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By: Robert F. Abbott When Phil hires a new helper for one of his construction projects, he first watches to see whether or not the newcomer has the right attitudes and habits to keep him as an employee. And, if the newcomer meets expectations,' Phil introduces him to his philosophy about work by telling him the woodcutters story. Two woodcutters who are working together for the first time, set off in the morning to cut down trees. One woodcutter works very hard, and aside from a couple of breaks, works steadily all day. The other woodcutter, though, seems to take many more breaks, at least one every hour. So the first woodcutter expects he'll have cut down many more trees by the end of the day. But, when they quit for the day, the first woodcutter finds, to his surprise, that the second woodcutter has done more, despite taking all those breaks. And, in his frustration, the first woodcutter wonders out loud how the second woodcutter did it. The second woodcutter couldn't help but hear the first woodcutter's question, and replies, 'Yes, I take many more breaks, but every time I take one, I sharpen my axe.' Phil uses this story of the woodcutters to explain his ideas about productivity, and he doesn't relate it to the productivity which economists refer to in their statistics. Phil thinks of productivity in a very immediate way: how many nails you can drive in one hour, for example. The economists are talking about the same thing, only they're talking about it as the sum of many millions of businesses and organizations, so they're talking about productivity in an abstract way. Whatever the case, productivity simply refers to the amount of value you can get from labor, land, or capital (invested money). As we'll see in the next section, Phil's income goes up when he (and his helper’s) productivity goes up. Increasing productivity across a whole nation is also good news. It means everyone in society becomes more prosperous, that everyone (or almost everyone) will have more money to spend or save. Increased productivity can also mean lower prices. For example, if carpenters and home building companies increase their productivity, then house prices will go down. Generally speaking, though, consumers, owners of businesses, and workers in those businesses all share productivity gains. And what about people without job? Well they often gain, too, because when businesses owners and workers make more, they pay more in taxes. In turn, that makes more money available to governments for social programs. Having heard all that, you may be skeptical, thinking your prosperity hasn't gone up much, if at all. But you'd be wrong. Productivity has gone up, and gone up a lot over the past two hundred years, and especially over the past 50 years. It may be invisible to most of us, but productivity is one of the silver bullets that have given us our prosperity and so many of our choices.
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More Articles:1. Productive Meetings: How to Make Your Meetings More Productive By Neen James There’s one simple secret to effective meetings: set an agenda and stick to it. The agenda drives the content and outcomes of the meeting and, where appropriate, should reflect the needs of all attendees so everyone has a buy-in and an interest in the outcomes. Follow these simple steps for planning and running meetings and you’ll be amazed at what you can achieve. And, just in case not everyone in your organisation is following these steps to great meetings, I’ve included some key questions y… 2. What to Ask When You’re Invited to a Meeting By Steve Kaye 1) Where is the agenda? A meeting without an agenda is like a journey without a map; it will always waste your time. Once you have the agenda, make sure that it consists of more than a list of words because this is almost useless. The agenda for an effective meeting will provide a complete description of how the meeting will proceed.2) What is the goal? Is the chair seeking an agreement, a solution, or a plan? Knowing the goal gives you head start on participating effectively. Be cautious… 3. Why Your Projects Are Not Being Completed By Ryan Leibowitz Here are 5 common reasons why your projects are going over schedule, over budget, and generally under expectations of quality. 1. Overextending on your resources: Or simply doing more than what your resources whether it be in finances, human capital, strategic partnerships, time, etc. 2. Micromanaging: Instead of looking over the shoulders of your team mates, focus more on the overall strategy alignment and faciliate intra/extra departmental communications. 3. Lack of strategic vision, featu… 4. Managing After Downsizing By Rick Maurer So, you survived the downsizing. Your company did something that will probably show minimal, if any, return -- and will make your job as a manager a living hell. Your life has changed dramatically. People on your staff are frightened, fearful that they may be next to go. They will lie low hoping that they can be spared the next swing of the ax. (You may be feeling the same thing as well.) Teamwork will decrease as people begin to view the person next to them as a threat to that increasingly sc… |
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