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The Issue Is SURVIVAL - Venema Motivating Employees - Hilgert
fr€S%1 T U ' C1HDH K O l C K n H V
81-0 a a i f f l o i * o * i
1972 Pontiac Ventura n. Style and prestige...but at a small-car price.
V e n t u r a I I p r o v e s t h a t o u r d e s i g n e r s d o n ' t
l i m i t t h e i r e x p e r t i s e to b i g P o n t i a c s . D r i v i n g
a s m a l l P o n t i a c c a n be a p r o u d e x p e r i e n c e , loo .
P a r t l y because V e n t u r a I I d o e s n ' i lee l
s m a l l . V e r y g o o d n e w s f o r the d r i v e r w h o ' s
a l w a y s f e l t c r a m p e d f o r space i n s m a l l cai s.
V e n t u r a I I is s u r p r i s i n g l y s p a c i o u s i n s i d e .
R o o m f o r s i x a d u l t s . W i t h n e a r l y t h e h e a d
r o o m of b i g f u l l - s i z e cars .
T h e f r o n t seat has a t h i c k l a y e r of f o a m
p a d d i n g . A n d t h e u p h o l s t e r y is a s m a r t -
l o o k i n g , l o n g - w e a r i n g c o m b i n a t i o n of pa t
t e r n e d c l o t h a n d M o r r o k i d e t r i m .
V e n t u r a I I is also v e r y b i g o n s a f e ty . Seat
a n d s h o u l d e r b e l t s , e n e r g v - a b s o i I> 111s; s teel 1 1 n ;
c o l u m n , a n d a d u a l m a s t e r c y l m d e i lu ake
s v s t e m are o n l v a l e w ol l i s m a n y s ! . u n l a i d
;a I e I y I ea 1 1 1 1 es. V e n 1 1 1 1 a I I is M M ! | I I si , i s i ; i, 1 1 ! < s i . l i s a s m a l l
I ' o i i t i . n A s m i H i t l i i i < 11 ] i ; • W i.! < - l i a i I . w i t h
I I I I ' I ' ei 1 l i . n l > ; I i'.; I' | s I le I
I I I ' 1 1 e I 1 1 . e i s i s ! i s o i :
1 s i I. W i l l i
i o n . M a d e
nl l lu ISC e c o n o m y < . 1 1 1 I
p e o p l e . i o i i n - . u
A t V ( M 1 1 1 '' ' 1111. i'
That's what k e e p s Pontiac a cut a b o v e . B u c k l e u p for safety.
Performance makes the difference
between quality ...and
junk. That 's what the new P E R F O R M A N C E I M P R O V E M E N T H A N D B O O K is about. Better j o b per formance means better products and services at less cost. E l e v e n executives f rom the country 's top industrial companies tell how to get profitable results. T h e y ' v e done it. S o can y o u .
T h e y explain how to put the theory into pract ice. T h e Sys tem works for a two-man hot dog stand as wel l as a big, mult i -product manufactur ing complex .
T h e y say a prevented defect doesn't need repair, examinat ion , replacement or explanat ion.
Covers: Qual i ty C o s t s ; Measurement and Data Co l l ec t ion ; Planning; E v a l u a t i o n ; Tra in ing; E r r o r Cause R e m o v a l ; Recogni t ion o f E m p l o y e e E f f o r t ; Qual i ty Concepts ; and m u c h more.
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VOLUME 2 NUMBER 3 MAY/JUNE 1972
Official Magazine of the
AMERICAN SOCIETY FOR PERFORMANCE IMPROVEMENT and
SOCIETY OF AMERICAN VALUE ENGINEERS
FEATURES The Issue Is SURVIVAL Maynard P. Venema 10 Motivating Employees Dr. Raymond L. Hilgert 14 MANAGER: You May Be The Biggest Obstacle Karl R. Kunze 18 The Marketing Of Change Joseph J. Sherry 22 How Can I Motivate Yolanda Johnson 26 A Measure For Value Pericles A. Argyris 31 Human Factors And Value Engineering Edwin Cohen 34 Profit Area For Management Attention Larry Ragland 36
DEPARTMENTS If The Shoe Fits 5 Comment 8 New Products 37
4 PERFORMANCE
If The Shoe FHs • • •
ROBERT H ROSSMAN
Many reasons have been offered for companies and government agencies to avoid the use of the value techniques which are provided through formalized Value Engineering. Perhaps the one reason most often used in the past several years has been that VE is a "giveaway program."
BACKGROUND GIVEN A contract between two parties is a
legal agreement that both parties wi l l comply w i th its terms. A contract contains a mult i tude of requirements and specifications, changes to the contract can be initiated by either party, but are normally adjudicated by agreement between both parties. Value Engineering (VE) is intended to review the contractual requirements to determine a better (and less costly) method to achieve the desired funct ion. If no change is made to the requirements, the product or service must be provided as specified in the contract. The result is that all of the contracted funds are expended and, hopeful ly, the final product or service, achieves the specified requirements.
BUILT TO DESIGN The result of the non-use of VE in a
contractual relationship, therefore, is that no attempt is made to reduce or change the requirements and specifications of the contract. In a hardware contract, we would receive an item "as designed."
This relationship applies to contracts between Government and indus¬t r y , b e t w e e n p r i m e and subcontractors, and between contractors and other purchasers.
IMPROVEMENTS NOT PUBLICIZED The result of the use of the value
techniques by industry, in-house and for the Government; by the Government, in-house; and by sub-contractors for their prime contractors, has been a substantial improvement in unit cost wi th an improvement, in many cases.
in performance, quali ty, and reliability as fringe benefits.
For a program which provides so many benefits for all concerned, and which had received strong support and drum-beating for so., many years, the favorable public relations aspect of the to ta l job plan has been woefully inadequate.
SUCCESSES UNKNOWN It can be stated (and proven) that
Government agencies, defense and consumer industries which utilize and support the use of VE both in-house and contractually have reaped a fantastic return-on-investment (R-O-l). This
R-O-l ranges f rom a low of five or ten-t o - o n e , t o r e t u r n s o f 100 or 1000-to-one. In the Defense contracting f ield, history indicates that reductions in contract cost might be as high as several percent of the total contracted price if motivation and support are provided in a mutually receptive atmosphere.
Unfortunately, the successes of VE programs are remembered for short periods of time; the failures (or non-acheivers) are remembered forever. Thus, the mutually receptive atmosphere has become the exception rather than the rule.
GIVEAWAY IS MYTHICAL
In a period of fiscal austerity, the
use of the VE techniques becomes
mandatory for industries desiring prof-
Con tinued on page 6
MAJOR COMPANIES USE VIBRATION TO SOLVE Q.C. PROBLEMS
Vibration Testing . .
A new, effective, vet inexpensive Q.C. technique
i troupoi • on » vittl pur of an iofutt jywem, IBM p m « u pan can happen.
Beyond thr rauhi sougfii, and ptorrd in rbe ttct condoned. Pfrilco Ford tat k-onibiu*J to expnfei-' ribtMkm. Etrty Jarowry of wiring pinch wftli *6c f n 15ft, Leo* t- • - • i i i -btiog Uhatifed »t i isie of i«s> oirr pmfeui method) of eon uol
At Warwick Electronics.,.
Awwdtiie fa the WjrwKi duality consiyi Bttt idenurymt ind Jnirertins pnihfcms • i. , • *• * i i i • ttiippeJ bit mtituniaUy red<x*l cost ol field re pi In
Faulty electrical or mechanical connections which are potential causes of field failures can be identified prior to shipment using Branford vibration testing s y s t e m s . Manufacturers can remove debris, locate cold solder connections, identify poor vendor components and verify chassis integrity. Bran-ford systems are presently in use in hundreds of plants. Three editorial reprints tell of actual case histories. Ask for your free copy of bulletin 200B.
BRANFORD VIBRATOR COMPANY Dlvltlon of Cltctro-Mtchinlcs, Inc,
160 Whiting Street . New Britain, Conn.
PERFORMANCE 5
IF THE SHOE FITS Continued from preceding page
itable business, and for Government agencies desiring to obtain true worth for their expenditures. Teamwork can provide both goals. VE is oriented toward prof i t enhancement and contract cost reduction. It has worked and it wi l l continue to do the job.
The "giveaway program" is a myth ! Contractual Value Engineering is a tool to motivate the producer to reduce the cost of the contract. One cannot expect a producer to provide ideas w h i c h result in reduced business volume, less in-house work , a smaller base over which to spread overhead and a reduction in prof i t on the affected contract "ou t of the goodness of his heart." However, if the cost reduction resulting f rom VE efforts on the producer's part is shared, it can be expected that VE wi l l be utilized and cost reductions wil l be offered.
SECOND LOOK Specif icat ions, requirements and
original designs are usually provided under the pressure of t ime restraints. The basis for these items is "best ef for ts" to achieve the required performance.
Time is seldom available to review t h e requirements to identify high cost/risk areas and to perform in-depth tradeoff studies. Therefore, although the end item might well provide the desired funct ion, it seldom is the most cost-effective design. A second look is worthwhile. Many times, an alternate solution can be found to provide the needed funct ion at less cost.
One problem to be considered in the second look technique is that many designs, when released for product ion, are frozen. Therefore, if VE doesn't get into the preliminary design and development stages, it may be too late to apply VE.
In considering whether or not to
provide VE review prior to design release to production, one must bear in mind that "best ef for ts , " in design, are normally the average state-of-the-art as constrained by manpower and time requirements. It should also be noted that there is no perfect design.
GIVE AWAY DEFINED The real giveaway program is the
result of the avoidance of the use of VE in hardware, software and service contracts. When VE is not used in i n d u s t r y , stockholder's dollars are being given away and potential prof i t is being reduced. When Government agencies do not use and foster the use of VE, we receive less value for the tax dollar expended.
Review the VE success stories available in Government and industry, learn what the basic program involves, foster the use of the VE management tool in your plant, office or agency, and stop participating in the Great Giveaway Program. [ p ]
A Warm Welcome to all members of the American Society For Performance Improvement and ths Society Of American Value Engineers.
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6 PERFORMANCE
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PERFORMANCE
Comment
Quotable Q u o t e s . . . .
"Improvement in our levels of living, including improvement of our physical environment, depends on productivity gains. The stakes here are high. If we could, for example, increase the rates of productivity growth by only 0.1 of 1 per cent a year, we could produce 15 billion dollars of additional output by the end of this decade."
Richard M. Nixon
President, USA
"Performance that is termed 'adequate' or 'average' is luxury that we cannot afford, for we get no second chance with our space vehicles. So, we must constantly seek perfection. Our standards are without precedent."
Dr. James C. Fletcher NASA Administrator
"In terms of international competition, we've ridden technology as far as it will carry us. Now we need to apply some more human methods of management if we are to improve our productivity."
Neal Herrick U.S. Labor Department
"The mark of effective management today should be the closing of ranks at the local plant to erase the outdated chasm that exists between company and union. In place of two opposing camps, the employees must unite in the 'one team' bond. Obviously, this understanding renders obsolete the old dogmas about the 'management team'and dictates that we scrub such expressions from mind and vocabulary."
George A. Jedenoff Vice President U.S. Steel Corporation
"As we see it, the basic question to be answered is what we, as employees of Firestone, can do to change the situation; eliminate mutual problems and avoid possible layoffs. It's a waste of time to try to point the finger of blame at either management or the union. We, as union members, must develop a positive cooperative attitude and an appreciation of the problems of our company. The answer is to: increase our productivity; improve the quality of our product; decrease absenteeism; decrease down time; attempt to eliminate the bad effects of vacations on production in the peak vacations periods; consider the competitive advantages of the eight-hour day versus the six-hour day; and decrease waste and scrap."
Gerald D. Gelvin President Local No. 7, United Rubber Workers Union
8 PERFORMANCE
"I think the key is involvement in work. This ranges from keeping the worker informed of what's going on to actual participating in decision making. It's a lot of crap to say that workers are slothful and indifferent today. It's just the opposite; they want to do satisfying work. Why otherwise would you see people going into craftwork and learning skills that involve pride in workmanship?"
Arnold Judson Organizational Behavior Specialist Arthur D. Little, Inc.
"The return of craftsmanship to America is a must. We have only to take a look at the many items in which Americans have excelled and in which we are now losing ground to other countries to know that action must be taken now. For a long time I have been most interested in a program called 'Performance Improvement.' The purpose of this program is to promote excellence in manufacturing and to improve quality. I am so interested in quality improvement, I would like to commend the American Society For Performance Improvement to the attention of my colleagues:1" .
Honorable Charles S. Gubser Congress of the United States
"A renaissance is at hand. Once again American ingenuity is struggling from its hiding place to help the great nation on its feet. A relatively small cadre of dedicated professionals — members of the Society Of American Value Engineers — have kept alive the concept of getting the greatest possible value for the dollar, whether that dollar is invested by a corporation or a taxpayer."
Honorable Larry Winn, Jr. Congress of the United States
"Time is running out. We need to act. The alternative may be that before the next decade starts, the word definition for 'shoddy and unreliable' will be — 'made in USA:"
Philip B. Crosby Vice President of Quality ITT Corporation
PERFORMANCE 9
T H E ISSUE IS
SURVIV TO
PERFORMANCE
MAYNARD P. VENEMA is chairman of the board of Universal Oil Products, Des Plaines, Illinois. He is presently serving as chairman of the board of the National Association of Manufacturers; National Industrial Council; Trustees of Illinois Institute of Technology; and was president of the Chicago Association of Commerce and Industry and is now a member of its Senior Council and chairman of its Public Transportation Committee. His outside directionships include the Trane Company, Ubby, McNeill & Libby, Harris Trust and Savings Bank, Chicago Theological Seminary, Adlai Stevenson International Institute and Goodwill Industries. He is a member of the American and Chicago Bar Association, American Institute of C h e m i c a l Eng ineers , Amer ican Chemical Society, Japan American Society of Chicago, Protestant Busi^ ness Leaders' Foundation and North-field, Illinois Community Church.
