Section Threequality management (TQM) programs have found that they
need fewer employees. Similarly, the process of reengineering,
which is often associated with the adoption of new technology
and the utilization of new computer systems, can reduce the
number of employees required to perform work. Thus, human
resource planners must use appropriate learning curve
parameters, which reflect expected productivity improvements,
in order to avoid overestimating the demand for human
resources.^75
Table 3-2 presents labor productivity data from the U.S.
manufacturing sector as well as the entire business category.
As the data indicate, in manufacturing, productivity increased
substantially from an index value of 93.0 in 1990 to 140, in the
first quarter of 2000. In contrast, the productivity gains were
more modest in the entire business sector, which includes
services. In this sector, the productivity index increased over
the same time period from 95.1 to 116.6. Data for specific
industries, where even greater differences are evident, are
presented in Table 3-3. For example, productivity in electronic
components increased from an index of 100.0 in 1987 to 222.0
in 1996, while there was a decline over the same period for
eating and drinking establishments. In that labor-intensive
service industry, the index declined from 100.0 in 1987 to 93.7
in 1997. In another labor-intensive service industry, hotels and
motels, there was only a slight increase in productivity, 100.0 in