What is productivity? And, why does it matter?Learn Management Articles on management-info.biz. What is productivity? And, why does it matter? article will help answer your questions on Management Articles.We at management-info.biz specialize in Management Articles. Management Articles at management-info.biz provides the most up to date news and articles. If you have questions please do not hesitate to contact us.
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.
|
More Articles:1. Three Foundation Stones for Building Organizational Integrity By Freddy Davis When the stock market crashed in 1929, there were a lot of people who lost everything they had. You would think that the result of that event would be complete and utter despair. And, in fact, there were those who reacted that way. There were numerous cases of people who committed suicide because they lost their life savings on that fateful day. They simply went into a depression and just couldn’t bring themselves to go on with life.But there was another group of people who reacted differe… 2. The Permissive Environment is the Suspect By Felix P Nater The permissive and participatory conduct which most employees take for granted, eventually escalates into the more serious assaultive behavior commonly referred to as employee on employee workplace violence starts with innuendos, a bad word, or simple jokes taken out of context or used to inflame another. Initiation of a proper and thorough investigation is possible under the auspices of a Threat Assessment Team. Banter between employees if left alone by supervisors becomes tense and … 3. How to Find the Right Virtual Assistant for You By Alice Seba If you search on Google for “virtual assistant”, you’ll find a ton of listings. You can search through those, check out their services and do some interviews. I’d take a shorter route.Find some other people you trust and ask them who they use and recommend. Then go from there. You’ll do a lot better seeking out recommendations. If you don’t know anyone personally…ask people in your networking groups whom they recommend.Before you contact anyone, make a list of the types of tasks you’d like peo… 4. Quality Management: Organizational Needs By Leon Chaddock Any business out there can benefit from quality management. Whether you are producing thumb tacks or if you are producing IT equipment, there is little doubt that they need to be of the highest levels of quality. Yet, as your business grows, you will find it farther and father difficult to manage quality management. Because it is so very important, though, you need to find a way to make sure it is dead on.What solutions are out there?You know that you need quality management but finding the… |
||||
