Pressure points are those areas where the application of pressure on the specific ‘key’ points can yield an outcome. The generated outcome could be positive or negative depending on its impact on the area of application. A business entity identifies the pressure points to direct their actions to bring out a result that is positive to the overall profitability of the concern.

Pressure points play a major role in the efficient functioning of the organisation. They could be external and internal. External factors like the Government policies, market conditions, technological changes, etc are beyond the control of the organisation. The management can only enhance its facilities to incorporate the changes with fewer disorders within the entity. People are the highly sensitive pressure points in the organisation. General inhibitions to the changes can be rectified only by improving the training and developmental activities in the entity. A culture which understands the positive aspects of injecting the changes must be developed.

Manpower makes the highly sensitised points in a knowledge industry. The up swings and down falls in their attitudes gets reflected on their performance. Identifying the pressure points and manoeuvring them for the company’s objectives is therefore vital for any organisation. Pressure point index gives the individual rating on those key areas which can influence their behaviour. An area which causes uneasiness to the normal work routine of the employees must be rectified with immediate effect to prevent negativity within the organisation. The pressure points that have the power to motivate the employees positively must be identified and its influence must be spread across the organisation.

Normally the respondents are asked to rate the pressure points to take proper action. Job security, provision for growth and development, the working culture, company policies, business strategy, all are rated to judge the direction of company performance. The pressure point index plays a key role in the strategic planning of the organisation. The higher the rating, the higher the pressure felt.

Sometimes the company might be unable to keep pace with the changes in the technology leading to longer working hours and high stress rate amongst its employees. Similarly, adoption of the latest technology without proper training could lead to high level of frustration and stress in the employees. If this is continued on a long term basis, the high attrition rates will consume a huge portion of the company profits leading to reduction on wealth. An unproductive work force and a highly discontent customers are a threat to the survival of the business entity. This reason backed by the dissatisfied investors makes the company’s existence in jeopardy. Conducting a survey and identifying the pressure points reduces the chances for an unhappy work force in the knowledge industry.

This index also highlights the areas which contribute significantly to the company wealth. The identification of these pressure points helps the management in taking strategic decisions like outsourcing.

Thus the pressure point index is an effective tool in company management.