Issue No 151 August 2005
Workplace productivity is better business
Under the seven workplace productivity recommendations, four 'actions' to implement have been identified. Awareness planningThis is an extremely important component and the first step in promoting greater awareness of what workplace productivity means and the potential opportunities that can be created. Diagnostic toolsDiagnostic tools assist businesses in identifying how effectively they are performing, and identify where they may need to improve. There is a range of tools available including: online questionnaires linked to productivity tips; summaries of best-practice findings; skills needs analysis and analytical frameworks. They can all be applied in varying ways. Employee involvement is vital. ImplementationA business is likely to want more information and support to decide what specific actions it wants to take. This could include access to professional support, quality assurance and best practice. Businesses need to be able to access these in a simple, user-friendly manner. Research and EvaluationAs businesses engage in workplace productivity strategies, information, lessons learned and feedback will be collated to build a knowledge base. This base will add to the existing tools to help businesses move towards continuous improvement in the future. |
New Zealand in the 1970's was in the top five OECD countries, currently it is low on the list at number 21. The Government has reacted by setting up a workplace productivity agenda to identify some practical options on how we can improve workplace productivity, and in turn, our standard of living. We look at what issues are involved.
Working smarter to build a higher value, higher skill, higher wage economy is a dream for governments and certainly a challenge. But the Workplace Productivity Agenda, launched in February 2005 as a collaboration between businesses, unions and the Government, see this as essential if New Zealand is to return as a leading OECD (Organisation for Economic Cooperation and Development) country.
Jonathan King, policy analyst at the Department of Labour says that the way productivity is linked to labour and capital are key issues the Workplace Productivity Reference Group is looking at.
"New Zealanders work some of the longest hours in the Western world, so it's not that we don't work hard enough. We have low unemployment and there are a lot of people in the workforce, so that's not the issue."
Workplace productivity refers to how efficiently and effectively a business can turn its inputs, such as labour and capital, into outputs and thereby contribute to the economy.
"Low investment in new machinery, capital, computers and technology in the 1990s is thought to be one factor," adds Jonathan.
"We work long hours, but are underperforming compared to say Australia or the United States — producing less value. The Workplace Productivity Agenda is looking at how businesses can become more productive within their own workplaces. Improving workplace productivity is not about working harder but about working smarter."
An earlier report by the Workplace Productivity Working Group identified seven recommendations that are important in improving workplace productivity in businesses. They are:
- Building leadership and management capability Leadership is the enabler of all strategies and can occur at all levels. It is critical for setting the culture and direction of the business, which in turn leads to productivity.
- Creating productive workplace cultures
These are the behaviours that define the way a business works — its mission statements and how employees treat one another. - Encouraging innovation and the use of technology
New technology and processes can increase the productivity of labour, making tasks more efficient. - Investing in people and skills
People and skills are a key driver of workplace productivity. More skilled workers can improve the output of a business in many ways. - Organising work
Workplace organisation involves the internal structure and hierarchy. Workplace practices can include a flatter management structure, increased employee involvement and team work. - Networking and collaborating
Fostering networks and relationships enables businesses to use each other for technology transfer, manufacturing methods, modes of organisation, marketing or product design. - Measuring what matters
Measuring productivity and the success of businesses' enhanced performance is very important — both internal and external measures should be used.
The Workplace Productivity Reference Group will be shortly surveying 1000 New Zealand businesses about their attitudes to productivity. If you would like more information on this initiative visit the website for case studies and the latest information.