The real issue before us is the survival o f this country as a significant factor in the world's economy. Productivity is the catalyst which alone can provide the impetus for that survival.
To put i t b lunt ly ; we are well along in the game; time is running out; the scoreboard bears the grim portents o f an unbelievable upset in the making. The United States is being beaten -beaten at its own game. We are rapidly reaching a point where we w i l l f i n d ourselves being outproduced and out-competed by almost every industrial nation i n the free world .
A n d our situation continues to worsen at an alarming rate. The latest government statistics reveal we are experiencing the worst foreign trade deficit in our history. There seems li t t le to prevent the next report f r o m being even worse than the last. Like many a baseball team, we are in a trade slump and seem to lack, the "stopper" pitcher to break the spell.
I t seems almost beyond the realm o f imagination. Here is a nation, carved f r o m a wilderness through a rare blend o f hard work, ingenuity and vision by a people dedicated to excellence: A n d now we find ourselves running dead last among industrial nations in the rate at which we are increasing our industrial output. We trail first-place Japan by a ratio o f 7 to I and next-to-last Canada by nearly 2 to 1.
While there are some very substantial and tangible reasons f o r this, i t is the less obvious, the intangible, that intrigues and frightens me and must pose the greatest challenges to your organization. The subtleties are all around us: How often do y o u hear people saying "Take i t easy....Don't work too hard?" A n d there is the perplexing and frustrating "no-win" philosophy that has' captured so many o f our you th — a generation right now seemingly more interested in plucking guitars than punching a time clock.
Not that their elders have too much
o f which to be proud. Not so long as we continue to tolerate non-productive, make-work practices such as:
. . . .Dock workers unpacking shipping cartons and then packing them all over again; .
. . . .Pipefitters re-threading pre-threaded pipe;
. . . .Unions fining members who exceed work quotas; and
. . . .Workers walking o f f their jobs at an automotive assembly plant charging "speed-up" at a time when foreign competition has captured one-sixth o f our domestic automobile market.
America has the highest wage rates in the world . Of this we should be justly proud. Nowhere on earth do hourly-rated employees live with the dignity or surrounded by the abundance that they have earned here. But i f we are to continue to lead the world in wages, we must improve, not slacken, our growth rate else we shall price ourselves out o f markets f r o m Bangkok to Boston and Tokyo to Toledo. ...
PERFORMANCE I I
Our predicament is the result o f many things: High costs fo r labor and material, backbreaking tax loads imposed by government at all levels, an aging industrial plant and the absence of realistic incentives to improve i t . There are trade barriers which inhibi t competitiveness in foreign markets and society's legitimate but non-productive demands fo r increasing expenditures for environmental control - they all have played a part. But nothing changes the simple and ominous fact that America's present annual product iv i ty rate puts us in an undesirable pos tu re as compared wi th other leading industrial nations.
Because of, not in spite of, these other costly forces which are at work against us, we must take prompt and dramatic action to improve product iv i ty . I t is the one ingredient in the recipe for a healthy economy which can be influenced directly.
The subject o f productivity has very nearly attained the status that w e a t h e r h a d w h e n Mark Twain observed that "everyone talks about i t , but no one does anything about i t . "
Political leaders exhort us to greater e f fo r t ; journalistic pundits mull over the problem i n pedantic prose; economists worry over i t and draw charts and graphs. I t is up to the men and women in private industry who are s k i l l e d in the delicate science of human relations and motivation to do something about i t .
There is more at stake than our posture as a world economic power. There are critical issues here at home, so lu t ions to which are inevitably hinged to our ability to improve our output:
Providing more and better jobs for a growing work force.
Improving the standard o f living for all our people.
Controlling inf la t ion so prices may be stabilized and "take home pay" adequately protected.
Helping to provide solutions to vexing social problems without pricing ourselves out o f foreign and domestic markets in.the process.
The stakes for which we are forced to play are high indeed. Not since World War I I , have the people o f this nation been called upon to face a challenge so great, nor to display so much a sense o f common purpose.
M y view o f all o f this is, necessarily, that o f management in my corporate role. I t is not wi th in my expertise to detail how this job should be done. I shall attempt to set some goals for you. Explain to you who are charged wi th the responsbility within your organization what the issues are, as I perceive them. Challenge you to put your professional skills to work to "get the story across" to those on whom we must depend to put us back on the competitive track. Y o u know this group — they are the employees in plants and offices across the length and breadth o f this land.
Make no mistake about i t . Increased produc t iv i ty wi l l not be achieved by presidential decree. I t cannot be legislated. A l l the talk in the world wi l l not add one whit to our national output. It's a plant-by-plant job and i t is to you and your counterparts that management and the nation must look to find the motivational key to unlock the " w i l l to w o r k " once more in America.
Productivity has been defined in many ways depending largely upon the point o f view the person who is defining i t . As good a management defini t ion as I have seen recently comes f rom Raymond C. Firestone, Chairman o f the Firestone Tire and Rubber Company who calls i t "a combination of men, machines and methods." In such an equa t ion , machines and methods are the product o f industrial capital. Both are really worthless un t i l men and women — the priceless catalyt ic agent o f change — are added.
Here are some of the human problems that confront us:
First, perhaps foremost, are the problems set before us by many of the leaders o f organized labor. Let's not be coy about this one. Unions can thwart or encourage your efforts to achieve greater productivity. The spiraling rounds o f unrealistic wage increases negotiated prior to the freeze and Phase I I were counter-productive to any ef for t to hold down production costs and prices to keep our goods and services competitive.
The arrogance expressed by some o f these leaders toward national efforts to put our economy on a sound foot ing can scarcely be construed as an e f for t to lead the work force to become responsive to the challenge o f competition.
12 PERFORMANCE
Attempts to resist improved production techniques — as in the construction industry — to cling to the old "make w o r k " concepts and to l imi t individual output are symbolic of a general decline in the w i l l to work and desire to w i n . These attitudes are the product o f the boom psychology in the 60s and are not compatible to the economic realities o f the 70s.
I have no magical formula for bringing these issues before the rank and file in a fashion that wi l l inspire cooperation, rather than hosti l i ty. But I know we must. For the issue is survival. No less a personage than I . W. Abel has commented, "workers can't get anything by dropping a bargaining bucket into an empty we l l . " Somehow, we must find a way to get that story across, because i t is abundantly true.
Another o f the human problems wi th which we must deal is, quite frankly, ourselves. He who would lead must first set the example. The problems of productivity are not unique to assembly lines or secretarial pools. We need a fresh approach to the organization o f work and the establishment of work standards and expectations. We must begin wi th ourselves.
We must find ways to breathe new meaning into work. We must make i t an urgent, vital part o f life - not a necessary evil to be tolerated between vacations and three-day holiday weekends. We need to convince our people that the goal o f great productivity is not a speed-up, but an imperative in which every American has an important stake.
Hand-in-glove wi th this, must be a mission to restore pride in what we do and how we do i t . Quality is, after all, an integral part o f productivity. We are all too frequently falling short o f our potential, as our consumer critics are quick to point out. We need to restore the concept that a raise in pay is not alone the consequence o f a contract or acquiescence to seniority; but a recognit ion o f productive e f fo r t at standards above and beyond the expected or the mandated.
For example, have we asked ourselves questions like these? Have we let our people know their rewards and responsibility w i l l grow apace w i t h the results their ideas produce? What are we doing which demonstrates to our
employees the belief they are the most important part o f our business? Are we working to uncover individual talents and providing employees wi th a way to exercise them?
What have we done in the last 12 months to break the mold o f rigid controls and to establish a plant climate where employees are free to become involved wi th their jobs? Are we making any progress in correlating the self-interests o f employees w i th the corporation's objectives?
Our prospects, happily are not all gloomy. There are a few encouraging signs which point toward a change in climate and attitude. The mere fact that the subject o f productivity has been placed under a national microscope is, after all, a plus. At tent ion, oftentimes, begets its own benefits.
President Nixon's appointment o f a national commission on productivity has helped greatly to add a sense o f national cause to the demands o f our task. As Chairman of the National Association o f Manufacturers, i t is my privilege to be a member o f this body and my participation in its efforts has given me a better insight in to the complexities involved and the enormous e f fo r t that must be made.
I mention encouraging signs to indicate we are not alone in our concerns and need not be alone in the quest for solutions. For i t is toward solutions that we must direct our energies. There is no simple one nor should we expect that there be. Sir Francis Bacon was on the right track 350 years ago when he said, "He that wi l l not apply new remedies must expect new evils, for time is the greatest innovator."
The last time a united America strove toward a common goal — a goal desired by almost all o f us - man walked on the moon.
The genius for achievement is still ours. The ability to win still rests wi th in us, when i t is motivated. The issue is survival. Yours and mine...the whole nation's...and what men once called the American dream.
And in this task, let us keep before us one magnificent example o f the potential o f a United America, dedicated to achievement through excellence: Since man first crawled f r o m his caves, eons ago, ten humans have trod the surface o f the moon. They have all been Americans. |"p]
PERFORMANCE 13
THE CORE OF THE MANAGERIAL JOB
It is generally recognized that the most important aspect o f any manager's job revolves around the core problem of managing and motivating people. Management has been defined as get t ing objectives accomplished wi th and through the help o f other people. Although a manager must manage numerous other resources such as time, materials, money, and equipment, most o f these ultimately involve the core responsbility o f the manager to manage employees productively and well .
A l t h o u g h we have made great strides in developing scientific management techniques applicable to material resources, scientific determination has been unable to determine the best way to accomplish people management. There are many theories, philosophies, and diverse approaches which have been suggested, but these have resulted in considerable confusion and disagreement.
I t is my supposition that we shall never be able to develop a unif ied t h e o r y or approach to managing employees which w i l l satisfy everyone, because we are dealing w i t h the most f a n t a s t i c a l l y complicated resource which every manager must approach. In short, we are dealing w i t h the problem o f individual people and groups o f people who wi l l never be relegated to t o t a l l y scientific, computerized or m a t h e m a t i c a l exp l ana t ions . The managemen t and m o t i v a t i o n o f employees w i l l always be a challenge, because every manager necessarily finds himself contending w i t h unique situations and w i t h unique people.
Problem of Individual People
Every human being is different . This, o f course, is not a new statement, but nevertheless i t is quite profound. Some 316. b i l l ion human beings currently inhabit the planet earth; yet, there are no two human beings who
14
are exactly alike. Every human being is different i n certain fundamental ways and for certain fundamental reasons. This is why the problem o f motivating human beings is one d f the most complicated and fascinating problems that I know.
Why are people different? I w i l l just briefly cite some o f the major in f lu
ences, recognizing that there are almost an inf ini te number o f ways that these influences w i l l combine in an individual person. We are different first o f all because o f such biological and physiological factors as age, race, physique, and sex. Secondly, we are different because o f our early childh o o d l e a r n i n g experiences. Many psychologists believe that the very early years o f l ife are crucial i n determining a person's ultimate personality. Coupled w i t h these influences are the countless immediate environmental situations which everyone experiences th rough l i fe , such as our homes, schools, jobs, and countless social situations.
Further, the broader cultural factors o f society influence the way we think, feel, and behave. In our society we place a great deal o f value on the worth o f human beings; human beings are encouraged to develop, grow, and think for themselves in their daily lives. When all o f these complex experiences mesh together in to each human being, i t should be apparent why neat, simple answers fo r motivating people effectively have so far escaped exact definitions.
Many managers w i l l say that in order to manage employees effectively , one must get to know and understand them as individual persons. This is quite helpful , ' and I don't want to minimize this point o f view. However, is i t really possible to completely
' know and understand everyone in most employment situations? Many people bring only a small part o f their total personalities to the j ob situation, and many of the influences which cause them to behave in certain ways are generally beyond the manager's control. For example, a manager can do l i t t le to influence a person's biology, his early childhood, or the broader culture. For the most part, a man-
PERFORMANCE
By Dr. Raymond L Hilgert Washington University
DR. RAYMOND L. H I L G E R T currently is Professor of Management and Associate Director, Management Development Programs, at the Graduate School of Business Administration, Washington University.
Dr. Hilgert graduated from Westminster College, Fulton, Missouri with a Bachelor of Arts Degree. He received his Master's and Doctor's degrees from Washington University. His business experience includes management positions at Southwestern, Bell Telephone Company and a market research position with Gardner Advertising Company. Dr. Hilgert has taught at Washington University since 1961. He has published over forty articles in various
personnel, business, and educational journals and has co-authored four books on personnel management, supervision, and industrial relations. His most recent book is Supervision Concepts and Practices of Management (co-author Theo Harmann), Cincinnati South-Western Publishing Co., 1972. Dr. Hilgert is a member of the Academy of Management, the American Society for Personnel Administration, and the American Management Association. He has participated in or directed numerous management, supervisory, and economics workshops and seminars. In addition. Dr. Hilgert is an arbitrator certified by the Federal Mediation and Conciliation Service.
ager can only directly influence the immediate job environment and job situation as he finds i t , and the relationship between each supervisor and each subordinate typically becomes one o f the most crucial factors o f all.
I do not mean to underestimate r e c o g n i z i n g the individuaUty o f people. But most research in the behavioral sciences indicates that people are relatively similar when i t comes to certain basic forces which cause them to behave, and this is an extremely important finding which managers can utilize in managing employees more e f f e c t i v e l y . M o t i v a t i o n , properly understood, is what people themselves want to do, and motivating forces are developed f r o m within a person in response to many influences that occur during one's entire l i f e .
Behavioral scientists generally agree that individuals tend to be alike when i t comes to certain basic reasons fo r why they behave. Behavior is always caused, goal-oriented, and motivated. Everything that a human being does, whether he is black or white, male or female, or where he finds himself, is influenced by forces that come f r o m within his total personality. Again, motivation is what people themselves are desirous o f doing, and i t always means moving toward some goal or goals even though these goals may not be clear. Further, human goals are related to a rather well-defined pattern of human needs which are common to everyone.
