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. Employee Retention - Critical Skill at a Critical Time Many of you have probably heard about the 'pending' labor shortage. The Herman Group predicts that by 2010, there will be a shortage of over 10 million employees in the U.S. This is not a problem that will magically appear in 5 years. The problem is NOW!! We are currently in the tightest labor market of the past 40 years. Data already suggests we have a shortage of almost 5 million employees. Much of this is due to the impact of the 20% drop in birth rate we saw after the Baby Boomer generation… 2. Do Customers Like the Feel of Your Organization? By Nick Arrizza, M.D. In two recent articles "Some Evidence of How We Are Spiritually Connected" and "Healing Dysfunctional Families" I reported on how individuals who live or work within a system or group are inherently connected at a level that goes beyond words. This realm of connection, which is largely spiritual or unconscious, may or may not be familiar to the more business minded person so I will take some time to explain the nature of this connection and then the wide reaching implications this idea has on … 3. Assessing Managers for International Competence By Brenda Townsend Hall How do you select staff for international assignments? It's an important question because, no matter how effective and successful your employees may be at home, they cannot be guaranteed the same performance in a different culture—unless, that is, they can demonstrate some key competencies. But beware, these may be quite different from the competencies they need to succeed in their own environment.To begin with they need to be receptive to the host culture. This will mean that when they face … 4. Is Your Company Working At a Standstill? You Need Activities for Conflict Resolution Skills! Are you worried that the upcoming staff outing is going to be an all-out disaster? Maybe instead of horseshoes or badminton at your next picnic, you should think about activities for conflict resolution skills! Conflict among staff and team members are typically symptomatic of misperceptions and disintegrated communication - in other words, your employees are probably acting a lot like this: *Defensive or hypersensitive *Fearful of reprisals and putdowns even if encouraged to speak *Unwilling to… |
||||
