This paper examines the ongoing tension between employers and employees regarding workplace production standards. It outlines how employers use production standards as a tool to control costs and maintain profitability on behalf of owners and shareholders, while employees may view these standards as difficult, unfair, or inequitably applied. The paper draws on equity theory to explain employee perceptions of fairness and discusses circumstances — such as illness or injury — that can prevent workers from meeting targets. It also considers the role of labor unions, comparing the right-to-strike approach with arbitration as competing strategies for resolving production standard disputes.
Production standards have been a point of contention between employers and employees for many years, as both parties have legitimate but potentially conflicting interests. Examining both perspectives demonstrates the complexity of this ongoing workplace tension.
The primary role of a business is to generate profit for its owners, including shareholders. Employers may be the owners themselves or agents acting on behalf of the owners, so they bear a responsibility to ensure the efficient use of resources. One mechanism for achieving this is the use of production standards: if employee output can be increased, staff are used more efficiently and the cost of production per unit decreases, since the same employees are producing more (Sloane & Witney, 2010). Conversely, if employees do less work or achieve lower levels of output, the effective cost of production increases.
Employers are motivated to reduce costs, particularly when owners and shareholders apply pressure to maintain or grow profits. If production levels fall far enough, the firm may cease to be profitable altogether. Production standards are therefore seen as a necessary control mechanism for sustaining profitability (Sloane & Witney, 2010).
From the perspective of employees, production standards may be genuinely difficult to meet. While some common interests do exist — for instance, if the company fails and closes, employees lose their jobs — the main points of dispute concern how production standards are set, how they are monitored, and how they are enforced (Sloane & Witney, 2010). Employers may seek the maximum possible return, which employees can perceive as unfair, especially when targets are hard to reach and not all workers are equally capable of meeting them.
The manner in which standards are created and implemented is often a source of grievance. Expecting more from employees without accompanying changes — such as increased remuneration or additional resource support — is seen as inequitable. This perception is supported by equity theory, which holds that employees assess the fairness of their situation by comparing their inputs and outputs to those of others (Buchanan & Huczynski, 2010). When that comparison appears unfavorable, motivation and morale suffer.
"Illness, injury, and enforcement fairness issues"
"Union approaches to resolving production standard disputes"
You’re 53% through this paper. Sign up to read the remaining 2 sections.
Sign Up Now — Instant Access Already a member? Log inAlways verify citation format against your institution’s current style guide requirements.