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. Challenge of ERP Implementation: Q and A with Rick Maurer By Rick Maurer Question: ERPs seem like a good idea, so why is return on investment so low?Answer: Resistance often kills many of these new systems. Even though the promise of what an ERP can do is high, the planners often fail to look at how the users are likely to view this “improvement.” ERPs take away the old tried-and-true ways of working. Even though some of these cobbled together systems aren’t all that good, people understand them. When they are asked to give up what they know and what they can rely… 2. Innovation Management – Diversity Can Make All The Difference By Kal Bishop Companies are welcoming a diverse range of employees (The Sunday Times, April 10 2005). Doh!It is incredible that this concept is getting coverage in 2005. I mean, how many new ideas, novel ideas and divergent thinking is going to come from an all male, white board!Employees tell us that when you bring together a team that represents different perspectives and different experiences, the outcome is richer than if you had a group of people with the same background (The Sunday Times, April 10 200… 3. The 5 Obsessions of a Passionate Employee By Mike Nacke A recent report entitled “How Google Grows…and Grows…and Grows” stated that the 650 people that work at Google are the most passionate bunch of geeks in the high tech industry. Google was also recently called the fastest growing company in history. To mimic their growth and success, passion must be injected into every level of your organization. The quickest and easiest way to do this is to hire passionate people.Passion is an easy thing to spot once you know where to look. By understandin… 4. 5 Ideas To Leverage The 3 Stages Of Career Development In Your Organization By Dan Strakal In most industrialized nations, the average age a student graduates from high school is 18 years old and the average retirement age is 65 years old – a difference of 47 years. On average, most people work 40 to 50 years of their lives. It is well established that during these 40 to 50 years of employment workers undergo at least three distinct phases in their career development:1. The “Bring It On” Stage2. The “Realistic” Stage3. The “Reinvention” StageThe Bring It On Stage ranges from th… |
||||
