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A major challenge to management in the late 1970s and early 1980s was the need to increase the productivity of American business. Before that, the productivity growth rate of US industry had begun to fall behind Japan and even Western Europe. If the country's economy was 5 to go forward a radical change in productivity was called for.
But to return to the high productivity growth rate of the years when the US was still the world leader required many changes and solutions to problems. Management, for a start, had to be revitalized, re-thought 10 out. The energy problem, both the shortage and the high price, had to be solved. Business operations as a whole had to be improved. Above all, efficiency, basically the efficiency of the management since it directly affects the efficiency of the labor force, had to be improved. This meant better efficiency in employing all the 15 necessary resources, whether they be natural, human or financial.
1. What is the main idea of the passage?
2. Which country or continent was probably the world leader in productivity in the early 1970s?
3. According to the author what was the problem with American management?
4. What does the author imply will happen if the management is not efficient?
5. What does the author feel is the most important way to increase productivity?
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