Hierarchy of Human Needs
A well-known psychologist, the late Dr. A . H . Maslow, developed a theory of a hiearchy o f human needs which is now well accepted as being a model for understanding human motivation. The first and most basic o f all human needs are the physiological or biological needs, i.e., the needs to survive which include such essentials as food , water, shelter, rest, and recreation. Obviously these needs must be met i f a person is to live even a minimal existence. People work for a paycheck in part to satisfy these needs, but these are only the basic needs which need to be met.
The next level are the safety or security needs, which are needs for protection against danger, threat, and deprivation. Employees also view their jobs as being a way to take care o f these needs, and most employers recognize this by offering an ample amount o f supplementary benefits such as hospitalization plans, medical insurance, pension plans, etc., which provide employees wi th some feelings of security. But here, too, once these needs are reasonably met, another level o f human needs becomes more evident and critical.
This next level are the needs for attention or social activity, that is, to belong and be identified closely w i t h a group. Everyone likes to feel that he or she is part o f a group or organization which is important and worthwhile, something to which one can be loyal and proud to be associated.
PERFORMANCE 15
Group acceptance and group stimulation can be powerful motivating forces in either positive or negative directions. I f people are loyal to a group or organization which they perceive is important to them as individuals, this usually provides them wi th strong incentives to behave in certain ways.
The next level are the so-called esteem or self-respect needs; some writers prefer to define them as ego needs. These are needs that everyone has f o r recognition, achievement, status, and accomplishment. They are extremely powerful , since they relate to a person's feelings of individual worth, development, and importance. Too many jobs in our society seem to frustrate these needs, because these jobs tend to become routine, boring, or non-challenging. Closely related is the final level which has been identified as the needs for self-realization or self-fulfi l lment. These are needs to f u l fill one's basic capabilities and potentia l i t i e s , t o be creative and fu l ly occupied in doing what a person really wants to do. Most people want to develop their talents as human beings; they want to feel that they are making a contribution and progressing in the d i r e c t i o n o f self-realization, even though realistically this may be unlikely f o r them to attain.
Unfortunately, many jobs and managers frustrate the desires and aspirations o f employees, particularly as one goes up the levels o f the hierarchy o f human needs. Many employees f i nd themselves bored and frustrated, because managers have not given enough attention to satisfying the higher levels of human needs which today are vitall y important to many employees. Many companies and managers have thought that the paying o f high wages and providing ample "f r inge" benefits and security would motivate employees to give the k ind o f performance which was desired. Yet today a common complaint among most managers is, "We are paying more and more, and getting less and less in return." The problem is that as the lower level needs o f employees has been relatively satisfied by the increasingly affluent standards o f living, the higher levels o f needs have become more important to many employee motivations. Yet, these are the needs which too often are neglected in managerial strategy.
Managerial Approaches
A number o f years ago, the late Professor Douglas McGregor wrote a classic book called, The Human Side of Enterprise. In this book, he contrasted extremes in managerial style.
^ A t the one extreme is the Theory X manager who tries to get workers to perform by appealing primarily to the lower level needs of people. The Theory X manager believes that the typical worker is lazy, and that he mus t be controlled, directed, and forced to perform. The strategy essentially is one o f strong authority, fear, and close direction. Unquestionably, such a strategy does work wi th some people and fo r a certain period o f time. Unfortunately, i t does not seem
£ to last very long, and i t constantly
must be applied because most workers tend to resent this type o f managerial approach.
Professor McGregor advocated a different type o f management strategy w h i c h he called Theory Y . This a p p r o a c h assumes that employees generally want to do a good job and can be encouraged and developed to do a good job , i f the proper climate for motivation exists in an organizat ion. Essentially, the Theory Y manager believes that the higher level needs o f people are extremely important to recognize and satisfy, i f employees are to be positively motivated to contribute their best efforts toward the worthwhile goals ofe an organizat ion.
Supporting the views o f Professor McGregor is the research o f Professor Frederick Herzberg, a renowned in dustrial psychologist. Studies conducted by Professor Herzberg and others in recent years have consistently demonstrated that positive motivation and p e r f o r m a n c e are most likely to be achieved by a Theory Y approach which concentrates managerial strategy on influencing the higher level needs o f people. What Professor Herzberg and others have found is that the factors which tend most to motivate employees today are primarily related to people as individuals and their own self-images. Such job-related items- as opportunities for advancement, more responsibility, personal growth, achievement, and interesting work have consistently been identified as the kinds o f factors which make w o r k more enjoyable, challenging, meaningful, and productive to the typical employee. Interestingly, many of the factors which many managers believe wi l l motivate employees have been found to be important mainly in a preventative sense. Workers expect that factors such as good wages, good working conditions, competent supervision, reasonable company policies, fair treatment and the like should be present in the job situation. According to Herzberg, where these items are not acceptable or are perceived to be unfair, workers w i l l be quite dissatisfied, and this wi l l significantly detract f r o m their performance. But where these items are at a satisfactory level, they are only a starting point in building positive motivation and superior per-
16 PERFORMANCE
formance.
In no way should this be interpreted as implying that wages, benefits , working conditions, and the like are unimportant to employees, since they are closely linked to the lower level needs of the human needs hierarchy. But these factors are only a part of the sum total o f human motivation. In fact, these items are only a base on which to build, and managerial strategy should recognize that in an af f luent society such as ours most employees expect these items to be amply present and often take them for granted.
Building Positive Motivation
There are no simple "cookbook" rules or sets of "do's" and "don' ts" for managerial strategy designed to build positive employee motivation. Actually this is a long-run process which must be practiced over an extensive period o f time. Some employees wi l l not respond regardless o f the best and most sincere managerial and supervisory efforts. Yet , supervisors should never give up trying in their efforts to develop a positive climate for motivation, i f they ever expect to obtain the superior performance o f which their employees are capable.
1. Delegation of authority w i th added responsibilities. This approach basically means that managers and supervisors should always delegate as much authority as is needed for a worker to carry out his assignments. Many employees wi l l eagerly accept new responsibilities and challenges i f supervisors also permit them to have the authority to work somewhat on their own. The supervisor, of course, must set reasonable limits. But he should seek ways to expand rather than to restrict the scope of freedom of workers on their jobs. By doing so, a supervisor can demonstrate greater confidence in the abilities o f his people to perform. Most employees resent supervisory practices which are interpreted as "breathing down their necks." I f employees are to improve and develop, they must be given a certain amount of freedom to learn f rom their mistakes as well as their successes.
2. Job enlargement (or job enrichment). Most workers tire o f doing the same old routine and monotonous
PERFORMANCE
chores day-in and day-out. Supervisors should look for ways by which the scopes o f various jobs can be enlarged or made more meaningful. This sometimes can be accomplished by rotating employees so that everyone has his or her fair share o f the challenging and interesting work as well as the routine j o b s . Too of ten, supervisors only assign the challenging and interesting work to their best performers, rather than helping everyone in the group to have a chance to develop their capacities. Another approach is to assign employees to special projects or problem-solving "tasks which go bey o n d the n o r m a l routines. For example, groups or individuals can. be encouraged to accept special assignments to study unique problems and
to develop proposals which possibly might be implemented in the organization at some point in the future. Just the fact that employees are given the opportunity to seek new solutions on their own is a way of making a job more meaningful and worthwhile to them.
3. Participation. One of the oldest and yet one o f the most effective ways to build employee motivation is for supervisors and managers to diligently seek employee advice, suggestions, and information concerning ways by which work should be performed and problems should be solved. Most employees, i f properly consulted, like to have a part in decisions that are made involving the work situation.
This does not mean turning over all decisions to employees. Rather, i t means that a supervisor should earnestly seek the opinions of his employees wherever he can and be will ing to be influenced by suggestions and even criticisms which may be offered. Many s tudies have indicated that work groups typically perform better where they feel that the supervisor sincerely has been allowing them to participate in important decisions. This approach emphasizes a team spirit in an organization and the "we" approach to doing things, rather than having the supervisor autocratically determining what wi l l be done. A sincere managerial e f fo r t to achieve real participation of employees in decisions appeals to each employee's sense o f individual and collective importance to total organizational performance.
4. Recognition. Always give proper recognition. Praise still is one o f the most important forms of building i n d i v i d u a l and group motivation. Employees want to be recognized and appreciated for doing a good j o b . Here , too, recognition has to be sincere and earned and not just given on a routine basis. Where possible, make sure that the top performers are rewarded on a monetary basis; but i f this is beyond immediate control, the supervisor always should be generous with saying "thanks" to those who have earned and deserve his appreciation. Perhaps certain privileges can be extended to those employees who consistently perform well. Various other types o f recognition should be utilized as appropriate to continuously convey
Continued on page 30
17
In my opinion, managers do an inadequate job of developing subordinates. There are several reasons for this, and if these reasons are accumulative for a particular manager, that manager is doing a pathetically poor coaching and developing job!
There is no need to waste time proving the point; reference to inadequacies in both formal and informal development programs are rife in current literature. Instead, let us consider some possible causes of these inadequacies together with some possible courses of action to take to make development efforts more successful.
INHIBITING FACTORS One major cause for a poor job can
be found in a company's value system. If a company does not reward managers for a development job well done, the job may not get done at all. Getting specific through an example, if a manager's boss raises Cain when the manager fails to reach production, quality, or cost goals, and says nothing when he fails to accomplish development goals, then the former goals will receive his exclusive attention. Also, if the manager's boss doesn't develop his subordinates, the manager may not.
Secondly, if a manager doesn't give a good measure of "delegatable" assignments to subordinates, there is virtually no way he can be a good developer. By far, work experience is the most important development medium. Next, related to the second reason, a feeling of insecurity and fear of competition can sure place a damper on any manager's development efforts. Withholding information to show who's boss and to cramp a subordinate's style can be injurious to both the manager and the one who reports to him.
Lastly, the tendency of managers to develop people into carbon copies of themselves can undermine development efforts. As you know, some people find it very ego-satisfying and comfortable to have subordinates around who think and act just the way they do.
FACIL ITATING FACTORS Returning to an earlier point that a
company's value system can have an inh ib i tory effect on a manager's efforts to groom others, the question
of what can be done about it arises. Value systems usually are "cast in cement" and difficult to budge. Yet London bridge was cast in cement and moved to Lake Havasu, Arizona - so change can take place.
Some firms have created value systems conducive to the development of management and other professional people. Standard Oil Company of New Jersey makes clear to all the importance of this company's objective by having the management development advisor report to the president. At Jersey Standard, management development is fused with all other management activities and is not a separate program to be lost in the shuffle during busy times.
In a management ckib meeting, Robert E. Gross, former President of Lockheed said, "I am concerned that because of our preoccupation with technology, we may be overlooking the development of our people. We must encourage initiative, stimulate high quality performance, pursue excellence, and create a climate in which management growth will flourish." This pronouncement of nearly thirty years ago is still remembered by many at Lockheed and for years gave thrust to the company's management development efforts.
In addition to the right kind ol value system, there are other facilitators of subordinate development:
Po l icy statements enunciating company goals for developing people.
F u n c t i o n s and Responsibilities statement stipulating a manager's responsibility for improving the capabilities of subordinates.
Rewards for subordinate develop-
You May Be The Bijjgest O b s t e f /
To The Development Of Your Subordinates
ment (and punishments for lack of same). Suggested here is an item "development of subordinates" on the manager's Performance Rating Scale and the practice of correlating these ratings with salaries. When managers ieali/c that they are rated on the results of their development efforts and that they affect them personally this responsibility is apt to be more readily accepted.
Information on the need for development such as an inventory of subordinates being developed, their ages, educat ion, potential, career goals,
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K A R L R. KUNZE is presently Manager, Training and Development Division, Lockheed-California Company. He is a certified psychologist in the State of California and a member of the American Psychology Assn. He serves as a consultant on a number of local and national committees dealing wi th education and technical development. He is also a member of the President's Task Force on Occupational Training in Industry.
18 P E R F O R M A N C E P E R F O R M A N C E 19
development plans, extent o f readiness for promotion, etc., can reveal clearly the strengths and weaknesses o f a company's "people" resources.
Such inventories, sometimes called professional strength analyses, are usually conducted on a company-wide basis, but can be o f immense benefit to a manager in deterrnining who should be selected fo r development and what kinds o f programs should be utilized. Firms conducting their first strength analysis are of ten shocked to find a preponderance o f older men in one organization and young people in another, wide variations in education and experience i n various management levels and functions, and some i m portant posts w i th no backup men available.
As suggested, individual motives may obstruct the f u l l f l ow of a manager's development efforts . Simple introspection, sitting down and asking oneself "why don't I do a better job?" is of ten not enough. Most people need an incentive, a prompter, to ferret out these motives; and the group dynamics o f a team approach may be the answer. M y experience suggests that this approach can be f r u i t f u l .
Such teams may be o f the leaderless variety w i t h a professional person especially trained as a facilitator or charge agent t o cons ide r such questions as:
How can we become better developers? What can we do that we are not now doing? What do we do collectively and what do I do individually that inhibits the f u l l development o f people? Who are the people in our organization wi th the greatest potential and what are some possibilities for their development? ( O f course, the final development plan should be the product o f the candidate and his boss.)
Having a small group o f managers o f similar hierarchical levels who are wi th in the same organizational uni t has several advantages: the team members would have similar development facilities and opportunities; they would probably know those w i t h potential wi th in the organization; and collaborative rotational schemes might be easily arranged for .
Further, a team approach o f this nature can be effective in bringing about change. Each manager realizes he is not alone wi th the problem o f d e v e l o p i n g subordinates. Members
with- similar problems can work on t h e m i n subgroups. Subordinates sometimes move f r o m one manager to another and a consistent development e f for t could be beneficial to all managers as potential recipients o f the d e v e l o p i n g subordinates. Further, teams can generate shared experiences, provide feedback on things done as a result o f prior meetings.
