Operation Behavior Management

Chapter-1. Operation Management

Operations management is concerned with designing and controlling the production of goods and
services, ensuring that businesses are efficient in using resources to meet customer requirements.
It is concerned with managing an entire production system that converts inputs (in the forms of
raw materials, labor, consumers, and energy) into outputs (in the form of goods and services for
consumers). Operations management covers sectors like banking systems, hospitals, companies,
working with suppliers, customers, and using technology. Operations is one of the major
functions in an organization along with supply chains, marketing, finance and human resources.
The operations function requires management of both the strategic and day-to-day production of
goods and services.

In managing manufacturing or service operations, several types of decisions are made including
operations strategy, product design, process design, quality management, capacity, facilities
planning, production planning and inventory control. Each of these requires an ability to analyze
the current situation and find better solutions to improve the effectiveness and efficiency of
manufacturing or service operations.

Although productivity benefited considerably from technological inventions and division of

labor, the problem of systematic measurement of performances and the calculation of these by
the use of formulas remained somewhat unexplored until Frederick Taylor, whose early work
focused on developing what he called a "differential piece-rate system" and a series of
experiments, measurements and formulas dealing with cutting metals and manual labor. The
differential piece-rate system consisted in offering two different pay rates for doing a job: a
higher rate for workers with high productivity (efficiency) and who produced high quality goods
(effectiveness) and a lower rate for those who fail to achieve the standard. One of the problems
Taylor believed could be solved with this system was the problem of soldiering: faster workers
reducing their production rate to that of the slowest worker.

In 1911 Taylor published his "The Principles of Scientific Management", in which he

characterized scientific management (also known as Taylorism) as:
  The development of a true science;

 The scientific selection of the worker;

 The scientific education and development of the worker;

 Intimate friendly cooperation between the management and the workers.

Production System

A production system comprises both technological elements (machines and tools) and
organizational behavior (division of labor and information flow) needed to produce goods and
services. An individual production system is usually analyzed in the literature referring to a
single business; therefore it is usually improper to include in a given production system the
operations necessary to process goods that are obtained by purchasing or the operations carried
by the customer on the sold products, the reason being simply that since businesses need to
design their own production systems this then becomes the focus of analysis, modeling and
decision making (also called "configuring" a production system).

Classification

A first possible distinction in production systems (technological classification) is between

continuous process production and discrete part production (manufacturing).

 Process production means that the product undergoes physical-chemical transformations

and lacks assembly operations, and therefore the original raw materials cannot easily be
obtained from the final product. Examples include: paper, cement, nylon and petroleum
products.

 Part production (e.g. cars and ovens) comprises both fabrication systems and assembly
systems. In the first category are job shops, manufacturing cells, flexible manufacturing
systems and transfer lines. In the assembly category there fixed position systems,
assembly lines and assembly shops (both manual and automated operations).

Operations systems

If a production system is concerned with the production of goods and services, an operations
system is concerned with provisioning them. Not all management models distinguish between
production and operations systems. When the two are distinguished, operations systems account
for many of the tertiary factors that are abstracted away from in production system frameworks.
In particular, there is an emphasis on service-based factors.

Classification

Operations systems can be broadly divided into two categories: service and manufacturing

Service operations: are a major part of economic activity and employment in all industrialized
countries comprising 80 percent of employment and GDP in the U.S. Operations management of
these services, as distinct from manufacturing, has been developing since the 1970s through
publication of unique practices and academic research. Please note that this section does not
particularly include "Professional Services Firms" and the professional services practiced from
this expertise (specialized training and education within).

According to Fitzsimmons, Fitzsimmons and Bordoloi (2014) differences between manufactured

goods and services are as follows:

 Simultaneous production and consumption. High contact services (e.g. health care)
must be produced in the presence of the customer, since they are consumed as produced.
As a result, services cannot be produced in one location and transported to another, like
goods. Service operations are therefore highly dispersed geographically close to the
customers. Furthermore, simultaneous production and consumption allows the possibility
of self-service involving the customer at the point of consumption (e.g. gas stations).
Only low-contact services produced in the "backroom" (e.g., check clearing) can be
provided away from the customer.

