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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. Watch the Pontificator! Excerpted from The Truth about Getting Your Point Across...and Nothing But the Truth www.leadingonedge.com/truth At the offices of one of my clients there was a fellow who I'll call 'Moe.' Moe was your typical pontificator. At any time we saw Moe he was standing outside of someone's cubicle or sitting on someone's office, coffee cup in hand, waxing poetic about the latest dumb decision management made, the idiots that run his division, or last night's baseball game. Moe had an opinion on every… 2. Employees Need Some Perspective Would you like to have your employees walk a few miles in your shoes? Looking for a simple way to explain the flow of the revenue and expenses for your business? Want to change the perspective on the gap between wages and amounts charged to customers? Adapt this exercise to your small business situation.George's Auto ServiceEvery person entering the management ranks of a large communications company were required to attend a management orientation workshop.During one workshop the facilitator han… 3. Corporate Recreational Mating -- How Prevalent is It? --- A Path to Business Failure By Rick Johnson “WOW DENISE, THOSE TIGHT JEANS SURE LOOK GOOD. DO YOU WANT TO SELL THEM?” “NO, SWEETIE, BUT YOU CAN RENT THEM FOR A LITTLE WHILE.”Starting this article with that actual quote and giving other real life examples of the type of interaction that goes on in many offices creates a self imposed need in my mind to assure you, the reader, that we will be discussing Sexual Harassment in the work place later in this article.Recreational mating in the work place has been going on since organized busines… 4. Management Development - Micromanagement Works! Ever been told not to micromanage your people? Because it irritates them and is a waste of your time, their time and leads to bad habits? Well it's all true. If you micromanage your people in all that they do, it will drive you and them nuts. But there is a way that micromanaging brings huge benefits to your management performance. Getting into the detail of everything each of your people does, will really damage your relationships with them. Sure, there are times where their hand needs to be he… |
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