Productivity a corporate drive, not an individual one
I disagree with the proposal that bonuses should depend on a department’s productivity, let alone a team’s or an individual’s. The measurement of productivity is fraught with possible complications (“Productivity-based reward system is a must”; Dec 9).
Productivity is officially measured by output per man-hour of work. But in how many companies is it possible to track the overtime of each worker, the total amount of hours worked at any particular department or the hours spent telecommuting?
Many people have a dangerous misconception that productivity is about output per person, without considering the hours worked, which may result in workers putting in unnecessary hours to achieve ever-higher production goals.
Moreover, in many industries, the natural business fluctuations may have nothing or little to do with productivity, especially in the service industry. Rewarding people for natural fluctuations is meaningless.
Improving productivity is instead about changing the mindset of everyone in an organisation, starting from the top. In the Toyota way, any employee is empowered to stop production upon noticing a possible defect.
Also, employees are encouraged to continually suggest process improvements. The key here is the empowerment of everyone in the organisation because of an enlightened mindset among the managers.
In other contexts, it may be about bosses clarifying — and putting into practice — that what matters is output, not face time spent idling in the office. It is about managers enforcing breaks for workers who might otherwise overwork and become less productive the following day or, worse, burn out. It is about inculcating a culture of openness to productivity-improving practices.
More generally, it is about organisation-wide enthusiasm and drive towards improving both employee well-being and the bottom line. In companies with this attitude, productivity improvements come naturally.
The rewards system has a part to play but is insufficient by itself, possibly even counterproductive. A wider cultural change is necessary.