The author participated in team meetings designed to improve the e f f e c t i ven es s o f the development efforts o f a small manufacturing firm. The f o l l o w i n g conversations were recorded:
" A t first I l iked to have people conf o r m to m y way o f thinking and working. I think i t was unconscious, but I know I fel t comfortable having people act the way I do. No surprises you know! Then I noticed one subordinate o f m i n e expressing ideas entirely opposed to mine. I ' d say to myself 'why doesn't he ever come up w i t h the right idea?' Later on, to m y chagrin, I found that he of ten had the right idea. Now I give h i m f u l l rein — to m y and to his advantage."
"Formerly I kept d i f f i cu l t jobs to myself, f o r many reasons: I prefer solo work to supervising, I ' m impatient and like to get a job done, and sometimes I don't have confidence in others. Now I realize that having qualified subordinates increases m y chances for promotion. Also, having them makes m y job easier, gives me fewer frustrations, surprises. Maybe I ' m getting a b i t lazy, but it 's sure good to have qualified people doing your wor k ! "
"One problem I have had is coping w i t h the feeling o f being threatened when a subordinate begins to excel i n one o f m y functions or specialities. I have taken the time to think out this problem and now realize that i t is bound to happen and to figure out how this situation can be converted into an advantage to me and the company. My better subordinates now read and evaluate material on new developments in our field, They recap significant information and send i t to me and other managers. This keeps us all up to date."
MEANS FOR COACHING AND D E V E L O P I N G SUBORDINATES
There are many formal and informal approaches available to managers fo r increasing the competencies
o f their people. The approach to be selected should be influenced by the strengths and weaknesses o f subordinates, and organizational goals, and then f inal ly , the consequent purpose of the development e f fo r t . These con¬s i d e r a t i o n s , b e f o r e selecting an approach, are of ten overlooked. For one reason, it's an interruption to getting on wi th the business o f producing something; and fo r another, its easier to talk about development approaches than i t is to describe t e r m i n a l changes in behavior and thinking o f participants.
Placing someone w i t h potential i n a rotational program may be just the wrong t i l ing to do i f the person needs m o r e comprehensive training and experience in his own field. Further, managers sometimes fa l l in to the trap o f using broad objectives like " t o i m prove performance o f one's present j o b " or " t o increase trainee's readiness for promot ion ," only to discover later that there is no way to compare results w i th objectives.
T h e verbs i m p r o v e , increase, acquire, qual ify, update, upgrade, convert, intensify, implement, reinforce, broaden, and specialize when combined w i t h designations o f job skills and knowledge i n specific fields can make o b j e c t i v e s clear and measurable. Examples o f measurable objectives are to :
Broaden knowledge o f company's financial operations.
I m p r o v e management decision making abil i ty.
Increase willingness to accept responsibility.
A c q u i r e competency in use o f systems analysis.
Make more effective technical presentations.
T h e l i t e r a t u r e contains many listings and descriptions o f development media. Here are a few approaches wor th considering. Work experience with optimum delegation: This is by far the most result-f u l means fo r development. Three stipulations increase the value o f work experience. I t should:
Contain assignments f u l l y delegated by the manager. Robert Saltonstall once said: "Good delegation means leaving the man on his own wi thout breathing down his neck or showing doubts about his capacity to do the job . To know that a superior has con-
20 PERFORMANCE
f i d e n c e i n his capacity to carry through an assignment usually results in the subordinate's extending himself to avoid lett ing himself or his boss down."
Be planned as a succession o f work e x p e r i e n c e s l e a d i n g t o a predetermined development goal. Lyn ton and Pareek, i n their book, Training f o r Development, discount the value o f the job as a learning medium indicating correctly that much is of ten le f t to chance.
Must involve important jobs, especially for young people. Peter Drucker once said that young people must be placed in big important jobs. He added that these jobs should not be for older men — not because they lack the necessary intelligence, but because they have the wrong conditioned reflexes.
Rotational programs: These should not be Cook's Tours bu t rather, should be complete work assignments requiring the rotator to stretch to accomp l i s h h is assignments. Whenever possible, planning and decision-making elements should remain intact wi th in the j ob . A t least the rotator should be present when planning and decisionmaking is accomplished i f he is incapable o f performing these functions. Generally, a few in-depth assignments are preferable to many shallow ones. V a c a t i o n and leave replaeements. These are a very popular development medium, and one probably grossly misused. When a manager, simply to ease his own conscience or to satisfy his ego, completes all assignments down to the crossing o f the last t , and allows his replacement to sit at his desk while he (the replacement) does the work he brought along f r o m his former job , the vacation replacement as a developer becomes a hollow gesture.
Formal development programs. I f the right programs are selected these can be stimulating, intensified learning experiences. Obviously, the value o f these programs can be lessened i f the wrong program is selected fo r the right person, or the wrong person is selected f o r the right program. The word formal here may be misleading. Here we are referring to any k ind o f prea r ranged vestibule-type programs: management development, technical conferences or courses, T-group in cluding sensitivity programs, business
games, or programmed instruction. Other development media less frequent ly used. A n "Assistant t o " position can be an effective medium i f a clear Functions and Responsibilities statement is part o f the package so that relationships wi th in the uni t are understood, and i f the training period is scheduled and lived up to . So often incumbents to these positions become "indispensable" and the job becomes a permanent position. Leaves for development are receiving some attention.
The Xerox Corporation has a program which permits employees to take a f u l l year's leave o f absence w i t h f u l l pay to pursue a self-selected social welfare project. Other development media are: membership on committees or organizations ( in and out o f the company [an example o f the latter assignment would be representing the comp a n y i n the l o c a l Chamber o f C o m m e r c e ] ) , on an Organization Deve lopmen t or Group Dynamics problem-solving team, an assignment to a task force, or on a special assignment offer ing new experiences.
COMMENTS Reference has already been made to
the selection o f people for certain specific development media. A l l subordina tes should be coached and developed, but every manager must face the hard, reality that people are different and that at least a few should concentrate on improving their present performance, a few should strike out for much higher horizons, and most are someway in between. M y philosophy (and i t sure isn't a science) is that all people can benefit f r o m some self-development, and both counselor (manager) and counselee (subordinate) should collectively search fo r these i m provement possibilities.
Those whose probability o f advancement is slight (based on test results, rate o f job learning up to now, present performance, or whatever) should rarely i f ever be discouraged f r o m taking reasonable development efforts , but un t i l their performance proves otherwise, they should not be indiscriminately encouraged to take more courses, get more training, get advanced degrees, strike out fo r higher classifications. This "sky's the l i m i t " approach is an easy way to counsel because i t obviates the need for judgement, but i t can lead to great problems
later on. Those who train fo r work they can't perform end up disillusioned and frustrated — because they cannot understand what they were t rying to learn or cannot get the job after taking courses.
Another point: good counseling a lways requires fol lowup. People change over time and your impression o f them should change i f you are observant and close enough to them. Someone you thought would never make i t , does wi th f ly ing colors (and vice versa). Y o u must fo l l ow up to give everyone every chance!
There is a relationship between coaching and development, and mot i vation. A subordinate may be mot i vated i f :
He has a say in his development planning.
His job requires h im to "stretch a b i t to leam and to accomplish.
The assignments carry w i th them, sufficient authority and responsibility.
He gets a broad view o f his organization and its functions — so that he sees how each funct ion fits in to the to ta l i ty .
He gets i n v o l v e d in decisionmaking, planning, and goal setting.
He is realizing his potential, senses progress toward his goals.
Managers are n o w managing educated people. Most o f the young subordinates le f t the campuses not long ago, participated in or at least witnessed demonstrations, have discovered they are being listened to , are exploring social and economic issues and want change, are up to date in their disciplines. What an opportunity to spark the enthusiasms of such people, utilize their creativity, and to let them keep the boss up to date. What a shame i f the boss denies them this opportuni ty, and in the process, finds himself obsolescing, and in the incongruous position o f fol lowing rather than leading the pack!
Finally, when subordinates become capable, there are certain adjustments a boss must make. The more capable the subordinate the more freedom and latitude he wants in running his part o f the business - the more he wants to make the plans and decisions. But isn't this what a boss should want? More time to assist his own boss, prepare himself for advancement, engage in long-range planning, and to share the achievements o f his subordinates. [~p1
PERFORMANCE 21
V a l u e E n g i n e e r i n g
THE MARKETING OF CHANGE
By Joseph J. Sherry
A formal definit ion o f the management tool known as Value Engineering is "an organized e f for t to obtain performance of a function at least cost w i t h o u t s a c r i f i c i n g reliability or quality." These words hold true significance only for the already initiated. Another way to say i t is that V E finds another way to do a function for less money. The funct ion of Value Engineering (VE) in an industrial organization is usually assigned to individuals who can insure that it is used to the
balanced best interest o f the particular
company. Proper usage of V E , as a tool o f
management, results in additional progress by the overall management organization toward opt imum profi t and attainment of other corporate objectives. Some have called it plain old common sense, while others class i t as simply another term for cost reduction. The techniques used in Value Engineering and the results obtained indicate, however, thai il is much more than these. This is especially true, since V E is dealing directly with the human element and with a major psychological roadblock that is a lact of l ife in every corporate industrial environment.
This fact of life is the typical
human inertia which offers resistance to change, whether or not it is ul t i mately in the best corporate interest, because i t upsets an individual person's or organization's previous decisions and/or present status quo. A cartoon depicted in one management text shows an executive leaving a group of his colleagues, saying, " I f any new ideas come up while I 'm out, my vote is NO!"
This article is not a "how t o " type of presentation. It describes the marketing of the major advantage that evolves f rom usage of Value Engineering, implementation of a change into a system which results in a net cost savings, and acceptance o f the change by those involved in its implementation through proper marketing techniques and communication in the universal sign language ($). The outline follows typical marketing steps.
THE PRODUCT
Defining the product to be Marketed. - Let's start o f f the discussion on the product by relating what i t is not. In the environment of a living, progressing corporation there is, o f necessity, a somewhat continuous state of change. There are changes dictated by the market situation, the customer, the contract performance,
22 PERFORMANCE
JOSEPH J. SHERRY is currently Executive Vice-President of MBO Corporation (Management-By-Objectives), Santa Ana, California. He is active in new venture management, invention marketing, management training and venture capital assistance. He is the immediate past president of the Orange County Chapter of SAVE and formerly managed the Value Engineering program for Interstate Electronics Corp., Anaheim, Calif. As a writer he has been internationally published and is currently studying for a MBA degree at California State University at Fullerton, California.
or management policy, lo name a few. These changes usually come about on the operating, cost-creating level by direction f rom above and are referred to as necessary changes. We are not speaking herein about the implementation o f this type o f change.
There is another type o f change during a production life cycle which at first sight seems unnecessary and is. by its nature, a "boat-rocking" situation.
Implementation of this type of change, even though "someone" says it will "eventually save money," runs up against all of the typical roadblocks (and some unusual ones) in the course of getting implemented, i f it ever does. When a function is being accomplished to everyone's satisfaction, anyone who steps out o f the woodwork with what appears to be change for the sake of change is immediately branded a boat-rocker. It may be a different person who docs the branding in each situat ion; nevertheless he represents formidable opposition to the change and may wipe out what would have been a good idea in its earliest stages.
This is not meant to imply that Value Engineering equates to change lor the sake o f change. Quite the contrary. Changes should be implemented only when a net savings results, wi thout sacrificing the reliability o f quality necessary to perform the funct ion.
Characteristics of the Product
PERFORMANCE
The subject here is the implementation o) a change whose only necessity is that it saves dollars for the equal performance o f a function. It really isn't too diff icul t to come up with a large number of good ideas; even a number which save money. But to get the idea sold and actually implemented as a change from the traditional, or already acceptable, method of accomplishing a I unction is quite another thing.
There have been some interesting axioms regarding new ideas and their implementation, fo l lowing are some of them:
"Having an idea is child's play compared with gelling something done about i t . "
" A l l ideas are potential threats to Ihc established order of things." "To get an idea accepted, it helps to look as i f you could never have an idea."
"Arrange for someone else to have your idea."
" A good idea doesn't care who has i t . "
"Experts can always seem to tell why every idea won't work ." l l seems thai there is one major
factor thai finally "makes or'breaks" the acceptance of change. That is the level o f understanding thai Ihe acceptors have of the delails of ihe change. This thought will he expanded later.
THE MARKETS
Defining the Markets - We now
look al the markets to which we must sell the idea o f implementing a change. In the majority of cases, they are Top or Upper Management, Middle Management, Line Supervision and line personnel. The following paragraphs are noi meant to be a detailed treatise on management at various levels but, since management represents the major portion of (he receptors for change, certain characteristics must be examined,
Upper management refers here to those who are measured by theireffect on the Balance Sheet and P & L Operating Statement. Middle management refers to those levels which do not have a primary concern with the Balance Sheet or P & L , but which look more to their function in relation to particular con tracts. Line Supervision and Line Personnel are (hose individuals who are involved in the day-to-day line operations.
Characteristics of the Market Upper management is concerned wi th the evaluation of their performance as i l is reflected by the effect on the Balance Sheet and/or the P & L State-men I .
II it is top or corporate management, the major concern may more likely be the Balance Sheet, while for upper management i l may be Ihe P &
23
L Operating Statement. These items represent actual numbers, in relation to a point in time, which make measurement easy. Upper management also pays close attention to accomplishing other specific corporate objectives, viz., perpetuity, provide job, etc.
Middle management is concerned primarily with the accomplishment of shor t and m e d i u m range plans. Secondarily, it looks to its own interface with other parallel organizations. G e n e r a l l y speaking, schedule and budget are the measuring sticks involved at this level.
Line supervision is primarily concerned with the accomplishment of short range assignments in their functional areas. They usually are not too concerned wi th the ultimate effect of their actions on factors which make up the Balance Sheet, but many wi l l be secondarily concerned wi th having a positive effect on the P & L Operating Statement.
