Chapter 15

Measuring Output of
Office Employees

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
1 Upper Saddle River, NJ 07458
 Work Measurement

Is used to help determine what constitutes a fair

day’s work from both the employer’s and the
employee’s standpoint.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
2 Upper Saddle River, NJ 07458
 Objectives of Work Measurement
(1 of 2)

1. To express expected output or production

levels.
2. To aid in the planning and scheduling of
work.
3. To aid in determining the number of
employees needed to complete a project in
the allotted time.
4. To aid in determining the efficiency of work
methods and procedures.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
3 Upper Saddle River, NJ 07458
 Objectives of Work Measurement
(2 of 2)

5. To aid in determining the cost of office

operations.
6. To aid in determining equitable workloads
for employees.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
4 Upper Saddle River, NJ 07458
 Advantages of Work Measurement

1. It provides greater control over work

processes and methods.
2. It helps determine the appropriateness of
the number of employees assigned to a
work unit.
3. It helps determine the efficiency in planning
work.
4. It helps prevent work backlogs.
5. It helps simplify work processes.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
5 Upper Saddle River, NJ 07458
 Characteristics of Measurable
Office Activities

1. To be measured, tasks have to be isolated and

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

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
6 Upper Saddle River, NJ 07458
 Work Measurement Program

Before a work measurement program is

developed, employees must be convinced it has a
need and will produce desirable results.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
7 Upper Saddle River, NJ 07458
 Work Measurement Program Steps

1. Make preliminary plans.

2. Hire employees.
3. Gain acceptance of and support for the program.
4. Collect important data.
5. Analyze collected data and develop
standards.
6. Train supervisors and managers.
7. Instruct employees.
8. Follow-up.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
8 Upper Saddle River, NJ 07458
 Work Measurement Techniques

Production Records
Work Sampling
Time Study
Micromotion Study
Predetermined Standard Time Data

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
9 Upper Saddle River, NJ 07458
 Production Records Technique
(1 of 2)

Is rather simple and quick.

Uses employee production records to determine
amount of time to complete specific job tasks.
Employees use a time log to keep track of their
tasks and the amount of time taken to perform
these tasks.
Time log also identifies the number of units
produced in a given amount of time.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
10 Upper Saddle River, NJ 07458
 Production Records Technique
(2 of 2)

Time log is kept for as long as needed to smooth

out fluctuations.
Standards are determined by dividing the total
number of units produced by the amount of time
taken to produce the units.
If standards are set at too high a level, they may
need to be “leveled,” a process that will be
discussed later.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
11 Upper Saddle River, NJ 07458
 Advantages of Production
Records Technique

1. It is simple, easily understood, and inexpensive.

2. It facilitates the quick development and
implementation of a work measurement program
without the need for specially trained individuals.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
12 Upper Saddle River, NJ 07458
 Disadvantages of Production
Records Technique

1. It may produce inaccurate standards if

employees don’t prepare accurate time logs.
2. It results in preparation of standards on the
basis of “what is” rather than on the basis of
“what should be.”

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
13 Upper Saddle River, NJ 07458
 Work Sampling Technique
(1 of 2)

Uses a statistical base that requires random

observations to determine the amount of time taken
by each element of an office procedure.
Statistical element is based on this law of
probability: If a procedure is observed a sufficient
number of times, the results will be as reliable
as when the procedure is observed continuously
over a period of time.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
14 Upper Saddle River, NJ 07458
 Work Sampling Technique
(2 of 2)

Observations are random if the employee being

observed is chosen at random and the time of
the observation is chosen at random.
The process helps determine what percentage each
activity consumes in a whole work process.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
15 Upper Saddle River, NJ 07458
 In Selecting Random Observations, Determine

1. The degree of time the smallest activity

consumes in the total work process.
2. The degree of tolerance required.
3. The reliability of results required.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
16 Upper Saddle River, NJ 07458
 Advantages of the Work
Sampling Technique

1. The results are highly accurate, provided that

random observations are made.
2. The technique does not require the services of
a highly trained analyst.
3. The technique is fairly reasonable in terms of
its installation cost.
4. The results can be gathered rather quickly.
5. Work sampling is well-suited for long-cycle
work processes.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
17 Upper Saddle River, NJ 07458
 Disadvantages of Work
Sampling Technique
(1 of 2)
1. Some employees have a tendency to perform
diligently if, or when they know, they are being
observed.
2. Procedures consisting of numerous minute
activities are not suitable for work sampling.
3. To set standards, production records have to be
used to determine units of output (such records
are not always readily accessible.)
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
18 Upper Saddle River, NJ 07458
 Disadvantages of Work
Sampling Technique
(2 of 2)

4. The use of work sampling is sufficiently

complex that a trained analyst is needed.
5. Various elements of the process are somewhat
difficult for employees to understand.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
19 Upper Saddle River, NJ 07458
 Time Study Technique
(1 of 2)

Is also known as stopwatch study.

