Q-1 define productivity

Ans : A measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.
Productivity is computed by dividing average output per period by the total
costs incurred or resources (capital, energy, material, personnel) consumed in that period. Productivity is a
critical determinant of cost efficiency.

When all outputs and inputs are included in the productivity measure it is called total productivity.
Outputs and inputs are defined in the total productivity measure as their economic values. The value
of outputs minus the value of inputs is a measure of the income generated in a production process. It
is a measure of total efficiency of a production process and as such the objective to be maximized in
production process.

q-2 Define standard of living

Ans : The level of wealth, comfort, material goods and necessities available to a certain

socioeconomic class in a certain geographic area. The standard of living includes factors
such as income, quality and availability of employment, class disparity, poverty rate, quality
and affordability of housing, hours of work required to purchase necessities, gross domestic
product, inflation rate, number of vacation days per year, affordable (or free) access to
quality healthcare, quality and availability of education, life expectancy, incidence of
disease, cost of goods and services, infrastructure, national economic growth, economic
and political stability, political and religious freedom, environmental quality, climate and
safety. The standard of living is closely related to quality of life.
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Q-3 interrelationship between standard of life and productivity

Ans - Raising productivityand ultimately, economic growthis the only way of
achieving substantial and sustained reductions in poverty. We define productivity as
the quantity of goods and services that a worker produces per unit of time with the
skills and tools available. Bluntly, the more high productivity jobs there are in a
country, the richer the country.
The link between productivity growth and living standards

Labor productivity is a measure of the amount of goods and services that the average worker
produces in an hour of work. The level of productivity is the single most important determinant of a
countrys standard of living, with faster productivity growth leading to an increasingly better
standard of living.
Living standards can be measured in different ways, but one good indicator for measuring national
living standards is the average annual growth in the inflation-adjusted income of the typical
American family. Ideally, in an economy in which workers share in the fruit of their labor, annual
income growth should track productivity growth.
The figure below shows the average growth in labor productivity over economic expansions from
1949 through 1999. Labor productivity has grown at about a 2.2% annual rate over the current
economic expansion, which began in March 1991. This is better than the rate achieved in the
expansions of 1982-90 (1.8%) and 1975-81 (1.5%), but below the rates in all the preceding expansions
(between 2.3% and 3.2%).
From 1949 through 1969, family incomes grew at a faster rate than productivity partly due to
rapidly growing wages but also due to the increased number of women entering the workforce, which
boosted family incomes. From 1970 on, however, median family income has grown more slowly than
productivity, despite a continued growth in the total number of hours that family members work in a
year.

Among the goals of economic policy is a rising standard of living, and it is generally
understood that the means to that end is rising productivity. Productivity relates the
quantity of goods and services produced, and the income generated as a result of
that production, to the amount of labor (e.g., hours worked or number of workers)
required to produce it. The most commonly used measure of the living standard of a
nation, is simply the ratio of that income to the total population, without regard to
how the income is actually distributed. If a relatively small share of a nations
population works, there will be a large difference between the level of productivity
and that measure of the national standard of living. Productivity varies over time,
and it varies across countries as well. The link between productivity and living
standards is not a direct one, therefore countries with a high level of productivity
may not necessarily have the highest standard of living. Gross domestic product
(GDP) per capita can rise in the absence of an increase in productivity if (1)
employees increase the number of hours they work (hours per employee); (2) the
share of the labor force that is employed rises (i.e., the unemployment rate drops);
or (3) the share of the population that is in the labor force rises (presuming that the
share of any new jobseekers who get jobs is at least as large as the share of those
already in the labor force who have jobs). A large labor contribution can offset low

productivity to raise a nations standard of living. Korea, for example has the
second-lowest GDP per hour, but because its workers work more hours than in any
other country shown here, its per capita GDP is not as close to the bottom of the
ranking. The United States has the second highest per capita GDP after Norway. The
United States is also second to Norway in terms of productivity. France and Germany
have relatively high levels of productivity, but because they both have relatively low
employment (and high unemployment rates), and in Frances case a relatively small
share of the population in the labor force, they fall to the middle with respect to per
capita GDP. There is little question that rising productivity is the single most
important factor behind rising living standards, but the proportion of a nations
population that is working is also important. The larger that proportion is, the more
goods and services there are to go around. The share of the population that is
working is only partly subject to the influence of policymakers. The size of the labor
force is largely a function of demographic factors, but the share of that labor force
that is employed can vary with short-term economic conditions, as well as policies
that affect t the cost of labor.

