndivJdu
Buruk
Rendah
Optima
Tinggi
Tekanan Dari Konflik
Dari itu pengurusan mesti berusaha supaya dapat mengimbangkan
konflik itu agar ia berada di tahap optima untuk kebaikan organisasi dan
individu.
D. RESOLUSI KONFLIK YANG BERKESAN
Setelah mengkaji peringkat-peringkat konflik itu, kita patut sedar
bahawa, resolusi yang berkesan ini hanya akan tercapai jika punca-punca
yang menimbulkan konflik itu dapat dibuang dan tidak ada saki baki
perasaaan pertentangan, permusuhan atau suasana sedemikian yang tinggal untuk membangkitkan semula apa-apa konflik di masa hadapan.
Sccara am penyelesaian resofusi konflik ini bolch bcrakhir dengan 3
kcadaan. Samada kedua-dua pihak itu menang, atau kedua-duanya kalah
fiaitu bersetuju mengambil jalan tengah) ataupun salah satu pihak sahaja
yang menang.
Di antara ketiga-tiga ini adalah bijak kalau kita dapat elakkan dari membawa keadaan yang hanya menguntungkan satu pihak sahaja. Kerana cara
ini tidak dapat menyelesaikan konflik itu hingga ke akar umbinya, dan besar
kemungkinan konflik yang sama akan timbul semula pada satu masa yang
akan datang. (lihat gambarajah "peringkat-peringkat konflik").
Kita mesti ingat, dalam hampir semua situasi konflik, samada dalam
organisasi kerja di rumah ataupun dimana-manasekalipun, tentu kita dapati
ada setengah-setengah sumber yang kita mempunyai kuasa dalam mengendalikannya dan setengahnya pula pada tangan orang lain. Dari itu satu cara
yang bijak bagi pengurusan mengurangkan konflik ialah untuk berusaha
27
dalam mendapatkan apa yang dikehendaki oleh pekerja. Dalam pada itu
pekerja juga akan cuba mendapatkan apa yang pihak pengurusan kehendaki pula.
Tambahan lagi dalam keadaan apa sekalipun, suasana saling bergantung antara satu sama lain itu merupakan proses 2 hala. Misalan, pekerja
mungkin bergantung kepada majikan untuk mendapatkan kenaikan
pangkat, tetapi majikan juga bergantung kepada pekerjanya dalam menjalankan tugas-tugas mereka dengan baik.
Dari itu jika pengurusan hen dak menyelesaikan konflik secara efektif
boleh berpandukan secara am pada 2 faktor iaitu keinginan oleh satu pihak
urituk bekerjsama dalam meneruskan kehendak lain, dan ketegasan pihak
itu dalam memuaskan kehendak dan perkara-perkara yang bersangkutan
dengan ny a.
E. ILLUSTRASI KONFLIK
Untuk memahami konflik, mari kita lihat satu masalah konflik yang
berlaku di suasana rumahtangga. Contoh ini diambil kerana pertalian dalam
satu organisasi itu boleh juga disamakan dengan pertalian dalam sebuah
keluarga. Contoh ini bertujuan untuk mengasah fikiran kita agar dapat
memahami suatu keadaan konflik.
Kajian Kes
Encik Sham dan Puan Siti adalah sepasang suami isteri. Encik Sham
suka warna sarung kusyen yang berwarna biru, walhal Puan Siti sukakan
warna merah.
Dalam keadaan tertentu seseorang itu boleh menamatkan hubungannya dengan bercerai. Tetapi tentulah mereka tidak mahu perpisahan sebagai
alternatif, kerana mereka masih menyayangi antara satu sama lain. Dari itu
persoalannya di sini ialah bukan bagaimana hendak mendapatkan satu
penyelesaian yang hanya menyenangkan satu pihak sahaja, tetapi satu
keputusan yang dapat memuaskan hati kedua-dua belah pihak, agar dapat
menyambung pertalian mereka sepertimana sebelum konflik itu
timbul.
Di sini cuba kita fikirkan 4 cara bagaimana mereka (Sham atau Siti)
akan bertindak untuk mencari satu resolusi bagi konflik itu. Pada peringkat
permulaan cuba kita fikir cara-cara itu secara bebas. la tidak semestinya
satu cara yang masih boleh menyambung pertalian mereka dan termasuk
juga sesuatu yang tidak munasabah. Sekarang, cuba fikir sekali lagi, dan
tuliskan bagaimana cara menyelesaikan konflik itu.
Jika sudah berbuat demikian, penulis akan cuba bentangkan di antara
beberapa cara untuk menyelesaikan konflik itu (termasuk yang masuk di
28
akal dan tidak). Tindakan salah seorang dari mereka itu mungkin seperti
berikut:-
1.
Berpisab (bercerai) — ini sudah tentu akan menyelesaikan
konflik itu, tetapi tidak akan membawa faedah kepada manamana pihak.
2.
Mengaku kalah — mungkin isteri mengikut kata suami dan
membeli sarung kusyen warna biru. Ini dapat menyelesaikan
konflik itu tetapi tentu si ist;eri bermuram.
3.
Pura-pura mengaku kalah — si isteri mungkin membiarkan
suami memilih warma kusyen itu. Apabila ia telah dipasang,
rosakkan (koyakkan) kusyen itu. Ini akan mengingatkan si suami
agar jangan berdegil dengan si isteri apabila ia berkehendakkan
sesuatu. Si isteri akan buat begitu setiap kali, walaupun si suami
menukarnya dengan yang baru, hingga si suami mengaku kalah.
4.
Menggertak — si isteri boleh menggertak suaminya, bahawa ia
akan menghabiskan masa luangnya di rumah kawan-kawan setiap
petang sehingga si suami mengikut kata-katanya.
5.
Membuat tindakan sendiri — si isteri boleh terus membeli
sahaja kusyen yang berwarna merah tanpa berunding dengan si
suami. Ini tentu akan menyebabkan mereka bergaduh, tetapi ini
tidak akan menukar warna sarung kusyen itu. (di sini konflik
masih wujud)
6.
Merungut — si isteri membiarkan si suami memilih kusyen
kehendaknya. Tetapi apabila dipasang, si isteri boleh merungut
berulang-ulang kali, dan membuat si suami itu rasa bersalah dan
tidak senang berada dalam keadaan itu. Dengan cara ini si isteri
yang terpaksa melihat kusyen itu setiap hari dapat melepaskan
kekecewaannya. Cara ini juga akan mengurangkan penentangan
si suami dalam membuat apa-apa pilihan pada masa hadapan.
Dalam menyelesaikan konflik ini kesemua tindakan di atas boleh mendatangkan kemenangan hanya pada satu pihak sahaja. Tiada satupun yang
boleh menyelesaikan konflik itu dengan memuaskan kedua-dua belah
pihak. Kalau kita lihat kesemua tindakan di atas, hanya member! kepuasan
pada satu pihak sahaja, dan tidak ada usaha untuk mencari satu jalan yang
boleh membawa perdamaian. Inimenunjukkan kepuasan pada satu pihak
sahaja tidak dapat menyelesaikan konflik itu. Dari itu keadaan tegang di
antara mereka akan berpanjangan dan akan menyebabkan pertelingkahan.
yang lebih teruk lagi daripada yang asal.
29
Memang benar ada masanya kita berkonflik dengan perkara-perkara
yang tidak berkaitan dengan pergaulan kica setiap hari. Contohnya,
seseorang yang tertuang kopinya ke atas baju kita di sebuah kedai riiakan
Di sini mungkin kita boleh bertindak mengikut sesuka hati kita. Tetapi
selalunya konflik ini terjadi dengan orang yang ada kaitan dengan kita pada
masa lalu, sekarang atau pada masa akan datang. Dari itu kita mesti bertindak agar kesudahan konflik itu tidak menjejaskan perhubungan mana-mana
pihak.
Sekarang cuba kita bayangkan beberapa aiternatif yang lebih sesuai
untuk penyelesaian konflik bagi kajian di aras.
1.
Memberi peluang — iaitu, si isteri atau si suami bersetuju, dengan
memilih kehendak salah seorang dari mereka. Ini akan menyebabkan satu pihak akan tidak berpuas hati. Dengan itu, jika si isteri'
memberi peluang kali ini kepada si suami, maka pada konflik yang
akan datang, si suami pula akan mengikut kata si isteri.
2.
Mengambil jalan tengab — masing-masing mengorbankan
kehendak masing-masing dan memilih satu warna lain yang
digemari oleh si isteri dan si suami lanya boleh berupa demikian:
— Tidak memilih sarung kusyen yang mempunyai warna merah
+ biru.
— Memilih warna kusyen yang punya warna merah dan biru
atau gunakan kedua-dua warna kusyen itu pada bilik yang
berlainan.
— Membeh kusyen yang diperbuat daripada tenunan.
— Menilaikan dt-ngan warna-warna yang disukai dengan memberikan mata 1 - 1 0 hagi memilih warna yang mendapat
pungutan m;ita vang tinggi sckali
3.
Mencuba dahalu — kcdiu-duanya boieh inencuba pihrun
masing-masing supaya da pat mclihat dahulu rupa bentuknya
sebelum membuat keputusan. Selepas itu mungkin salah seorang
dari mereka dapat menukar fikirannya.
Tindakan-tmdakan yang diberikan sebagai contoh di atas adalah lebih
sesuai, kerana tidak merosakkan hubungan. Perhubungan yang baik itu
mesti diutamakan selalu kerana perhubugan itu adalah lebih penting
daripada konflik itu sendiri.
Sekarang mari kita lihat pula satu keadaan konflik yang timbul di
30
suasana kerja. Di sini penulis juga ingin mengingatkan bahawa selalunya
sesuatu konflik yang besar itu bermula dari satu konflik yang kecil.
Misalnya, dalam perceraian ataupun peperangan. Bagi memahami konflik
di tempat kerja di sini, kita akan melihat satu kajian kes dalam suasana
pengurusan.
Kajian Kes
Don ialah seorang Ketua Jabatan Personelia yang telah bekerja selama
15 tahun. la disegani dan dikenali sebagai seorang pengurus yang baik,
Walau bagaimanapun, Don mengaku bahawa salah satu kelemahannya ialah
dia tidak pasti yang kaum wanita boleh mcnjadi seorang pengurus yang
cekap dan berkebolehan.
Nora pula adalah seorang Pengarah di Jabatan Perhubungan. Baru-baru
ini Nora telah dipindahkan oleh Ketua Pengarah organisasi itu ke Jabatan
Personelia sebagai Penolong Eksekutif kepada Don, tanpa berunding
clengan Don terlebih dahulu.
Pa da masa jawatan itu kosong selama 6 bulan, kerja-kerja penyelenggaraan telah dijalankan oleh Don dan pegawai-pegawai lain di bawah
kawahinnya.
Ikutilah dialog yang dipenclekkan antara Don dan Nora yang telah ter-
jadi pada satu pagi.
Don
: Assalamualaikum! Nora. Apa khabar?
Nora
: Ala! janganlah buat pura-pura hendak ambil tahu fasal saya!
