What is work force management?

For organisations to ensure they provide the right service. In order to do they need to assign the right employees with the right skills to the right job at the right time to meet demand.

Workforce Management Background

Workforce management (WFM) is a strategy used by companies to increase their efficiency and performance. It entails all activities aimed at maintaining a steady output, such as human resource management, forecasting, field service management, budgeting, scheduling, performance and training management, analytics, recruitment and data collection.

Workforce management utilizes a unique set of performance enhancing tools and software to bolster corporate management, workers, and other categories of managers and supervisors in the manufacturing team, distribution, transportation, and retail operators. This is sometimes called HRM systems, or part of ERP systems, or workforce asset management.

Unlike the conventional outlay that only needed staff scheduling to improve time management, workforce management is now all-inclusive and demand-oriented to optimize staff scheduling. Apart from focusing on demand-orientation and optimization, workforce management also incorporates:

Estimating the workload and resource utilisation
Job scheduling
Management of working times and accounts
Monitoring the process of workforce management

Each task should be clearly defined and performed efficiently based on set engineering standards and methods of optimizing each task as much as possible. Out of this framework and demand based forecasts, workers are scheduled and given tasks, performance measured, give feedback, and incentives computed and paid.

Workforce management is an entire scheme aimed at building the capacity of workers, increase productivity and client relations, and where possible reduce labour costs.

What is Mobile Workforce Management (MWM)

Mobile workforce management (MWM) is a software-based service used to oversee employees outside of the institution?s premises; MWM sometimes refers to the field teams. Mobile workforce management encompasses all activities done to monitor and schedule the field workforce.

The entire process includes procurement, management and using mobile devices, applications and computer software. Related support services like tracking, logging, dispatch, productivity management, and other types of communication are also to make it efficient.

Companies do not have the same needs and MWM firms need to fine-tune their software and devices to sufficiently bridge this gap. Some providers are suited only to a specific type of company because of specialization, like managing the electric grid. This experience makes the MWM company suited to provide applications that are relevant to the company for them to continue operating smoothly and efficiently.

With the increase in mobile devices, applications, secured wireless networks and virtual desktop, there comes a stream of opportunities for small and medium-sized businesses (SMB) and other ventures. Nevertheless, a mobile workforce needs better controls, security and support, as well as a functioning mobile workforce management strategy.

MMS (managed mobility services) is often used interchangeably with MWM, but they should not be confused. MWM is related to software and applications used by mobile and computer devices to manage on-field work while MMS focuses on enterprises, and is like a way of keeping in touch with the company, other employees, and linking the mobile while at work to servers and the database.

Benefits of Mobile Workforce Management

MWM allows the utilization of technology to drive productivity. Here are the top five advantages of MWM..

Customer focused. The customer is the backbone of any business. The team needs to keep in touch with up-to-date information about every interaction. In the end, better client relation makes sure that the customer is always happy.
Information has the power to build or destroy. A cloud-based system is easier to manage and can help with collection of data which is used to make business decisions. This can help cut costs, increase the workforce support, and identify areas where polishing needs to be done.
Improved efficiency. Mobile workforce management is majorly used in taskforce allocation. If the company adopts a cloud-based work force management system, allocation is done automatically saving a lot of time.
Increased revenue. Each business seeks to maximize the profit. With cloud-based mobile workforce management some operations like task management, data analysis, customer communication, reporting, and performance monitoring can be automated. This reduces the costs incurred for multiple applications and saves time.
Ease of communication. Communication is vital. Constant communication with customers drives sales rates and everyone loves that. Quick communication will help customers solve their problems faster and get instant feedback.

Additional WFM benefits

Other WFM benefits are:

Operations are made efficient as all complex processes are automated.
Employers learn more about worker engagement, productivity and attendance, allowing them to modify training, coaching and processes aimed at streamlining performance.
Automation and easy manipulation of data to improve HR, productivity and slash administrative costs.
It increases employee productivity by reducing absenteeism and late arrivals.
Boosts the morale of employees by encouraging transparency and facilitating manager-employee communication.
WFM analyzes market and schedule requirements to pick the right employee with the best set of skills for a certain task.

Companies which embrace workforce management and mobile workforce management have a higher operational efficiency. They have lower operational costs and limit manual work as much as possible

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The Matrix Management Structure

Organizations exploit matrix management in various ways. A company, for instance, that operates globally uses it at larger scale by giving consistent products to various countries internationally. A business entity, having many products, does not assign its people to each product full-time but assign those to different ones on a part time basis, instead. And when it comes to delivering high quality and low cost products, companies overcome industry pressures with the help of many overseeing managers. In a rapidly changing environment, organizations respond quickly by sharing information through a matrix model.

Understanding the Matrix Management Structure

A basic understanding of matrix management starts with the three key roles and responsibilities that applies in the structure.