 Perishable. Since services are perishable, they cannot be stored for later use. In
manufacturing companies, inventory can be used to buffer supply and demand. Since
buffering is not possible in services, highly variable demand must be met by operations or
demand modified to meet supply.

 Ownership. In manufacturing, ownership is transferred to the customer. Ownership is not

transferred for service. As a result, services cannot be owned or resold.
  Tangibility. A service is intangible making it difficult for a customer to evaluate the
service in advance. In the case of a manufactured good, customers can see it and evaluate
it. Assurance of quality service is often done by licensing, government regulation, and
branding to assure customers they will receive a quality service.

These four comparisons indicate how management of service operations are quite different from
manufacturing regarding such issues as capacity requirements (highly variable), quality
assurance (hard to quantify), location of facilities (dispersed), and interaction with the customer
during delivery of the service (product and process design).

Metrics: efficiency and effectiveness

Operations strategy concerns policies and plans of use of the firm productive resources with the
aim of supporting long term competitive strategy. Metrics in operations management can be
broadly classified into efficiency metrics and effectiveness metrics. Effectiveness metrics
involve:

1. Price (actually fixed by marketing, but lower bounded by production cost): purchase
price, use costs, maintenance costs, upgrade costs, disposal costs

2. Quality: specification and compliance

3. Time: productive lead time, information lead time, punctuality

4. Flexibility: mix (capacity to change the proportions between quantities produced in the
system), volume (capacity to increase system output), gamma (capacity to expand the
product family in the system)

5. Stock availability

6. Ecological Soundness: biological and environmental impacts of the system under study.

A more recent approach, introduced by Terry Hill, involves distinguishing competitive variables
in order winner and order qualifiers when defining operations strategy. Order winners are
variables which permit differentiating the company from competitors, while order qualifiers are
prerequisites for engaging in a transaction. This view can be seen as a unifying approach
between operations management and marketing (see segmentation and positioning).
Productivity is a standard efficiency metric for evaluation of production systems, broadly
speaking a ratio between outputs and inputs, and can assume many specific forms, for example:
machine productivity, workforce productivity, raw material productivity, warehouse productivity
(=inventory turnover). It is also useful to break up productivity in use U (productive percentage
of total time) and yield η (ratio between produced volume and productive time) to better evaluate
production systems performances. Cycle times can be modeled through manufacturing
engineering if the individual operations are heavily automated, if the manual component is the
prevalent one, methods used include: time and motion study, predetermined motion time systems
and work sampling.

Chapter. 2. Important of Operations Management

1. Enhances Team Collaboration

An excellent case study on the benefits of a modern operations management model is Nestlé.
Nestlé has over 350 factories in diverse locations all over the globe. Its workforce has crossed
the 275,000 range. So, how do the operations management offices in the world’s largest food and
beverage company marshal their forces and give all its team members the power to act? In 60 of
its factories, all operators have iPads. These tools ensure staff leverages software platforms to
create team-based, flexible, and comprehensive operations manuals. For instance, business
process management (BPM) tools improve collaboration by enhancing process visibility. Nestlé
operators use their iPads as car dashboards, giving them a sense of ownership of the factory floor
and its processes. Here, they can track progress, check task status, and spot any growing
bottlenecks instantly.

2. Helps Achieve Business Objectives

Nestlé’s products have found a cozy spot in just about any household. Their modern approach to
operations management supports fast decision-making. It streamlines processes and saves
revenue by lowering inefficiencies. Operations management also focuses on quality control and
enhancing customer satisfaction.

3. Boosts Employee Productivity

Concern over employee productivity is a significant challenge that keeps many operations
managers up at night. How can you keep your teams working better and faster without exerting
undue performance pressure on their heads?

The best business process platforms can keep your employees engaged and in learning mode
after their training sessions. They can easily log in to mobile gadgets, read, and then apply their
tribal knowledge to the everyday business process.

Information will lower work errors and enhance the speed of task accomplishment. Over and
above that, these operations management tools will provide clear task assignments and outline
steps to workflow efficiency.

Lastly, they support a conducive work environment by fostering an operator-centric organization.

For instance, at Nestlé, devices provide skill building that instills a culture of honesty and
transparency into every operator and factory manager through continual learning and upskilling
initiatives.

4. Improves Customer Satisfaction

You would be forgiven for thinking customer satisfaction is the marketing and sales department’s
task. However, the largest key performance index with the most significant impact on customer
satisfaction is first call resolution (FCR).

