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Author Topic: Who is responsible for how much productivity? [Locked]
Ptilk  4 stars
Title: Creepy old pirate
Posts: 2,359
Registered: 2002-2-13 14:52:58
The workers who make the stuff are 100% responsible for productivity.

That's what productivity is. Amount of stuff created/number of workers...per whatever time unit you want.

In that formula, management, is counted just like any other worker. You know, because they are.
Rosaria  2 stars
Title: They call me Mellow Yellow, quite rightly.
Posts: 477
Registered: 2003-8-22 10:07:30
I'm asking Paul how he's measuring it. I should have addressed my post to him.

 

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paulg_68  4 stars
Posts: 2,469
Registered: 2009-7-27 18:45:54
Personally I'm measuring productivity in widgets produced.

That's irrelevant though since the question is directed to you. Your answer should be based on how you personally would measure productivity.

 

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Moe_Nox  4 stars
Title: In Moe We Trust
Posts: 1,962
Registered: 2007-2-4 12:17:56
Any causation that increases the effect of subject A is 50% of the increase, with the original subject's contribution equally 50%.
Numerically in your example Paul, the workers would be credited with 15 widgets and the manager with 5.

 

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theredkay1  3 stars
Posts: 611
Registered: 2008-5-16 10:37:09
The innovator is responsible for some of the productivity gain. If the workers use new skills they are responsible for some as well.

Wages and compensation dont really flow to the responsible party though....most companies arent mailing checks out to those most responsible for their productivity (inventors of electricity, fire, language, the wheel). They are giving out checks based on the particulars of the labor market at the time.

Dividing up responsibility is nearly impossible in the real world and is swamped by labor market pressures from trade (or trade barriers).

Another thought is what drove the innovator to push for this new process? Usually its high wages to workers that create incentive to do things more efficiently. The minimum wage pushes up the floor on prices. So maybe its partly the innovator, partly the workers....but mostly Obama!
Bonzoboy1  3 stars
Posts: 885
Registered: 2008-8-1 18:04:29
We compensate the manager of our company very well because he is efficient, productive and damn good looking.

 

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reesescups  4 stars
Title: //Captain America
Posts: 2,537
Registered: 2003-5-26 14:45:53
Bonzoboy1 posted:

We compensate the manager of our company very well because he is efficient, productive and damn good looking.




 

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Sin_of_Onin  4 stars
Posts: 1,307
Registered: 2005-6-29 08:21:12
paulg_68 posted:

Suppose you have 10 guys who each produce 10 widgets per day. Then you assign them a new manager. He trains them better, he develops better manufacturing methods, he organizes them better, etc. After a few months, those exact same workers are producing 20 widgets each per day.

How much productivity do you credit to the workers and how much do you credit to the new manager? I'm looking for your opinions on how you see it.





In economics you pay them the market rate for their job.

The widget makers will probably get 5 widgets worth before and after. The Manage may get 10 or even 15. The person who owns the widget factory will get the rest.

 

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Eager_Igraine  4 stars
Posts: 1,036
Registered: 2002-11-21 11:55:52
NuEM posted:

The increasing amount of widgets on the market drives prices down, whereas the increased demand for widget raw materials drives prices for those up. The company is losing profits and in reaction to that fires 5 of their 10 guys. The worst can be avoided thanks to a government bailout. The new manager gets his golden parachute. Because of his excellent contacts he's soon hired by another company, making more than ever. The 5 widget makers that got fired are still looking for a new job.

What do I win?

 

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