The optimist in me sees corporations in the present era as more open to change than they were in the 1990s. Certainly, because of the relatively poor performance of many corporations in the early part of millennial , there seems to be less arrogance in executive suites, and that usually translates to a willingness to consider alternatives.
James O'TooleManufacturing productivity is greatly determined by the design of jobs and how workers are rewarded.
James O'TooleBy all indications, American business leaders are more adept at creating business strategies than they are skilled at human capital management. American entrepreneurs are world-beaters when it comes to creating new businesses, and corporate managers are adept at using the latest marketing, financial, and technological practices.
James O'TooleWhen we spoke about workplaces in 1972 we mainly were referring to old-line manufacturing firms, on the one hand, and Main St. shops and restaurants, on the other. Both of those categories are now insignificant in terms of employment. Today, the economy is dominated by the rapidly growing Low-Cost Operators - national discount and mall chain stores, fast food franchises and supermarkets - which offer employees low salaries, few benefits and little training.
James O'TooleMotorcycle manufacturer Harley-Davidson is a prime example of an American company that uses employment conditions to boost productivity. Current CEO James Ziemer - who started with the company while in high school has negotiated imaginative contracts with the unions representing Harley's workers, agreeing to keep production in the U.S. in exchange for constantly reducing total labor costs through automating tasks and changing work rules. Because Harley regularly reassigns workers whose tasks have been automated to other parts of the company.
James O'TooleIn a nutshell, the ability of American companies to compete in world markets depends on creating conditions in which workers can add sufficient value to justify their higher wages and benefits, much the Japanese auto manufacturers have done in this country. Until unions and mangers understand the necessity of effectively employing the nation's most important resource, the American worker, we are destined to have more Detroits.
James O'TooleEd Lawler and I document that the key to creating good, productive jobs in all industries is to organize work processes and systems in ways that allow employees to contribute significant amounts of "added value" to the products they make and services they provide. When mangers give employees the organizational structure, resources, and authority needed for them to contribute their ideas and efforts, American workers, like those at Harley-Davidson, almost always prove capable of effectively competing against their overseas counterparts.
James O'Toole