Overtime Overhaul: Questioning Leadership Planning
June 19, 2008
Overtime pay is a well-known management practice, but some argue it's time for the practice itself to be "over."
By Jack W. Reidenbach
Operational overtime is considered "time beyond the established limit." Once the "limit" is surpassed, hourly employees are usually paid at a higher hourly rate, while salaried employees are given the rhetoric rate of "comes with the job." Although overtime pay for salaried individuals may be a worthwhile debate, it is not the overtime pay that needs to be questioned, but the reason for the continuous overtime itself.
"Continuous Overtime," that which occurs for significant periods of time throughout the week, month, and year, can often be the result of leadership's inadequate strategic and/or workforce planning.
I look at this continuous employee overtime as an indicator of a poorly prepared leader, incapable of rapidly and decisively reacting positively to negative interruptions within the operational and/or production environments. But then again, it also could be as simple as their failure to effectively plan and manage labor hours/dollars. In either case, the result is the same. The eight-hour per day work schedule now takes more than eight hours to accomplish. Why?
Hourly Overtime
Sales need to be driving production. But their department also must be responsible and accountable for their forecasts. If they truly are, then as a result of their forecasted information, the operational staff must respond accordingly.
If you need to increase your workforce to accommodate peak periods, then you'd better plan for it: if you need another shift to accommodate increased production, then you'd better plan for it: if you're not utilizing the full efficiency of your equipment capacity, you need to fix or change it: and if you're not in the habit of continually evaluating your processes, you need to re-engineer your attitude and discover new alternatives.
First of all, you need an understanding of what it takes to accomplish the objective. Yes, machine capacity, labor capacity, material costs, and the standard list goes on and on, are all part of the process, but they’re not the only part. You also can develop "response scenarios."
A response scenario is a "thought processing" planning tool that enables immediate response to unforeseen material, labor, and/or equipment problems. They can assist in maintaining production integrity with quality products within the customer timeframe, while providing for an absence, or at the very least minimizing overtime. The key to accomplishment, and the responsibility of leadership, is to have thought out and developed these response scenarios ahead of time to enable continued processing without affecting the overall time frame objective. This form of planning seems to be a conveniently forgotten part of leadership qualities.
A response scenario could be as easy as staggering breaks and/or lunch periods, or substitution with "equal to" material, to more complex responses of re-assigning equipment capacity, use of cross-trained personnel, or review and re-prioritizing future customer requirements.
Unfortunately, every type of problem cannot be corrected with a response scenario. But let's see, would I rather have my supervision/management team create an atmosphere of preparation through plans and ideas, or by the standard frenzied approach of overtime?
Salary Overtime
Not paying attention to an employee(s) working overtime shows a lack of leadership responsibility. You should both care and be concerned about salaried overtime. You need to know why an employee is spending so much time on the job. Do job responsibilities exceed the realm of normal time availability, in which case you would need to review job descriptions and labor assignments, or does the employee lack the qualifications and/or experience necessary to properly handle the position, in which case a change in personnel may be necessary. Improved leadership skills may make the latter a seldom occurrence.
As the supervisor/manager, your interest and understanding of the problem(s) may allow you to offer suggestions in the form of time management skills, or requesting IT solutions with new or improved software, and/or if it involves issues with other departments, meeting with the supervisors/managers of those departments to discuss resolutions to those issues. But that means you must pay attention to what’s happening within the realm of your responsibility. Does that mean you have to micromanage? Absolutely not. But it does mean you should be cognizant of the demands facing your personnel on a daily basis. Try communicating.
Being capable of leading refers to:
1. One or more acts of leading. How often have you stayed with your staff to lead them in overtime? "What, they don't need me to stay and help?" you may ask yourself. You're right, they needed your assistance long before it came to this overtime.
2. Your ability to affect human behavior so as to accomplish the objective. "I know my people will stay as long as it takes, and do whatever it takes." Is that what you call having a positive affect on human behavior? Is that your idea of leadership accomplishment?
3. Your ability to influence people towards the achievement of a goal/objective. Do you really think the word "influence" is the proper word to describe staff personnel having to do whatever it takes to accomplish a goal/objective?
4. Your ability to inspire people towards the achievement of a goal/objective. Do you really think your inspiration is behind all that perspiration for accomplishment?
Apparently, the part of leadership that provides for organization and planning are not considered relevant factors so long as the goals are accomplished. Therein lies the problem.
A successful supervisor/manager will embrace effective communication rather than dictate; delegate rather than control; and skillfully guide rather than take charge. One-way communication will be replaced with two-way interaction of interest, intellect, and understanding. The finesse required to communicate at this level will be performance-driven by leadership attitude.
There are numerous ways to determine whether employees are coming in early, working late, or working on weekends. Sign-in sheets, keys/badges that allow you to enter are therefore monitored and documented, or you could simply just ask. You know, show some interest.
As a supervisor/manager, you need to learn to look at the whole picture by:
• Effectively communicating with staff, peers, and senior management
• Maintaining the timetable
• Staying within budget
• Anticipating problem areas
• Providing skillful solutions with forsight and preparation, intellect, and involvement and a commitment to staff sensitivity
Being able to lead is not about solving problems with the "I don't care what it takes" approach. That just takes the burden of responsibility off of you, the leader, and places it directly on the shoulders of your staff. To be quite honest with you, almost anyone can lead at that level.
So if you want your leadership abilities to make a positive impact, then learn to be skillful but considerate when communicating; learn that innovation is not about what is, but rather what could be; and that leadership achievement is not about how hard you work your people, but rather how well prepared you are for them to work with you.
Jack W. Reidenbach's background is in manufacturing and operations, with positions ranging from Systems Analyst with Eaton Corporation to Vice President of Manufacturing with KMW Systems Corporation. You can reach him at jwr407@bellsouth.net.
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