Is There a Mismatch Between Productivity and Workers’ Income?

The American Thinker ^ | December 7, 2016 | Joshua Anumolu

[Let's Roll]

Only if they’re union.

[Political Junkie Too]

In some instances it might sound like that, but there are other real-world considerations.

It's really about viewing things as a system where maximizing a single part of the system might inadvertently sub-optimize the whole system. When viewed like that, then productivity itself becomes a team output rather than an individual output.

Compensation, therefore, has to reflect both the individual and system components. That might mean that the individual is rewarded for quality work (as well as seniority uplifts, etc.), and then everyone gets a bonus (pay-at-risk) if the system produces. This way, you avoid pockets of over-producers competing against each other at a cost to the enterprise, and yet reward everyone for exceeding quotas and quality standards.

If slackers under-perform, the system will under-perform and everyone loses the bonus. The team will self-motivate to keep overall performance of the system in balance.

-PJ

[Let's Roll]

Ironically, this is today’s FR word for the day.

http://freerepublic.com/focus/f-chat/3502180/posts

[hawg-farmer - FR..October 1998]

PUBLIC UNIONS HEH HEH

[1Old Pro]

Unions.......

[9YearLurker]

Once the MSM starts accusing Americans of being greedy again (a la the Reagan era), we'll really know we're winning.