(deng;m muka yang masam)
Don
: Apa fasal awak ni! (dcngan nada yang tinggi)
Nora
: J:uiganlah buat tak faham. Kalau ikutkan hati awak, memang
.suya tidak dapat peluang langsung bekerja sebagai Eksekutif
di sini. Kalau dapatpun mungkin dari segi nama sahaja,
entah-entah itupun tidak dapat.
Don
: Mengapa awak ini! Pagi-pagi lagi sudah bersungut. Awak
memanglah seorang Eksekutif.
Nora
: Saya seorang Eksekutif? Tidak seorangpun yang akan menyangkanya 1 dari cara awak menggunakan saya, ataupun
wanita lain.
Don
: Nora, jangan awak keliru perbezaan antara diskrimtnasi seks
dan ketidakupayaan. Apa yang saya tahu, selama ini saya
31
telahpun memberikan kerja-kerja yang difikirkan patut bagi
diri awak. Cuba bersabar dahulu. (tidak menyangkal akan
anggapan Nora terhadapnya)
Nora
: Maksud awak pengarah itu tidak tahu'fasal saya sebelum dia
melantik saya? Awak ingat Pengarah kita bodoh?
Don
: Tidak. Maksud saya awak masih kekurangan dalam beberapa
hal dan pengalaman, sebelum saya boleh serahkan lebih
daripada kerja-kerja yang telah saya berikan pada awak
sekarang.
Nora
: Kalau awak sudah lupa, biar saya ingatkan. Saya memegang
Ijazah dalam Pengurusan. Lagipun dah setahun lamanya saya
berada di sini membuat kerja kerani. Kalau awak tidak mahu
beri kerja dan tanggungjawab yang bersesuaian dengan
kelulusan saya, sampai bilapun saya tidak akan dapat belajar!
Don
: Awak ni Nora, sungguh tak sabar. Perkara begini mengambil
masa yang lama. Bila awak sampai ke umur saya ini baru
awak faham. (dengan nada menyindir) .
Nora
: Kalau nak ikut awak, saya hanya akan terus menjadi kerani
sama ada sekarang ataupun setelah meningkat umur seperti
awak. Saya tahu apa yang ada dalam hati awak, iaitu tiada
wanita yang patut memegang jawatan sebagai Eksekutif. Jika
beginilah pendirian awak, dengar baik-baik. Oleh kerana
saya telah dilantik sebagai Eksekutif, saya member! amaran
kepada awak supaya memberikan kerja-kerja yang setaraf
dengan kelayakan saya. Jika tidak saya akan mengambil
tindakan mahkamah atas organisasi ini amnya dan awak
khasnya, kerana mengamalkan diskriminasi seks.
Don
: Awak sudah
awak. Mulai
menjalankan
dari peguam
melampaui batas. Saya tidak takut atas ugutan
dari sekarang saya mahu awak berhenti dari
apa-apa tugas. Dan awak akan menerima surat
organisasi ini.
Dari dailog di atas kita boleh nyatakan kedua-duanya bersalah, Nora
sebagai pegawai bawahan kepada Don tidak patut menjawab "awak
janganlah pura-pura hendak ambil tahu fasal saya!" Ini bukan caranya kita
berkomunikasi dengan seorang ketua. Dan Don pula sebagai seorang ketua
jabatan, tidak sepatutnya menjawab dengan cara kasar. Sepatutnya,
walau apa sekalipun masalah yang dihadapi oleh Don, dia patut Cuba
mengurangkan keadaan yang tegang itu, dan bukan menambah burukkan
lagi keadaan itu. Dia sepatutnya membalas kata-kata Nora dengan lembut
dan bertanyakan dengan ikhlas apa yang tidak kena pada dirinya, dan
bukannya dengan cara sindiran.
Tetapi sekarang bukan kita hendak tahu reaksi mereka, tetapi kita hendak mencari apakah punca-punca konflik yang menyebabkan keadaan
demikian. Di sini cuba kita flkirkan apakah punca-punca konflik yang
terkandung dalam dialog di atas mengikut pandahgan kita. Sebagai contoh penulis akan senaraikan beberapa faktor yang menjadi punca
tara Nora dan Don.
1.
Gaya Nora yang seperti hendak bergaduh
Memang tidak salah kalau kita katakan Nora tidak berapa pandai
dalam gaya dan tatacara yang lembut. Tetapi Don (yang memang
memandang rendah terhadap kebolehan kaum wanita) tidak semestinya marah dengan sifat Nora itu.
2.
Gaya Don yang tidak mengambil berat
Don bukan sahaja membalas kata-kata Nora dengan kasar tetapi dia juga telah gagal menunjukkan bahawa dia faham atau
ingin ambil tahu akan masalah yang dihadapi oleh Nora. Walaupun
Nora tidak berkasar pada Don pada mulanya, tatacara Don ini
sudah cukup untuk memulakan satu suasana yang tegang.
3.
Pendirian Don terhadap wanita dalam bidang pengurusan
Mungkin kebanyakan dari kita akan mengenalpasti Don sebagai
punca konflik di sini. Dia tidak sekalipun dalam perbualannya
membuat usaha menyatakan dengan terus terang bahawa "wanita
mempunyai kebolehan yang sama baik dengan kaum lelaki untuk
menjalankan tugas pengurusan". Dalam dialog mereka itu tidak
sekalipun Don cuba menyangkal pendapat Nora yang dia tidak
berpendirian sedemikian kepada kaum wanita. (lihat kembali
dialog)
Dari itu, memang ketara Don berpendirian bahawa wanita
tidak boleh berfungsi sebagai seorang eksekutif. Dari itu dia akan
terus berkonflik bukan sahaja dengan Nora, tetapi dengan manamana eksekutif wanita, samada mereka akan menjadi ketuanya,
kawan sekerjanya ataupun pekerja bawahannya.
4.
Keadaan zaman yang mengalami banyak pertukaran
Jika dipandang seimbas lalu, memang banyak wanita telah mencapai tahap yang tinggi dipelbagai bidang kerja jika dibandingkan
dengan zaman lima puluhan dahulu. Pertukaran itu sendiri
samada ke arah yang baik ataupun yang buruk pasti akan membawa konflik. Ini disebabkan pertukaran itu sendiri merupakan
satu punca konflik.
33
Dari dialog di atas kita akan dapati bahawa Don masih
belum bersedia lagi untuk menerima pertukaran di mana ramai
kaum wanita sekarang sudah punya keupayaan dalam menjalankan berbagai-bagai kerja tidak kira pengums ataupun eksekutif.
Dari itu bukan pertukaran dalam tren sahaja menjadi punca
konflik, tetapi penentangan Don terhadap realiti itu juga merupakan satu punca konflik.
5.
Kedu4ukan Nora yang menggugat kuasa dan autoriti Don
Di sini nampak bahawa Don terasa tergugat dengan adanya Nora.
Jika diteliti, pengarah organisasi yang menaikkan pangkat Nora,
dan bukan Don. Dari itu kita boleh menganggap bahawa Don
juga tidak mempunyai kuasa untuk memberhentikan Nora dari
kerjanya tanpa persetujuan dari pengarah itu sendiri.
6.
Don tidak menerangkan akan tugas-tugas Nora
Di sini juga kita dapat pastikan bahawa konflik ini tidak akan
terjadi, jika Don telah menerangkan secara terperinci apakah
tugas-tugas dan tanggungjawab Nora ketika dia mula-mula bertugas.
Mungkin Nora tidak berasa puas hati dengan kerja-kerja
yang diberikan kepadanya oleh Don pada mulanya dan meminta
diberikan tanggungjawab yang lebih berat lagi. Walaupun pada
ketika ini konflik itu sudahpun muncul, tetapi konflik ini mungkin berada pada tahap yang lebih rendah, dan masih dapat diselesaikan tanpa membawanya ke pengadilan yang tinggi.
Apa yang telah dibentangkan di atas hanya merangkumi
sebahagian daripada faktor-faktor bagi punca-punca konflik itu.
I'd mungkin disebabkan oleh banyak perkara. Perbezaan dari segi
pendapat, sumber- sumber terhad, pertukaran, perebutan kuasa
dan bermacam-macam lagi.
Dari penjelasan di atas kita boleh merangkumkan bahawa konflik
selalunya tidak bermula dari satu punca sahaja. Tetapi mungkin wujud keadaan di mana kedua-dua pihak itu memberikan perhatian yang lebih pada
satu punca konflik jika dibandingkan dengan yang lain-lain. Dari itu jikalau
dipandang dari sudut mana sekalipun, setiap konflik itu mempunyai
sekurang-kurangnya 2 punca konflik. Sebab itu adalah penting bagi
pengurusan untuk mengenalpasti kesemua punca-punca konflik yang wujud. Dari jumlah punca-punca konflik yang wujud inilah pengurusan boleh
menggunakannya sebagai asas untuk bertolakansur dalam menguruskan
konflik.
Mari kita lihat kesudahan konflik itu. Katakan antara Don dan Nora.
Nora membawa kes itu ke muka pengadilan, dan katakan Don diberi
amaran untuk memberhentikan segala tindakan-tindakan yang boleh
menghindar Nora dari menjalankan kerjanya sebagai seorang eksekutif.
Adakah ini dapat mengubah keadaan konflik itu? Sudah tentu tidak.
Bagaimana dengan Nora? Adakah bermakna Nora telah menang? Ya,
Nora telah menang, tetapi hanya dari segi nama sahaja, dan bukan secara
praktiknya. Dia masih terpaksa bersemuka dengan Don setiap hari. Suasana
yang tegapg masih akan berterusan. Kali ini dalam bentuk yang lebih buruk
dari dahulu. Konflik yang timbul antara Don dan Nora sekarang sudah menjadi lebih mendalam lagi.
Sekarang sudah tentu Don akan memberikan kerja-kerja yang patut
kepada Nora, tetapi dia akan sentiasa Cuba untuk mensabotaj Nora. Adakah
ini bermakna Don telah menang? Tidak, kerana kegagalan Nora dalam kerjaya hanya akan mengganggu kelicinan tugas pejabatnya dan seterusnya
akan mencerminkan kegagalan Don sendiri sebagai seorang ketua dan
pengurus yang baik.
Pengarah organisasi itu juga telah 'kalah', kerana membiarkan keadaan
itu melarat hingga ke mahkamah. Dari itu konflik ini telah banyak membaxirkan masa, tenaga dan tidak sedikitpun membawa kebaikan samada
dari segi nama ataupun produktiviti organisasi itu.
Dari itu, kita tidak mahu sesuatu konflik itu berakhir dengan permusuhan atau perasaan dendam. Lantaran itu pengurusan harus berusaha
supaya konflik itu dapat dilihat sebagai satu kejadian yang kreatif dan positif
dan bukan sebaliknya.
F. LANGKAH-LANGKAH MENGATASI KONFLIK
Dengan melihat dengan sepintas lalu akan punca-punca dan kesan
konflik, kita dapat merumuskan akan perlunyabagisesuatu organisasi mencari jalan untuk mengurangkan konflik dalam kerja, sebelum ianya mengganggu ketenteraman dan produktiviti organisasi amnya dan pekerja
khasnya.
