111710_TorDahl_Jobs

111710_TorDahl_Jobs - Taken from a Productivity Newsletter...

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Taken from a Productivity Newsletter dated 11/11/10 - please send request to [email protected] http://www.tordahl.com/newsletters.html Economic Growth Can Happen In Only Two Ways: We Can Increase the Labor Force, or We Can Increase the Productivity of the Labor Force. The election was all about jobs. That means that it was all about the economy. After all, the only way to get more jobs is to grow the economy. That was the argument I used in a presentation to the Chinese Academy of Science in 1989. I had been invited by the renowned Dr. Shih-I Lu of the University of Beijing to open the China Chapter of the World Confederation of Productivity Science (WCPSCC) and to negotiate with Chinese leaders about China hosting a World Productivity Congress. But first I had to make the case to the Academy about the desirability of a productivity focus for economic growth. I described how Japan had become the second largest economy in the world by focusing on quality and removing all waste. My own presentation was about an alternative — a focus on productivity — which, I stated, would provide China with a more direct linkage to growth while giving China quality for free. One year earlier, having become president of the World Confederation of Productivity Science, I had established a committee during the World Productivity Congress in Montreal with the explicit task of defining productivity operationally . As a starting point, I submitted some research findings that we (TDA) had published. They supported a definition that gave an operational interpretation to the Output/Input ratio. [*] This interpretation was adopted by the World Confederation of Productivity Science as the official operational definition of productivity: Productivity happens when you do the right thing, in the right way, all the time. [†] Amazingly, on a subsequent trip to China in 2007 under the auspices of the WCPSCC and a leading industrialist, Mr. Sun Cheng, I read an inscription at the site of the world’s largest Buddha that summarized Buddhism using exactly the same sentence. Doing the right thing is called effectiveness . Doing it the right way is called efficiency . Doing it all the time is called perfect occupancy . Problems with quality can occur only if the wrong thing is done, or if the right thing is done incorrectly, or if the right thing is not done in the right way all the time. At the 1989 presentation to the Academy of Science, I stated that economic growth could be derived from only two conditions: Either when the labor force is increased, or when the productivity of the labor force is increased. Since China had implemented its one-child-per-family policy, labor force growth would
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This note was uploaded on 10/24/2011 for the course IE 334 taught by Professor Gard during the Spring '11 term at Lehigh University .

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111710_TorDahl_Jobs - Taken from a Productivity Newsletter...

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