IEE Management & Design Division: Chairman´s address. Productive labour

Labour productivity, important to industrial competitiveness, is difficult to measure and is inadequately approached by many managers, including engineers. Efficiency(or performance) alone does not ensure high productivity; the usefulness or relevance of the work done needs to be taken in to account. A working definition of labour productivity is suggested, and productivity indices used by British Telecom in past years are considered. A more satisfactory way of measuring year-on-year productivity improvement, without necessarily measuring an absolute value, is sketched. The main factors making for increased labour productivity in telecommunications operating businesses are said to be improved technology, substitution of capital for labour, working-method changes, computerisation, motivation and manpower planning. These factors interlock complexly, and various examples are given, drawn from the author´s experience with British Telecom. Quality and productivity are stated to be fully compatible, not antagonistic. Manpower planning is briefly discussed. The engineer´s responsibility to society is argued to include an obligation to contribute to the solution of employment problems stemming from increased labour productivity.