6. Scenarios (Employee side)
• My hard work was not
recognized
• I did hard work, why
should I be clubbed in
the same rating bucket
• Higher attrition
7. Scenarios (Management side)
• 20 percent employees
doing 80 percent of work,
identify these 20 percent
• Who should be assigned
more work
• Who should be rewarded
more
• Who should be promoted
• Culture of meritocracy
• Perception plays in
appraisal
• Objective assessment
9. Economic Sector
• Primary
– Involves the retrieval
and production of raw
materials, such as corn,
coal, wood and iron
10. Economic Sector (Contd.)
• Secondary
– Involves the
transformation of raw or
intermediate materials
into goods e.g.
manufacturing steel into
cars, or textiles into
clothing.
11. Economic Sector (Contd.)
• Tertiary
– Involves the supplying of
services to consumers
and businesses, such as
baby-sitting, cinema and
banking.
12. Economic Sector (Contd.)
• Quaternary
– Is a way to describe a
knowledge-based part of the
economy which typically
includes services such as
information generation and
sharing, information
technology, consultation,
education, research and
development, financial
planning, and other
knowledge-based services.
– The quaternary sector is
sometimes included with the
tertiary sector, as they are
both service sectors
13. Economic Sector (Contd.)
• Quinary
– The quinary sector could
be seen as a further
division of the tertiary
sector, which is a part of
the economy that provides
services.
– Examples of services
located in the quinary
sector are categorized as
the highest level of
services including scientists
and top level business
managers.
14. Knowledge Economics
• Present era is of knowledge
economics
• Characteristics:
– Borderless
– Upward mobility
– Means of Production
anybody can acquire
– Potential for success as
well failure
• Making knowledge society
highly competitive
15. Knowledge Worker
• People with considerable
knowledge and learning
• Knowledge economics relies
heavily on knowledge
worker
16. Technologist
• Manual worker plus knowledge
worker
• Spends more time working with
hands than brain
• Capitalist – owns the means of
production
• “Work at” organization, not
belongs to it
• Identifies himself with work
• Professional not employee
• Job as a life
• Expects to be a success
17. Productivity
• Term itself barely 60 years old
• Most important contribution of management in 20th century:
- To increase the productivity of manual worker
• In 21st century:
- To increase the productivity of knowledge worker
18. Productivity (Contd.)
• There was increase in productivity, but was result of new
tools, new methods, new technology, economist calls
“Capital”
• Very few advances in what is termed as “Labor” i.e. the
productivity of worker.
• There existed ‘skills” but not productivity
19. Productivity (as per Taylor)
• Fredrick Taylor studied manual work.
• Found that no such thing as “skill”
• Only simple, repetitive motions
• What makes them productive is the “knowledge”:
– The way these simple and repetitive motions are put
together, organized and executed.
20. Productivity (as per Taylor)
• Work enlargement, work environment and job rotation all
uses Taylors method reduce the fatigue of workers and thus to
increase productivity.
• Task analysis , industrial engineering and assembly line of
Henry Ford are the extension of Taylor’s principles. Scientific
management, quality circle, kaizen and just-in-time too apply
Taylors principles.
21. Productivity (Statistics come into picture)
• Quality Guru, Deming added the use of statistical theory in
quality control on Taylors work.
22. Measurement
• "When you can measure
what you are speaking
about, and express it in
numbers, you know
something about it; but
when you cannot measure
it, when you cannot express
it in numbers, your
knowledge is of a meagre
and unsatisfactory kind.“
Lord Kelvin
23. Productivity of Knowledge Worker
• What is the task?
• What is the quality?
– Difficult, risk-taking and
always controversial
definition as to what
“results” are.
• What is the quantity?
– Aim first on quality than
on quantity
24. Current Status
• Almost no clarity on the
issue
• Very few companies are
trying to apply the
concept
• Conventional economics
almost fails in knowledge
domain
• No single metric sufficient
26. Understanding the Problem Clearly
• Comprehensive survey within the company
• Why it is important to find out the individual
productivity
• Final solution as per the pointers
• If “perception” issue, points to trust deficit
• Employee participation highly recommended
36. Complexity Factors
• Project size
• Code size
• Geographical dispersion
• Team based projects
• Technical complexity
– For each factor
empirical scores to be
defined and awarded
37. Time Factor
• For timely delivery full
marks
– For early delivery - Bonus
– For late delivery - Penalty
– Exact formulas to be
devised
38. Conventional Factors
• Cost factor
• Punctuality in card
punching
• Submitting reports on
time
• Leave reports
– For each factor
absolute score to be
defined and awarded
39. Production Function
Q = f(X,Y)
Q = Productivity
X, Y = Inputs for Production
Further:
log Q = log A + B1 log L + B2 Log K
L = Labor
K = Capital
A, B1, B2 = Parameters (can be estimated using least squares regression techniques)
• Concept can be applied in writing individual productivity.
• Input factors can be taken from previous slides.
• For simplicity, initial work can be based on empirical
data.
40. Simple Solution No. 2
• Inference based
– Test per project in the
language
– Preferably by third
party
41. Simple Solution No. 3
• General survey
– Get survey based
feedback
– Peers + Manager
feedback
– 360 % feedback
– To be done at every
project
42. Simple Solution No. 4
• Third party tool based
– Assess the source code
– Assess the artifacts of
all phases of project
43. Simple Solution No. 5
• Let the $ value of this
presentation to be
evaluated by:
– 2 Teams of management
– 2 Teams of technologists
– Steps in solutions are
more important, than
the final value
– We may get better
solution