Over at isixsigma.com, I've read some conflicting comments regarding the effects of the economy on the willingness of employees to cooperate with process improvement. One school of thought is this "If fear of layoffs makes it hard to get employees to cooperate in an up economy, how much more unwilling will they be in a down economy?" The other school of thought is "Employees know their companies are fighting for their very survival and if something drastic isn't done they will go bust, therefore they will be willing to cooperate with process improvement."
I think both schools have valid points. But note that the motivational factors in cooperating in the latter case is fear and desperation. That's not the type of motivation that I think will work in the long run. But hey, it worked for NUMMI when they hired all those laid off GM auto workers in return for cooperation with the Toyota Way.
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