Q- work study
Work Study is the systematic examination of the methods of carrying out activities
such as to improve the effective use of resources and to set up standards of
performance for the activities carried out
. A generic term for those techniques, particularly method study and work
measurement, which are used in the examination of human work in all its contexts,
and which lead systematically to the investigation of all the factors which affect the
efficiency and economy of the situation being reviewed, in order to effect
improvement.

TIME STUDY
Procedure/ Steps of Time Study

The steps usually required in Time Study are:

(i) Obtaining and recording all available information about the job worker and the
surrounding conditions.
(ii) Dividing the job into operation elements with definite transition points and recording
these on the observation sheet.
(iii) After selecting the elements timing can start. Observing and recording the slop watch
readings for each operation elements are started.

(iv) Assessing the operator's performance and levelling the record lime with the
predetermined normal speed.
(v) Providing the allowances for delays, personal delays, fatigue delays and delays due to
working conditions etc.
(vi) Calculating the standard time allowance for performing the job. These observations are
recorded on observation sheet with the help of stop-watch

For analyzing the data so as to obtain the time necessary for an operator to carry it
out at a defined rate of performance

Functions of Time and Motion Studies in Libraries

Establish work standards in libraries. Set expectations which are fair to both
employee and Library. Identify sources of error and difficulties. Improve existing
processes, tools or work environments of library

Application of Time and Motion Study

Determining schedules and planning of work. Determining standard costs of a
particular work. Estimating the cost of a product before manufacturing it.
Determining machine effectiveness.

Q1 BRAINSROMING SHORNOTE
Brainstorming is a group or individual creativity technique by which efforts are made to find a
conclusion for a specific problem by gathering a list of ideas spontaneously contributed by its
member(s). The term was popularized by Alex Faickney Osborn in the 1953 book Applied
Imagination. Osborn claimed that brainstorming was more effective than individuals working alone in
generating ideas, although more recent research has questioned this conclusion. [1] Today, the term is
used as a catch all for all group ideation sessions.

Brainstorming can be an effective way to generate lots of ideas on a

specific issue and then determine which idea or ideas is the best
solution. Brainstorming is most effective with groups of 8-12 people
and should be performed in a relaxed environment. If participants

feel free to relax and joke around, they'll stretch their minds further
and therefore produce more creative ideas.
A brainstorming session requires a facilitator, a brainstorming space
and something on which to write ideas, such as a white-board a flip
chart or software tool. The facilitator's responsibilities include
guiding the session, encouraging participation and writing ideas
down.
Brainstorming works best with a varied group of people. Participants
should come from various departments across the organisation and
have different backgrounds. Even in specialist areas, outsiders can
bring fresh ideas that can inspire the experts.
There are numerous approaches to brainstorming, but the traditional
approach is generally the most effective because it is the most
energetic and openly collaborative, allowing participants to build on
each others' ideas.
Creativity exercises, relaxation exercises or other fun activities
before the session can help participants relax their minds so that
they will be more creative during the brainstorming session.

Step by Step
1.

Define your problem or issue as a creative challenge. This is extremely

important. A badly designed challenge could lead to lots of ideas which fail to solve
your problem. A well designed creative challenge generates the best ideas to solve
your problem. Creative challenges typically start with: "In what ways might we...?"
or "How could we...?" Your creative challenge should be concise, to the point and
exclude any information other than the challenge itself. For example: "In what ways
might we improve product X?" or "How could we encourage more local people to
join our club?" Click here to read Dr. Arthur Van Gundy's The care and framing of
strategic innovation challenges (PDF document: 537kb)

2.