First call resolution is a metric that tracks your ability to resolve your customers’ challenges after
first contact. Higher FCR rates are a product of equipping your customer-facing task force with
adequate data at the right time. Automation and real-time guidance processes and data will
enhance your customer experience at a rate of 1% for every 1% improvement you make in your
FCR processes.

If your operations manual templates fail to enhance FCR, customer satisfaction will drop by 15%
each time a client or buyer calls for updates about an old issue. To this end, knowledge base
features in Sweet Process’s standard operating procedure tool can share your team’s collective
knowledge on problem resolution.
According to Atlassian, knowledge-based support teams have 15% better first-call resolution
rates. In addition to that, an operations management team can ensure timely and consistent
delivery of products, fostering loyalty amongst users.

5. Reduces Costs

Most businesses, especially SMEs, have finite resources and must put their budgetary,
technological, material, and financial allocations to their best use. Operations management teams
can lower operational costs by embracing technology.

Digital technology, for instance, can lower travel allowances and expand remote workforces,
downsizing costs of office space and travel. These platforms can pinpoint hazardous tasks and
processes and lower health and safety costs.

The operations management teams can also optimize processes by eliminating activities that do
not add value. Lastly, an operations team should leverage systems that provide insight into
services or products that provide the best returns.

6. Ensures Product Quality

Operations management enhances product quality by monitoring and enhancing production. On

top of that, they implement a high-quality control system that adheres to regulations and meets
customer expectations and product reputation.

They will, for instance, note any defects and ensure they are rectified. Then they will create
standard operating procedures for all production processes and ensure all production teams have
access. They will also monitor these processes, identifying deviations and upskilling employee
knowledge through training and feedback loops.

7. Increases Revenue

Over and above that, businesses with the power to act are agile and adaptable. The core principle
of shared data workflows is that they should scale instantly as per demand. They should also split
across the organization without imposing more hardware performance challenges and costs.

As a result, your business will enjoy higher productivity and timely delivery of products or
services. Better customer satisfaction will ultimately drive higher sales and revenue for the
business. For instance, Nestlé’s operations digitization has brought about a consistent operating
profit margin of 17% and an earnings-to-share margin of 6% to 10%.

Chapter. 3. Key Functions of Operations Management in an Organization

1) Strategic Alignment

Say your company plans to increase its market share by increasing its product lines. How does
the operations management team align this objective to the organization’s core goals? The team
may first increase production capacity to support higher production.

Alternatively, they may focus on streamlining their supply chain processes to ensure a consistent
production capacity.

To roll out these objectives, the operations management will first translate these goals into
actionable plans.

It will define all key performance indicators (KPI), allocate resources, and optimize them for
effective deployment. Data can give you the upper hand, ensuring you can counter threats and
actualize opportunities in real-time.

Technology can disperse decision-making to various points where the people close to the action
are in your organization. Other strategic alignment roles include quality management, cost
efficiency and control, risk management, and performance measurement.

2) Product Design and Delivery

Before 2019, Nestlé India had a single operating model regarding product quality for the entire
country. However, its operations management team launched a new model focusing on product
quality and satisfaction.

For instance, it broke down its customers into 15 diverse clusters to address regional consumer
disconnect. By defining customers through measurable metrics like customer first rather than
location first, they began to appeal to consumption occasion, frequency, and equity for various
products. As a result, their profits grew by 33.5% in FY20.
Operations management plays a crucial role in product design. It provides manufacturing design,
supply chain, and cost insights crucial in product design. After that, the operations team brings
the marketing, design, production, and engineering teams together for collaboration.

They also work with the materials team, ramping up resource use measures and roping in the
supply chain team for the timely delivery of raw materials. They oversee quality assurance and
logistics teams for optimum warehousing, transportation, and distribution networks of goods and
services.

3) Process Optimization

Process optimization is your first step toward enhancing and eliminating bottlenecks from your
everyday processes. It is a crucial function in the age of fierce competition and endless disruption
where efficient use of storage spaces can overcome seemingly insurmountable challenges like
space shortages.

Operations managers can, for instance, amend space shortages by analyzing the flaws within the
storage process. They will systematically analyze and use flowcharting, process mining,
mapping, and simulation to examine and deconstruct the storage process.

