copyright 2000, dr. larry w. long1 chapter 11 communication & productivity by dr. larry long
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Copyright 2000, Dr. Larry W. Long
1
Chapter 11
Communication & Productivity
by
Dr. Larry Long
Copyright 2000, Dr. Larry W. Long
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Society & organizational products
Organizations are societal subsystemsadaptive: research firmssupportive: import/export companies
production: manufacturing, agribusinessmaintenance: schools, medicalmanagerial: government agencies
Each is needed & contributes to societal negentropy
Copyright 2000, Dr. Larry W. Long
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• What’s my production cycle?– (input, throughput, output)
• What is my productivity level & how can I improve it?– (more effectively acquiring input & transforming it to output)
• What are my primary and secondary product types?– (physical, capital, human, or information)
• What is the potential for production conflict?– (subsystems & functions integrated and mutually supporting)
• How can I enhance productivity– (fit between employee and job role)
Managers are concerned with answering several questions . . .
Copyright 2000, Dr. Larry W. Long
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Production cycle defined• Production is . . .
. . a process in which inputs (raw resources --physical, capital, human,
&/or information) are transformed into outputs (finished goods or
services).
$
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Production cycle stepsStep 1: Resource
(energy) acquisition from environment --
INPUT
Step 2: Transformation of resources into finished goods/services
THROUGHPUT
Productionsubsystem
supportivesubsystem
adaptivesubsystem
maintenancesubsystem
managerialsubsystem
Step 3: Product or service sent market,
i.e., exported to environment --
OUTPUT
Organizational System Boundary
Copyright 2000, Dr. Larry W. Long
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Productivity
Productivity is.... . a measurement of how efficient or inefficient an organization is in transforming resources into finished goods or services.
Copyright 2000, Dr. Larry W. Long
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Measuring productivity
Productivity is a measure of the input/output ratio, e.g. -- return on investment labor hours per unit # of units per time
interval
Specific measures vary across organizations.
investment
return
Transformation
hours units
timeunit
INPUT
OUTPUT
INPUT
OUTPUT
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How do I enhance productivity?increase resource consumption level & increase production level
if, >input, then >output
decrease resource consumption level & maintain production level
if, < input, then = output
maintain resource consumption level & increase production
if, =input, then >output
Copyright 2000, Dr. Larry W. Long
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Primary vs. secondary production• Organizations --
require physical, human, capital, and information resources
may differ by virture of which are primary & secondary
• Primary Products macro level finished good/service for
external environment
• Secondary Products micro level finished good/service for
internal environment
physicalhumancapitalinformation
Copyright 2000, Dr. Larry W. Long
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Organizations differ by type of output
Physical Capital Human InformationAuto Manufactuer Insurance
CompanyPublicSchools
TelevisionStation
Food Store StockBrokerage
Universities Newspaper
Home Builder I.R.S. Prisons BookPublisher
Steel Company Banking YWCA Theater
Chemical Company FinanceCompany
Hospital MusicCompany
Lumber Mill SalesCompany
Government ConsultingFirm
Macro-level Differences
Copyright 2000, Dr. Larry W. Long
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Input/what organizations require
Physical Resourcestangible objects
Human Resourcespeople/labor/supervision
Capital Resourcesexchange/cash flow
Information Resourcessymbols/intelligence
Micro-level Resources Needed
Copyright 2000, Dr. Larry W. Long
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Output/what organizations produce• Physical Output
physical objects and artifacts; any object that can be sensed
• Capitaltokens or money; insurance; stocks & bonds
• Humanhuman resources; labor
• Informationsymbols &intelligence
Copyright 2000, Dr. Larry W. Long
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Organizations & department productsDepartments have primary products
physical: assembly, manufacturingcapital: finance, accountinghuman: human resources, personnelinformation: research & development
They contribute to throughput in order to produce the primary output
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Product-Induced ConflictConflict occurs when each department believes its product is most important to the organization, e.g., . . . marketing produces income for the
organization & considers itself the most important group
accounting provides services for the organization & considers itself the most important group
manufacturing makes the company’s product & considers itself the most important group
personnel hires, places & trains employees & considers itself the most important group
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Production may induce conflict . . .Functional Loyalty people become loyal to their co-
workers and products that they produce
tend to view organization from micro level, i.e., physical vs. capital vs. human vs. information resources
in this case, a return to the macro-level perspective is needed
This company couldn’t exist without us!!!
Copyright 2000, Dr. Larry W. Long
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Enhancing productivity through communication
Identify unit of analysis & design for organization and communication (Phases 1 & 2)
Manage Information, decision-making processes, behavior regulation & conflict (Phase 3)
Apply appropriate motivation, quality of work life improvement & development techniques (Phase 4)