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Mar 9, 2010
Productivity? Win workers' loyalty
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IN RECENT discussions on the issue of low national productivity, there was some confusion and the blame seemed to have been placed largely on workers. However, we cannot boost economic productivity just by urging workers to work harder and smarter.
Labour productivity is a complex issue that requires joint efforts by the Government, management and workers to achieve positive and lasting results. Of all these players, management has the most critical role to play.
An individual worker is like a cog in a huge machine which cannot make the whole system move faster simply by moving faster itself. The whole configuration has to be geared towards the common direction for the whole machine to move forward efficiently.
When I was a consultant with the then National Productivity Board in the 1970s, the emphasis was mainly on technological upgrading, such as automation and computerisation. Today, the focus is primarily on labour productivity. Of course, greater knowledge and better skills of workers are helpful, but without a favourable environment in the organisation, an individual worker can do very little.
To make the environment conducive to higher productivity, the management must provide sufficient incentives for workers to strive towards common goals. It has to be receptive to new ideas from workers and recognise their contributions. A fair and equitable appraisal and reward system is crucial. Promoting a sense of belonging is equally important.
The lifelong employment system in Japan has contributed significantly to its high productivity in the past. But diminished emphasis on the human factor, due largely to retrenchment and early retirement, has reversed the trend. If modern corporations continue to focus mainly on the bottom line and do not place sufficient emphasis on the need to promote worker loyalty and sense of corporate belonging, it will be an uphill task to improve economic productivity.
Jackson Chia
Productivity? Win workers' loyalty
<!-- by line --><!-- end by line -->
<!-- end left side bar --><!-- story content : start -->
IN RECENT discussions on the issue of low national productivity, there was some confusion and the blame seemed to have been placed largely on workers. However, we cannot boost economic productivity just by urging workers to work harder and smarter.
Labour productivity is a complex issue that requires joint efforts by the Government, management and workers to achieve positive and lasting results. Of all these players, management has the most critical role to play.
An individual worker is like a cog in a huge machine which cannot make the whole system move faster simply by moving faster itself. The whole configuration has to be geared towards the common direction for the whole machine to move forward efficiently.
When I was a consultant with the then National Productivity Board in the 1970s, the emphasis was mainly on technological upgrading, such as automation and computerisation. Today, the focus is primarily on labour productivity. Of course, greater knowledge and better skills of workers are helpful, but without a favourable environment in the organisation, an individual worker can do very little.
To make the environment conducive to higher productivity, the management must provide sufficient incentives for workers to strive towards common goals. It has to be receptive to new ideas from workers and recognise their contributions. A fair and equitable appraisal and reward system is crucial. Promoting a sense of belonging is equally important.
The lifelong employment system in Japan has contributed significantly to its high productivity in the past. But diminished emphasis on the human factor, due largely to retrenchment and early retirement, has reversed the trend. If modern corporations continue to focus mainly on the bottom line and do not place sufficient emphasis on the need to promote worker loyalty and sense of corporate belonging, it will be an uphill task to improve economic productivity.
Jackson Chia