Using process optimization, the operations team could, for instance, pinpoint poor warehouse
setup as the cause of the storage problem. If your products are fast-moving, they can use pallet
racking to build up rather than out. By expanding your space vertically rather than horizontally
and using high-reach trucks, you will enjoy more use of your 40-foot-high ceilings.

Reach trucks and other specialized forklifts will quickly access the highest-selling inventory and
help streamline your dock-to-stock pipeline. Over and above that, an efficient warehouse
management system (WMS) will optimize your processes further and increase agility,
compliance, efficiency, and customer satisfaction.

4) Daily Target Achievement

Operations management plays a crucial role in supporting the achievement of daily targets in an
organization. The operations team meets this epic challenge by ensuring efficient and effective
use of resources. They also optimize processes and focus on key performance indicators (KPIs).
However, the modern operations team does not wait until midyear to analyze progress toward
targets. An operations team needs to set daily targets. Day-to-day, one-on-one meetings with the
operators regarding training and process efficiencies will enhance target achievement.

Operations managers leverage technology to automate processes and improve efficiency.

Manufacturing execution systems (MES) and enterprise resource planning (ERP), for instance,
help in real-time tracking and management of daily operations.

Efficient communication through business process management tools like Sweet Process ensures
that teams understand their roles and responsibilities. These tools ensure that operations
managers promptly address operational issues to prevent disruptions.

5) Purchasing and Supply Chain Management

Did you know that 69% of businesses do not have the big picture on their supply chain
processes? Only 6% of businesses do, yet supply chains are the lifeblood of any organization.
They are a crucial cog in the gears of your business and can double your profits and give you a
competitive edge in the market.

As per Zippia data, 57% of companies say that efficient supply chain management has given
them an edge in commerce. Then, 70% say that good supply chains are a vital KPI for high
customer service ratings.

Operations management plans are vital in aligning, optimizing, and integrating an organization’s
purchasing and supply chain activities. Coordinating between these functions is essential for
ensuring a smooth flow of materials, timely deliveries, and cost-effective operations.

The operations management team analyzes performance metrics and highlights any areas of the
supply chain that require further visibility. Their major task is aligning the organization’s
strategic goals with the procurement and supply chain teams. They also build robust relationships
with the purchasing and cost control teams to ensure fast delivery of items and cost-effective
supply chain practices.

6) Project Planning and Control

Projects are brief processes that create value for a business by developing unique services or
products. Therefore, the operations and project teams create value for the business by introducing
or improving existing products. Since operations management views all business processes via
the lens of efficiency, they are vital in project planning and control.

They provide the frameworks, processes, and oversight to ensure that projects are executed
efficiently and meet their objectives. Some vital project planning and control tasks for the OM
team include resource allocation and capacity planning. Operations managers also work with
project managers to develop realistic timelines for project activities. They contribute to risk
assessment and management strategies to ensure project success.

7) Scheduling and Task Management

Operations management is critical in supporting an organization’s scheduling and task

management. Firstly, scheduling is a process that deconstructs a project into its activities,
milestones, and deliverables. The scheduling team then determines a project’s duration and start
and end date.

In addition, the operations team factors a project’s resources into its scheduling processes. The
operations team can leverage the master project, milestone, or detailed schedule to identify and
track a project’s activity.

They will use project scheduling software to generate easy-to-use Gantt charts that display a
variety of views and details of a schedule. Other useful project management tools include the
critical path method (CPM) that tracks each project’s most essential tasks sequentially.

On the other hand, the program evaluation and review technique (PERT) leverages mapping
tools to map all of a project’s activities. Like a Gantt chart, it is more suited to initializing your
project’s task management and scheduling needs. The Gannt chart, on the other hand, is handy
when reviewing a project’s milestones during its lifetime.

Some benefits of scheduling include tracking progress and enhancing team collaboration. Then
operations management uses task scheduling platforms to highlight concerns, monitor progress,
and identify and designate task relationships.

8) Material and Equipment Management

Do you know materials and equipment account for at least 60% of your business costs? For this
reason, operations management must use the best standard operating procedures to manage this
valuable resource. Materials management is vital to the effortless flow of products to the
customer level. Material and equipment management also balances out any conflicts in material
availability.