Seterusnya penulis akan mencadangkan di antara beberapa cara untuk mengurangkan konflik di samping menerangkan sedikit sebanyak akan
kebaikan atau keburukannya. Penulis menumpukan dalam pengurangan
dan bukannya mengelakkan. Ini ialah kerana konflik akan sentiasa wujud
sclagi manusia berinteraksi antara satu sama lain.
Satu langkah yang boleh diambil ialah mengelakkan. Cara ini tidak
mengambil kira perkara-perkara yang dianggap sebagai tidak penting.
Kekurangan dalam teknik ini iaiah, ia tidak mengenalpasti punca-punca
konflik itu, dan seringkali ia menyebabkan situasi itu berpanjangan atau
akan menjadi lebih buruk lagi di masa depart. Walau bagaimanapun, cara
ini dapat mengatasi konflik buat sementara waktu.
Satu lagi cara yang selaras dengan pengelakkan, ialah mengasingkan
mereka yang berkonflik itu dengan cara fizikal, yang sememangnya selalu
digunakan oleh pengurus secara tradisional. Cara mengurangkan pergaulan
di antara pihak yang berkonflik ini adalah kurang baik. Kerana pihak
pengurusan bukan sahaja gagal dalam mengenalpasti masalah konflik itu,
tetapi dengan pengasingan akan mengurangkan interaksi dan kerjasama
antara mereka yang terlibat. Walhal kita sedar tanpa sikap tolong menolong
di dalam satu organisasi akan hanya menurunkan produktiviti dan
keberkesanan organisasi tersebut. Walau bagaimanapun ini boleh dijadikan
sebagai satu langkah sementara, untuk pihak pengurusan mencari satu
kaedah yang lebih sesuai untuk menyelesaikan konflik yang wujud itu.
Satu lagi cara yang agak serupa dengan pengelakkan ialah pengaulan
yang terhad. Mereka yang berkonflik itu diasingkan secara fizikal dan
dibenarkan berinteraksi pada masa-masa yang tertentu sahaja. Teknik ini
juga boleh juga digunakan apabila tidak ada peluang bagi pengurusan untuk memuaskan kehendak atau permintaan kedua-dua belah pihak itu.
Kadang-kadang adalah wajar bagi pihak pengurusan menggunakan
teknik seperti yang dinyatakan di atas bagi perkara-perkara yang remeh
'temeh. Ini boleh dijadikan sebagai pengajaran pada pekerja-pekerja supaya
jangan memperbesar-besarkan perkara-perkara yang kecil. Adakalanya
konflik yang wujud itu menjadi begitu serius sehingga mereka tidak dapat
berfikir dengan logik. Di sini sekali lagi pengelakkan boleh digunakan
sehingga keadaan konflik itu menjadi kurang tegang. Selain dari itu cara
ini juga boleh digunakan apabila konflik yang sama pernah diselesaikan
dengan berkesan, tanpa campurtangan dari pihak pengurusan. Teknik ini
juga patut digunakan apabila pengurusan mendapati penyelesaian hanya
akan membawa lebih banyak kerosakan dari kebaikan pada organisasi.
Satu bentuk penyelesaian yang lain pula ialah kaedah difusi. Cara ini
cuba mencari penyelesaian bagi perkara-perkara kecil di mana tiada kata
sepakat antara dua pihak, dan membiarkan perkara-perkara penting, dengan
harapan perkara yang berkaitan dengan konflik itu akan luput atau reda
dengan masa. Pengurusan boleh melaksanakan kaedah ini dengan
mengurangkan perhatian pada perkara-perkara yang berbeza di samping
menekankan pada perkara-perkara yang mempunyai persamaan di antara
kedua-dua pihak itu.
Dengan mengenalpasti dan member! perhatian pada perkara-perkara
yang sama antara kedua-dua pihak itu akan memberi kesedaran kepada
36
mereka bahawa prestasi di antara keduanya bukanlah berbeza sangat,
seperti yang dijangkakan. Cara ini juga boleh digunakan sebagai satu
langkah untuk mencuri masa sehingga konflik antara kedua-dua pihak itu
menjadi kurang tegang. Kekurangan pada kaedah ini ialah pada suatu masa,
isu-isu terbiar yang menjadi pusat pada konflik itu akan timbul semula dan
mungkin mewujudkan suasana konflik yang lebih buruk lagi.
Bekerjasama juga merupakan satu langkah ke arah resolusi konflik.
Di sini setiap pihak yang berkonflik akan cuba melihat pendirian masingmasing terhadap konflik itu dan mengenalpasti pilihan yang akan
memuaskan kehendak kedua-dua pihak.
Satu kaedah penyelesaian yang sering digunakan ialah dengan cara bertolak ansur. Ini selalunya lebih berkesan apabila kedua-dua pihak itu samasama berpengaruh ke atas satu sama lain. Asas bagi cara ini ialah objek,
matlamat atau sumber-sumber yang dikonflikkan itu boleh dibahagibahagikan dengan apa cara pun di antara pihak yang berkonflik itu.
Misalnya pengurusan itu akan menaikkan gaji jika bahagian pengeluaran
boleh meningkatkan mutu pengeluarannya.
Di sini bahagian pengeluaran mempunyai kuasa dalam menentukan
produktiviti yang merupakan matlamat organisasi itu. Sebaliknya
pengurusan pula mempunyai kuasa dalam perkara yang berkaitan dengan
gaji, yang sememangnya boleh memberi kesan ke atas pekerja. Tetapi
jikalau salah satu dari pihak berkenaan lebih berpengaruh, maka besar
kemungkinan pihak itu akan bertegas di atas pendiriannya dan ini akan
rnenyulitkan proses kompromi itu.
Teknik bertolak ansur ini sesuai digunakan apabila matlamat yang hendak dicapai itu tidak sctimpal dengan usaha dan masa yang mereka tumpukan untuk menyelesaikan konflik itu. Cara ini juga berkesan jika
digunakan sebagai satu penyelesaian sementara untuk isu-isu yang
kompleks ataupun bila usaha-usaha kerjasama dan penyesuaian tidak mendatangkan hasil. Sesuatu penyelesaian itu akan hanya tercapai" dengan
adanya pengorbanan dari kedua-dua belah pihak. Dari itu adakalanya satu
pihak akan memujuk pihak lawan supaya untuk bertolak ansur agar dapat
menyelesaikan masalah itu dengan sccepat mungkin.
Satu lagi cara untuk mengurangkan konflik ialah dengan mengenalpasti
dan membincangkan punca-punca konflik untuk mengetahui masalah
masing-masing. Proses ini sering melibatkan konfrontasi. Ada beberapa cara
yang boleh digunakan untuk menjayakan kaedah ini. Satu daripadanya ialah
melalui pertukaran wakil atau personnel di antara kedua-dua pihak yang
berkonflik. Dengan cara ini organisasi dapat meningkatkan komunikasi dan
pergaulan antara pihak-pihak yang berkonflik. Pertukaran wakil-wakilini
bukan sahaja dapat memahami apa yang berlaku dan difikirkan dalam pihak
37
lawannya, tetapi pihak lawannya dapat mengenali sikap pihak wakil itu
dengan lebih mendalam. Teknik ini juga ada b'ahayanya. Adakalanya apabila
wakil-wakil yang kernbali pada kumpulannya dipersepsi sebagai orang luar,
di mana pendapat dan pengalaman mereka juga mungkin tidak diterima
oleh pihaknya sendiri.
Satu lagi cara kompromi ialah melalui penyelesaian masalah. Ini boleh
dilaksanakan dengan membawa kedua-dua pihak yang berkonflik itu
berhadapan untuk meluahkan perasaan masing-masing. Mereka akan
disuruh mengeluarkan pendapat dan pandangan masing-masing. Dalam
kaedah ini tidak timbul persoalan siapa yang salah atau benar, tetap hanya
akan berusaha dalam mengenalpasti dan mencari jawapan bagi penyelesaian
konflik itu sahaja.
Penyelesaian konflik boleh juga dilakukan melalui kaedah persaingan.
Di sini satu pihak akan cuba mengejar matlamatnya tanpa menghiraukan
kehendak pihak lain. Pihak ini akan sengaja bertegang urat dalam membahaskan sesuatu isu itu sehingga pihak lawannya menyerah kalah.
Salah satu tektik yang boleh digunakan di dalam teknik. persaingan
ialah pihak lawan boleh menganibil langkah yang pertama dalam
menyelesaikan konflik supaya dapat mengusai keadaan itu. Pengurusan
boleh menggunakan kaedah ini, jika didapati perkara yang dipertikaikan
itu terlalu mustahak untuk dibiarkan keputusannya dibuat olch pihak yang
salah.
Kaedah penyesuaian pula sering digunakan untuk memberi jalan pada
pihak lawan membuat penyelesaian mengikut kchendaknya. Pihak yang
berkenaan tidak perlu berkonfrontasi dengan pihak lawan. Kaedah ini
adalah sesuai apabila sesuatu pihak itu mendapati yang ia sememangnya
bersalah atau mendapati pihaknya akan kalah dalam perdebatan itu. Oleh
itu, untuk mengurangkan kerugian mereka akan menyesuaikan diri pada
keadaan tertentu. Kadangkala cara ini digunakan untuk menabur jasa baik
pada pihak lawan agar mcndapat habuan yang lebih baik untuk isu-isu di
masa depan. Teknik ini juga boleh digunakan apabila hormoni dan
kestabilan itu menjadi matlamat pihak yang berkonflik. Kadangkala
pengurusan juga menggunakannya untuk memberi peluang kepada orang
bawahan mempelajari kesilapan masing-masing.
Teknik pemerasan otak juga merupakan satu proses untuk
menyelesaikan masalah. Kaedah ini memerlukan individu dalam kumpulan
itu mencari jawapan bagi satu masalah yang spesifik dengan mengumpulkan
kesemua idea-idea yang diberikan oleh individu-individu lain dalam kumpulan itu secara spontan. Teknik ini telah dikenalkan oleh Dr. Alex
Osborn dan ia merupakan salah satu teknik yang selalu digunakan untuk
menyelesaikan sesuatu kerumitan, Teknik ini mempunyai empat peraturan
38
yang patut diikuti. Pertamanya, member! idea dahulu tetapi menilai serta
mengkritiknya kemudian. Kedua ialah members idea secara bebas. Ketiga,
kuantiti idea itu yang patut diberatkan kerana lebih banyak idea itu, lebih
baik kemungkinannya dalam menemukan idea-idea yang lebih berguna dan
bernas. Akhir sekali ialah menggabungkan dan memperbaiki idea-idea yang
diberikan itu. Pada amnya, teknik ini cuba mewujudkan satu suasana di
mana ia menggalakkan individu-individu dalam sesuatu kumpulan untuk
memberi idea-idea secara bebas tanpa apa-apa sekatan.
Mengikut teknik Gordon pula, pada dasarnya ia adalah sama dengan
teknik pemerasan otak. Tetapi kaedah ini hanya memerlukan satu idea yang
paling baik. Dari itu pengerusi dalam kumpulan itu sahaja yang tahu akan
masalah konflik yang sebenarnya. Dia akan memulakan perbincangan
dengan memberikan konsep-konsep asas yang berkaitan dengan masalah
itu. Dia tidak akan memberitahu masalah yang sebenarnya, sehingga kumpulan itu hampir mencapai satu penyelesaian atau jawapan yang agak
memuaskan. Ini dilakukan supaya idea-idea dari pihak yang berkenaan tidak
dipengaruhi oleh fakta-fakta yang berkaitan dengan masalah konflik
itu.