Factors Affect ing the Market — The main factor that has a direct and immediate effect on each of these markets is a directive f rom the superior, the individual who "approves their paycheck." Other factors affecting these markets are those events or actions which, either directly or indirectly, put the individual in either a good or a bad light wi th his superior. Some of these events can be controlled, but others are outside of immediate control. The individual wi l l usually try to affect diese indirectly.
The (company) consumers o f this product (change) are each o f the individuals in every level o f management, and certain line personnel. Specifically, this refers to those who are are in a position to approve and/or cause the implementation of the change. This also refers to those who are in a position to cause the disapproval o f a change or prevent its implementation, even after i t has become approved. A l l of these individuals must somehow be "sold" on the acceptability o f the change.
Upper Managers as Consumers -The upper managers are usually not a m a t t e r o f concern on individual changes. They are, however, a matter of major concern in relation to the overall acceptance o f the general value eng inee r ing methodology (positive approach and attitude, V.E. techniques, etc.). The active and contin
uous display o f this acceptance (or non-acceptance) wil l be the major direct determinant in the degree of success or failure of a value engineering program.
The upper managers must openly and periodically indicate their understanding of the potential benefits (profi t & competive advantage) that can come from the proper use of Value Engineering by the various organizations. This creates a positive atmosphere for change which wil l permeate the organization. The result is that middle and line managers are more likely to listen to suggestions for change rather than suggest that the change isn't really necessary.
Middle Managers as Consumers Middle managers are an interesting and unusual group of individuals. Their approach to performing their function varies somewhat with the size and type of company and the nature o f the industry. There is one thing above all others that stands out about them, however. They usually represent the greatest single roadblock for the marketer o f change. As stated earlier, they are not primarily motivated by the P & L, nor are they primarily affected by day-to-day line operating problems.
Generally speaking, i f there is one individual above all others who prefers the status quo, it is the middle manager.
Aga in speaking generally (and admittedly this is not the case in cert a in d y n a m i c industries), he has acquired a "nicely feathered bed" and now wants to enjoy i t for awhile. Managing by exception and with the proper controls, his tendency is not only to avoid boat-rocking, but also to prevent i t . He prefers not to have to learn to swim all over again.
Some observers think that anyone who has gotten to a decent middle management level must be pretty familiar with the proper management t echn iques . These observers must realize that knowledge and practice don't always meet in individual situations.
A Value Engineer who has been confronted for years with the frustrations of his profession will readily agree that middle managers usually prefer to remain at the level they are and, unless they are convinced that a change is somehow going to benefit them personally, they will seek to give
the idea a quiet, quick burial. Line Supervision & Personnel as
Consumers Believe it or not, line supervision, is usually quickest to recognize the net benefits o f a properly prepared Value Engineering change. They are not so ready to say " I t can't be done," or some of the other multitudinous roadblock comments that easily kill a good idea.
In addition they tend to be sympathetic with the "marketers o f change" since they may have had a few "good ideas" shot down themselves. There are, however, line supervisors who are happy where they are and, therefore, also don't appreciate anyone who might "upset their applecart."
WHO TO S E L L ?
Should the marketer go directly to the man who can implement the change and sell him on the idea? Should he go through some middleman, selling him on the benefits, and have him sell the implemcntor? It turns out that each particular change, depending on its nature, requires its own unique channel.
In the majority of cases, a middleman is preferred and has proven to be the most effective method for successful implementation and acceptance by all concerned.
Also, the psychological effects of this method have long range benefits for a Value Engineering program. For maximum dollar advantage and quick, sure implementation, certain types of changes r e q u i r e a direct-to-the-implementor action. Each change, though, must be individually evaluated for the best method.
PROMOTION & S E L L I N G
The sales approach to be used wi th management must relate the benefits of the particular change to the level of management to be sold on implementing the change. The characteristics and motivating factors o f each of these "consumer levels" enter this picture rather strongly. For example, i f a middle manager is the key, a strong emphasis on an addition to next year's net profi t wil l not carry as much weight as the possibility of preventing a possible overrun.
Value Engineering, at one point in time, is working for one man, the key decision maker for the change; the man who hangs i f things go wrong. The
24 PERFORMANCE
value task group simply lines up the information it needs and presents an alternative to performing a funct ion, in a manner suitable for quantitative comparison. This fact o f quantitative comparison is a major sales tool to the marketer for the V E change. The summary report package, whether it be a detailed presentation to a Steering Committee, or a short verbal pitch to the man who signs o f f the design, must anticipate the questions.
As you may note, the sales approach is that used for any other intangible sale. I f the change affects more than just a management decision and requires acceptance by a group of employees and actual implementation, the "skids must be greased" to accomplish this.
Just as individual managers can quickly kill a great money-saving idea with a simple "pocket veto," so too can employees tend to ignore it if they wish to, in some cases. This is an important factor that is often overlooked and must be given serious consideration at times for complete implementation.
P romot iona l material usually is used to create a satisfactory company atmosphere for acceptance o f change. Most of ten, it wi l l relate to making individuals aware that they may unknowingly be presenting major roadblocks to improving the company's successful operation. Preferably, the soft-sell approach is used.
MARKETING R E S E A R C H
Before the (sales) information is presented which backs up the reason for the suggested change, there are three major affected areas which must be examined.
These are: (1) the attitude of company management in die area of change; (2) relationships wi th die primary customer which may enter the picture; and (3) the attitude among various employee groups which may be affected.
The Value Engineering program must not continually come up wi th ideas which are at odds wi th management. It must be in management's f low of information so that i t can stay aware o f the desires, needs and dislikes present. I t is one thing to knowingly allow someone's boat to be rocked, but i f you don't realize chat you are rocking some boats, i t won' t be too
PERFORMANCE
long before these individuals wi l l unconsciously form an informal coalition wliich would either eliminate the program altogether or reduce it to an ineffective operation. This happens wi th amazing subtlety.
OUTSIDE S A L E S IMPACT
By the same token, changes must also be equated wi th possible effects on the company's relationship wi th a primary customer. There may be cases where a special customer has some unwritten likes and dislikes wi th which no amount o f dollar savings can be equated. Be sure these are given caref u l attention or the program's demise may not be so subtle!
Sometimes a change may require investigation o f its effect on certain employee groups. I f "market research" shows this to be the case, serious consideration should be given to a preliminary discussion of the details wi th groups before any formal presentation is made to sell a particular change.
There are circumstances where the p r i o r i t i e s o f corporate objectives change for a period. This can affect the acceptability of VE change at a certain point in line. Some changes can have far-reaching effects throughout the company, and across high organizational lines...even to the point of e n t e r i n g the realm of corporate economics and politics. A fair awareness of these priorities is necessary by the marketer of change to insure term success in implementations.
PACKAGING OF AN IDEA
The idea must be prepared for m a x i m u m p o s s i b i l i t y of success. Proper preparation o f the package requires review of the factors for acceptance.
The creative product will not benefit anyone unless expressed in a form which can be understood and utilized by others.
The person wi th a new idea has the p r o b l e m o f persuading others to cooperate wi th him and help him bring the idea in to concrete reality. Hence, the arts o f persuasion and human relations are necessary factors for successfu l implementation o f a change.
As soon as an idea takes a recognizably acceptable fo rm, others can become involved in i t . This fosters cooperation within the organization and gives "the acceptors" a feeling o f
being a part o f the creative process....a necessary element. Inputs are sought f rom key individuals and the idea is redesigned to use as many of their inputs as possible.
Finally, a summary report seems to work best; one which follows somewhat the fol lowing outline: Introduct ion; Conclusions and/or Recommendat ions; Summary; Discussion; Cost analysis; and Closing. Included in the
report is the fact that ideas were
solicited and used. The problems, de
signing strategy, and glory are shared.
The key people in the current system
are not ignored. Above all, it should have a t h o r o u g h and clear cost summary.
Continued and successful implementation of changes which save dollars requires an overall marketing approach. This "marketing of change" is a normal function of a Value Engineering organization in a company.
Examination of the product, "implementation of a change," has been related to its market, the consumers, distribution channels, promotion, selling, market research and packaging. However, the major factor bearing on success in this market is the motivation of the "marketing" organization. Because this organization is of a "boat-rocking nature, the practitioners must face frustrations from many angles.
Some of their changes wil l be implemented, some not. When they lose out on one, i t has a disheartening effect. The winners, however, usually outnumber the losers, especially in terms of net dollar savings f rom the changes. A major technique used, though, is to give the key implementor the feeling that he originally came up wi th the idea. Then he wi l l "Pick up the bal l" for implementation. Another technique is to give credit for the success to others to insure their future participation and their positive attitudes. Sometimes the "marketer" is overly successful in this and is accused o f implying personal credit for a change brought about by the "imple mentor."
I n summary, the marketing ol change provides a useful tool for the overall management o f I company. And the Value Engineering technique usually follows the traditional con cepts of marketing in •oeompbhta l this function.
2$
h o w
c a n
i
m o t i v a t e . . . ?
Y O L A N D A JOHNSON Is a graduate of the University of Chicago holding a J.D. Law Degree. She is a member of the Illinois Bar Association and for eight years was associate professor in medical jurisprudence at the University of Illinois. She is co-author of the New Mexico Occupational Diseases Act. She joined the Boeing team in 1957; has been supervisor for the past ten years and has devoted fourteen years to the off-hour teaching program. The Engineers Guide to Better Writing is only one of a number of her writings. A t present she is a legal coordinator on the ASG Contracts Legal Staff.
From classroom, pulpit , home and industry, the question is asked: How can I motivate...? The answers are many but they don't "r ing the bel l . " Is i t possible that the problem is not that of motivating persons? Can the problem be something that lies deeper than finding the right words that wi l l make John or Bil l j u m p to attention and snap out o f their phlegmatic "who cares" mood? Is today's indifference a product o f the anonymity o f today's society, typif ied by the impersonal credit card, the security badge, or the computer? I f so, more than lectures or
26
articles are needed to undo a generation o f deeply entrenched indifference and rejection. Here, industry's role in activating motivation wil l be reviewed.
To create our monolith o f impersonality, the ego o f man has been disregarded. He has come to believe that no one cares i f he does or does not have an opportunity to assert his need for self recognition. He occupies the same k ind o f desk as hundreds around him. He is allocated not by name but by badge or number. He seldom is responsible for more than a minute
portion o f any concept. He neither respects nor despises his boss. In fact, he really does not know h im. Communication - caring - between supervisor and subordinate are negligible. He, the person, has no image. As such, then how can he be motivated?
A person can be motivated when the system in which he functions recognizes h im as an individual. Therefore, i t is necessary to build up his morale by changing some o f the present techniques o f handling people and of ignoring the individual. For in-
PERFORMANCE
stance, the supervisor must relate to the plans and problems of his men; his shoulders must rub wi th those o f the persons looking for a solution; he must assume responsibility for answers and let his men know that he supports t h e m . Compan ies can encourage finding working relationships between supervisor and subordinate by discarding the stigmas that cause barriers and awkward level o f communication, and by bringing supervision into the active working area. Then the assembly-line operator wi l l be given some substitute recognition in spite o f the routine anonymity o f his job . The young idea man wi l l be listened to as he suggests replacement o f old methods by new concepts. Such changes defeat absenteeism, low productivity, cost overruns and indif ference . They bring the "zest" which spells profits or success.
What are some o f the items or areas which can bring this "zest," this self-motivation, to industry? Recognition pops up at the head o f the list. Everyone wor th anything wants to be recognized for what he does or is. "The boss said hello to me today;imagine." "The boss said I did a good j o b . " Certainly these sound "corny" in today's vernacular. But, despite the sophistication o f today, such recognition carries an underlying awe. The person has been recognized. He IS. Therefore he is a man. Is that asking too much? No. Not i f that man is to be asked to perform, to work harder, to produce better so that costs may be reduced and profits increased. The boss recognized him as a man. Therefore he must perform as such.
Believers in a modern human relations approach to motivation, sometimes called "morale," maintain that the basic need o f the worker at any level is to be treated w i t h dignity, w i th an awareness o f his unique personality. The "hardhearted" industrial relations, on the other hand, support the view that man works for the almighty dollar. They point out that in surveys salary and wages head the list o f "what don't you like about your job?" and are at about the middle o f the list o f "what do you want f r o m your job?" True, salary is important. But salary does not motivate people. Satisfaction of one's ego, one's needs, does.
Therefore, a major human task o f industry is to develop greater opportunities for satisfying needs at work.
The easy way in the past has been to fatten the pay envelope. The more d i f f icu l t way is to find the non-financial incentives and to beat a path f r o m there to the performer who is ready to respond to ideas and object ives . Motivation becomes the reaction.
Many factors bring about poor job attitudes, wi th resultant slowdowns: s u p e r v i s i o n f a i l u r e , faul ty interpe r sona l re la t ions , poor physical working conditions, salary, company policies and administrative practices, benefits, and job security. When these factors deteriorate to a level below that which the emplbyee considers acceptable, then job dissatisfaction sets i n and morale drops. When positive job attitudes satisfy the person's need for self achievement and self realization, then motivation is not too far away.
A huge new work force is waiting and ready to be accepted by industry. I t has ideas. True, some are out o f step wi th concepts fol lowed during the past two decades. But isn't i t time to open the door to some of these ideas? Today's aggressive "new" man is propelled by an urge to innovate, to effect productive changes. His objective is not to build retirement credits but to acquire exposure to as many challenges as possible to that he can continue developing himself. His demands for salary are high but he is ready to reciprocate w i th high performance. To attract h im and to keep h im, management must provide a freewheeling environment where ideas and innovations are respected and outmoded routine is challenged. This person wants to work w i th people as intense in purpose as he is. He presents a radical switch f rom the person who is more concerned wi th his personal benefits that he is w i th the job . Companies that have opened their doors to this task-motivated person report a notable reduction in at tr i t ion, absenteeism, and costs. Many companies still reject h im and fear h im. They question the need for change, w i th its probability of error or failure. Industry's reluctance to listen to the "new" man's ideas discourage the ones who reach o u t f o r improvement and growth. What are some of the needs o f this "new" man?
