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Personnel Today

Bad managers linked to falling productivity

by Personnel Today 8 Oct 2002
by Personnel Today 8 Oct 2002

Poor management and inadequate planning are two of the main reasons why the
UK’s productivity is falling further behind its main economic rivals, research
reveals.

A global study by Proudfoot Consulting released this week also finds that
other reasons for poor productivity are: morale, IT problems, poor
communication and inadequate qualifications.

Together these factors account for the loss of 92 out of a total of 225
productive working days per company in 2002 across the nine countries surveyed.

The UK fares worse than average, with 110 days out of 225 lost, compared to
France (97), Germany (83) and the US (86).

Proudfoot Consulting chairman Kevin Parry said: "Alongside high and
stable employment levels, productivity growth is viewed as an important driver
of long-term economic performance.

"Yet this report shows many British firms are still only working at
just over half their true capacity. This collective underachievement is not
only costing shareholders and the nation dearly, it’s also adversely affecting
our global economic competitiveness."

The study also reveals that the nation’s poor productivity record is
estimated to be depriving the Treasury of more than £111bn in lost revenue.

Entitled Untapped Potential – a global study of the barriers to optimum
corporate productivity, the study is thought to be unique, as it is based on
data from the micro-economic perspective of a single business unit or company.
It comprises of 1,357 analyses of companies, plus an opinion poll of 2,700
chief executives.

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Nicholas Crafts, professor of economic history at the London School of
Economics, said: "At individual business level, poor management is costing
shareholders in a big way."

www.proudfootconsulting.com

Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

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