Productivity Quote by William B. Abernathy
““The conventional pay system is antithetical to productivity improvement. Since it pays for time, and productivity is the reduction of time, conventional pay cannot support a productivity improvement effort. It is the worst kind of hypocrisy to ask employees to develop productivity improvement plans when the ultimate outcome will be to reduce that same employee’s pay through staff reductions or cutbacks in hours and overtime. Bluntly, we are asking employees to “Please find a way to cut your pay!””
About This Quote
Source Speech: Business Management Conference, 1990
Pay tied to hours discourages efficiency because higher productivity shortens work time, making the system contradictory.
In simple terms: Pay for time conflicts with productivity gains.
Key Takeaway
Align compensation with outcomes, not hours.
Themes
productivity
compensation
management
ethics
Mood
critical
analytical
Type
advisory
strategic
When to use this quote
- lean manufacturing
- process improvement
- staffing decisions
- budget planning
Key Concepts
incentive design
organizational behavior
Questions to Reflect On
- How can pay structures reward speed without penalizing workers?
- What alternatives exist to hourly wages?
A Different Perspective
May reduce morale if cuts affect wages; requires careful redesign.
