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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. Procrastination and JDI!* Getting better information makes for the more correct decisions. Yet the fear of 'getting it wrong' sometimes means that we use collating information and all sorts of other seemingly completely valid tactics as a good excuse for being slow to decide.In a management role procrastination can seriously hold back progress and demotivate individuals and teams who, full of innovation and drive to move forward, get frustrated and confused when action is held up.There are a number of steps that will he… 2. Managing People for Performance By Graham Yemm “People improve productivity, not organisations.”Managers who have had any form of training will be familiar with the idea of setting goals or objectives, and probably with the principles of appraising performance. With this in mind, why is it so many managers keep asking about how to motivate their staff or how to get more from them?This whole area is a key differentiator of good managers and is a large part of what managers are being paid for! In this article I want to offer some ideas to … 3. Towards Intercultural Understanding By Brenda Townsend Hall An individual’s ability to forge effective relationships across cultures is influenced by a very personal and highly complex mixture of emotional and cognitive processes. Anyone contemplating an overseas posting feels apprehensive about stepping into the unknown. The mere knowledge that we are leaving our own cultural comfort zone can trigger all sorts of subconscious defensive tactics that can make it difficult to operate effectively the new environment.The widely known work of Milton Bennett… 4. Coming to Terms with Your Industrial Strength Difficult Person By Pat Wiklund Call it bad vibes, gut reaction, instant dislike, or hitting a major hot button. Truth be told, there are just some people we don't like, don't want to associate with, and want to avoid. But, when they're our co-workers, we can't avoid them. We may have to work closely with them, day after day, until we successfully complete the job.If you are stuck with your difficult person, it may be time to let go, to change how you feel about and deal with your own industrial strength difficult per… |
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