Layoffs or personnel cuts are frequently counter-productive. Future profits are reduced. Value creation Employees should be evaluated on the basis of the value they contribute to the business. Management shares responsibility for the value-created by employees. Management must clearly define the things that customers and management consider important.
Employees can then align their activities with value priorities.
Non-value adding tasks can be identified and eliminated. Useful methodologies Values must be clearly defined so that value-adding activities can be accurately assessed. Then, the value-added for all significant activities needs to be assessed. Workplace activity surveys can be used to take a snapshot of how employees are devoting their efforts and the value obtained from those efforts. A management team then determines which activities need to be re-engineered so that greater value is obtained.