Matrix Leader ? The common person above all the matrix bosses is the matrix leader. He ensures that the balance of power is maintained in the entire organization by delegating decisions and promoting collaboration among the people.
Matrix Managers ? The managers cooperate with each other by defining the respective activities that they are responsible for.

Matrix Employees – The employees have lesser direct authority but has more responsibilities. They resolve differing demands from more than one matrix managers while they work things out upwards. Their loyalty must be dual and their relationships with managers must be maintained.

Characteristics of a Matrix Structure

Here are some features that define the matrix management structure:

Hybrid Structure ?The matrix structure is a mix of functional and project organization. Since it is a combination of these two, matrix management is hybrid in nature.

Functional Manager ? When it comes to the technical phases of the project, the functional manager assumes responsibility. The manager decides on how to get the project done, delegates the tasks to the subordinates and oversees the operational parts of the organization.

Project Manager ? The project manager has full authority in the administrative phases, including the physical and financial resources needed to complete the project. The responsibilities of a project manager comprise deciding on what to do, scheduling the work, coordinating the activities to diverse functions and evaluating over-all project performance.

Specialization ?As the functional managers concentrate on the technical factors, the project managers focus on administrative ones. Thus, in matrix management, there is specialization.

Challenge in Unity of Command ? Companies that employs matrix management usually experience a problem when it comes to the unity of command. This is largely due to the conflicting orders from the functional and project managers.

Types of Matrix Structure

The matrix management structure can be classified according to the level of power of the project manager. Here are three distinct types of matrix structures that are widely used by organizations.

Weak Matrix ? The project manager has limited authority and power as the functional manager controls the budget of the project. His role is only part-time and more like a coordinator.

Strong Matrix ? Here, the project manager has almost all the authority and power. He controls the budget, holds the full time administrative project management and has a full time role.

Balanced Matrix ? In this structure type, both the project and functional managers control the budget of the project. The authority and power is shared by the two as well. Although the project manager has a full time role, he only has a part time authority for the administrative staff to report under his leadership.

Successful companies of today venture more on enhancing the abilities, skills, behavior and performances of their managers than the pursuit of finding the best physical structure. Indeed, learning the fundamentals of the matrix structure is essential to maximize its efficiency. A senior executive pointed out that one of the challenges in matrix management is not more of building a structure but in creating the matrix to the mind of the managers. This comes to say that matrix management is not just about the structure, it is a frame in the mind.

Energy efficiency demystified

Energy bills are all about Energy efficiency but energy efficiency management is not all about bills. Energy efficiency means reducing carbon emissions, lowering energy costs and improving the quality of life. Energy efficiency is therefore about conservation of energy in a broader perspective; in fact energy efficiency is almost becoming a moral obligation.

Through adoption of appropriate energy efficiency measures, companies can significantly bring down the overhead costs making hundreds of dollars in savings. Energy efficiency is also synonymous with a better quality of life. Taking appropriate measures to ensure proper insulation protects your premises against extreme weather conditions leading to more productivity and an improvement in the bottom line.

Improved energy efficiency means a smaller amount of carbon emissions, less pollution and a better environment.

It is now easier than ever to visually identify where your facility is wasting energy, how much energy is being wasted while tracking the progress made in reducing energy consumption by turning that detailed, raw energy-consumption data into useful charts and figures.

Having visibility of your Energy usage gives you knowledge of what power you are consuming. This helps you change energy usage behaviours and this can have significant savings and reduction in your electricity bills. Real-time electricity consumption tracking is enough prodding for you to be on the lookout for inefficient energy consumption unit’s e.g.? Heating and cooling equipment, ducts insulation of your premises or a failure of one of these components to perform as intended. Pin-pointing the problem areas is not a walk in the park but fixing it can make your building more energy-efficient and comfortable.

A wide range of solutions are now available for charting and analysing energy consumption that helps energy managers, facilities managers, energy consultants and building-services engineers. These will not only offer advice but will enable you provide tailor made solutions for your organisation by assisting you in developing a sustainable energy strategy. Our energy monitoring software is one example.?

How to Reduce Costs when Complying with SOX 404

Section 404 contains the most onerous and most costly requirements you’ll ever encounter in the Sarbanes-Oxley Act (SOX). In this article, we?ll take a closer look at the salient points of this contentious piece of legislation as it relates to IT. We?ll also explain why companies are encountering difficulties in complying with it.

Then as soon as we’ve tackled the main issues of this section and identify the pitfalls of compliance, we can then proceed with a discussion of what successful CIOs have done to eliminate those difficulties and consequently bring down their organisation’s IT compliance costs. From this post, you can glean insights that can help you plan a cost-effective way of achieving IT compliance with SOX.

SOX 404 in a nutshell

Section 404 of the Sarbanes-Oxley Act, entitled Management Assessment of Internal Controls, requires public companies covered by the Act to submit an annual report featuring an assessment of their company?s internal controls.