Teknik senarai semakkan (checklist) pula menyarankan supaya mereka
yang berkenaan menyediakan satu senarai komponen-komponen yang
berkaitan dengan masalah itu. Item-item ini akan dibandingkan dengan
masalah konflik yang sebenar ataupun subjek yang berkaitan dengannya.
Idea-idea untuk menyelesaikan masalah itu boleh mengikut salah satu
daripada kategori berikut: (i) idea itu digunakan pada hal yang lain, (ii)
penyesuaian idea (iii) perubahan idea, (iv) memperbesarkan atau
memperkecilkan peranan idea itu, (v) idea itu diletakkannya pada kategori
yang kurang penting, (vi) menyusun semula idea, (vii) buat sesuatu yang
berlawanan dengan idea asal atau (viii) pergabungan idea atau (ix)
penyesuaian idea. Kekurangan pada teknik ini ialah banyak masa yang akan
terbuang dengan menyenaraikan perkara-perkara yang tidak berkaitan
dengan masalah konflik itu.
Berikut ini adalah satu gambarajah sebagai satu panduan am untuk
menguruskan konflik, di mana ianya boleh diubahsuai mengikut pengalaman masing-masing.
G. KESIMPULAN
Selalu benar kita mendengar pengurusan melaungkan perkataan seperti
keberkesanan produktiviti dan lain-lain lagi. Kesemuanya ini tidak boleh
wujud secara automatik tanpa campurtangan dari pihak pengurusan. Oleh
kerana konflik boleh terjadi samada antara individu atau antara individu
dan organisasi, maka adalah penting bagi sesuatu organisasi itu
mengenalpasti dan mengurangkan masalah konflik itu secepat mungkin.
Jika pengurusan tidak mahu berbuat demikian, adalah lebih baik
39
PANDUAN AM PENGURUSAN KONFLIK
Tinggi
Kerjasama
— menang/kalah
— penyelesaian
masalah
Persalngan
— menang/kalah
— paksaan/dominasi
Tahap
ketegasan
(pada diri
sendiri)
Bertolak ansur
— berkongsi
Pengelakkan
— tidak mahu
bekerjasama
Difusi
— penyesuaian
— kerjasama
Rendah
Rendah
Tahap ingin bekerjasama
(dengan orang lain)
Tinggi
mereka elakkan sahaja kerja-kerja yang memerlukan pergaulan dengan
orang lain. Tetapi ini sudah tentu mustahil dalam suasana organisasi, yang
memerlukan interaksi dengan orang lain setiap masa. Tambahan lagi bila
mengenangkan konflik itu wujud di mana-mana, seperti bayang-bayang
manusia, pengurusan tidak boleh mengambil sikap bahawa ke semua
konflik itu buruk. Sebaliknya pengurusan mesti berusaha ke arah
menguruskan konflik dengan cara berkesan dari cuba hendak menghindarkannya sama sekali, jikalau hendak bergerak ke arah organisasi yang
dinamik dan produktif.
RUJUKAN
Keith Davis and John W. Newsion. Organization Behavior: Readings and
Exercises, New York: McGraw Hill Company, 1985.
Thomas Rubie and Kenneth Thomas. Support for a two-demantional modes
of conflict behavior, Organizational Behavior and Human Performance
16, Fig 7, p.145 (1976).
George Simmel. Conflict and the Webof, group affiliations.
Trans. Kurt.
H. Wolff. (New York: The Free Press, 1955).
Alex. F. Oshorn. Applied Imagination — (New York: Scribner's, 1953).
Charles S. Whiting "Operational Techniques of Creative Thinking", In
40
readings in management, 3rd. ed. (Cincinnati: South-Western, 1969),
Chapt. 19.
K.W. Thomas, "Conflict and Conflict Management," in Handbook of Industrial and Organizational Psychology, ed. M.D. Dunnette (Chicago:
Rand Mcnally, 1976), p.900, Figure 4,
Lewis A. Loser. The functiona of social conflict. (New York, The free Press,
1956).
Harvard Business Review, Vol. 39 (Nov—Dis I960).
41
BIODATA
DR. R.I 1 . Mohanty is currently a professor at National
Institute for Training in Industrial Engineering (N1TIF).
Bombay, India. Previously he was a visiting professor
In the division of Industrial Engineering and Management at Asian Institute of Technology, Bangkok.
He was Head of Production Management Department
is well as Dean of Research Programmes at National
Institute for Training in Industrial Engineering (N1TIE).
He was also the National Chairman of Indian Institution of Industrial Engineering. He has very wide
ranging experiences in education, management development, research, consultancies in
both government and industries. He has published more than 120 papers in various reputed
International journals and has also completed some national level research projects. Me
has written a book on works management and also guided several Ph. Ds. He is the editorin-chief of Industrial Engineering Journal (India) for the last 5 years, and also represents
in the editorial board of several journals. He has received 'National Awards' for his outstanding constribution in the field of industrial engineering and management. He has also
chaired in .several international conferences.
ABSTRACT
This paper presents a study to assess the strength of relationship bet-
ween the various measures of productivity and profitability using the case
of some Indian corporate sectors. It is inferred that productivity is much
wider a concept than profitability. The traditional measures of productivity are insufficient to predict the long-term survival of any corporation.
Profitability, on the other hand, is perceived as a short-term goal oriented
concept and can be manipulated through many environmental variables.
For the Indian corporate sectors, the study shows that the correlation between productivity and profitability is quite inconsistent. A developing
economy like India needs to put more emphasis on productivity drives.
ASSESSMENT OF RELATIONSHIP
BETWEEN PRODUCTIVITY AND
PROFITABILITY: AN INDIAN
EXAMPLE
By:
S.C. Rastogi
R.P. Mohanty
National Institute for Training in Industrial Engineering,
Bombay — 400 087 INDIA
INTRODUCTION
k
Entrepreneurs, shareholders, managers, suppliers, customers and
nvorkers etc. are the different behavioural groups in an organisation. They
perceive and interpret productivity according to their own needs and
priorities. However, all the behavioural groups have one common belief
that productivity improvement can enhance financial performance.
Evidence exist in the literatures [1, 2, 4, 5, 6, 7, 11, 13] supporting the
view point that profitability tends to be enhanced by improved productivity. Various researchers, particularly more popular ones like Graig and
Harris [2], Taylor and Davis [17] and Sumanth and Hassan [15] have advocated for increasing productivity to improve the financial performance.
However, there is no empirical study available in literature which favours
or rejects this hypothesis that profitability increases with an increase in
productivity or vice versa. Some researches are reported by Brayton [1],
Taussing and Show [18] and Harl and Bresscs [4] towards the test of this
hypothesis. Brayton [1] and Toussing and Shaw [18] have explained the
link between productivity and profitability for a single specific company
case and have indicated that attempts should be made to explore the relationship for a particular industrial sector or a national economy. Harl and
iireSses [4], on the other hand, have explored this relationship for some
industrial sectors of U.S.A. and have observed that productivity changes
have positive effect on profitability but there exists significant amount of
variance.
An attempt had been made in this paper to study the relationship between productivity and profitability for some leading manufacturing companies of the Indian economy. Various manufacturing sectors (Engineering, Chemicals and Pharmaceuticals, Textiles, Cement and Tyres) have
been covered in the analysis to offer a broad representation of the
economy.
43
MEASURING PRODUCTIVITY
Productivity has been defined and interpreted in a number of ways
and still there is no consensus on it [5]. The current researches and applications reflect the diversity in perception, interpretation and measurement. Mohanty [8, 9] has listed some of them as given below:
1.
Productivity is a function of providing more and more of everything for more and more people with less and less consumption
of real resources.
2. Productivity is the volume of output attained in a given period
of time in relation to the sum of direct and indirect efforts expended in its production.
3. Productivity is the measure of how well resources are brought
together in organisations and utilised for accomplishing a set of
objectives.
4. Productivity is not an economic concern, but a socio-politic ,1
issue.
5. Productivity is concerned with establishing congruency between
organisational goals with societal aspirations through inputoutput relationships.
6.
Productivity is more goods of better quality at lowest cost.
7.
Productivity is elimination of waste in all forms: time, money,
materials, equipment, energy, space, and physical and mental
effort.
8.
Productivity is a combination of efficiency and effectiveness.
9.
Productivity is the result of interactions of organisational ma-
nagement systems and external environmental factors.
10. Productivity is the product of utilisation, methods and performance.
11.
Productivity is the principle of work justice.
12.
Productivity is the value added per employee.
Some definitions are related to the macro-level and others to the
micro-level. Some are welfare-oriented and others are oriented towards
operational efficiency.
44
Economists, accountants, behavioural scientists, managers, engineers
etc. have defined and used productivity for their own independent requirements. Even within the same discipline, there are differing methods.
For example, Kendrick [5] has classified as follows:
a.
Partial Productivity: Ratio of gross or net output to only one
type of resource input, e.g.
Labour productivity
Capital productivity
Material productivity
Energy productivity
b.
Total Factor Productivity: Ratio of gross or net output to
total labour and capital inputs expressed in monetary equivalents.
c.
Total Productivity: Ratio of gross or net output to total inputs
including labour, capital, material, energy and others — all being
expressed in monetary equivalent.
There have been conflicting arguments as to how to define the various
inputs and output. For example, Craig and Harris [2] recommend to take
net production in monetary terms as the real output of the organisation,
while Taylor and Davis [17] advocate the value-added concept as the real
output of the organisation. However, traditionally, the issues which have
remained unresolved are as follows:
1.
How to deal with the different types of inputs and outputs?
2.
How to recognise the qualitative changes in inputs and outputs?
3-
How to keep inputs and outputs measurements unbiased and
independent?
4.
How to weight the diversified outputs of the company?
Accounting managers have viewed the organisational productivity
most often in financial ratios and have adopted costing methods and
budgeting approaches. Budgets have been taken as standards, irrespective of establishing their optimum achievable values. Productivity is interpreted as the ratio by which the budgets are achieved. Engineers-have
generally sought productivity concepts in terms of measurement of
physical assets e.g., production output per man-hour, shop utilisation
percentage, material requirement per unit etc. Sumanth [16] has conducted
a survey of U.S. Industries in 1981 to show what a wide variety of definitions are being used to measure productivity.
45
Despite such a variety of perceptions and many unrelated measurement methods, productivity is an unifying expectation of all sections of
people in the society and all the behavioural groups in an organisation.
Mohanty [9] has advocated that productivity is the 'soul' of an organisation for which individuals while working have to integrate their body,
mind and intellect in a total sense. Further, to translate this concept Mohanty and Rastogi [10] have proposed action research methodology which
aimed at resolving the conflicts among the behavioural groups and integrating the physical sub-systems, behavioural sub-systems and informational sub-systems in an organisation.
MEASURING PROFITABILITY
The profitability of an organisation is very important to its owners,
management and creditors. Like different concepts of productivity, profitability is also perceived differently by different interest groups depending upon whether they belong to owners' group {including share holders),
management group or creditors group and therefore, all of them measure
the financial health of the organisation differently.
