The Appropriate Federal Roles in Improving National Productivity

In spite of the creation of a National Center for Productivity and Quality of Working Life, the U.S. productivity growth rate has continued to decline in recent years. Federal involvement in improving productivity is important because only the Federal Government is in a position to deal with issues on a national basis and to bring about needed changes. Productivity trends in the public sector are comparable to those in the private sector. Efforts at improving Federal sector productivity should include management incentives which could be provided through proposed civil service reforms. A focal point (probably the Civil Service Commission, or the proposed Office of Personnel Management) is needed for productivity improvement within executive agencies. The Federal Government could aid State and local governments to improve their productivity through Federal grants and through limited management improvement assistance. The Government can set the framework for productivity growth in the private sector through such areas as economic policies, tax laws, regulations, and funds expended to support productivity advances. Government policies could also supply the financial incentives for capital investment in technology which could lead to long-term productivity improvement. The Government must recognize the importance of worker satisfaction in improving productivity. Private sector productivity efforts should be guided by a National Productivity Council consisting of representatives of selected Federal agencies and be co-chaired by the Secretaries of Commerce and Labor.