This ?internal control report? should state management’s responsibility in establishing/maintaining an adequate structure and a set of procedures for internal control over your company?s financial reporting processes. It should also contain an assessment of the effectiveness of those controls as of the end of your most recent fiscal year.

Because SOX also requires the public accounting firm that conducts your audit reports to attest to and report on your assessments, you can’t just make baseless claims regarding the effectiveness of your internal controls. As a matter of fact, you are mandated by both SEC and PCAOB to follow widely accepted control frameworks like COSO and COBIT. This framework will serve as a uniform guide for the internal controls you set up, the assessments you arrive at, and the attestation your external auditor reports on.

Why compliance of Section 404 is costly

Regardless which of the widely acceptable control frameworks you end up using, you will always be asked to document and test your controls. These activities can consume a considerable amount of man-hours and bring about additional expenses. Even the mere act of studying the control framework and figuring out how to align your current practices with it can be very tricky and can consume precious time; time that can be used for more productive endeavours.

Of course, there are exceptions. An organisation with highly centralised operations can experience relative ease and low costs while implementing SOX 404. But if your organisation follows a largely decentralised operation model, e.g. if you still make extensive use of spreadsheets in all your offices, then you’ll surely encounter many obstacles.

According to one survey conducted by FEI (Financial Executives International), an organisation that carried out a series of SOX-compliance-related surveys since the first year of SOX adoption, respondents with centralised operations enjoyed lower costs of compliance compared to those with decentralised operations. For example, in 2007, those with decentralised operations spent 30.1 % more for compliance than those with centralised operations.

The main reason for this disparity lies in the disorganised and complicated nature of spreadsheet systems.

Read why spreadsheets post a burden when complying with SOX and other regulations.

Unfortunately, a large number of companies still rely heavily on spreadsheets. Even those with expensive BI (Business Intelligence) systems still use spreadsheets as an ad-hoc tool for data processing and reporting.

Because compliance with Section 404 involves a significant amount of fixed costs, smaller companies tend to feel the impact more. This has been highlighted in the ?Final Report of the Advisory Committee on Smaller Public Companies? published on April 23, 2006. In that report, which can be downloaded from the official website of the US Securities and Exchange Commission, it was shown that:

Companies with over $5 Billion revenues spent only about 0.06% of revenues on Section 404 implementation
Companies with revenues between $1B – $4.9B spent about 0.16%
Companies with revenues between $500M – $999M spent about 0.27%
Companies with revenues between $100M – $499M spent about 0.53%
Companies with revenues less than $100M spent a whopping 2.55% on Section 404

Therefore, not only can you discern a relationship between the size of a company and the amount that the company ends up spending for SOX 404 relative to its revenues, but you can also clearly see that the unfavourable impact of Section 404 spending is considerably more pronounced in the smallest companies. Hence, the smaller the company is, the more crucial it is for that company to find ways that can bring down the costs of Section 404 implementation.

How to alleviate costs of section 404

If you recall the FEI survey mentioned earlier, it was shown that organisations with decentralised operations usually ended up spending more for SOX 404 implementation than those that had a more centralized model. Then in the ?Final Report of the Advisory Committee on Smaller Public Companies?, it was also shown that public companies with the smallest revenues suffered a similar fate.

Can we draw a line connecting those two? Does it simply mean that large spending on SOX affects two sets of companies, i.e., those that have decentralised operations and those that are small? Or can there be an even deeper implication? Might it not be possible that these two sets are actually one and the same?

From our experience, small companies are less inclined to spend on server based solutions compared to the big ones. As a result, it is within this group of small companies where you can find a proliferation of spreadsheet systems. In other words, small companies are more likely to follow a decentralised model. Spreadsheets were not designed to implement strict control features, so if you want to apply a control framework on a spreadsheet-based system, it won’t be easy.

For example, how are you going to conduct testing on every single spreadsheet cell that plays a role in financial reporting when the spreadsheets involved in the financial reporting process are distributed across different workstations in different offices in an organisation with a countrywide operation?

It’s really not a trivial problem.

Based on the FEI survey however, the big companies have already found a solution – employing a server-based system.

Typical server based systems, which of course espouse a centralised model, already come with built-in controls. If you need to modify or add more controls, then you can do so with relative ease because practically everything you need to do can be carried out in just one place.

For instance, if you need to implement high availability or perform backups, you can easily apply redundancy in a cost-effective way – e.g. through virtualisation – if you already have a server-based system. Aside from cost-savings in SOX 404 implementation, server-based systems also offer a host of other benefits. Click that link to learn more.

Not sure how to get started on a cost-effective IT compliance initiative for SOX? You might want to read our post How To Get Started With Your IT Compliance Efforts for SOX.?