For instance, owners and share holders view profitability in terms of
profitability ratio [6] or in terms of profit on gross sales or return on total
investment, while creditors are interested in liquidity ratios and current
ratios [6].
However, all of them agree that in the long-run, it is the profitability
that is significantly useful for the purpose of measuring the financial health
of the organisation. Profitability ratios have been classified into two ma-
jor groups; one linked with return on total investment, while the other
is linked with profit on total sales. While the sales-based (i.e. output based) ratio measures the performance of production and marketing departments, the investment-based (i.e. input based) ratio measures the overall
performance of the organisation in using the funds supplied by owners,
shareholders and creditors in generating extra money.
It is a fact that both productivity and profitability measures are based
on some ratios of inputs and outputs. These inputs and outputs can either
be physical or financial. Knon [3] has defined 20 such ratios of inputs and
outputs. He has categorised these ratios into 4 broad groups namely,
group 1 — Productivity ratios based on physical volume
group 2
— Productivity ratios based on value added
group 3
— Profitability ratios based on financial terms (Sales
group 4
revenue as output)
— Profitability ratios based on profit as output.
Relationship between Productivity and Profitability
Swain and Sink [14] have enunciated that
46
PROFITABILITY = PRODUCTIVITY x PRICE RECOVERY ....(1)
According to them, an organisation can generate profit growth from
productivity improvement and/or from price recovery. Price recovery
relates to the changes in output prices in response to changes in input
costs. In other words price recovery is the degree to which input cost
increases are passed on to the customer. Most organisations have some
control systems that monitor profitability, but they are unable to conveniently analyse whether their profitability changes are the result of productivity changes or prices cost movement.
Thus, the above equation states that profitability, besides being related
to productivity, is also influenced by the price recovery factor. We feel
that the price recovery factor (PRF) is not only related to inflation, but
also to many other external parameters such as market structure, competitiveness of the firm, fiscal and monetary policies of thegovernment,etc.
These parameters are not absolutely under the control of the organisations but organisations can influence the price recovery factor.
DESIGN OF EXPERIMENT
We have considered 10 definitions of productivity measures and 6
definitions of profitability measures. These definitions are mentioned in
Table 1 and Table 2. These definitions have the following assumptions:
Assumptions
1. All the values of inputs and output (whether physical or financial)
are taken in monetary equivalents only. The base year is taken as
1975—76.
2.
Since the comparison is made sector-wise (textile, cement,
tyre, engineering, chemical and pharmaceutical) PRF is assumed
to be non-variant within a given sector. However, there may
be inter-sectoral variations and may have varying impact on
the relationship of productivity and profitability for different
sectors. Although we feel that this assumption is not a realistic
one, but, in the absence of reliable data to estimate the PRF in
terms of market conditions, competitiveness, government policies
and inflation rate, we have no other alternative other than
resorting to such a drastic assumption, Quantification of such a
factor may also pose some difficulties, In India, barring inflation,
there has been no significant change in the market structure,
competitiveness and Government policies during the period of
analysis (1975—84) within each sector. Furthermore, inflation
is also contained within a small range.
47
Productivity Ratios Used
One motive of this paper is to find out which definition of productivity ratio is more meaningful in showing the significant link with profitability for a particular sector in the economy. Therefore, 10 definitions
of productivity ratios in Table 1 cover the following popular concepts:
Kendrick [5] has classified the productivity measures as:
• Partial productivity
• Total factor productivity
• Total productivity
These productivity measures have been used by many authors [4, 10,
13, 15] and are basically used in many organisations. In calculating these
indices, in some cases the gross outputs are approximated using the method
suggested by Craig and Harris [2], e.g.:
Gross Output Produced = Net Sales ± (Change in total
inventory level)
(in money equivalent)
(in monetary terms)
Sometimes, Craig and Harris [2] and Eilon [3] have estimated output
based on gross production. Further, Taylor and Davis [16] and Eilon [3]
have also used output based on value-added concepts. However, in this
study, we have used Eilon's method for estimating the output. These
methods are basically gross production and value-added based.
Several methods are available to estimate the input capital cost. In
this study, following two methods have been used for the purpose of
estimation of input capital cost. It should be noted that the capital cost
here is not meant to indicate the cost of raising the capital (as is commonly understood in financial terms) but it is meant to measure the consumption of capital, which should be considered as one of the main input to
the whole production function of the organisation,
Method I : Annual depreciation provided to total fixed assets has been
taken as the annual capital consumption cost. This is because
depreciation is basically provided to reflect the consumption
of capital blocked in the fixed assets depending upon their
actual usage or utilization. Thus, in this case, Annual Capital =
C = Annual depreciation provided, Hall and Bresses [4]
have also advocated for a similar approach.
Method II: Annual capital expenditure has been based on another
concept. It is taken as the cost equal to interest being paid
on the capital blocked in the total fixed assets and being
utilised to produce the gross output. The assumption here
48
is, that whether the fixed assets are being utilized or not,
the interest or the money blocked is to be spent annually,
and should be treated as the cost of consumption of capital.
In this study, the prevalent interest-rates of Industrial
Development Bank of India (IDBI) for long-term loans have
been taken as the percentage capital cost. Working capital
has not been included here as the magnitude of such capital
is quite small compared to the total fixed assets and acquisition of such working capital varies from different sources.
Profitability Ratios Used:
Profitability ratios are mainly based on the following concepts:
• Ratios based on investments as inputs, Khan & Jain [6]
• Ratios based on sales as outputs, Khan & Jain [6]
• Ratios based on value-added as outputs, Eilon [3]
• Profitability measure in terms of total asset growth, Peter and
Waterman [11]
However, in this study we have used the data of Bombay Stock Exchange Official Directory (1984), for estimating various profitability
enunciated.
Selection of Organisation and Sector
Out of the 251 large public limited companies identified by Economic
Times of India whose data are published annually by Bombay Stock Exchange Official Directory, we have selected the following 5 sectors of the
Indian Economy for our study.
• Engineering
• Chemical and Pharmaceutical
• Textiles
• Cement
• Tyres
We have classified these sectors into two sizes, namely, large and
medium. Large sector has been defined as those companies whose total
assets range from between 950 million to 1500 million rupees. Medium
size is defined as those companies whose total assets range from 330 million
to 950 million rupees. 10 industries were selected (barring only Tyre Sector, where only five industries were available) in each sector with 5 of
them belonging to the large and medium size. Thus we have a total of
10 (ten) groups; both large and medium size in each of the 5 sectors mentioned above. Ten years data (1975—1984) have been used for computing
49
10 productivity measures and 6 profitability ratios listed in Table 1 and
2 and co-efficients of determination were computed for each of 60 combinations of productivity and profitability. We have also estimated the coefficient of determination between sectors and between large and medium
groups.
Barring 2—3 companies belonging to the cement and tyre sectors,
all the other selected companies have made profits in the last 10 years.
These 2—3 companies have made losses in 2 of the years out of a total
span of 10 years. These 2 years of loss making were not considered for
this study.
RESULTS AND DISCUSSIONS
The value of co-efficient of determination between productivity and
profitability measures are presented in Table 3 to Table 7. From the
analysis, the following discussions are considered to be significant:
1.
In the engineering sector, significant relationship exists between
total productivity (value-added. based) and gross profit (valueadded based) for large-size industries, as well as for the total
sector. Most significantly, the relationship is strong (about 0.8)
but negative. For medium size industries, this relationship is also
negative, but not very strong. In general, irrespective of the
productivity measure used, the relationship between the gross-
profit per rupee of value-added and the productivity is negative.
This means that even when there is decrease in productivity.
the profitability increases. Therefore, the prices recovery factor
is very strong. The profitability in engineering sector is more
influenced by external factors like the market structure, inflation
^nd government policies, etc. rather than productivity-linked
actions like quality improvements, technical innovations and
cost reductions, etc.
2.
In the case of cement sector, there is a significant correlation
between the profitability measures and productivity measures in
the large-size industries as well as for the overall sector, while
for medium-size industries the link is very weak and insignificant. The correlation between profitability and productivity is
stronger when the value-added based concept is used compared
to the net-sales concept for large-size industries and for the total
sector.
However, unlike engineering sector, increasing profitability
is due to the increase in value-added and better productivity.
50
Due to government price control mechanisms and other fiscal
measure, PRF is more or less constant for the cement sector and
hence to increase profitability in this sector, more attention has
to be directed towards increasing the value-added. Further, in the
case of cement sector, large-size plants are more viable and have
economy-of-scale than the medium-size plants. This fact is obvious from the strong and positive correlation (0.72 to 0.95)
between the productivity and asset-growth of large-size industries.
For medium-size industries, this correlation is either negative or
insignificant.
3-
In the case of tyre sector, it can be observed that ROTA, ROCE
and NPM are positively related to total productivity; particularly
if, productivity measures are value-added based. This relationship is not very significant with other measures of productivity
(labour or total factor). The correlation is significant and negative, if productivity is related to the total-asset growth. These
facts indicate that in this sector also, profitability can be improved
by improving the productivity. Total productivity (value added
based) is a better measure for the tyre sector than the partial or
total factor productivity. Medium-size industries are more viable
than the large-size unlike the cement sector.
4.
In the case of chemical and pharmaceutical sector, for large-size
industries as well as for the total sector, GPM and GPVA are
significantly and positively correlated (range 0.72 to 0.82) to
total factor productivity FVA2 and total productivity. This relationship is even stronger for medium-size industries. For the
medium-size industries, the correlation between ROCE, GPM,
NPM and GPVA and most of the measures of productivity are
very strong and positive (0.98). The correlation between the
assets-growth and the productivity is generally weak in large
industries but negatively correlated for medium size industries.
With most of the measures of productivity, particularly based
on value-added concept, this relationship is stronger. These
observations suggest unlike engineering sector, that profitability
increases are more due to productivity increases and better value1added and not because of external factors related to price recovery
factor. Further, the proposition of Peter and Waterman [11] that
the productivity can grow with the growth of asset is not true
for the chemical sector. However, the strong relationship between productivity and profitability for medium-size industries
suggests that medium-size chemical industries are more viable
and better controlled than very large-size industries.
5.
In the textile sector, conclusions are even more difficult to
51
draw. In large-size industries, the labour productivity shows high
negative correlation with profitability (GPM, GPVA); the total
productivity shows a strong positive correlation to most of the
measures of profitability like ROCE, ROTA, GPM, NFM and
GPVA, and the total factor productivity is negatively correlated
to GPM. In India, materials and other input costs are very significant in controlling the profitability of this sector. In case of
medium-size industries, the relationship is not significant. No
conclusion can be drawn about the best viable size of the in-
dustry. One of the reasons for such poor correlation may be because of high fluctuating market situations and strong competition.
6.
A very general but most interesting observation that can be
made from the. results of this study is that value-based measures
have contributed significantly to the co-efficients of determination between productivity and profitability. Therefore, by
taking the value-based measures as the references, one can rank
the strength of relationship between the various sectors. Cement
sector ranks positively the highest followed by Chemical and
Pharmaceuticals, whereas textile sector ranks negatively the
highest followed by tyres and engineering. However, no conclusive
guidelines can be provided at this stage as other strategic variables
such as market share, product quality, major technological changes,
and business portfolio decisions are not included in the measures
of productivity in terms of price recovery factor which may have
definite impact on profitability. Incorporation of these strategic
factors are most likely to improve the ability to predict and
explain the variance in such sector.
