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. 10 Fundamentals for Effective Meeting By Steve Kaye Here are ten fundamental concepts that characterize an effective meeting.Definition: A meeting is a business activity where select people gather to perform work that requires a team effort.A meeting, like any business event, succeeds when it is preceded by planning, characterized by focus, governed by structure, and controlled by a budget.Three things guarantee an unproductive meeting: poor planning, lack of appropriate process, and hostile culture. Effective leaders attend to all of these t… 2. Manage Your Business from the Rockies, not the Prairies By Martin Haworth The day job as a manager is all about managing your people to deliver, to meet the needs of your customers or clients and generating success after success! Right? And you have consequences if that doesn't happen.Worst case scenario is that you lose your job or your business, because your people haven't delivered. So the temptation is understandable. Get in there, dirty your hands and work your socks off making it happen.Admirable, fulfilling even!But how much energy have you got? How hard do y… 3. Uncommon Common Sense – Know What is the Most Important Thing in Your Business By Gordon Goh Over 3 of my meetings with 3 business owners last week, what really shocked me was how uncommon common sense was. 2 out of 3 I spoke to do not know what is the most important thing in their business. They keep on trying on other things that are not important. As we know, every business has ONE most important thing in their particular industry. You need to do well in your most important thing and the rest will take care of itself.For Manufacturing: Most important is your quality consistenc… 4. A Facilitator's Guide to Running a Stakeholder Analysis Workshop By Tony Marven This facilitator’s guide to running a stakeholder analysis workshop is for people whose success depends on getting other people involved with their objectives.It contains two exercises, one to work with stakeholder groups, and one to emulate stakeholders where it is not easy to bring them all together. The aim of both is to engage stakeholders in dialogue, brainstorming and decision-making to secure their buy-in to an idea, project, or plan.There are five key principles underpinning success in… |
||||
