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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. Productivity Productivity The prosperity of nations and organisations alike is recognized as being dependent upon their comparative productivity. In times of increasing competition, this has been brought sharply into focus. Today, managers, supervisors and workers alike are all under constant pressure to raise productivity. WHY? This is because HIGHER PRODUCTIVITY provides opportunities for raising the general standard of living including opportunities for: a) increased real earnings. b) Improved working con… 2. Aligning the Trifocal Value-driven Viewpoints Inside Every Organization By Jidé Odubiyi The three cultures inside every organization are analogous to the story of the three blind mice and the elephant. The perspective of each mouse is framed by the part of the elephant it touches. It was almost a decade ago when Schein (1996) wrote about the three cultures of management. He asserts that there are three communities in organizational setting— executives, engineers, and operators—and they do not fully understand each other. In Shein’s view, when the three communities are not aligned… 3. Time to Quit the Rat Race? By John McKee 1. Most leaders die with their mouths open.I recently read an article in Fast Company magazine about the issue of leadership. In it, they quote Ronald Heifetz, the founder of Harvard's Center for Public Leadership, who made the above comment back in 1999. He followed it up by saying, "leaders must know how to listen - and the art of listening is more subtle than most people think it is. But first and just as important, leaders must want to listen."You'd think this is simply basic stuff, right?… 4. Innovation Management – Good Leadership By Kal Bishop Creativity can be defined as problem identification and idea generation whilst innovation can be defined as idea selection, development and commercialisation.There are other useful definitions in this field, for example, creativity can be defined as consisting of a number of ideas, a number of diverse ideas and a number of novel ideas.There are distinct processes that enhance problem identification and idea generation and, similarly, distinct processes that enhance idea selection, development … |
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