CONCLUDING REMARKS
Our sample includes mostly the companies which are registered under
the Bombay Stock Exchange Directory. These coil)panics which have been
studied are mainly public limited corporations and mostly bothered about
short-term financial gains rather than with productivity improvement.
Short-terms, goals are attainable through marketing, and financial management strategies, whereas productivity improvement strategies arc geared
towards long-term stability and survival. Such strategies may require human
resource development, research and development activities and progressive autmation etc. However, one has to recognise that the relationship between productivity and profitability behave differently in different
sectors and also is strongly dependent upon the size of the industry. Different environmental conditions are imposed upon such type of industry
from the time to time. Although the identification of causality is central
to the measurement of relationship between productivity and profitability in this paper, we observe a static causal framework is insufficient to
provide conclusive guidelines, moreover, the Indian Economy is also a
very developing economy.
REFERENCE
1. Brayton GN (1985) Productivity Measure Aids in Profit
Analysis, Management Accounting, 66 (1), 53-58.
2. Craig O.E and Harris R.L. (1973) Total Productivity Measurement at the Firm Level, Sloan Management Review, 14
(3), 13-29.
3. Eilon S. (1985) A Framework for Profitability and Productivity Measure, Interfaces, 15 (3), 31-40.
4.
Harl J.E. and Bresses R.K. (1984) On the Assessment of
Corporate Productivity changes and their impact on financial performance, OMEGA, 12 (4) 320 - 363.
5. Kendrick J.W. and Vaccara B. N. (1980) New development
of productivity measurement and analysis, University of
Chicago Press, Chicago.
6. Jain P.K. and Khan M. Y. (1981) Financial management,
Tata-McGraw Hills Publication, New Delhi.
7. Militizer V. H. (1980) Macro Vs Micro Output Ratios, Management Review, 69 (6) 8 - 1 5 .
8.
Mohanty R.P. (1983) Primary Tasks and Root Definitions for Action
Research in Productivity, Proc. of the International Productivity
Congress, Bombay.
9. Mohanty R.P. (1987) Factors Affecting Productivity: Perceptions
of Indian Managers, accepted for publication in Industrial Management and Data Systems.
10. Mohanty R.P. and Rastogi S.C. (1986) An Action Research Model
for Productivity Management, International Journal of Operations
and Production Management, 6 (2), 4 7 - 6 1 .
11. Peters Thomas J. Waterman, Jr. and Robert H. (1982) In Search
of Excellence, Harper & Raw Inc., New York.
12. Richardson P. R. and Gordon J.R.M. (1980) Measuring total
53
manufacturing performance, Sloan Management Review, 21 (2)
47 - 58.
13.
Roll Y. and Sachish A. (1981) Productivity Measurement at a
Plant, OMEGA, 9 (1), 37 - 42.
14. Sink D. S. and Swain J.C (1983) Current development in Firm or
Corporate level productivity measurement and evaluation, Fall
Industrial Engineering Conference Proceedings Toronto, 301 310.
15. Sumanth D.J. and Hassan M.Z. (1980) Productivity Measurement
in manufacturing companies by using a product oriented total
productivity model, Proceedings of American Institute of Industrial Engineers.
16.
17.
Sumanth D.J. (1981) Productivity indicators used by major
manufacturing companies: The results of survey, Industrial
Engineering, 13 (5), 7 0 - 7 3 Taylor B.W., and Davis R.K., (1977) Corporate productivity —
Getting it all together, Industrial Engineering, 19 (3), 32 - 26.
18.
Taussing R.A., and Shaw W. L., (1985) Accounting for Productivity: A practical approach, Management Accounting, 66 (5).
19.
The Bombay Stock Exchange Official Directory (1984), Vol No.
(1, 6, 8, 9, 13, H and 18).
54
Table 1: Definitions of productivity measures used
Output Based
Type of
Value Added Based
Productivity
1. Labour
Productivity
L 1
2. Total Factor
Productivity
F 1
F2
v
w
V
LVA 1
=
V -M
W
FVA 1
=
V -M
W + C,
w + c,
V
FVA 2 *
V - M
W + C,,
V - M
W + C, + OE
w + c,
3- Total Productivity T 1
Measure
V
W + C, + M + OE
TV A 1 =
T 2
V
W + C2 + M + OE
TV A 2 = • V - M
W + C2 + OE
NOTE: All values are in Indian Rupees.
c
V
V
S
Iv
W
M
=
=
=
=
=
=
Net production output during, the year, in Rupees
S ± Iv (refer Craig & Harris 2, approximation) where,
Net Sales during the year, in Rupees
Change in total inventory from previous year
Input remuneration of employees; during the year
Cost of input materials, during the year
i> c.a
OE
=
Annual cost of capital, using method I & II respectively
Other expenses (Factory, Administrative and Selling Overheads) during
the year.
Table 2: Profitability Measures
Measures
Definition
INVESTMENT BASED
1.
Return on capital employed
(ROCE)
NP + 1
ROCE
NW + Db + Loan
+ LA
2.
Return on tatal assets (ROTA)
(ROTA)
=
NP + I
SALES BASED
3.
Gross Profit Margin (GPM)
GP
GPM
S
4.
Net Profit Margin (NPM)
NP
S
VALUE ADDED BASED
5. Gross Profit per Value Added (GPVA)
GPVA
=
GP
S - M
OTHERS
6. Total Assets Growth ITAGR)
TGAR
GP
Gross Profit of the year
Db
NP
Money locked in debentures
Net Profit of the .year
Loan
S
LA
I
Long term loans
Net Sales of the year
A
M
NW
-
A
Loans + Advances
Interest paid during the year
Total Assets
Material cost (total material input)
Net worth
Note: All values are in monetary terms, (Indian Rupees)
* These definitions have been taken, as recommended by the Official Directory of
Bombay Stock Exchange, India, 1984.
56
Table 3: Engineering Sector
LABOUR
PRODUCTIVITY
TOTAL PRODUCTIVITY
TOTAL FACTOR PRODUCTIVITY
SIZE
LARGE
ROCE
ROTA
GPM
NPM
GPVA
TAGR
LI
LVA1
Fl
FV1
F2
FVA2
Tl
TVA1
T2
TVA2
.635
.201
-.061
.428
-.056
-.141
.599
.413
-.391
.314
.631
.655
.620
.375
-.232
.478
.069
.503
.365
.523
.506
-389
-.727
.324
.422
-.345
.373
-.685
.257
.554
.085
-.225
.626
.171
-.618
.531
.221
-.027
.492
-.063
-.204
.024
-.027
.402
.061
-.292
.709
.586
-.048
.594
-.180
.077
.709
.578
.671
.668
.463
-.047
.469
-.128
.588
.469
-.009
.510
-.378
.528
.586
.370
-.122
.372
-.177
.481
.581
.384
-.059
.425
-.433
.422
.682
.208
-.122
.478
. -.140
-.077
.708
.415
-.112
.460
-.678
.307
.515
.031
-.407
-513
.093
-.510
.657
.341
.120
.508
-.613
.070
-.62
-.460
.225
-.796
-363
.088
-.099
.328
-.005
-.161
-.449
.218
-.791
.399
.050
-.056
-.278
-.072
.325
-.494
.298
.186
.227
.259
-.347
-.104
.097
-.043
.352
-.019
.367
-.470
.324
.213
.228
.280
-.367
-.078
.537
.073
-.054
.405
.130
-.305
.618
.392
-.467
.405
-.770
.593
.129
-.001
.628
.407
-.490
.345
-.784
.390
MEDIUM
ROCE
ROTA
GPM
NPM
GPVA
TAGR
-.021
.616
-.387
.706
TOTAL SECTOR
ROCE
ROTA
GPM
NPM
GPVA
TAGR
.675
.239
.685
.434
-.199
.421
-.463
.410
-.204
.071
-.727
.411
.336
.357
.072
-.203
Table 4. Cement Sector
SIZE
LABOUR
PRODUCTIVITY
TOTAL PRODUCTIVITY
TOTAL FACTOR PRODUCTIVITY
LI
LVA1
Fl
FVI
ROCE
729
jm
.721
.788
777
.743
.823
.800
ROTA
GPM
NPM
GPVA
TAGR
.828
.788
.822
.718
.878
.806
896
722
FVA2
Tl
TVA1
.609
.502
648
.709
.698
.260
-755
768
838
.725
.760
720
.468
.355
.427
.621
.481
742
-745
.667
.754
693
344
793
.846
.894
690
.800
.656
.369
816
205
.186
.004
.094
-025
-.460
.384
.236
.080
.160
-033
-.286
,377
.331
.201
.350
.200
-.090
416
320
248
.338
.219
.017
412
.358
.158
.388
.168
-.078
.621
.658
789
.588
.767
205
725
.538
.774
.855
.660
.779
.534
435
.745
727
.777
.507
.376
347
.738
.708
.686
.634
391
328
F2
T2
TVA2
LARGE
MEDIUM
-.005
ROTA
GPM
NPM
GPVA
TAGR
TOTAL SECTOR
ROCE
ROTA
GPM
NPM
GPVA
TAGR
""32
.748
.680
.662
622
.636
.623
955
.958
-839
669
.723
096
.427
170
037
078
.047
-623
.464
.448
-089
.413
-062
-432
822
850
849
.769
.745
673
.927
.585
897
08-S
-057
-.007
-.012
-.758
.844
.858
748
.779
.673
.913
787
.600
.585
137
.464
-.013
.440
-.013
•310
915
.893
746
913
702
.782
.870
521
.646
.553
.243
.358
.227
.380
207
.027
.774
.731
719
.791
.662
742
Table 5: Tyre Sector
LABOUR
PRODUCTIVITY
TOTAL PRODUCTIVITY
TOTAL FACTOR PRODUCTIVITY
SIZE
LARGE
ROCE
ROTA
GPM
NPM
.GPVA
TAGR
o
MEDIUM
RjOCE
ROTA
GPM
NPM
GPVA
TAGR
TOTAL SECTOR
RpCE
R6TA
GPM
NPM
GPVA
TAGR
LI
LVA1
Fl
FV1
F2
FVA2
.516
.548
-.373
.471
-.272
-.481
-.186
-.549
.440
-517
-.313
-.534
-.196
-.609
.530
.581
-.'104
-.357
-.015
.607
-.207
-.460
-.076
-.543
.475
.897
.878
.169
.809
.090
.820
.930
.902
.236
.839
.144
.847
.924
.927
.391
.892
.324
.644
-.350
-.573
-.237
-.646
.581
-.601
-.233
-.680
.638
.910
.920
.422
.888
.359
.578
.953
.201
-.179
-.558
-.224
-.600
.315
.316
-.163
-.575
.943
.471
.911
.383
.675
-.185
-.638
.467
.240
-.129
-.492
-.180
-.541
.303.
