The Organisation of Productivity: Re-thinking Skills and Work Organisation

Government policy emphasises five Ôdrivers' of productivity: competition, enterprise, innovation, investment and skills and each of these has been the subject of major programmes of reform. Despite this, and notwithstanding some improvement, UK productivity in terms of output per hour worked continues to lag the performance of other major economies, most notably France, Germany and the US. This report outlines this Ôproductivity paradox' and addresses why UK productivity performance continues to disappoint despite major changes over the past twenty five years. Our core argument is that, while Government policy stresses two aspects of context (macro-economic management and the regulatory environment), the key to productivity remains what happens inside the firm and this is something of a Ôblack box'. The further benefits that may be achieved from pulling levers that impact on the inputs to, and context of, operation are limited. The priority now is to link the external (macro) to the internal (micro) in a more coherent effort to support firms. The report focuses on two areas that are central to how inputs to firms are combined and utilised: skills and work organisation. This report is the outcome of a workshop organised by the Advanced Institute of Management Research (AIM) and the British Journal of Industrial Relations (BJIR), held on 15th June 2006.