Before data are gathered, all wasted motions are
eliminated from the process being analyzed.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
20 Upper Saddle River, NJ 07458
 Time Study Technique
(2 of 2)

Involves these steps:

1. The job is broken into its basic elements.
2. The amount of time consumed by each element
of a work process is recorded on a time study
sheet, the process of which is repeated for several
cycles.
3. The appropriate standards are based on the
time consumed by each element of the process.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
21 Upper Saddle River, NJ 07458
 Timing Process Uses Two Methods

Continuous Timing
Lapsed Timing

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
22 Upper Saddle River, NJ 07458
 Advantages of the Time
Study Technique

1. Results in the development of accurate

standards.
2. Produces more accurate results when measuring
work processes comprised of minute elements
than either the production records technique or
the work sampling technique.
3. Results in the development of standards that can
be readily used for assessing the performance of
employees.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
23 Upper Saddle River, NJ 07458
 Disadvantages of Time Study
Technique

1. The measurement process often requires the

use of a trained analyst.
2. Office employees tend to have a negative
reaction to standards determined by the use of
a stopwatch.
3. The technique is not useful for measuring time-
consuming elements of a work process.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
24 Upper Saddle River, NJ 07458
 Micromotion Study Technique
(1 of 2)

Uses a visual recording medium, such as a motion

picture, video tape, or digital video.
Is especially appropriate for processes that involve
both people and machines.
The visual recording is examined to determine the
amount of time consumed by each element of a
work process.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
25 Upper Saddle River, NJ 07458
 Micromotion Technique
(2 of 2)

Timing of each element of the process is done by

counting frames or by using a stopwatch to time.
When elements are minute, this technique may
require the use of a microchrometer, which is a
timing device built into the recording.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
26 Upper Saddle River, NJ 07458
 Advantages of Micromotion

1. It is extremely accurate.
2. It is well suited for analyzing the most minute
elements of a work process.
3. It can also be used to simplify work processes
because wasted motions appear on the recording.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
27 Upper Saddle River, NJ 07458
 Disadvantages of Micromotion

1. It is more costly than some of the other

techniques.
2. Its use is limited to high-volume, costly work
processes.
3. It requires the services of a trained analyst.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
28 Upper Saddle River, NJ 07458
 Predetermined Standard Time Data Technique
(1 of 2)

Uses data typically obtained from external sources,

such as purchased data.
Tends to produce highly uniform results when based
on standards that are consistent from one
situation to another.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
29 Upper Saddle River, NJ 07458
 Predetermined Standard Time Data Technique
(2 of 2)

Steps
1. The work process is broken down into its
minute elements.
2. Each element is analyzed in terms of the motion
involved.
3. To determine the appropriate standard, each
motion of the work process is compared with
the purchased predetermined standard time data.
4. The standard for the entire process is found by
adding the standard times for each of the motions.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
30 Upper Saddle River, NJ 07458
 Advantages of Predetermined Standard
Time Data Technique

1. It results in accurate standards.

2. Employees tend to accept results readily
because of the specificity of the process.
3. Application of process is fairly rapid.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
31 Upper Saddle River, NJ 07458
 Disadvantages of Predetermined Standard
Time Data Technique

1. It is a costly technique.
2. It is not suitable for certain types of office
operations.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
32 Upper Saddle River, NJ 07458
 Performance Is a process that
Leveling results in the adjust-
ment of employee work
standards, helping
determine what
constitutes a fair day’s
work for both the
employer and
employee.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
33 Upper Saddle River, NJ 07458
 Work Standards

Are based on the data collected through

work measurement processes.
They should not be set at such a level that
only the most productive worker will be
able to attain them.

Nor should they be set at such a level that

nearly every employee can attain them with
putting forth little effort to do so.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
34 Upper Saddle River, NJ 07458
 Advantages of Work Standards
(1 of 2)

1. They help increase the efficiency with which

employees perform their jobs.
2. They help inform employees of their expected
production levels.
3. They assist managers in making personnel
decisions, because employees who are
performing beyond expected levels of production
can be readily identified.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
35 Upper Saddle River, NJ 07458
 Advantages of Work Standards
(2 of 2)

4. Because employees are aware of the procedures

for performing their jobs, less supervision is
needed and greater control over the work
process is possible.
5. They provide the basis for incentive wage
systems.
6. They help improve employee morale by making
employees aware of what is expected of them.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
36 Upper Saddle River, NJ 07458
 Types of Standards

Quantity Are expressed in units of

Standards output per unit of time.

Quality Measure the accuracy and

Standards acceptability of work.

Identify what is acceptable

Descriptive in terms of the descriptive
Standards nature of something in an
office, such as furniture.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
37 Upper Saddle River, NJ 07458