.337
-.122
.517
-.150
-.583
.441
-.433
.322
.317
.089
-.268
.051
-.311
-.037 ,
*
Tl
TVA1
T2
TVA2
.364
.453
.409
.484
-396
-.607
.576
.310
.453
.284
-.493
.370
.642
.412
.487
-398
-.603
.462
.639
.955
.939
.448
.906
.356
.720
.492
.522
.930
.613
.900
-.146
.667
.645
.645
.670
.556
.378
.690
.716
.919
.777
.874
.040
.438
.044
-.370
.030
-.440
.239
.496
.724
-547
.652
.520
-.709
.603
.734
.488
.670
.442
-591
.507
.731
.552
.661
.523
-.702
.578
.312
452
.285
-.4873
.765
.747
.659
.760
.569
.428
.
.601
.734
.489
.670
.444
-.594
Table 6 Chemical & Pharmaceutical Sector
LABOUR
PRODUCTIVITY
TOTAL PRODUCTIVITY
TOTAL FACTOR PRODUCTIVITY
SIZE
LI
LVA1
Fl
FV1
F2
FVA2
Tl
TVA1
T2
TVA2
359
567
388
089
535
346
283
497
568
225
682
133
353
269
355
550
331
028
484
404
-358
-403
643
486
505
-839
-227
488
546
190
662
159
250
438
727
332
817
-067
- 115
561
-195
685
408
618
-570
-412
-451
534
422
383
-821
772
704
759
547
775
885
886
-577
788
517
906
957
951
-769
969
960
-695
832
511
948
987
974
811
672
529
762
854
835
-589
663
656
806
794
-445
824
628
891
952
933
-765
440
875
883
860
804
586
467
716
802
788
-561
617
400
838
846
821
-767
369
526
385
177
493
238
309
448
580
278
655
-002
374
529
355
080
468
275
297
430
602
280
673
404
495
581
289
677
029
308
368
781
467
832
-268
090
-135
833
689
803
-782
- 183
-345
721
- 108
-291
672
626
616
534
618
-914
-718
-248
-404
602
559
482
-880
LARGE
ROCE
ROTA
GPM
NPM
GPVA
TAGR
576
186
652
215
107
806
513
756
-626
MEDIUM
ROCE
ROTA
GPM
NPM
GPVA
TAGR
845
547
884
TOTAL SECTOR
ROCE
ROTA
GPM
NPM
GPVA
TAGR
-027
Table 7- Textiles Sector
LABOUR
PRODUCTIVITY
TOTAL PRODUCTIVITY
TOTAL FACTOR PRODUCTIVITY
SIZE
LI
LVA1
Fl
FV1
F2
FVA2
Tl
TVA1
T2
TVA2
-.657
-.702
-.708
-.352
-.909
.956
.064
GPM
NPM
GPVA
TAGR
-.509
-.602
-.869
-.545
-.946
.902
-.171
-824
-.623
-.617
.475
-.495
-.632
-.775
-.391
-.905
.661
.831
.433
.762
.800
.679
-.824
-.154
-.101
.270
.604
-.031
.275
.705
.632
.506
.642
.583
-.475
-.275
-.283
.045
.433
.938
.292
.601
.423
.423
.433
-.432
MEDIUM
ROCE
ROTA
GPM
NPM
GPVA
TAGR
.284
.122
.057
.046
-.063
.309
.192
.148
.150
.112
.024
.277
.267
.025
-.105
-.155
-.235
.379
.279
.091
.078
-.009
-.061
.313
.507
.436
.289
.151
.218
.087
.177
.248
.071
.152
.338
.249
-.089
-.191
-.286
-.234
-.455
-.609
-.891
-.594
-.902
.901
-.589
-.689
-.793
-497
-.917
-.972
.020
-.222
-.736
-.485
-.563
.494
-.412
-.579
-.807
-.468
-.864
.924
.839
.865
.816
.894
.838
.063
.077
.225
-.706
.267
.796
.706
.583
.853
.366
-.347
LARGE
ROCE
ROTA
TOTAL SECTOR
ROCE
ROTA
GPM
NPM
GPVA
TAGR
.200
.699
-.367
.666
.789
.550
.401
.724
-.808
.300
.426
.387
.224
.292
-.290
.446
.643
.521
.504
.521
-.484
.668
.789
-.728
.368
.139
.016
-.127
-037
.415
.543
.Oil
.663
-.264
.4913
.033
.104
-.044
.005
.546
-.106
-.150
.031
.366
-.221
.499
BIODATA
Dr. D.H. (Dec) Groberg has been active in innovative
training and people development for the past 27 years.
He has lived and worked in Japan for ten of those years.
He has developed missionary training materials for
hundreds of missionaries in Japan, created the Training
Department for Mobil Japan where he managed the
training for the 50,000 employees there, and established the forerunner of the Pegasus Language
Services, He developed the Training Analysis Systems
Course (TASC) and taught it to senior excutives
throughout Europe, South America, Africa, Asia, and
the Middle East. His Vision-Skills-Reinforcement Model of training is being used in organisations as deverse as large restaurant chains, private schools, oil companies, and religious
training organizations. This model has been effective in improving and enhancing training in a wide range of fields. Dr. Groberg is the co-founder of the International Education Research and Analysis Corporation (INTERAC), the largest language and communications training company now operating in 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 (DATE
Test), INTERACTIVE ENGLISH, and MNEMONIC JAPANESE. He has been asked to give
presentations throughout the world on the topics of language learning, career development, customer service, personal productivity, and cross-cultural communications. Among
his clients are; Mobil Oil, Denny's Restaurant, the US Peace Corps, United California Bank,
Brigham Young University, and Sumitomo 3M.
62
THE DELTA TECHNOLOGIES: A
HOLISTIC APPROACH TO
PRODUCTIVITY IMPROVEMENT
By
Dr. D. H. Groberg
President, International Management Consultants
Salt Lake City, UTAH, USA)
ABSTRACT
The thesis of this paper is that the success of Quality Circles can be
significantly enhanced by balancing the three factors of Vision, Skills, and
Reinforcement according to a relational operator or general productivity
nodel. The logic of the model is explained through the equation:
If Pro = f(A),
then A = R(S,P)
That is, if productivity (Pro) is a function of the actions taken (A), then
the actions taken (A) are a function of the relational operator (R) [the model]
applied to the specific situation (S) and specific people (P) involved.
Quality Circles assume that by delegating authority and responsibility to employees their productivity will improve. However, because only
those who both want to do something (have VISION), and know how to
do it (have SKILLS) can expect to do it, these factors must also be considered in implementing Quality Circles. Thus, successful implementation
of Quality Circles can best be achieved by planting and nurturing vision,
building and developing skills, and reinforcing a sustained and balanced
growth of these two factors.
What is critical is not the absolute magnitude of any of the variables
but rather the balance among them. Thus, improving Quality Circles is
a function of balancing the three factors of Vision, Skills, and Reinforcement in an upward growth according to the VISION, REINFORCEMENT
BALANCE Model.
This model can be used for any given situation and people by taking
the following two basic steps:
•
First, estimate the relative balance of the current level of vision,
skills and reinforcement and,
•
second, plan and implement appropriate actions to enhance the
lowest factor.
63
The same process is then repeated over. Thus, the model
BALANCE (VISION + SKILLS + REINFORCEMENT)
Additional corollaries are given to enhance the application of the
model and handle special cases.
THE DELTA TECHNOLOGIES
The Fourth Generation of Productivity Technology
I.
WHAT ARE "DELTAS"?
As used by DELTA TECHNOLOGISTS, a DELTA is an increment of improvement. For example, if a student who reads
at the rate of 10 pages per hour improves his speed to 11
pages per hour, the increase of one page per hour is the
DELTA.
DELTA (A) = + 1 PAGE/HR or 10% improvement
or
If a life insurance salesman who normally sells 50 policies per
year increases to 60 policies per year, the increased 10 policies per year represent the DELTA.
DELTA (A) = + 10 POLICIES/YR. or 20%improvement
If these DELTAS were plotted on a graph, they would look
like this:
P
O
L
I
C
• •
I
E
S
1
2
DELTA
1
TIME (in hours)
TIME (in years)
64
2
Potential DELTAS of improvement exist in literally every
walk of life, every occupation, every activity. Business and
industry are concerned with the DELTAS of increased productivity, quality, market share, etc., and decreased expenses,
defects, turnover, etc. Education is concerned with the DELTAS
of increased knowledge acquired for the time spent and in
the levels of achievement, and decreases in the failure or
dropout rates. Improved DELTAS of productivity are a concern and goal of investment, '(a better return on the money
considering time and risk), medicine, (saving more lives,
decreasing illness and disease, etc.), sports and recreation,
(scoring more points, having more fun for the time/money
invested, etc.), and even religion (helping more needy people,
saving more souls, etc).
There are many different types of DELTAS. Three types
are:
Time-related DELTAS (TA):
Learning the same
thing in less time
target level
TIME
For example, reading ten pages in 45 minutes instead of
60 minutes, or selling 50 policies in nine months instead of
twelve months.
New-BreakthroughDELTAS (NA):L
Achieving new
E
breakthroughs
V
or new levels
£
L
previous
barrior
TIME
For example, breaking the four minute mile, breaking
the sound barrier, selling more than has ever been sold
before, (sales record), etc.
Strategic-value DELTAS (SA)
Contributing
Maximum value
NET RETURN
I
N
C
by its location
o
M
E
VARIABLE
COSTS
FIXED COSTS
7
NUMBER OF OUTLETS
65
For example, a restaurant chain that is earning 50 million
dollars profit on 1000 restaurant outlets and one billion in
sales could double their profit by doubling the number of
outlets to double their sales, or it could use strategic value
DELTAS such as increasing the average amount each customer
orders by 7% (from $3-30 to $3.55). Since there would be
little new expense associated with such an increase, most of it
would drop to the bottom line doubling the profit on a 1%
increase rather than 100%.
LARGE DELTAS
Normally, DELTAS are relatively small: 5% increase, 10%
reduction, etc. But occassionally dramatic increases are observed. For example:
EDUCATION AND
LEARNING:
Language students who had been
achieving a basic level of mastery in
15 months, now achieve the same
level in 5 months.
A 300% INCREASE
BUSINESS AND
INDUSTRY:
Waitresses who had been averaging
$2.90 per customer check, suddenly
jump to $3.50 or more.
DOUBLING CONTRIBUTION
TO PROFIT
AND EVEN IN
RELIGION:
Missionaries who were averaging 6
converts per 2 years, increase to an
average of 104 per two years.
A 1700% INCREASE
These increases result from identifying the potential DELTAS
and effectively managing them. But often what has worked
with one organisation, under one set of circumstances, will
not get the same results when carried out in another organization. Some activities may even result in decreased productivity. And what worked at one point in time will not give any
DELTAS of improvement at other times. It turns out that
understanding and effectively implementing DELTAS of productivity improvement is much more complex than it appears
on the surface. One of the reasons for the complexity is that
the various DELTAS interrelate and affect each other. Thus
they must all be considered together. This understanding is
resulting in a new technological discipline called the DELTA
TECHNOLOGIES.
66
II.
WHAT ARE THE DELTA TECHNOLOGIES?
