A Book Report on Human - Centered Productivity

Jun J. Macas Development Academy of the Philippines MPQM Batch 2 10 September 2011

Executive Summary

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Human-Centered Productivity Choi Dong - Kyu, Ph.D. in Management Science

Productivity, had always been the science of managing inputs and its utilization such that desired quality and quantity of output is obtained. Traditionally, input elements include labor, capital, facilities, raw materials, energy, and tangentially set of knowledge and technologies. The thesis of the book is that maximization of all input elements are nite and exhaustible while human capital has greater potential although more difcult to manage. In a typical manufacturing setting, reduction of cost while increasing quality of raw materials can only be realistically achieved at a certain level using current available tools. The same with the equipment and the manufacturing process. However, the people in the factory who only do what they are paid to do are actually being utilized (without being sounding politically incorrect) at a fraction of their talents and ability. Human capital as argued by the author in the book is a gold mine waiting to be explored. Correctly use, they will contribute to the growth and wealth of the organization, positively affecting all stakeholders. It was correctly stated by the author in the rst paragraph of page 82, as follows :

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Within this process, it is the people that are most challenging to objectively measure but which have the greatest potential and signicance.

OBSERVATION POINTS

1. In page 37 of the book, the author asserted that labor assessed as surplus due to productivity enhancement in an organization is eventually counter-balanced in the system with their absorption back in the labor force due to the overall improvement in the business condition. This point of view does not consider the time factor as the series of events take place. Recent example is the case of Philippine Airlines (PAL) wherein they are laying-off 2000 of their workforce complement in their effort to increase productivity by spinning - off noncore businesses to third party. The subcontractors who will receive the business segments will hire people not of the same number that PAL had laid-off in order for their operations to be protable. Although some of the 2000 employees will be absorbed, reality is there will be casualties. And besides, the renumeration offered by PAL will not be equal with that of subcontractor. Hence, there is no 1:1 balance as stipulated by the author. Eventually, in the long term, due to the better business condition that PAL will have, they may raise their employment capacity, which, consequently, expands the business employment of labor..... Unfortunately there is a huge time gap between the point that the employees where let go and the point in which PAL will hire again workers. Therefore, putting in time elements will distort greatly the assumption on this particular section. The chasm is even wider and deeper if the ripple effect of PAL will be considered to the general economic condition of the nation.

2. In page 54 where the author had discussed The Meaning of Human-Centered Productivity, it was acknowledged that the concept of human-centered mind is inevitably challenging

and complicated (page 55). In discussing what can motivate people, Maslows Hierarchy of Needs would have added theoretical framework in the discussion. 3. How does Human-Centered Productivity draw parallels with the management concept of a learning organization as advocated by Peter Senge? Both put premium on people and their innite potentials. However, the former offers quick x and more practical theories while the latter is more of an idealistic approach that can be pursued on a higher level. In furthering the concept of a human-centered productivity, both can be examined academically.

4. The most controversial section in the book is the chapter (page 103) that discussed the impact of individual failures in creating culture of freedom and autonomy. The author argues that A long-term perspective must be in place which understands that inevitable errors are an opportunity cost to be borne. In trying to emulate this theory, the quality of the leaders in the organization will be put to test as this is a delicate balancing act. How will the leaders deal with people that are opportunistic in their values? Will the absence of punishment creates a culture of impunity wherein abuse is a close consequence? Up to what extent can the organization assign mistakes as opportunity cost?

This needs to be examined further so that the prerequisites can be thoroughly considered prior to implementation.

5. In page 109, as a quoted below is a non traditional approach. Typically, ownership is advocated such that you act on your own idea. The author is correct to assert that such concept is innovation-killer. Who wants to be bright and get more work anyway? !

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The virtue of the system lie in that those who propose ideas are freed from the psychological burden of having to be responsible for testing costs and outcome.

6. Short of espousing transformation of organizational culture, in the end, the book effectively sold the idea of the importance of the role of the people of the organization in bringing-up productivity to a higher level. However, if the book had included operational template, it would have been a very useful handbook for business enterprises, specially that of micro- and small-entrepreneurs.

LEARNINGS

The concept of human-centered productivity is both practical and inevitable. Specially with the potential that it offers. However, the ways in which it can be harnessed is multi-pronged and complicated. In order to make it work, a deep understanding on what motivates people and what makes them happy is a necessity. Freedom and autonomy and fair-share of fruits are some of the factors that had been considered and discussed in the book. Tying - up this concept as a neat, little package is the ability of the leader/s of the organization to effectively communicate down the organizational hierarchy. This is important if the operationalization of the concept is still at its infancy.