What are the causes of poor productivity within large organizations and how can we look at trying to improve this?

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Course: BABM, Year 3, Semester 2

Module: Managing Business Problems

Assignment: Section B

Tutors: Jeff Gold, Les Hamilton & Stuart Watson        

Student Name: Jennifer Winn

Student ID: 11209431

Date: 24th May 2004

What are the causes of poor productivity within large organizations and how can we look at trying to improve this?

Productivity is the degree of output achieved in relation to a certain level of input. For example, in a call centre environment, productivity would be seen as the number of telephone calls answered per hour by a certain number of staff. The telephone calls are the output and the staff available to take the calls are the input.

In order to improve productivity, one of the following has to occur: The level of input is decreased however the level of output remains the same, or, the level of output increases but the level of input remains the same. In relation to the example of the call centre, this would mean reducing the number of staff available to answer the phone but yet the remaining staff would still have to answer the same number of calls, i.e. they would have to answer more calls each to compensate for the decrease in staff. Or the other way to increase productivity in a call centre would be to keep the same number to staff available to take customer calls but the number of calls being answered in total would have to increase.

Productivity is a major issue within any organisation but especially call centres. Call centres do try to forecast the number of calls they expect everyday and allocate resources accordingly to deal with these pressures, however there are still thousands of calls abandoned (where the customer hangs up before even getting through to an advisor) each and every day, this is sometimes referred to as “call leakage”. This is a growing problem for call centres across the country and it is surprising the amount of customers who will take their business elsewhere simply because they cant get through on the phone as they see it as poor customer service. In many cases it isn’t feasible for staff numbers to be increased in order to cope with the call volumes that are being received and so the only solution to reducing the call leakage is to increase the productivity of the existing staff. Working in a call centre environment myself I appreciate that this is a very challenging task as call centre agents generally feel overworked and underpaid already and trying to get more work out of them will be difficult. However my research into call centre life has thrown up some issues surrounding the task of increasing staff performance in order for your business to work smarter. My research examines the possibility of reward systems as a means of increasing productivity, how call centre staff view their own roles and changes they would like to see in order to help them perform better

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During my research I searched the Emerald website to find relevant journal articles to assist my studies. I came across an interesting one called “ An exploration of managerial issues in call centres” by Colin Armistead, Julia Kiely, Linda Hole and Jean Prescott. This paper consisted of two case studies carried out in two large organisations; these will be known as Case Study A and Case Study B. I found this article useful as it explores why people work in call centres, how they feel about their jobs and this research is spread over all levels from call centre ...

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