The DELTA TECHNOLOGIES are the studies of the DELTAS
of productivity improvement. The goals of the DELTA
TECHNOLOGIES are identifying, understanding, and implementing large DELTAS.
The three basic DELTA TECHNOLOGIES are PEOPLE,
PROCESSES, and TOOLS. These are the major factors which
affect productivity. Any significant DELTA improvement will
almost always cause changes or be the result of changes in all
three areas, usually major changes in at least one area, and
minor changes in the other two.
III.
WHAT ARE THE DELTA PRODUCTIVITY FORMULAS?
The three factors of PEOPLE, PROCESSES and TOOLS interrelate with each other through five elements of productivity:
SELECTION, MOTIVATION, TRAINING, SYSTEMS, AND
MACHINES. A DELTA of improvement can be obtained by an
initial focus on any of the factors or elements, but it will
almost always have an effect to one degree or another on each
of the other two factors and the other four elements as well
For example, actions which affect processes will also affect
people: actions which affect tools will also affect processes,
and so forth.
PEOPLE
PROCESSES
SELECTION
MOTIVATION
(Ability)
(Vision)
Who you
TOOLS
TRAINING
(Knowledge/skills)
SYSTEMS
TOOLS
(Processes)
(Equipment)
How you work with them
work with
67
t
What you
work with
Therefore, the emphasis on any one area has an effect on
the other areas as well. For example:
SELECTION
MOTIVATION
TRAINING
SYSTEMS
TOOL
PRIMARY EMPHASIS ON PEOPLE
(But affecting all elements)
Replacing the people or changing their jobs is one of the
biggest impacts you can have on people. Next might be
motivating and training, then the systems and the equipment
to a lesser degree.
SELECTION
MOTIVATION
TRAINING
SYSTEMS
TOOLS
PRIMARY EMPHASIS ON PROCESS
(But affecting all elements)
SELECTION.
MOTIVATION
TRAINING
SYSTEMS
TOOLS
PRIMARY EMPHASIS ON TOOLS
(But affecting all elements).
The understanding of the inter-relationships between the
various factors and elements in the DELTA TECHNOLOGIES
has led to the development of productivity formulas. One such
formula defines PRODUCTIVITY as the product of the five
elements raised to a power.
P = SELECTION3 x MOTIVATION15 x TRAINING C x SYSTEMSd x TOOLSC
An increase in any one of the elements will have a multiplying effect on all of them, as a decrease will,have diminishing effect on all of them.
68
IV. HOW ARE THE DELTA TECHNOLOGIES APPLIED?
Some steps in applying the DELTA TECHNOLOGY proCess are:
a. Identifying DELTAS of difference (those factors which
contribute most to improvements).
b. Looking at the items in perspective, rather than just a
part.
c. Looking at the inter-relationships of the various factors.
d. Looking at priorities (At any one time, there are many
things that could be done. Some will impact more than
others. DELTA TECHNOLOGY looks at the ones that will
impact the most and cause the greatest improvements.
e. Balancing/tuning the factors to gain maximal stable improvement.
At the current state of this new technology, there are
four (4) levels of applications, with a 5th level conceptually
available and under exploration.
Level 1
: Identify any DELTA and improve it.
Level 2
: Identify a new-breakthrough DELTA and achieve
it.
Level 3
; Identify a strategic value DELTA and implement
it.
Level 4
: Balance/tune several strategic value DELTAs for
maximum multiplicity of productivity.
Examples of specific applications of the DELTA TECHNOLOGIES and a summary of the main points and principles of
application follows.
69
4+
(900)
P
4
R
O (800)
F
C
3+
I (700)
E
C
Y
/
1 i'
3
(600)
2+
(500)
E
E
L
2
0+
.'
-
——— •
-••"
TEACHING ABILITY OF MISSIONARIES
1Ce have measured the teaching ability of the missionaries every tw O
nonths for the past two years and plotted the results (average con 1wsite ability* according to time in the mission Geld. (For exampl
. n November 1978 the average composite ability of a missionary o It
months was 400 points.)
*
1The beginning points and ending points have not
changsd muc \.
1Missionaries am ve with about the same ability andleave with abo t
the same ability as before. But the most noticeable and signiflcai t
\
hange is how fast the progress is in the early months. Where t Iised to take them 15 months to reach the 600 level (a evel whei e
t icy are really effective) now they are reaching that level in only 5
rnonths. That give* them IT momha of fall-effectiveness ItiI tead of only 7 as before.
f
The key Is to measure and record the progress.
'Composite ability is determined by three Items: (language skill) t
(100)
0
0 MTC
,——,
4^
s
n
I/'
1+
(300)
1
(200)
-
i
.
***•
^
__,
-^ »
— •a
-•— ^
***
f
***
(knowledge of lesson plan).
i
i
i
i
i
i
i
1 2 3 4
5 6
7 8
i
i
i
i
i
i
i
i
9 10 11 12 13 14 15 16 17 18 19 20 21 2
NUMBER OF MONTHS ON MISSION
Nov 1978 .........
Mar 1979
DATE Nov 1980 —
CHART OF COMPOSITE ABILITY
(AVERAGE)
SOME EXAMPLES OF GUEST CHECK INCREASES OF WAITRESSES
NAME
SHAWN
SUE
JONNELLE
LYNN
Jul 1978
Dec 1978
Jul "1979
Dec 1979
Jun 1980
Feb 1981
May 1981
1st WEEK
2nd WEEK
3rd WEEK
4th WEEK
5th WEEK
12.79
12.90
$2,88
$3.24
13-31
$3.21
$3-08
13.34
$3.53
$3.33
$3-22
$3.34
$3.53
$3.48
$3.63
$3.63
$3-17
$3-06
9
65
160
252
483
622
1015
70
$3.57
$3.53
V.
SUMMARY OF THE DELTA TECHNOLOGIES:
MAIN POINTS
1. DELTA TECHNOLOGIES focus on productivity as an
overall technology, not just a limited application in only
certain areas.
2. DELTA TECHNOLOGIES look at all three factors of productivity, PEOPLE, PROCESS, AND TOOLS, not just one.
3. DELTA TECHNOLOGIES look at the inter-relationships of the
factors, and the impact that changes in one will have on
the others.
4. DELTA TECHNOLOGIES prioritize the most effective actions
by time and preparedness.
5. DELTA TECHNOLOGIES can operate at any one of four
levels in order to improve productivity:
a. Increase any one delta.
b. Increase a strategic value delta.
c. Inter-relate strategic value deltas to maximise productivity.
d. Inter-retale strategic value deltas over time and
preparedness to maximise productivity.
SUMMARY PRINCIPLES
1. Almost anything can be improved. At any point in
time, there are a large number of things that can be
done to improve productivity.
2. A change in any area will affect all areas, and the effect
may be both positive and negative.
3. The overall effect of any change can be multiplied —
positively or negatively — by making adjustments in the
other areas.
4. At any point in time a certain few actions will have a far
greater impact on productivity than others.
5. The introduction of too many changes (deltas) too quickly
will upset stability and may negatively impact on productivity.
6. The timing and order of the introduction of changes have
a major impact on their effect. A foundation must be laid
for the next deltas to work.
71
7. An inward orientation to "micro-units" will normally have
a greater impact on productivity than attention only to
outward "macro-units."
8. Concentration of effort on large deltas in "micro" areas
(even on small scales) will normally have the greatest
overall impact on productivity.
9. The major barriers to achieving large deltas are often the
interference of current activities that are achieving only
small deltas.
10. Experts in different discipline areas, working together,
are essential to the implementation of the DELTA TECHNOLOGIES.
THE OPTIMIZATION OF PRODUCTIVITY
Everyone seems to be concerned with productivity today. Everyone
wants higher productivity for the time, money, and effort expended, There
are many ways of approaching higher productivity. Some say it is the PEO-
PLE that make the difference and we should work at getting "better" people, or training them better, or better motivating them.
Others say, yes, people are the cause of low productivity so we need
to reduce the number of the people by automating as much as possible
and that by using the HIGH TECHNOLOGY of computers, robots, videos,
etc., we wfll improve productivity.
Still others say that the underlying MANAGEMENT SYSTEM is the key
to higher productivity, and that a change to a more appropriate style of
management will improve productivity.
PEOPLE
MACHINES
SYSTEMS
(MAIN FACTORS AFFECTING PRODUCTIVITY)
72
All are right, yet all are wrong. Often efforts in any one area or even
all areas produce little or no measurable results; The reason is that productivity is not the result of any of these factors individually or independently, but rather ALL of them together, and increased productivity is not simply the AMOUNT or even QUALITY of any of them but rather
the proper balance and relationship between them.
DELTA TECHNOLOGIES specializes in optimizing productivity by
looking at ALL of the factors which affect productivity, and "tuning" them
in relation to each other.
A NEW ANALYSIS OF PRODUCTIVITY FACTORS:
1.
There are three things to be said about the factors of productivity:
Each main factor is a sub-set which contain multiple factors and
considerations. For example, PEOPLE are not a single factor, but
are composed of three major parts: the basic raw material, the
commitment and motivation, and the knowledge and skill.
2.
None of the factors nor sub-factors are independent, but each
affects each of the other either directly or indirectly, and the
effect can be either positive or negative. All must be considered
when any one is considered. (Example of POS at restaurant
chain)
3.
The factors are dynamic. — continously changing by plan or
simply by the change of time and circumstances, and it is the
change adjustment or "fine tuning" of the factors, not independently, but in relation to each other that causes changes in
productivity, up or down. As the tune up, tires, and turn-around
tolerances for a Mack truck are inappropriate and even disasterous
for a Ford Mustang, so a recruiting or training program, an
office automation system, or particular management style appropriate and effective in an organization under one set of
circumstances could be disastrous to another — or even the
same organization — under others.
H
-!
S
S
13
s d
O S
y £
Sa£- dSC £=n
3
w
£
f
h
«
i§ 1 i H in
5 s 3
o & w
o* H £
PEOPLE
MACHINES
SYSTEMS
(ALL THE FACTORS INTER-RELATE TO AFFECT PRODUCTIVITY)
73
DELTA TECHONOLOGIES is unique in that we look at the interrelationship of the many factors — not just independently — but as they
affect each other and thus the whole. This is a new and unique approach
and the results of our specific applications are exciting.
EACH FACTOR OR SUB-FACTOR AFFECTS EACH OTHER FACTOR, POSITIVELY
OR NEGATIVELY
74
Compiled by:
Annie Thomas,
Librarian, National Productivity Centre,
Petaling Jaya.
BIODATA
1974.
1975.
1977.
1978.
1985.
Memperolehi ijazah B.A. (Hons) dari Universiti Sains Malaysia, Pulau Pinang.
Menjawat Pegawai Tadhir (Perpustakaan)
di Universiti Pertanian. Malaysia, Serdang.
Cuti belajar selama setahun di R.M.I.T.,
Melbourne, Australia, (Grad. Dip. Lib.).
Kembali bertugas sebagai Pegawai Tadbir
(Perpustakaan) di UPM, Cawangan Sarawak.
Memasuki Pusat Daya Pengeluaran Ncgara
sebagai pustakawan.
Minat khasnya di dalam pengkatalogan.
75
PRODUCTIVITY
A BIBLIOGRAPHY
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