Give yourselves a time limit. We recommend around 25 minutes, but

experience will show how much time is required. Larger groups may need more
time to get everyone's ideas out. Alternatively, give yourself an idea limit. At
minimum, push for 50 ideas. But 100 ideas is even better.

3.

Once the brainstorming starts, participants shout out solutions to the problem
while the facilitator writes them down usually on a white board or flip-chart for
all to see. There must be absolutely no criticizing of ideas. No matter how daft, how
impossible or how silly an idea is, it must be written down. Laughing is to be
encouraged. Criticism is not.

4.

Once your time is up, select the five ideas which you like best. Make sure
everyone involved in the brainstorming session is in agreement.

5.

Write down about five criteria for judging which ideas best solve your problem.
Criteria should start with the word "should", for example, "it should be cost
effective", "it should be legal", "it should be possible to finish before July 15", etc.

6.

Give each idea a score of 0 to 5 points depending on how well it meets each
criterion. Once all of the ideas have been scored for each criterion, add up the
scores.

7.

The idea with the highest score will best solve your problem.
But you should keep a record of all of your best ideas and their
scores in case your best idea turns out not to be workable.

Q 2 PARETO PRINCIPLE SHORT NOTE

The Pareto principle (also known as the 8020 rule, the law of the vital few, and the principle of
factor sparsity) states that, for many events, roughly 80% of the effects come from 20% of the
causesIt is a common rule of thumb in business; e.g., "80% of your sales come from 20% of your
clients."

n 1906, Italian economist Vilfredo Pareto created a mathematical formula to describe the
unequal distribution of wealth in his country, observing that twenty percent of the people owned
eighty percent of the wealth. In the late 1940s, Dr. Joseph M. Juran inaccurately attributed the
80/20 Rule to Pareto, calling it Pareto's Principle. While it may be misnamed, Pareto's Principle
Or

What It Means
The 80/20 Rule means that in anything a few (20 percent) are vital and many(80
percent) are trivial. In Pareto's case it meant 20 percent of the people owned 80 percent
of the wealth. In Juran's initial work he identified 20 percent of the defects causing 80
percent of the problems. Project Managers know that 20 percent of the work (the first 10
percent and the last 10 percent) consume 80 percent of your time and resources. You
can apply the 80/20 Rule to almost anything, from the science of management to the
physical world.
You know 20 percent of your stock takes up 80 percent of your warehouse space and that 80
percent of your stock comes from 20 percent of your suppliers. Also 80 percent of your sales will
come from 20 percent of your sales staff. 20 percent of your staff will cause 80 percent of your
problems, but another 20 percent of your staff will provide 80 percent of your production. It
works both ways.

How It Can Help You

The value of the Pareto Principle for a manager is that it reminds you to focus on the 20 percent
that matters. Of the things you do during your day, only 20 percent really matter. Those 20
percent produce 80 percent of your results. Identify and focus on those things. When the fire
drills of the day begin to sap your time, remind yourself of the 20 percent you need to focus on.
If something in the schedule has to slip, if something isn't going to get done, make sure it's not
part of that 20 percent.

There is a management theory floating around at the moment that proposes to interpret
Pareto's Principle in such a way as to produce what is called Superstar Management.
The theory's supporters claim that since 20 percent of your people produce 80 percent
of your results you should focus your limited time on managing only that 20 percent, the
superstars. The theory is flawed, as we are discussing here because it overlooks the

fact that 80 percent of your time should be spent doing what is really important. Helping
the good become better is a better use of your time than helping the great become
terrific. Apply the Pareto Principle to all you do, but use it wisely.

