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. The Four Laws Of Leadership (Part Two) PERMISSION TO REPUBLISH: This article may be republished in newsletters and on web sites provided attribution is provided to the author, and it appears with the included copyright, resource box and live web site link. Email notice of intent to publish is appreciated but not required: mail to: brent@actionleadership.comWord count: 1077Summary: The best leadership is motivational. But the author contends that most leaders misunderstand motivation. Here are four laws of motivation that will help yo… 2. Seven Reasons Organizational Culture Matters We spend 40 . . . or 45 . . . or 50 . . . or more hours at work each week. Many of us spend more time with those we work with than we do our families. For us to be content and fulfilled people, that time must be valuable for more than a dollar. . . We want to be engaged in our work. We yearn for work that is enjoyable, meaningful and engaging. When we are engaged we are safer on the job, more productive and more willing and able to delight Customers. It is for these basic reasons that organizati… 3. Projects and Operations: An Amicable Separation IntroductionProjects and Operations are quite distinct sets of activities that, when mixed, can cause unnecessary havoc with the management of each. They have different resourcing requirements, require different management styles and have different objectives. Projects are time-constrained and initiate change. Operations are ongoing and suffer change, sometimes unwillingly...This short paper is a brief overview of the definitions, descriptions and characteristics of each set of activities. And c… 4. Christmas Carol Coaching - Help to Get Ahead at Holiday Time! By Martin Haworth I've always been fascinated by situations where art imitates real life and right here is a perfect example, which links Christmas and business & personal development.If you want to read about a serious piece of dodgy people management (bordering on potential litigation); a man all adrift with the world and himself; shown how to do it by three visionary experiences (and with a brilliant example of supportive team-building thrown in); and then the ultimate Christmas 'shift'? These are all brilli… |
||||