It also lowers inventory costs and enhances customer satisfaction. Material and equipment
management operations include inventory, purchasing, warehouse, and transportation
management. Material requirements planning (MRP) is a digital technology management
objective that uses lead times to plan the production and procurement of materials.

9) Capacity Management

Operations management gives organizations the power to act and maximize their activities by
ensuring they have the right resources, including workforce, equipment, technology, and
facilities, to meet current and future demand efficiently.

Operations may undertake a capacity management study of your IT needs to ensure that each
department has adequate capacity to meet the year’s projected workloads.

Capacity management also balances an organization’s production capabilities with the level of
demand for its products or services. It optimizes the use of resources to achieve the highest
possible output while maintaining quality standards and efficiency. The main forms of capacity
planning include product, workforce, and tool capacity planning.

10) Productivity Management

As the business world adjusts to the post-pandemic environment, productivity has become one of
the most significant hurdles every organization faces. For instance, as per Microsoft data, Teams
meetings have escalated by a massive 192% in the hybrid work model. Heavy meeting software
users spend at least eight hours each week, or an entire workday period, in online meetings.

The multinational technology corporation states that the rising onslaught of meetings has become
the leading distraction in the workplace. Distractions hurt productivity and lower employee
morale. Business, therefore, needs productivity management to ensure that its labor, capital, and
outputs are put to productive use.
Operations management can achieve this feat by enhancing communication and giving team
ownership and accountability over work. They should identify a team’s weaknesses and strengths
and use project management tools to boost productivity.

Reward and constructive feedback systems also improve productivity and keep employees
motivated. The benefits of productivity management include lower overhead costs, better time to
market, and more profits for all stakeholders.

Chapter. 4. Essential Skills You Need to Succeed as an Operations Manager

1. Analytics

Operations managers analyze and interpret data to ensure that their organizations have the power
to act. For instance, operations managers track cash flows, sales transactions, customer accounts,
shipments, and supply chain tasks via the best business platforms. Consequently, an operations
manager should develop knowledge of business data computing platforms to track all business
functions.

2. Risk Analysis

As per Big 4 audit firms, some of the modern business’s existential risks include data security, IT
governance, and cybersecurity. There are also escalating risks in talent management, workplace
diversity, and human capital management.

Moreover, ESG (environmental, social, and governance) reports will soon become compulsory in
all business spheres. Any unprepared business will face regulatory risks. An operations manager
should perform mitigation and risk analysis to highlight potential risks and generate solutions
should these challenges arise. The modern operations management model should also ensure that
businesses respond to unforeseeable risks by keeping in close contact with the people closest to
the threat radius through technology.

3. Strategic Planning

Strategic planning develops long-term direction and broad goals that align an organization with
its objectives. Consequently, an operations manager must integrate departments like finance,
human resources, accounting, and marketing into strategy management.
Data analysis is core to strategic management. Therefore, an operations manager must perform
an economic and industry data analysis to provide positive insights in the planning phase. Then
they will host quarterly or monthly strategic management planning meetings with all
stakeholders to discuss a strategy’s functional and financial vision with all stakeholders.

4. Decision-Making

The operations management office has five major decision-making spheres. They include
policymaking in the physical production process. They also make short-, medium-, and long-
term decisions on their organization’s output capacity. Operations management also makes
logistical decisions on inventory and the workforce. Lastly, they oversee the control and planning
of quality.

5. Budget Management

Businesses have a variety of budgets that include operating, master, static, cash, financial,
production, and labor budgets. The operating budget identifies a business’s projected expenses
and revenues. It ensures that the organization sticks within its overall operating budget.

For this reason, an operations team has to prepare their operating budget at the start of the fiscal
year. However, in the turbulent business environment of the day, they also have to leverage
technology to disperse real-time budgetary decision-making points to all corners of the business.
This advantage will ensure that you respond to all disruptions in the business environment.

Skills you need to make company budgets include understanding financial concepts and
analytical skills—strong mathematical skills to perform budgeting-related calculations such as
percentages, ratios, and forecasting. Then you need budgeting and accounting software to
streamline the budgeting process. You also should adhere to ethical standards when handling
financial information and making budgetary decisions.

