The Science Behind the Game
Employee wellbeing and human productivity can be hard to grasp as concepts, but managed properly can give a great competetive advantage. Latest research indicates there are better and faster ways of increasing productivity than cutting staff costs. Recognizing and creating benefits requires better knowledge of one’s organization and more effective, staff oriented development.
The idea for Productive Leadership came from the need for companies to have a concrete tool to improve productivity. It is based on two scientific breakthroughs that explain the connection between wellbeing and productivity:
Marko Kesti, MSc (Eng.), PhD. (Admin.), Adjunct Professor, is the man behind PlayGain. He has a long career working for international corporations, as an entrepreneur and a business coach. He is an analytical researcher and a science writer but also a well-liked, down-to-earth coach and lecturer, who helps his clients to better understand the importance of human resources and good leadership. He works as associate professor at Lapland University of Applied Sciences in the human capital productivity research programme.
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Human Capital Production Function
The effectiveness of the simulation is based on the Human Capital Production Function which is an internationally-approved model for analyzing Human Productivity (see e.g. Kesti & Syväjärvi 2015, Kesti 2013). It has been utilized successfully in doezens of companies and public sector organisations and is as follows:
Revenue = K * HR * TW * (1-AW) * QWL
and EBITDA = Revenue – variable costs – fixed costs
K = business coefficient, indicating how an effective working hour can be translated into revenue (€/h)
HR = the number of personnel measured in full-time equivalent per financial year (no.)
TYW = theoretical yearly working time per employee [h]
AW = auxiliary working time out of theoretical yearly working time [%]
QWL= quality of working life experienced by employees (0 to 100%).
QWL or Quality of Working Life
Quality of Working Life is one the production factors in the Human Capital Production Function. It describes the proportion of effective working time of the total time for work. The QWL index consists of three self-esteem factors that are weighted according to Herzberg’s motivation theory so that every factor has its own specific effect on the whole. This fixes a common error in analyzing employee surveys.
The self-esteem factors are:
Physical and Emotional Safety (PE)
Collaboration and Identity (CI)
Objectives and creativity (OC)
Pietiläinen V. & Kesti M. (2012). ’Johtamisen tilanneherkistyminen ja asiantuntijuus’, in Johtamisen psykologia, ed. Perttula J & Syväjärvi A.