High performance work systems - helping improve productivity for the logging industry

Authors: Spencer Hill
Publication: New Zealand Journal of Forestry, Volume N.Z.J.For. 2014, Issue N.Z.J.For. 59(3) 2014, pp 25-30, Nov 2014
Publisher: New Zealand Institute of Forestry

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Abstract: Productivity is a measure of efficiency of the use of inputs such as labour, capital, land and energy to outputs of goods and services. Nationally, productivity can be measured as GDP per capita. The importance of increasing productivity is that it is one of the major ways to improve the nation’s long-term material standard of living. Statistics New Zealand has been capturing productivity-related statistics since 1978 and comparing this country’s productivity to the 34 participating countries of the OECD, the Organisation of Economic Cooperation and Development (Statistics NZ, 2014). New Zealand’s GDP per capita has grown at a faster rate than the average OECD participants, but the labour productivity levels are lower than the OECD average. Agriculture and forestry labour productivity performs better than the manufacturing industry. In 2004 the government began to investigate and implement strategies to identify the main issues affecting New Zealand’s workplace productivity. As part of its drive to lift this country’s labour productivity, the government launched a workplace initiative to provide practical support to firms wanting to introduce high performance work (HPW) practices. HPW was seen as the most applicable system as its focus is on stimulating more effective employee involvement and commitment to achieving high levels of performance. Other management philosophies tend to focus more on process improvement rather than people motivation and empowerment. The goal of HPW is to promote wider implementation of HPW systems among New Zealand enterprises, to secure higher productivity through effective employee engagement and improved workplace practices. In this system, employees are to a large degree self-managing and only rely on leaders to develop a clear vision, mission and goals. Highperforming employees work as though they are the owner of the company and not simply its employees. As such, they should feel more responsible for the company’s success and therefore want to do more to contribute to that.

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