Despite good news on employment figures and steady, if sluggish, economic growth, the British economy is still plagued by a perennial problem – the productivity puzzle.
The UK is said to be missing out on £130bn in output every year, with international comparisons alarming. The average German worker could finish early on a Thursday afternoon and still produce as much as their British counterpart who has finished at the end of their Friday shift.
French and US workers also out-produce their British rivals by a similar margin.
Management
The figures have left economists scratching their heads and UK business leaders calling for an investigation into the causes of this national crisis. Many experts now believe that British management is part of the problem rather than the solution. Although the leading British managers are on a par with their rivals in competing countries, there is a fear that the gap between the best and the rest is growing.
This is seen as surprising, given that Britain has undertaken a 30-year experiment in revamping industrial relations and cutting red tape to encourage managers. The workforce has also been significantly up-skilled. The theory was that once this business-friendly environment emerged, productivity would rise; however, the result has been more mediocrity whilst executive pay has soared. This could also be due to a lack of the right equipment and resources in some cases like a quality break room for employees to go and relax. If you can’t sit down and rest on a comfortable seat like the selection of Reception Chairs you can source from https://www.bestbuy-officechairs.co.uk/reception-chairs/ it could affect productivity and even cause workers to call in sick.
Warehousing
What is evident is that poor management can impact on workforce morale and productivity. This may not be down to individuals, with bad business models leading to bad management.
Poor decision-making can impact the manufacturing industry. One example is warehousing, where goods may not be moving efficiently. Good managers will monitor in-out timings and look outside domestic markets to improve efficiency.
By understanding what is impacting their productivity and thinking outside the box, managers can have a significant impact on their company’s performance, but are they encouraged to act? A recent Productivity Leaders Group report suggested that most under-performing firms failed to realise their own predicament and were unable to find solutions. Some companies have been underperforming for decades without realising it.
Seeking out export markets and introducing technology are the best ways to improve productivity. British management is going to have to tackle this problem in the challenging times ahead.