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Administrative Operation Systems

• This presentation is by Nor Fazalina Salleh
• Chapter 7 discusses measuring output of office employees
• Chapter 8 explores how to improve the productivity of office employees
• Chapter 9 talks about quality and quantity control
• Chapter 10 discusses budgetary and cost control

Work Measurement

• Work measurement is a process used to determine what constitutes a fair day's work from the perspective of the employer and the employee

Objective of Work Measurement

• Express expected output/production levels to help in setting work standards
• Aids in the planning and scheduling of work
• Aids in determining the number of employees to complete a project in the allotted time/deadline
• Determines the efficiency of work methods and procedures/processes
• Determines the cost of office operations
• Determines equitable workloads for employees

Characteristics of Measurable Office Activities

• Tasks must be isolated and counted
• Tasks must be fairly consistent from one measurement to another
• Tasks should be performed in sufficient volume to justify the cost of measurement
• Tasks need to be void of considerable amounts of judgment and decision making

Work Measurement Program

• Before a work measurement program is developed, employees must be convinced it’s needed and will produce desirable results.
• Work Measurement Program Steps
  • Make preliminary plans
  • Hire employees
  • Gain acceptance of and support for the program
  • Collect important data
  • Analyze collected data and develop standards
  • Train supervisors and managers
  • Instruct employees
  • Follow up

Work Measurement Techniques

• Production Records
  • Uses employee output records to determine time to complete a particular job
• Work Sampling
  • Uses random observations to determine amount of time consumed by each element of a job task or duty
• Time Study
  • Uses a stopwatch to determine the amount of time each element of work process takes to complete
• Micromotion
  • Makes a visual recording (motion, picture, video or digital video) of the process being studied
  • This recording is used to determine inefficiencies and the amount of time consumed by each element
• Predetermined Standard Time Data
  • Purchases performance data to use and determine the amount of time taken to complete each element of a work process

Performance Leveling

• Performance leveling adjust work standards based on work processes, employee differences, and fatigue.

Work Standard

• They are to be based on the data collected through work measurement processes
• They should not be set too high, where only the most productive worker can attain them
• They should not be set too low, where nearly every employee can attain them with little effort

Types of Standards

• Quantity Standards
  • Units of output per unit of time
• Quality Standards
  • Measure the accuracy and acceptability of work
• Descriptive Standards
  • Identifies what is acceptable relating to the descriptive nature of the office environment

Productivity

• Result obtained from dividing output by input
• An organization obtains from constant levels of input has better productivity

Productivity Dilemma

• Constraining government regulations, actions, and policies
• Declining work ethic
• Declining research and development expenditures
• Declining capital investment
• Increasing the number of service workers
• Changing workforce characteristics
• Constraining practices, policies, and management attitudes

Productivity Improvement Program

• Characteristics of Successful Program:
  • Top-management support
  • Employee commitment
  • Top-priority status
  • Productivity goals
  • Employee participation
  • Employee rewards feature
  • Effective program leadership
  • Effective communication element
  • Effective measurement techniques/devices

Productivity Improvement Program Steps

• Carry out preliminary planning
• Assess the current situation
• Select areas/activities to be included
• Develop alternative solutions
• Design the solution
• Develop and implement an implementation plan for the solution
• Conduct a follow-up of the solution

Measuring Office Productivity

• Areas for improvement:
• Work Processes and Procedure
• Office Technology
• Work Environment
• Personnel

Productivity Improvement Technique

• Flextime
• Job Sharing
• Job Security
• Employee participation
• Quality circles
• Quality of Work Life (QWL)
• Employee Assistance Program
• Communication
• Burnout Reduction
• Incentive
• Mental and Emotional Stress Reduction
• Team Building
• Problem Solving

Control

• Control helps assure that actual results conform with desired or anticipated results
• Quality Control is a formal process to assure there is a sufficient level of error-free work produced
• Quantity control is a formal process to assure there is a sufficient level of output being achieved within organizations

Process of Control

• Define the parameters of the work being subjected to the control process
• Determine actual results
• Evaluate actual results
• Compare actual results with expected results
• Apply corrective measures when needed.

Elements of Control

• Identification of Anticipated Result
• Factors to Control
• Measurement Device
• Application of Corrective Measures

Types of Control

• Quality Standards
  • Standards provide the ability to evaluate the accuracy with which work is produced
• Quantity Standards
  • Standards provide the ability to determine whether production is matching expectations

Technique to control too much Work

• Employee Overtime
• Temporary Help
• Part-Time Help
• Floating Work Unit
• Cycle Billing

Technique to Control too little Work

• Time off
• Work Backlog
• Maintenance Projects

Work Scheduling

• The overall process helps assure the completion of work by the expected deadline
• Work Scheduling Devices:
  • Schedule Log
  • Work Chart
  • Work Schedule Calendar
  • Gantt Chart

Budgeting

• Budgeting is the process of planning and preparing a budget.
• A Budget is an organization’s financial blueprint.
• Budgetary Control the overall process to regulate operating budgets within the organization.

Purpose of Budgeting

• Helps ensure the organization's operations are performed more efficiently
• Helps management maintain the cost-effectiveness of the organization's operations
• Helps the organization better plan for the future

Prerequisite for Successful Budgeting

• Proper organization
• Financial data
• Commitment of top management

Elements of Budget Preparation

• Determining the Budget Period
  • Length of the period
• Developing the Budget
  • Fixed Costs
  • Variable Costs
  • Semivariable Costs
• Revising the Budget
  • Periodic Review - Predetermined
  • Progressive Review - Standard length time spans
  • Moving Review - Revised per month

Cost Control

• Process of managing the expenditures incurred in performing various office operations.

Objective of Cost Control

• Develop standard costs for various office operations
• Develop within employees a desire to be cost conscious
• Assist in the development of efficient operating procedures
• Allocate the costs of operations to the appropriate functions
• Identify inefficient operations

Techniques for Controlling Office Costs

1. Personnel Costs
2. Supplies and Materials Costs
3. Equipment Cost
4. Work Process Costs
5. Overhead Cost