CHAPTER 2

HUD'S APPROACH IN IMPROVING WORKER PERFORMANCE

Basic Principles:

Worker Reinforcement and Work Measurement

The fundamental principle underlying the HUD approach is that workers respond to positive reinforcement for correct performance. At the beginning, managers and supervisors developed a list of "positive reinforcers" or actions that induce workers to improve performance. The reinforcers proved to be invaluable motivators and were used by managers and supervisors when worker performance began to improve. Management also discovered that the reinforcers are essential to maintain high perfor

mance.

Coupled with the reinforcers is a work measurement system. At the outset of the project, work outputs were measured on simple forms OFA developed expressly for each task. The workers themselves recorded the data, and supervisors and managers audited the forms periodically, rewarding workers for any progress made over the baseline level of performance. Over time, the reinforcers helped maintain the workers' performance at a level that satisfied management.

To clarify the process, Chart 1, Steps in Improving Worker Performance" shows the steps in this approach.

HUD's Four-Step Process

HUD's approach consists of four major sequential phases: training, analysis, feedback, and positive reinforcement.

Training, the first phase, is an orientation course for managers and supervisors in the overall process. The contractor for HUD offered OFA managers and first-line supervisors 24 hours of classroom instruction divided into four six-hour sessions. In analysis, the second phase, supervisors identified the major outputs of their work units and decided upon standards of improvement for the outputs. Their standards consisted of six elements:

Supervisors and managers analyzed their operations and selected one or more elements of production that needed improving. For example, one production problem might be the first element, the rate of output. Supervisors then focused their attention on stimulating workers to produce more. In another unit, the rate of production might have been satisfactory, but the error rate unacceptable. In that case, the problem was quality control. Of course, some units suffered from several problems simultaneously, increasing the range of tactics supervisors had to employ. The analysis phase is straightforward and uncomplicated if problems are obvious to both supervisors and managers. If the problems are not clearcut, supervisors may use some version of cost-benefit analysis to detect where productivity savings can be best enhanced.

Baseline data on performance is essential to the analysis of production problems. Supervisors must have data on production and error rates to pinpoint which areas need improvement, analyze their operations, and identify factors that block performance. With a data base in hand and an understanding of factors blocking performance, the supervisors can enter the third phase of the process, feedback.

The fact that workers privately record their own progress on the standard or element of work selected for improvement should not be taken lightly. This aspect of the program makes management feedback to employees more forceful, since it arises from the employees' own efforts. To encourage workers, supervisors developed simple forms to record the output of each employee. The supervisors made sure that workers kept records daily, and they audited the forms each week to ensure their accuracy.

As an example of one of the many forms developed in OFA, the Assigned Home Mortgage Section's form is on Chart 2, "Example of a Worker's Weekly Record."

Besides tracking output, supervisors worked to overcome any factors blocking high performance. For example, if employees were consistantly making the same mistakes, the supervisor investigated the causes and assisted in correcting them. Simple feedback or training was sometimes is all that was necessary in such situations.

The most important aspect of feedback was that it was direct and private between the supervisor and individual workers. Performance records were seen only by the worker and the supervisor. At the same time, the supervisor maintained aggregate records of the whole work unit and publicly charted the progress of the group over time. Workers could then judge their performance in relation to the group.

The last phase, positive reinforcement, consists of three parts: self-reinforcement, supervisory reinforcement of workers, and management reinforcement of supervisors.

4. Include all back-up material in order to do a thorough review.

5. Counting required years and/or days for computation of Service Charge 6. Change paid-in-full date. .

7. Not taking into consideration taxes paid which are not reflected on the Mortgage Account Statement or omitting other transactions in preparing paid-in-full statements.

8. Using the incorrect daily rate for the computation of Interest and Service Charge.

Workers received daily reinforcement for their work by completing their daily record sheets, which was an immediate indicator of their own progress. In addition, the supervisor periodically reviewed the daily forms and rewarded improvement in worker performance. The rewards consisted of the positive reinforcers management identified in the first phase of the program. Managers also reinforced supervisors for improvements in productivity in their work units.

The four sequential phases-training, analysis, feedback, and positive reinforcement--are the basic components of the program. HUD's Office of Finance and Accounting used these steps in improving the performance of its workers.