Wednesday, August 11, 2010

Productivity Depends on Management

News Flash: The Labor Department reported that productivity declined at an annual rate of 0.9 percent in the second quarter of 2010.

It is all over the news that worker productivity dropped this spring for the first time in more than a year. Some people believe that this should be an indicator for companies to step up their hiring if they hope to grow in this economic downturn.

I do not find that many companies are taking the appropriate measures to ramp up their hiring practices. Most companies are still depending on doing more with less and the stress of that philosophy is starting to take its toll on management and other key employees. It is more important than ever that management has a complete knowledge of the work itself, exhibits strong interpersonal responsiveness, continues to be creative, and provides useful ideas to be successful.

Most people today believe that being “busy” is the answer. That the more tasks we do right will produce the desired outcome. Management needs to realize that efficiency does not necessarily bring results. It is the effectiveness of the activities that everyone performs on a daily basis that is the key to success. It's not the number of hours you work, but the results of your activities at the end of the day.

Some techniques that management can use to improve employee productivity may include the following:
• Improve the effectiveness of your supply chain
• Improve the pattern of workflow; less duplication of efforts
• Increase quality by focusing on the reduction of error rates to avoid reworks
• Setting up a schedule to reduce or eliminate down time
• Make sure everyone is performing only value-added work
• Improve morale (read article: 9 Ways to Boost Morale)
• Provide an effective development process to improve productivity
• Understand the need for everyone to reach their potential and be goal-oriented.

Most management today has not been taught how to be more effective. If you are not going to ramp up your hiring, then you better make you workers more effective first and foremost. If everyone improves their performance and productivity while lowering their stress, you will reach your company goals.

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