Q- VALUE ANALYSIS
Lawrence Miles conceived of Value Analysis (VA) in the 1945 based on the application of function
analysis to the component parts of a product. Component cost reduction was an effective and popular
way to improve "value" when direct labor and material cost determined the success of a product. The
value analysis technique supported cost reduction activities by relating the cost of components to their
function contributions.
Value analysis defines a "basic function" as anything that makes the product work or sell. A function that
is defined as "basic" cannot change. Secondary functions, also called "supporting functions", described
the manner in which the basic function(s) were implemented. Secondary functions could be modified or
eliminated to reduce product cost.
As VA progressed to larger and more complex products and systems, emphasis shifted to "upstream"
product development activities where VA can be more effectively applied to a product before it reaches
the production phase. However, as products have become more complex and sophisticated, the
technique needed to be adapted to the "systems" approach that is involved in many products today. As a
result, value analysis evolved into the "Function Analysis System Technique" (FAST) which is discussed
later.

JOB EVALUATION

1.

A job evaluation is a systematic way of determining the value/worth of a job in

relation to other jobs in an organization. It tries to make a systematic comparison
between jobs to assess their relative worth for the purpose of establishing a rational pay
structure.

Job Evaluation Defined

Beth is a human resource specialist for a toy manufacturing company. Her boss has asked her to
perform a job evaluation for all the positions currently held by employees of the company. Job
evaluation is a systematic and objective process used by organizations to compare the jobs within
the organization to determine the relative value or worth of each job. Keep in mind that the focus is
on evaluating the job, not the people that perform the job.
Beth's employer will use job evaluations to determine the comparative worth of each job, which will
then help determine the basis of the wages and salaries offered for each job. It helps ensure that
everyone is paid fairly relative to one another based upon the value they bring to the organization.
For example, if a mail clerk is paid more than an engineer, then there's probably a problem with pay
equity because an engineer generally brings more value than a mail clerk.
Criteria used in job evaluations can include factors such as education qualifications, skills needed,
working conditions and job responsibilities. Moreover, there are different types of methods available
for Beth to use. Let's take a look at some of her options.

Job Ranking
Perhaps the easiest method that Beth can use for job evaluation is the job ranking method. This
method involves putting all jobs in an organization in rank order of importance based upon their
contributions towards the achievement of an organization's goals. Beth may perform the ranking
herself after performing a job analysis of each position or bring in subject matter experts more
familiar with the jobs. For example, a marketing analyst will receive a higher ranking than a janitor.

Classification
Beth can also use the classification method. In this method, a series of classes and grades are
defined. Each class will describe a group of jobs. Each grade in a class will represent different levels
of difficulty and responsibility. Beth will sort the jobs into each class by matching up the job
descriptions for each job with the class and grade descriptions and assigning the job to the class
that's the best match. Let's look at an example.
Let's say that Beth wants to develop a class for administrative workers. Within this class she may
have three different grades, or levels, based upon the nature of the work and the level of
responsibility. She calls them A-1, A-2 and A-3:

A-1 performs clerical work under close supervision. The job typically requires a high school
diploma and a general knowledge of office procedures, equipment, etiquette and the ability to
follow instructions. There are no supervisory responsibilities.

A-2 performs clerical work with no supervision and may be assigned simple special projects.
The job typically requires an associate level or vocational degree and requires the same
knowledge as an A-1 as well as intermediate knowledge of word processing and
spreadsheets.

A-3 may perform the duties of A-1 and A-2 but independent of any supervision. A-3
personnel may also engage in special projects without supervision, provide personal
administrative assistance to management level personnel and may have supervisory
responsibilities over A-1 and A-2 personnel.

Beth may place the executive assistant to the company's president in the A-3 grade, while a mail
clerk would be placed in grade A-1. Of course, Beth may develop classes and grades of other types
of job categories such as research, management and marketing. A good model that Beth can follow
is the federal government's GS classification system.