A n intense need of the semi-professional and the professional man
is for creativity and challenge. No, not for money, for he knows that i f he produces a good product, his monetary reward wi l l come. He WANTS a raise. But he NEEDS opportunities and environmental encouragement for meeting new problems requiring initiative and inventiveness - for producing new and original work - for expressing himself.
Industry is faced wi th the conflict between this new aggressive employee who is impatient w i th outmoded techniques, and the veteran self-motivated employee whose main asset is his l o y a l t y to precedent. One brings m o t i v a t e d innovations; the other wants to preserve the status quo. One looks at task needs. The other stifles initiative. Business wants profits. I t has begun to recognize that where morale is high, productivity remains high and where ideas f l o u r i s h , motivation thrives and costs drop.
Loud and clear, today's new work force says that one of the obstacles our social world o f work has created is caste barriers which, in themselves, destroy the desire to perform and create. Man's ego must be realized; therefore, today's worker wants no badge stigma, no status barrier, no gimmicks to shout rank. He wants recognition. The newly transferred manager wi l l accept a dingy bilious-colored office i f everyone of equal rank is being subjected to equal desen-sitization. But i f he, alone, has a poor off ice, then his motivation falters, for his ego has been shattered before his peers. For, contrary to common belief, employees' complaints generally reveal that the employee today considers his equipment, surroundings and social status equally important as his salary.
Surveys reveal that money as a motivator is o f relatively small importance except as evidence o f successf u l skill achievement. Consequently, money earned as a direct reward for outstanding performance is only a reinforcement o f the motivators o f r ecogn i t i on and achievement. For e x a m p l e , companies such as the L i n c o l n E l e c t r i c C o m p a n y o f C l e v e l a n d , Ohio, where extensive studies on motivation at work were conducted, involve employees in the improvement o f production by distributing savings in labor costs to all o f the personnel. Such participation and increased responsibility develop self re-
PERFORMANCE 27
spect and the respect o f others and f u l fill the need fo r self realization.
For many, perhaps most, persons continuous employment is the most basic requirement for the satisfaction o f their needs. Perhaps no personnel problem has received more attention recently than how to gain or retain f u l l employment and how to reduce the consequences o f unemployment . Three facts emerged. One: companies that train employees for versatility in job performance or that sponsor a rotat ion program undergo very l i t t le f luctuat ion i n job productivity. Their employees have no fears, w i t h , at best, only minimal uncertainty about status and j ob security. T w o : when management keeps employees at all levels in f o r m e d of proposed changes, any changes, whether o f personnel switch or reallocation or assignment, — even repositioning a desk — the worker becomes conditioned to changes in job assignments and responsibilities. He accepts them wi thout apprehension and his work f l o w remains steady. He feels he is a team partner and, as such, need not fear rumors or threats. Three: the employee who is rotated wi th in an organization or company becomes adept at different assignments and acquires j ob security. He does not get in to a rut , and retains a visibili ty and rewards are constant. Morale thrives i n such an environment.
Rotation f r o m one activity to another, however, is successful only i f the various activities have psychological meaning fo r the person. Also, versatility o f job performance is desirable i f the j ob gives a feeling o f personal growth and a sense o f increasing responsibility. And efficient communication channels are meaningful only i f the informat ion itself is meaningful. Frankly, then, can industry just if iably ask: how can one motivate workers who have a continuously revolving set of needs? By formulating a set o f rules and definitions? Of course not . Programs must be geared to be sensitive to the changes continually taking place i n the needs o f employees. This can be done best and, possibly, only by supervisors. They must be trained to understand human motivation, the factors underlying motivation, and the skills and facilities w i t h which to cope or provide the essential ingredient o f motivation. This fact bears repetition. T h o r o u g h supervisory training in human relations is essential. This is
particularly true fo r the many jobs, both at rank-and-file and at managerial levels, i n which modern industry offers l i t t le chance for the operation o f motivators - the cut-and-dried monotonous jobs that offer l i t t le opportuni ty for self realization.
The question may be raised here: why is the onus placed on the supervisor and not on the individual to encourage m o t i v a t i o n ? People like Norman Vincent Peale, and Maxwell Maltz o f Psychocybernetics reputat ion , contend that anyone can mot i vate himself i f he so wishes. However, current studies are disclosing that alone, wi thout guiding props, the individual, like Icarus seeking the sun, of ten flounders because he overreaches his own potentialities. The individual depends upon management and its representative — the supervisor — for the opportunity to express his ego. Management must assume the responsibility o f providing the environment in which motivation can flourish at all levels.
Now then, how can supervisors, intent on increasing morale, f i t the job to the right man, or the man to the right job? First, jobs must be restructured to increase — to the maxi m u m — the ability o f the employee to achieve goals meaningfully related to the doing o f the j ob . Second, the employee should have some control over the way in which his job is done, so that he can realize a sense of achievement and o f personal growth. Clearly, most assembly-line workers cannot have such control. However, where automation takes place, management can show imagination and skill i n structuring so that the largest number of individuals can be given the highest level o f motivation.
But , a more creative design w i l l no t emerge f r o m an engineer as a result o f fair supervisory treatment. For h i m to achieve the more creative design, one or more motivators must be present: a task that is interesting to the engineer; a task in which he can exercise responsibility and independence; a task that allows fo r some concrete achievement.
The appropriate incentive must be present to achieve the desired job attitude and job performance. Too frequently i t is absent, buried i n meaningless routine or insufficient challenge. I t is no t surprising that a prevalent complaint o f supervisors is that their
PERFORMANCE
people are bored. A look at their assignments tells the story. They are monotonous, repetitive — unchanged for years. They no longer challenge. How can someone be motivated under such conditions? Alas, industries are thrott led by supervisors who reject innovations and who refuse to make a change as long as the existing method is "adequate," though long outdated. Such supervisors stifle the enthusiasm or interest o f their personnel and fai l to do their job . To obtain f u l l activity and involvement — in short, to motivate — a supervisor must give his people the opportunity to grow by accepting the challenge of improving themselves. Boredom is costly. I t destroys initiative, morale and pride. I t thrives where the welfare o f the company or o f the employee is ignored. Obviously, some jobs are routine. But they are the ones to which supervisors should bring or welcome ideas, to prevent destruction o f the ego o f the performer. Motivation cannot flourish in an environment governed by monotonous repetition, fear, or rigid subordination.
A t this point, some readers wi l l say, " h o g w a s h . " Nevertheless, intensive studies at plants have shown that when management recognizes the need for a revised supervisor-subordinate relationship in which both are will ing to discuss and work together, motivation is high and costs are low. The "new" organization man is demanding this new relationship. He wants to rip away the old barriers to two-way communication and to recognition — both of which are vital to motivation.
The updated supervisor recognizes that more adequate use o f motivation increases the potentials for attaining goals o f industry. He therefore tries to reduce fatigue by attempting to increase his people's energy supply and efforts . He insists on up-to-date equipm e n t , meaningful procedures, and periodic purging o f files, redundant meetings and reports. He fosters the open-door policy o f communication at all levels. He knows each employee's potential ability for growth. Therefore, he dares assign workloads tasking 105 percent o f a person's ability, because he knows that to be content w i t h less than capacity work or w i t h inferior work is not only building up future troubles for himself but is doing his men an injustice. This does not mean being " tough," but that he must
know his men and job so thoroughly that he can and does make due allowance for difficulties and failures in the job itself. Such a supervisor wins respect and men wish to work for h im even though they might fear h im.
A man who finds his job challengi n g , exciting and satisfactory w i l l usually tolerate a d i f f i cu l t supervisor. Motivat ion thrives in such an environment. For people have a deep need to perform work which is satisfying and appreciated. No arbitrary external incentive is required to induce the hungry to eat. Eating is instrinsically satisfying. Work, too, can be as in t r insically satisfying as eating. When i t is, a man has reached his peaks o f satisfaction and productivity.
To raise the morale o f his personnel, the supervisor must learn a man's potential and good work, and then reward this good work. He must 1) maintain optimal personal relationships w i th his subordinate, and 2) acquire increasingly greater skills in organization and distribution o f work so that the subordinate's possibility for successful achievement w i l l be in creased. This applies to any level — f r o m foreman to company president. Motivation w i l l not be too far away. In summary: a better understanding o f the psychological functioning o f the individual and o f his needs is necessary before the apathy wi th in our society can be removed. Management has the respons ib i l i ty o f discovering what makes an individual self reliant and wil l ing to perform for the satisfaction o f the ultimate praise or recognition he wi l l earn. I t must restore individual initiative and ego by recognizing the person who has accomplished something, rather than the thing that was accomplished. Management recognizes the need to experiment and innovate. However, whether i t is ready to accept that the moral funct ion o f industry is to t ry to f u l f i l l the needs o f the individual and to find the means for so doing through the medium o f new personal relations and new company p h i l o s o p h y is, generally, still unresolved.
When industry decides that personal recognition and realization o f the ego jus t i fy the metamorphosis demanded o f management, then the in gredient — called motivation - that cuts costs fo r management and earns rewards fo r the performer can become a reality. I~p1
PERFORMANCE 29
MOTIVATING EMPLOYEES Continued from page 1 7
the genuine message that good emp loyee p e r f o r m a n c e is observed, recognized, and appreciated.
5. Target Setting and Management by Objectives. Stil l another approach is one that in recent times has been called "Management by Objectives" or "Managing by Results." What this basically involves is having employee performance targets or goals established jo in t iy (wi thin certain l imits) by supervisors and employees. Typically, both qualitative and quantitative performance targets are init ial ly projected by individual employees. These targets are then reviewed and finalized in discussion wi th the supervisor or high management.
This is quite a different approach than what traditionally has been the practice, namely, to have performance targets arbitrarily and unilaterally determined by supervision and high managemen t . Surpr i s ing ly , when employees are given a chance to set their own performance goals, many wi l l set them considerably higher than wi l l their supervisors. Further, this approach should involve permitting employees to have reasonable freedom in determing how to reach their objectives.
Some companies also have found that permitting employees to appraise themselves wi th in the context o f their targeted objectives - (subject to supervisory review) - ' is another useful device as part of a management by results program. Here, too, when employees appraise themselves, many are more critical of themselves than are their supervisors, and they often become more determined to improve their performance in the next appraisal period.
I have only briefly outlined the framework, and there are many other special aspects o f management by objectives that could be discussed here. But more important than the specific techniques used is the fact that this system brings the supervisor and each employee together to talk about performance goals, to realistically appraise performance, and to seek ways together to improve. Too of ten , employees do not really know what is expected of them because the supervisor has been reluctant to discuss the
30
total picture wi th them. Employees want to know where they stand, and the managemen t b y ob jec t ives approach is usually he lpful in making sure that this is accomplished.
I would not want to minimize the difficulties in implementing some of these approaches wi th certain people and certain situations. Many jobs in themselves create serious obstacles to their direct applicability. But usually the biggest obstacle is the inertia of supervisors and managers, who often become discouraged by the apparent negative attitudes and managers, who o f t e n become discouraged by the apparent negative attitudes and performance o f various employees. Management too often simply "gives up ," rather than to exert e f for t to achieve positive employee motivation.
F o r t u n a t e l y , the approaches described in this article increasingly are being used in many companies to bring about improved performance
over the long run. Yet this does not happen overnight; i t requires a dedicated and creative management which earnestly and sincerely works to build the motivational climate which recognizes and tries to satisfy the higher level needs o f people. Supervisors and managers who are will ing to show more fai th in the talents o f employees and who want to seek new ways to tap their f u l l potential usually can figure out useful specific techniques wi th in the f r a m e w o r k o f the kinds of approaches that have been suggested here.
Certainly the time is long overdue for management in most organizations to recognize motivation as being the most important variable o f all in improving employee performance. Mot i vating employees t ruly is the core of the managerial job . The challenge to build better motivation among employees wi l l continue to be one o f the greatest challenges to managers both today and in the foreseeable future. |~F|
Suggested Readings Drucker, Peter F. Managing for Results (New York: Harper & Row, Publishers, 1964.) Gellerman, Saul W. Motivation and Productivity (New York: American Management Association, Inc., 1963.) Haimann, Theo, and Raymond L. Hilgert, Supervision: Concepts and Practices of Management, (Cincinnati: South-Western Publishing Co., 1972). Herzberg, Frederick. "One More Time: How Do You Motivate Employees?" Harvard Business Review, Vol. 46, No. 1 (January-February, 1968), pp. 53-62. Herzberg, Frederick. Work and the Nature of Man (New York: World Publishing Company, 1966.) Maslow, Abraham (ed.). Motivation and Personality. (New York: Harper & Row, Publishers, 1970.) McGregor, Douglas. Human Side of Enterprise. (New York: McGraw-Hill Book Company, 1960.) Myers, M. Scott, "Who Are Your Motivated Workers?" Harvard Business Review, Vol. 42, No. 1 (January-February, 1964) pp. 73-88. Odiorne, George S. Management by Objectives. (New York: Pitman Publishing Corp., 1965.) Sutermeister, Robert A. People and Productivity, 2nd ed. (New York: McGraw-Hill Book Company, 1969.) Towle, Joseph, Sterling Schoen, and Raymond Hilgert. Problems and Policies in Personnel Management: A Casebook, 2nd ed. (Boston: Houghton Mifflin Company, 1972.)
PERFORMANCE
A MEASURE FOR V A L U E By Pericles A. Argyris
P E R I C L E S A . A R G Y R I S is Manager of New Product Developm e n t , Sterling Division, Rockwell Manufacturing Company in Morgan-town, West Virginia. He received a Certificate in Mechanical Engineering f rom Edgbaston School of Science in Birmingham, England, and took advanced studies at the University of Texas. He joined Rockwell in 1957 and assumed his present position in June 1971. He is the author of several technical publications and has served as speaker, instructor and chairman at numerous Seminars and University courses. He is a member of the Society of American Value Engineers, the A m e r i c a n Management Association and the National Microfi lm Associat ion .
