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Jenel Stelton-Holtmeier

Are Recent Productivity Gains Driven by Fear?

By    Jenel  Stelton-Holtmeier 
May 19, 2010 Comment (1)
Recent Harvard blog says that it may be and that improved productivity may not be sustainable.
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In this current recovery, the unemployment rate is still sky-high (9.9 percent for April), but productivity rates have not dropped. That means fewer people are working fewer hours to do the same amount of work we were doing back when the economy was healthy, according to a recent Harvard Business Review blog. Even as companies begin to ramp up production, they aren't adding many workers. Instead, the current work force continues to be expected to keep up with demand.

This may work for awhile, but experts are starting to see signs of cracking. The blog from Harvard Business Review highlighted how the continued move toward "more, bigger, faster for longer" might not be such a great thing.

Instead, the higher productivity levels are a result of fear, according to blog author Tony Schwartz, author of The Way We Work Isn't Working. And as a result of that, the productivity we're seeing is somewhat superficial and not sustainable.

Productivity numbers measure quantity as opposed to quality, and if your primary measure is quantity, odds are that quality will suffer in order to meet the new expected levels of output per person. And fixing that loss of quality could take longer than doing the entire project would have taken if things were done right the first time. Schwartz cites the recent problems at Toyota as an example.

The key is finding a balance, and making sure you're not overworking your work force. If demand is ramping up, you may have to add people back to the work force - even if it's just temporary workers until you know if the demand is sustainable.

What do you think? Comment below.

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  • Jenel, I hear it every day in my business. "They (meaning management) cut our team in half and now that business is getting better they want us to produce as much as we used to when we were fully staffed."

    In my opinion, something has to give and it may have to happen by the end of the year. Either demand and the workload will slow or employees will begin pushing back, passively of course.
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