Point-Factor Rating
Top 4 Methods of Job Evaluation (explained with diagram)
Top 4 Methods of Job Evaluation (explained with diagram)
by Smriti Chand Jobs

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There are four basic methods of job evaluation currently in

use which are grouped into two categories:
1. Non-quantitative Methods:
(a) Ranking or Job Comparison
(b) Grading or Job Classification
2. Quantitative Methods:

(a) Point Rating

(b) Factor Comparison
The basic difference between these two methods lies in the sense that,
under non-quantitative methods, a job is compared as a whole with
other jobs in the organisation, whereas in case of quantitative
methods, the key factors of a job are selected and, then, measured. The
four methods of job evaluation are now discussed one by one.
Ranking Method:
The ranking method is the simplest form of job evaluation. In this
method, each job as a whole is compared with other and this
comparison of jobs goes on until all the jobs have been evaluated and
ranked. All jobs are ranked in the order of their importance from the
simplest to the hardest or from the highest to the lowest.
The importance of order of job is judged in terms of duties,
responsibilities and demands on the job holder. The jobs are ranked
according to the whole job rather than a number of compensable
factors. The ranking of jobs in a University, based on Ranking Method,
may be like this:
Table 14.2: Ranking of University Jobs:
Ranking Order

Pay Scale

Professor/RegistrarRs. 16,40(M5020,900-500-22,400
Reader/Dy.
Registrar
Rs. 12,000-42018,300
Lecturer/Asst.
Registrar
Rs. 8,000-275-13,500

The application of the Ranking Method involves the

following procedure:
1. Analyse and describe jobs, bringing out those aspects which are to
be used for purpose of job comparison.
2. Identify bench-mark jobs (10 to 20 jobs, which include all major
departments and functions). The jobs may be the most and least
important jobs, a job midway between the two extremes, and others at
the higher or lower intermediate points.
3. Rank all jobs in the organisation around the bench-mark jobs until
all jobs are placed in their rank order of importance.
4. Finally, divide all the ranked jobs into appropriate groups or
classifications by considering the common features of jobs such as
similar duties, skills or training requirements. All the jobs within a
particular group or classification receive the same wage or range of
rates.
Ranking method is appropriate for small-size organisations where jobs
are simple and few. It is also suitable for evaluating managerial jobs
wherein job contents cannot be measured in quantitative terms.
Ranking method being simple one can be used in the initial stages of
job evaluation in an organisation.
Merits:
Ranking method has the following merits:
1. It is the simplest method.
2. It is quite economical to put it into effect.
3. It is less time consuming and involves little paper work.
Demerits:

The method suffers from the following demerits:

1. The main demerit of the ranking method is that there are no definite
standards of judgment and also there is no way of measuring the
differences between jobs.
2. It suffers from its sheer unmanageability when there are a large
number of jobs.
Grading Method:
Grading method is also known as classification method. This method
of job evaluation was made popular by the U.S. Civil Service
Commission. Under this method, job grades or classes are established
by an authorised body or committee appointed for this purpose. A job
grade is defined as a group of different jobs of similar difficulty or
requiring similar skills to perform them. Job grades are determined on
the basis of information derived from job analysis.
The grades or classes are created by identifying some common
denominator such as skills, knowledge and responsibilities. The
example of job grades may include, depending on the type of jobs the
organisation offers, skilled, unskilled, account clerk, clerk-cum-typist,
steno typist, office superintendent, laboratory assistant and so on.
Once the grades are established, each job is then placed into its
appropriate grade or class depending on how well its characteristics fit
in a grade. In this way, a series of job grades is created. Then, different
wage/salary rate is fixed for each grade.
Merits:
The main merits of grading method of job evaluation are:
1. This method is easy to understand and simple to operate.
2. It is economical and, therefore, suitable for small organisations.