Measurement is one o f the basic fundamentals for progress. Man, in order to achieve goals and objectives must have the capability to measure the elements involved. In his early childhood, man is taught how to read and how to measure, and he continues to use these two fundamental techniques throughout his entire l i fe .
Man's creative ability has offered outstanding developments in the past decades. He developed means to measure distance, weight volume, time, speed and force. Today, w i th the computing equipment available to us and our ability to measure these elements, we have succeeded in putting man on another planet.
When a fifteen-year-old girl was asked to define 'value', she said: "To me, value means how much something is worth. The value of something shows how much i t means to someone or how precious i t is to them."
Professor T. N . Carver in his articles on 'value' in the Encyclopedia Americana, states that: "Value is the most important word in the whole science of economics."
Measurement Needed
In both o f the above statements we
detect the need for measurement. "Good value," "poor value" and "fair value " are terms that we hear daily. What do they mean and how do we measure value to properly decide which term to use? We need a number to quantify value, because we measure by numbers.
In order to be able to measure value, we must first define the elements and be able to quantify these elements.
The 1933 edition o f the Oxford Dictionary defines value as: "The amount o f some commodity, medium of exchange, etc., that is considered to be an equivalent for something else."
Webster's Dictionary defines value as: " A fair return in money, goods, services, etc. , for something exchanged." and "Relative worth , importance or u t i l i t y . "
Quantify Elements
No 'product' has economic value unless someone wants i t and wi l l pay for i t . We must recognize that the customer is vitally concerned wi th wor th , importance, or u t i l i ty o f a 'product' , and that he relates these elements to cost. These then, are the elements that
we must quantify in order to measure value.
Value Engineering (VE) is a funct ion-or ien ted scientific method of improving product value by relating the elements o f product worth to their corresponding elements o f product cost. The result expected f r o m V E is to accomplish the required functions reliably for the least cost in resources. In VE , we accept the fol lowing definitions:
Product Worth — The combination of desirable characteristics (functions) that make the customer want the product.
Product Cost - Everything that the customer has to pay in order to acquire, use, enjoy, maintain and dispose o f the product.
Product Value — The relationship between Product Worth and Product Cost, expressed as a ratio, a difference, an algebraic sum, or any other convenient mathematical fo rm.
Best Value can then be defined as: " A functional product which has lowest cost and highest acceptance."
I t should be noted that when we analyze value in order to measure i t , we do recognize that there are four kinds o f value:
Use or U t i l i t y Value — The properties and qualities which accomplish an end, i.e., the value o f a pair o f scissors, a pen or a power tool .
Esteem or Prestige Value — The properties, features, or attractiveness which cause desire and/or contribute to personal image, i.e., the value of a Cadillac, a diamond bracelet or an 18-carat gold watch.
Cost Value — A monetary amount or the man-hours that must be expended to acquire an item, i.e., the value represented by a check, currency or a labor ticket.
Exchange Value — The properties or qualities which enable us to exchange an i tem for something else, i.e., the trade-in value o f an automobile, a boat or a house.
The 'keys to value' hinge on good or bad decision patterns. Measurement is one o f the fundamental elements in dec i s ion m a k i n g . The technique presented in this paper wil l provide a measurement to assist the decision maker, be i t the purchasing agent o f a company or the customer.
Again, in order to measure value, we must measure and relate product worth to product cost. In all cases.
PERFORMANCE 31
product cost is available to us. What we must establish is the number that quantifies the elements o f product worth , importance or u t i l i ty .
Let us consider the case o f purchasing an automobile in terms o f value. The customer can obtain costs for different makes f r o m the manufacturer or the dealer; i.e., car " X " $4,000 car, " W " $3,900, Car " Y " $4,000 and car " Z " $3,800. Now, the customer must establish a number that wi l l quantify the elements o f wor th , the automobile's wor th . First he must decide on what he wants; i n other
words, what are the features and/or functions that he desires. Does he want economy, does he want comfort , is he concerned about appearance, etc.
List Functions
The features or funct ion that he decides on are then listed, as they come to mind, i n the upper portion o f the Numerical Evaluation worksheet (Figure 1). This matrix, developed by Mr. Ar thur Mudge, Joy Manufacturing Company, is used primarily to compare functional relationships and indicate magnitude o f importance wi th
FIGURE 1
EVALUATION SUMMARY
NUMERICAL EVALUATION
Key Letters Features and/or Functions Weight
A APPEARANCE 12 B COMFORT 6 C ECONOMY 10 D CAPACITY 2 E POWER 7 F VISIBILITY 3 G H I J K L M N
B C D E F G H I J K L M N
A 3 C l A 3 A 3 A 3
B S B 3 E 3 B 3
C C 3 E l C 3
D E 3 ° 2
E F 3
F
G
H
I
NUMERICAL EVALUATION J Evaluation Weight Factors: 1 = Minor Difference in Importance 2 = Medium Difference in ImDortance K 3 = Major Difference in Importance
L
M
32
numbers. This worksheet forces the individ
ual — the customer — to compare two features at a time, and determine which one o f the two is more important to h im, indicating this by marking the key letter o f the more important fea ture in the appropriate matrix b l o c k , i.e., when comparing A -"appearance" wi th B - "comfor t " , i f appearance is more important, he indicates by marking " A " in the A B block; when comparing A - "appearance" wi th C - "economy", i f economy is more important, he indicates by marking " C " in the AC block.
A t the time of comparison o f each pair o f features, the relative difference in importance is also evaluated and indicated by a numbe%following the key letter. We use (1) for a minor difference in importance, (2) for a medium difference in importance, and (3) for a major difference in importance, i.e., i f A - "appearance" is "al l -important" and B - " comfo r t " is in significant by comparison to A , he writes A 3 .
I t should be noted that no two features ever have the same importance. There is always at least a minor difference.
Features Summarized
When the comparison entries in the matrix are completed, i n other words, when each feature has been compared against all others, the numbers are summarized by adding horizontally and vertically the numbers for each key letter, i.e., for " A " we have 3+3+3+3=12, for " B " we have 3+3=6, for " C " we have 1 +3+3+3=10, etc..
To this point the customer has established the features that he wants and has determined the relative importance o f these features, as they apply to his own needs and as indicated by the weight factors. Now, he must evaluate and rate the various product choices, makes o f cars, in. terms o f their performance or contributions to the established features. Here the customer must use judgment based on his knowledge of each product. Obviously , i f he does not know the contributing factors o f each product, he could not justif iably apply a rating, and therefore, he cannot continue his efforts to measure product value.
To establish relative wor th we use a matrix that provides a framework for e v a l u a t i n g various choices against
PERFORMANCE
D E C I S I O N M A T R I X
established benefits or features (Figure 2). In the matrix across the top-most heading the customer lists the established features. Under each feature in the column heading "weight," he lists the weight factors derived in the Numerical Evaluation worksheet.
Products Rated
In the l e f t column ti t led "choices," the customer lists the various products by brand name or some descriptive characteristics. Now, the customer rates each product in terms o f performance or contribution to each list feature. The rating is done by utilizing the Standard Scale that we all are familiar w i t h f r o m our school days, where 70 is passing - least favorable but acceptable, being the lowest grade; and 90 is very good - best performance or best practical, being the highest grade. He enters the grade in the upper le f t hand corner of the appropriate box in the matrix, the box that corresponds to the product and the feature that he is rating the product for , i.e., f o r car " X " for "appearance" he assigns the grade 80, for " comfo r t " the grade 85.
Once the matrix is completed, in other words, when a rating has been assigned for every product choice for each feature, then the assigned grade is multiplied by the respective feature's weight factor and the result recorded in the lower right hand corner o f the same matrix box. This number quantifies the relative wor th o f the product as related to that feature.
To determine the relative worth o f the product as related to all established features, the customer summarizes by adding across the numbers in the lower right hand corner o f each box and recording the sum in the extreme right hand column titled 'Relative Worth ' .
Analyze Results
These two worksheets, when pro-
BENEFITS
FEATURES ond/or
* — FUNCTIONS
P R O D U C T \ / \
APPEARANCE COMFORT ECONOMY CAPACITY POWER VISIBILITY
RELATIVE WORTH CHOICES \ v 12 6 10 2 7 3 RELATIVE WORTH
CAR "X"
80
960
85
510
85
850
90
180
85
595
90
270 3365
CAR "W"
85
1020
85
510
85
850
80
160
90
630
85
255 3425
CAR "Y»
80
960
75
450
75
750
85
170
85
595
90
270 3195
CAR "Z»
75
900
80
480
90
900
75
150
80
560
80
240 3230
G U R E 2
perly used as described, w i l l provide us wi th a number that quantifies the elements o f product wor th , importance and u t i l i ty . I f we analyze what we did, we wi l l see that we obtained this quantitative figure by mult iplying importance weighings, "how important is the feature or funct ion to the customer", by performance ratings, "how does the product perform the funct ion or contribute to the feature".
As s t a t e d previously "product value" is the relationship o f "product w o r t h " to "product cost" and can be expressed as a ratio or:
Product Worth
Product Cost Product Value
Then in our example o f the automobile we have:
F rom the above numerical calculations we can see that i n terms o f measurable value car " W " has the highest value. Now, again in terms o f measurable value, we can say that in order for car " Z " , which has the lowest cost, to be equal i n value w i th car " W " , i t should only cost $3,670.
We all know f r o m experience that "price buying," w i th the low bid as the only permissable benchmark, does not necessarily offer a good return on investment. I t is my strong conviction that i f we adopt the "value buying" technique, where we can numerically measure value, we can assure good return on our investments.
Remember that measurement is fundamental for success. r j j
Car " X "
Car " W "
Car " Y "
3365
4,000
3425
3,900
3195
4,000
= .84
3230 u a 3,800
= .80
= .85
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PERFORMANCE 33
FACTORS and
VALUE F f l E E R I N G By Edwin Cohen EDWIN COHEN is Manager of the
Human Factors Department of the Simulation Products Division, The Singer Company, where his responsibilities include the human engineering and training value of flight simulators. He also teaches in the continuing educat ion program of the State U n i v e r s i t y of New Y o r k at Binghamton. He holds an A.B. in Chemistry from Cornell, and a M.S. and Ph.D in Psychology from the University of Oklahoma. He is a member of the American Psychological and Sociological Associations, Human Factors Society, Aerospace Medical Association, SAE Committee A G E - 3 (Training Equipment, Programs, and Simulation), and Highway Research Board Committee on Simulation of Driving Task.
Human Factors, a field slightly older than Value Engineering, also goes under the names human engineering, ergonomics, bio-technology, bio-astronautics, and engineering psychology, to name a few. This overabundance o f names indicates that the boundaries o f this young discipline are not yet very well defined. In this respect, and in the problems encountered in integrating new (VE) specialties in to the engineering design process, Human Factors has a good deal in common wi th Value Engineering.
The central concept of Human Factors is the consideration o f human characteristics i n system design. The word system can indicate something as large as the United States defense establishment, or as small as a sniper w i th a r i f le . Most Human Factors e f for t , including that o f the writer, have been accomplished for mili tary or space systems. Hence our illustrations w i l l be largely mil i tary or space-oriented.
However, these concepts are equally applicable to commercial systems,
34
and an increasing number o f Human F a c t o r s personnel are now being employed by the commercial segment of industry.
Vir tual ly any system, mil i tary or commercial, large or small, can be thought o f as comprised o f two subsystems: an equipment or hardware subsystem; and a personnel subsystem. The personnel subsystem comprises the man or men wi th the motivation, s k i l l , and knowledge required to operate and to maintain the equipment subsystem, and to plan future system actions. One might add here that even the most completely automated systems require men to produce them, set them going, and maintain them.
In designing any system, certain t r a d e o f f s are necessary to attain required system performance wi th in the time, money, and physical constants imposed. Tradeoffs wi thin the e q u i p m e n t subsys t em are quite familiar to Value Engineers. (Should steel or aluminum be used for a structural member. Should solid state cir
cuitry or vacuum tubes be employed, etc.)
Tradeoffs are also required witJhin the personnel subsystem, involving :
choices such as:
*Should the system be run w i t h a smaller number o f hard-to-get, expensive people, or a larger number o f lower level people?
*To get operators o f a five skill level, should we start w i t h low-priced people, and give them extensive training, or start w i t h higher-priced people who need less training?
On a larger scale, a choice that must be made by each o f the Armed Services relates to the number o f personnel specialties — MOS's or AFSC's or designators — that i t wants to keep in inventory. By making each job more specialized (and hence simpler), selection and training are easier. However, a great number o f men must be kept in the pipeline.
I f one makes jobs less specialized, i t becomes more d i f f i cu l t to get people to do these many things well , but the inventory problem is eased. As y o u
PERFORMANCE
can see, the problem is quite analogous to determining the number and types o f transistors a circuit development department should standardize on.
Personnel Subsystems
In addition to tradeoffs wi th in the equipment subsystem and within the personnel subsystem, tradeoffs between the two subsystems are of ten required. For instance, should we keep the equipment subsystem simple, and require highly trained operators, or automate certain functions to allow operation by lower-level personnel?
The choice between a conventional gearshift and an automatic shift in an automobile is a representative one here, and also points up a common finding - that when systems are automated to unburden the operator, an additional load is of ten imposed on the maintenance men, since the more complex , automated systems have more things to go wrong.
The work o f Human Factors specialists is largely directed at helping to arrive at judicious tradeoffs wi th in the personnel system, and between the equipment and personnel subsystems.
Four Applications
There are four major areas o f application o f Human Factors knowledge, each employing specialist w i th s o m e w h a t d i f f e r e n t backgrounds. These four areas are:
Human Engineering - the designing o f equipment to be compatible w i th the characteristics o f the humans who are to operate and maintain i t .
Job Environment — specifying the phys ica l , psychological, and social environments that are conducive to effective human performance.
Personnel Selection and Assignment — obtaining quahty components for the personnel subsystem and using them in appropriate places, and
Training — modi fy ing these components to increase their reliability and effectiveness.
