Why is this Subject Important?


Productivity improvement is important for a wide variety of reasons. Most importantly, productivity affects our ability to compete in world markets. As previously indicated, the key to being price competitive in world markets rests with productivity improvement not out sourcing. In many instances, out sourcing is fools gold. It looks good but is not real. This occurs when the outsource facility management and employees do not completely understand the  mission to be accomplished. This is often the case with outsourced customer service operations. An additional penalty paid by those who outsource this function is that they cannot learn from their mistakes by using customer service complaints as a resource to discover errors in the present operating and information systems, by reviewing the types of errors that the organization makes and correcting them.

When proper motivational techniques are used, employees can be quite helpful in pointing out ways in which present practices can be improved. Our society produces individuals who are able to think and act independently. These qualities do not exist to the same extent in many other cultures. This independence of thought and action are the reason that our workers are uniquely positioned to identify ways to do things better. This enormous opportunity is often squandered by organizations which do not understand these points.

A review or existing methods and procedures can often reveal areas for which a review of present practices may be appropriate. As a result of such a review, it is possible to develop a better way to do things.

Since there are large opportunities for methods and procedures improvements in most organizations, productivity improvements have fertile fields in which they can be sown.

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