6. Problem-Solving

Business problem-solving is both a process and an inner ability. Operators with robust problem-
solving abilities are more productive and creative in the workplace. However, since problem-
solving involves a series of processes, any manager can increase job fulfillment and satisfy their
clients through analysis, communication, adaptability, and teamwork. They can write standard
operating procedures that identify problems and explore potential solutions by defining goals and
objectives.

7. Communication

Effective communication helps operation managers to manage relationships with all stakeholders
in a business. For instance, suppose team members fail to fulfill a task outlined in a process. You
would send them a short email about the missed step and why they must repeat it. While at it,
you could mention that these repetitions exert undue pressure on company resources.

This communication process has failed the test of effective communication by, for instance, not
using positive language, communicating aggression rather than assertiveness, and failing to ask
questions. For instance, open questions in an email may help staff speak freely and elaborate on
challenges that hinder them from effectively fulfilling a process.

Effective communication in business involves clear and concise expression of ideas, active
listening, empathy, and adaptability. It requires transparency, organization, and an appropriate
choice of tone. Nonverbal cues, cultural sensitivity, and the use of technology play crucial roles.

8. Leadership

Some operational managers have a natural affinity for leadership. That said, there is a growing
realization that leaders are made through mentorship and educational experiences. Ultimately, a
combination of interpersonal skills, strategic thinking, and a commitment to personal and team
growth contributes to effective leadership in the managerial role.

9. Organization

Operations managers should hone their organizational skills to prioritize tasks efficiently. Top-
notch organizational skills will help you create and maintain clear systems and set realistic goals.
In addition to that, you should learn to leverage tools and technologies to streamline workflows
and ensure effective time management. Then, developing information, documents, and schedules
for organizational systems is vital. Continuously assess and refine processes for greater
efficiency, and lead by example in maintaining a well-organized work environment.

10. Product Development

Product development oversees the product lifecycle while bringing new products to the market.
An operations manager requires attention to detail, communication, and problem-solving skills.
These skills will ensure you can control product development and quality costs and stick to
timelines. You will use your product development skills to create appealing, functional products
that resonate with the needs of your clientele. You will achieve positive outcomes by conducting
prototype testing and continuous learning. You will refine and enhance your product
development skills by staying abreast of industry trends.

Chapter. 5. Organizational Behavior Management

Organizational behavior management (OBM) applies behavioral principles to individuals and

groups in business, industry, government and human service settings, according to Psychological
Services, a publication from the American Psychological Association. OBM can be seen as the
intersection between behavioral science and improvement in organizational environments. OBM
is rooted in the field of applied behavior analysis (ABA), which develops techniques to produce
socially significant behavior in a wide range of areas and behavioral problems. ABA is one of
three disciplines of behavior analysis, or the science of behavior, which includes:

 Applied wing of the discipline of behavior analysis (ABA)

 Experimental analysis of behavior, focusing on basic principles of behavior
 Branch of behavior analysis that focuses on the conceptual and philosophical
underpinnings of the science of behavior (behaviorism).

Like ABA, OBM is focused almost exclusively on practical strategies that can be used to change
behavior. For instance, instead of focusing on personality traits that are most predictive of high
performers, ABA and OBM are more concerned about investigating methods to improve
performance.

The growth of OBM has resulted in three primary specialty areas.

 Performance management applies behavioral principles to manage the performance of

employees. This used to be synonymous with the term “OBM,” but it is now its own
field, contrasted by specialty areas geared toward other levels of the organization.
 Systems analysis refers to the analysis and modification of organizational processes to
benefit the organization. This field focuses on how individuals or groups of workers can
 complete interdependent tasks that lead to created products or services important to the
entire organization.
 Behavior-based safety is a fast-growing specialty that analyzes and modifies work
environments to reduce injuries and promote safe behavior. Instead of other disciplines’
approach to safety from the standpoint of mechanical or structural engineering, behavior-
based safety concentrates on changing employees’ behavior to reduce injuries and make
safe performance more common.

How Organizational Behavior Management Works

Organizational behavior management (OBM) applications isolate, analyze and modify

environment events that most directly affect performance. Specific interventions allow
practitioners to effectively modify behavior in organizational environments.

Sample Interventions

There are two categories of OBM interventions: antecedent-based interventions and

consequence-based interventions.

