ONE of the agreed principles in labor productivity improvement is that when a kaizen problem-solving team discovers a new work system resulting in worker reductions, management must not be trigger-happy to terminate the employment of those who are affected. The workers may otherwise not actively participate in any productivity improvement effort.
For context, let's define the meaning of "labor productivity." According to the Asian Productivity Organization glossary, labor productivity is "the value of goods and services produced in a period of time, divided by the hours of labor used to produce them." It refers only to the ratio of input of all workers assigned to make a product or perform a service (output).
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