Let us discuss the f irs t o f these, H u m a n Engineering, in somewhat greater detail. Human Engineering was characterized as the designing o f equipment to be compatible w i th the characteristics o f the humans who are to operate and maintain i t . The best known aspect o f this — laying out
PERFORMANCE
panels so that displays are readable and controls easy to manipulate - is really just a small part o f Human Engineering.
Perhaps the most important part is the allocation o f functions, i n very early design stages, between the equipm e n t and personnel subsystems. Machines are generally superior to men in deductive reasoning, computation, detection o f infrequent signals, and applying large forces. Humans excel in pattern recognition and decision making. Thus, while machines have been b u i l t that can "read" typewritten material i n several fonts, no practical device can read ordinary handwriting, let alone distinguish between your handwriting and mine.
HE and VE
What is the relevance o f this to Value Engineering?
V a l u e Engineering is concerned wi th analyzing the funct ion o f hardware (or a system) wi th the purpose o f achieving the required funct ion at the lowest overall cost. To do this properly , Value Engineers really have to analyze man-machine system functions, not just hardware functions. They must determine whether the funct ion should be performed by hardware or by a human. For example, i f one were Value Engineering a system whose functions could be performed in whole or in part by a man, the Value Engineer, before the usual questions: What is it? What does i t do? What does i t cost? etc., should ask: "Would a human perform this function (or some part(s) o f i t ) better or cheaper? What would be needed to implement the use o f a human in this situation?"
Value Engineering, i f i t takes a narrow view and considers only the hardware or hardware drawings, may merely improve a piece o f hardware t h a t performs functions a human c o u l d do be t t e r , or, conversely, burdens the human unnecessarily.
A second k ind o f interface between Value Engineering and Human Factors concerns those display and control transduction functions performed by hardware interfacing wi th the human operator or maintenance man.
Designing controls and displays is a t r icky business. For example, take an aircraft altimeter, and start asking the usual series o f Value Engineering ques
tions about i t : What is it? What does i t do?, etc.
A naive or very incomplete answer to the question, "What does i t do?" might be, " I t gives the pilot a reading of aircraft altitude to the nearest five feet." This answer is naive or incomplete because i t does not include statements about (1) the trend informat ion obtainable or required, (2) the time required for reading, (3) the probability o f making a minor error in reading, (4) the probability o f making a major errors in reading, (5) the need for setting in sea level barometric pressure (and the errors associated w i t h this), (6) the environment in which the altimeter must be used - light level, vibration, reading distance, etc.
Thus, to do Value Engineering on controls or displays, a Value Engineeri n g can be materially assisted by expertise in Human Factors, to the same extent that he requires expertise in mechanical engineering when Value Engineering a gear train.
Incorporate Disciplines
T u r n i n g f r o m the content o f Human Factors and Value Engineering disciplines to their integration into the total engineering process, one finds the two disciplines encountering some of the same problems of acceptance. A product can funct ion (after a fashion) w i t h o u t any inputs f r o m Human Factors or Value Engineering (or for that matter reliability, maintainability, or integrated logistic support) specialists.
Des ign engineers (and design engineering groups), working wi th tight deadlines and budgets, of ten tend to take the short view and minimize the involvement o f disciplines such as H F and V E . The problem o f incorpora t ing these new, auxiliary disciplines into the engineering design process is an organizational or management problem, not an engineering one. I t is a d i f f i cu l t problem because the use of auxiliary disciplines represents not only a change f r o m traditional approaches, but a set o f additional requirements as well .
Various organizations attack this problem in different ways. The solution to many o f our engineering problems may be found, wi th further experience, by the integration o f disciplines such as Human Factors into the mainstream o f engineering. \V\
35
profit area for
M A N A G E M E N T A T T E N T I O N
L A R R Y RAG LAND is president of Diversified Motivation Inc., Fort Worth, Texas. He has taught in the university systems of Texas and Michigan. He holds a BA from Mississippi College, an MA from TCU and completed PhD course-work at the University of Michigan.
The greatest assets o f a company do not he in facilities, equipment, bank accounts, products, and raw materials. A company may have all o f these in abundance, yet fa i l as an economic enterprise.
Although these ingredients are important to the ultimate success o f any f i r m , the greatest assets are to be found in people — the executives, managers , supervisors , engineers, t e c h n i c i a n s and w o r k e r s . More emphasis should be placed upon the human resources o f the f i r m since business success or failure is directly proportionate to the quahty o f decisions that people make regarding the use o f other company resources.
I f people are properly selected, placed, trained, motivated and supervised, then the Ukelihood o f achieving a successful business enterprise is greatly enhanced; however, i f people are NOT properly selected, placed, t r a ined , motivated and supervised, then the l ikelihood o f achieving success is diminished.
Few company leaders wi l l disagree
w i t h tnese statements; however, many company leaders wi l l fa i l to take the necessary steps to bring about the i m provement which could result f r o m a more judicious util ization o f company human resources.
Perhaps the most f r u i t f u l p rof i t area for management attention lies buried in the minds and hearts o f millions o f American employees. A latent potential for creative thought and e n t h u s i a s t i c c o o p e r a t i o n toward a c h i e v i n g c o m p a n y objectives is thwarted; motivation lags through a meaningless repetition of tasks for w h i c h i n d i v i d u a l s are ill-suited; communication attempts fa i l because they are strained through an atmosphere o f host i l i ty; valuable executive time is spent repairing human relations fences that never should have been broken i n the first place; and profits erode away l i t t le by l i t t l e . And yet, American business continues to look " w i t h o u t " fo r ripe p ro f i t areas rather than looking " w i t h i n . "
Research reveals three specific ways to unleash this human potential that
requires relatively l i t t le expenditure o f money, yet returns rich rewards; (1) a commitment by top management to stimulate the continued growth and personal development o f every company employee; (2) a commitment by all levels o f supervision to more effective personal leadership; and (3) a commitment by all levels o f managem e n t t o grea ter involvement o f subordinates in those decisions affecting their work.
The c o m p e t i t i v e p o s i t i o n o f American industry is being severely challenged, both on the international and domestic fronts. Our prime competitors have mastered the technical skills, and have successfully motivated their people to mount a t ruly formidable threat. I f American industry w i l l adopt the suggestions outlined here, in conjunction wi th our technological innovations, then i t is possible for us to enjoy the better part o f TWO worlds — effective competition on the trade f ron t and greater j o y in our work-lives. Certainly this is a prof i t area for management attention. |~p]
36 PERFORMANCE
HEW PRODUCTS...
Electric Oven A two-color, four-page brochure de
scribing the company's new Friction-Aire (TM) electric oven which has no heating elements is available f r o m Blue M Engineering Company, a division o f Blue M Electric Company, Blue Island, Illinois. Complete w i t h performance charts and graphs, the brochure pictures and describes in detail how the oven reaches temperatures to +240C. (+400F.) solely by means of moving air through a prescribed pattern. Also listed are a number o f unique operating features and characteristics which make the unit particularly well suited fo r hazardous applications.
Copies of Bulletin 721 are available without cost from: Blue M Engineering Company, 138th & Chatham Streets, Blue Island, Illinois 60406.
Hydraulic "Hushh-Pumps" The E N E R P A C Hushh-Pump
line is literally twice as quiet as other high pressure pumps. Their noise level ratings o f just 76 decibels at idle and 80 decibels at f u l l power (readings at three feet) are well below the U . S. noise level maximum fo r 24-hour use!
A major feature o f the series is a 1,725 rpm heavy-duty electric motor that starts under f u l l load, even at a 15% voltage line drop. Other features i n c l u d e heavy d u t y push-button start /s top switch, heat-treated and tempered valve seats, and hardened, precision ground steel pump pistons.
Full specifications on the new Hushh-Pump series of electric-powered hydraulic pumps are available on request. Write ENERPAC, Butler, Wisconsin 53007..
Tool Detective A new positive concept in broken
tool detecting systems has just been announced by Invo Spline, Inc. The t rade name f o r t h i s device is INVOTEC.
The devices senses the tool mechanically, but is operated by pneumatics. One set o f controls wi l l operate several detection units. The units are self-cleaning and w i l l operate satisfacto-rialy in an atmosphere of coolant oi l and chips o f any material.
INVOTEC wi l l test for all rotating round tools, such as drills, reamers, and taps on any type o f machine. I t w i l l also detect any shape o f tool that does not rotate, as used on automatic screw machines. The same system is being considered for proper assembly conditions on automatic assembly machines.
For further information, you may call or write directly to the manufacture, Invo Spline, Inc., 2357 E. Nine Mile Road, P.O. Box 7, Warren, Michigan 48090.
Continued on next page
QUALITY ASSURED
Central Washington State 1971 Custom Brick Home For Sale
Here is a split leve,, 5 b e d r o o m , 3 bath home that approaches the ult imate in modern living, but has a count ry atmosphere. T h e clear, clean view of valley and mountains f rom the all-glass upper level, is like a painting, changing with the seasons. One-half acre — 2 5 0 0 sq . ft . — A i r C o n d . — recreation room — work shop — unique k i tchen wi th dinette — formal dining room — wal l to wal l carpet throughout . Drapes, appliances and a $ 3 0 0 f ireplace screen inc luded. Parking for camper & boat out of dr iveway. T h i r t y minutes to hunt-f ish-boat-ski-etc. Owner transferred. Must sel l . $ 3 8 , 5 0 0 . W R I T E : G C B o x 5 5 8 1 , Orange, C a . 9 2 6 6 7 . Phone: 714 -524 -2160 .
PERFORMANCE 37
Thermal Shock Chambers This new line o f thermal shock
chambers w i t h temperature ranges f r o m -100F through +350F has been introduced.
Series 7800 test chambers are available in two-zone and three-zone configurations. The intermediate zone, a two-minute dwell chamber is optional.
Lower chambers are cooled by m e c h a n i c a l cascade refrigeration systems, L N 2 or CO2 and the upper chambers are heated by heavy duty, stainless steel sheathed rod-type heaters. Solid state, three-zone proportional controllers w i th platinum resistance bulb sensors assure 1/4% control deviation stability.
Model 7804 provides two cubic feet o f usable test volume wi th either a pneumatic or electric operator for specimen transfer. Digital dwell and cycle timers permit automatic operat ion fo r up to 999 cycles.
Further information is available from Industrial Refrigeration Co., Inc., 8940 Ellis Avenue, Los Angeles, CA 90034.
34
Energy Dissipator A n Energy Dissipator designed to
repress or control cavitation during dissipation in high energy l iquid f l o w systems has been developed by HITCO, a subsidiary o f ARMCO Steel Corporation. The Energy Dissipator, which complements the HITCO Roto-Disc Valve, greatly reduces noise and vibration in these systems. I t has no moving parts, is sufficiently compact to fit wi th in space limitations typical o f existing facilities, and is connected serially in the l iquid f l o w line.
One typical application involves
breaking 720 psi over a variable f l o w range o f 0-1000 GPM for high pressure f i re hydrant turnouts in Southern California Mountains. This system dissipates 365 HP when f lowing 1000 GPM. In another, 390 psi upstream pressure is reduced to 2 psi fo r free discharge into the Santa Ana River in Southern California. This system dissipates 1830 HP while flowing 8080 GPM. Both systems are free o f any detrimental or damaging cavitation.
For further information, contact:
HITCO, Dept. PM-73, 1600 W. 135th
Street, Gardena, California 90249.
Auto Safety Mirror This wide angle mirror, engineered
fo r safe driving, offers 300% more r ea r -v i ew vis ibi l i ty than wi th an ordinary mirror. Panoramic view provides natural vision at a glance o f both sides o f the road as well as behind. No blind spots, no distortions nor reduct ion in size. Lane changing becomes easy and less hazardous. Special safety glass absorbs annoying glare f r o m headlights. I t is used by the police and
professional drivers.
Engineered to last, i t is molded o f hi - impact plastic, w i t h dull matte finish, exposed edges protected wi th molded rubber. No special tools are required fo r simple installation; all fittings are included.
For full information and price, contact Wink Mirror Company, 70101 Salisbury Road, Canoga .Park, CA 91304. r j r |
PERFORMANCE
Exquisite Leather Items For All Occasions
i f .
EL CID leather items are a mark of their owner's individuality a tribute to his good taste. The quality of each item is such that it will endure for years. All E L CID items are unconditionally guaranteed against defects in workmanship or material. Satisfaction
l i K n n t e u ' ' t e u m S S h ? W n : i 0 l b u c k e t $ 3 0 - 0 0 ' s e t o f wine glasses
$15.00, happy hour dice cup $7.50.
WRITE FOR F R E E CATALOG
Quality Shop Box 5581. Orange. California 82667
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H I T C O
INSULATION P R O D U C T S
HITCO, for many years has prov ided a wide var ie ty of insu la t ion products fo r both m i l i t a ry and commerc ia l app l ica t ions . Products cu r ren t l y avai lable inc lude meta l l i c enclosed insu la t ion , Thompsog lass fo rmed high densi ty glass w i th phenol ic , me lamine or s i l i cone resin systems, acoust ic and v ib ra t ion absorp t ion app l i ca t ions , and metal t u b i n g fo r a i rc ra f t needs.
HITCO p ioneered l ightweight , h ighly e f f ic ient products cover ing a t empera tu re range f r o m — 3 0 0 ° F to 2 0 0 0 ° F . The comb ina t i on of mater ia ls and advanced fabr i ca t ion techn iques have resul ted in HITCO's cont i n u i n g posi t ion as a leader in the h igh and low temperature insu la t ion f i e ld .
For further information regarding thermal and acoustical insulation and metal tubing requirements, contact either of the two listed locations:
HITCO INSULATION PRODUCTS 1600 West 135th Street Gardena, California 90249 A/C213 321-8080
HITCO INSULATION PRODUCTS 2302 Marietta Boulevard, N.W. Atlanta, Georgia 30318 A/C404 355-1205 H I T C O