Antecedent-based interventions include task clarification, equipment modification, goal setting,

prompting and training.

 Task clarification involves clearly defining employees’ tasks.

 Equipment modification involves altering equipment used for tasks.
 Goal setting involves setting performance goals and then access to rewards.
 Prompting involves prompts to perform or continue performing an activity.
 Training involves identifying and modifying inadequate employee knowledge, skills or
capacity.

Consequence-based interventions include feedback, praise and monetary and nonmonetary

incentives.

 Feedback involves delivering information about past performance to the employee, which
can vary according to format (verbal, written, graphic) and delivery agent (manager-
supervisor, consultant-researcher or fellow employee). It is by far the most common
intervention used in OBM.
  Monetary and nonmonetary incentives involve money, benefits or tangible items
contingent on performance; in practice and research, they are often combined.

Steps in an OBM Consultation

Here are some common steps that take place during an OBM consultation, regardless of problem,
setting and intervention, according to Psychological Services.

 Determine key results. Typically, the practitioner or researcher works with managers and
executives to identify desired results.
 Find the pinpoints. The practitioner works with managers and executives to determine
important behaviors and immediate results required to accomplish the key results. These
behaviors and results are often referred to as “pinpoints” or “targets.”
 Develop a measurement system. The practitioner helps the target audience develop an
accurate and reliable way to measure the pinpointed behavior and results. This method
often involves tracking costs associated with the pinpoints. Measurements will provide
information about the current levels of the behavior and results, as well as providing a
baseline comparison that can be used to evaluate the effects of solutions.
 Diagnose the problem. The practitioner teaches managers to ask questions and conduct
observations of the work environment and completed tasks to help determine the cause of
performance deficiencies. Asking questions and collecting data typically involves four
broad areas of potential causes: antecedents, knowledge and skills, equipment and
processes (including a systems analysis), and consequences.
 Develop and implement a solution. After the results of the assessment, the practitioner
then works with managers to develop and implement solutions that address identified
deficiencies.
 Evaluate the effects. Typically, results are measured before, during and after solution
implementation. There are at least three types of results that are of interest to the OBM
practitioner: behavior change results, treatment acceptability and cost-benefit results.
Behavior change results help verify whether the solution changed the intended behavior
and produced the intended outcomes. Treatment acceptability is important in OBM
because the solution will not be maintained if employees and managers deem it
 unpalatable. Cost-benefit results help the practitioner calculate return-on-investment
figures.

Applying Organizational Behavior Management to Health Care

A paper in Advances in Patient Safety: New Directions and Alternative Approaches examined
applications for OBM in health care.

“The relevance of OBM to improving health care is obvious,” according to the authors of the
paper. “While poorly designed systems contribute to most medical errors, OBM provides a
practical approach for addressing a critical component of every imperfect health care system —
behavior. Behavior is influenced by the system in which it occurs, yet it can be treated as a
unique contributor to many medical errors, and certain changes in behavior can prevent medical
error.”

One study found that providing feedback to caregivers on the frequency of hand washing led to
an increase in hand washing following patient contacts, from 63 percent at baseline to 92 percent
after intervention. Other OBM intervention studies found that behavior-based interventions
demonstrated significant increases in hand washing among caregivers. Nonbehavioral attempts
were deemed likely to fail at altering actual behavior.

Other OBM interventions were successful. A quota system for emergency patients’ admission to
internal medicine departments reduced length of stay without altering outcomes. Education,
discussion and feedback on proper laboratory tests reduced the overall number of tests ordered
without reducing patient outcomes. “Standardizing the handoff communication procedure using
antecedent reminders and feedback improved patient satisfaction, medication administration
record-keeping, completion of cardiac enzyme regimens, and patient transportation without a
cardiac monitor,” the paper states. As a result, there were 67.5 additional hours of nursing time
available each month.

Advancing as a Business Leader

Managers, executives and other business leaders can work with behavioral specialists to enhance
behavior and ultimately lead to better business outcomes. It is one of many strategies and tools
for helping an organization achieve its goals.
Aurora University’s online bachelor’s in business administration and online MBA help students
develop the knowledge and skills needed to advance their careers. Students receive instruction in
current business practices from faculty members with real-world experience. Each program takes
place in a fully online learning environment.