3. The grouping of jobs into classifications makes pay determination

problems easy to administer.
4. This method is useful for Government jobs.
Demerits:
The demerits of this method include:
1. The method suffers from personal bias of the committee members.
2. It cannot deal with complex jobs which will not fit neatly into one
grade.
3. This method is rarely used in an industry.
Points Rating:
This is the most widely used method of job evaluation. Under this
method, jobs are broke down based on various identifiable factors
such as skill, effort, training, knowledge, hazards, responsibility, etc.
Thereafter, points are allocated to each of these factors.
Weights are given to factors depending on their importance to perform
the job. Points so allocated to various factors of a job are then
summed. Then, the jobs with similar total of points are placed in
similar pay grades. The sum of points gives an index of the relative
significance of the jobs that are rated.
The procedure involved in determining job points is as
follows:
Determine the jobs to be evaluated. Jobs should cover all the major
occupational and levels of responsibility to be covered by the method.
Decide on the factors to be used in analysing and evaluating the jobs.
The number of factors needs to be restricted because too many factors

result in an over-complex scheme with overlap and duplication

between factors.
Define the factors clearly in written. This is necessary to ensure that
different job raters interpret a particular factor in the same sense.
Determine degrees of each factor and assign point value to each
degree.
Point values are assigned to different degrees on the basis of
arithmetic progression.
Finally, money values are assigned to points. For this purpose, points
are added to give the total value of a job. Its value is then translated
into money terms with a predetermined formula.
Merits:
The method has the following merits:
1. It is the most comprehensive and accurate method of job evaluation.
2. Prejudice and human judgment are minimised, i.e. the system
cannot be easily manipulated.
3. Being the systematic method, workers of the organisation favour
this method.
4. The scales developed in this method can be used for long time.
5. Jobs can be easily placed in distinct categories.
Demerits:
The drawbacks of the method are:
1. It is both time-consuming and expensive method.
2. It is difficult to understand for an average worker.

3. A lot of clerical work is involved in recording rating scales.

4. It is not suitable for managerial jobs wherein the work content is not
measurable in quantitative terms.
Factor Comparison Method:
This method is a combination of both ranking and point methods in
the sense that it rates jobs by comparing them and makes analysis by
breaking jobs into compensable factors. This system is usually used to
evaluate white collar, professional and managerial positions.
The mechanism for evaluating jobs under this method
involves the following steps:
1. First of all, the key or benchmark jobs are selected as standards. The
key jobs selected should have standards contents, well accepted pay
rates in the community, and should consist of a representative crosssection of all jobs that are being evaluated-from the lowest to the
highest paid job, from the most important to the least importantand
cover the full range of requirements of each factor, as agreed upon by a
Committee representing workers and management.
2. The factors common to all jobs are identified, selected and defined
precisely. The common factors to all jobs are usually five, viz., mental
requirements, physical requirements, skill requirements, working
conditions and responsibility.
3. Once the key jobs are identified and also the common factors are
chosen, the key jobs are, then, ranked in terms of the selected common
factors.
4. The next step is to determine a fair and equitable base rate (usually
expressed on an hourly basis) and, then, allocate this base rate among
the five common factors as mentioned earlier. Following is a specimen
of base rate and its allocation scheme:

5. The

final step in factor comparison method is to compare and evaluate the

remaining jobs in the organisation. To illustrate, a toolmaker job is to
be evaluated. After comparison, it is found that its skill is similar to
electrician (5), mental requirements to welder (10) Physical
requirements to again electrician (12), working conditions to mechanist (24) and responsibility also to mechanist (3). Thus, the wage rate
for the job of toolmaker will be Rs. 54 (Rs.5 + Rs. 10 + Rs. 12 + Rs.24 +
Rs.3).
Merits:
This method enjoys the following merits:
1. It is more objective method of job evaluation.
2. The method is flexible as there is no upper limit on the rating of a
factor.
3. It is fairly easy method to explain to employees.
4. The use of limited number of factors (usually five) ensures less
chances of overlapping and over-weighting of factors.
5. It facilitates determining the relative worth of different jobs.
Demerits:
The method, however, suffers from the following
drawbacks:

1. It is expensive and time-consuming method.

2. Using the same five factors for evaluating jobs may not always be
appropriate because jobs differ across and within organisations.
3. It is difficult to understand and operate.
Now, all the four methods are summarised as follows: