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. Hiring a Book Keeping Service By Lance Winslow Whether you choose to do your own books and accounting or hire those services out there are a few things you should know first.A good book keeping service will normally charge you around $200 -500 per month while you are still somewhat small and you can receive: Profit and Loss Statements; Balance Sheets; Bill Paying Services; Checking Account Reconciliation; Journal Reconciliation; Tax Information Preparation; Tax Return Filing; Etc.If you are inclined to do your own books, that’s ok too. S… 2. Outsourced Learning: Are You Ready for Learning BPO? By Michael Beitler As the business world enters a period of hyper-competitiveness, every business process will be subjected to examination and possible restructuring. We have already seen outsourcing and offshoring used to an extent what nobody would have dreamed of a few years ago. McDonald’s is testing the offshoring of its drive-thru process to India. How about, “Do you want fries with that?” with a New Delhi accent?Even though McDonald’s testing of business process outsourcing (BPO) has caused quite a stir, … 3. Accountability and Mega Projects By Shaun Murphy The past few years have seen an increase in the number of petroleum mega projects being proposed and executed. Record oil prices have given rise to increasingly ambitious and complex international alliances in the energy industry. These large, long term and capital intensive projects carry a great deal of cost and schedule risk which is very challenging to mitigate. We have found that some of this risk can be managed through an emphasis on accountability at all levels of the project organizat… 4. 10 Ways To Work Through A Business Slowdown By Rachna D. Jain In running any kind of business, it's inevitable that sometimes business will slow down. This might occur due to an upcoming holiday, seasonal variations, or uncontrollable circumstances. As a small-business owner, you have a choice in terms of how you view the slowdown - it can either be a time of increased stress, frustration, worry - or you can view it as an opportunity to upgrade your business processes or improve the quality of your life.Here are ten strategies you can use to work through… |
||||
