The Federal Role in Improving Productivity

Is the National Center for Productivity and Quality of Working Life the Proper Mechanism? Gao ID: FGMSD-78-26 May 23, 1978

The National Center for Productivity and Quality of Working Life was established in 1975 to be the focal point for a national effort to improve America's rate of economic growth. The Center established the following objectives: (1) develop more effective approaches to improving productivity in the public sector; (2) stimulate and support industry efforts to improve productivity; (3) coordinate productivity enhancing efforts by federal agencies; (4) encourage labor-management efforts by federal agencies; (5) encourage labor-management cooperation to enhance productivity; (6) recommend ways of improving the rate of capital investment; (7) recommend changes in productivity-inhibiting government regulations; and (8) encourage understanding and use of productivity measures.

The Center's objectives were not expressed in terms that facilitate measuring success or failure. However, the Center was unsuccessful in accomplishing some major functions: (1) no assessment has been made of the extent to which federal programs have enhanced national productivity; (2) no recommendations have been made on how federal programs could be better coordinated; and (3) no recommendations have been made for revising specific laws or regulations that adversely affect productivity. The Center did not accomplish more because: (1) it was not given resources and authority necessary to carry out its responsibilities; (2) it was not given support by Congress or the administration; and (3) it failed to develop an overall plan for achieving its objectives and a system for evaluating the impact of its programs. Although the Center has not satisfactorily fulfilled its goals, continued federal leadership and involvement in productivity improvement is needed.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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