Get Ahead in Business with Concept Of Productivity
Businesses often witness deescalating profit margins and diminishing success rates. As a business associate or manager, you might be perplexed about gradually descending the economy. But the factor that hinges success is the “concept of productivity.” Often when the business cripples to complete a project and strive to sustain success, productivity factor alarms to fulfill company goals and objectives. Many organizations and MNC’s who want to raise competitiveness and boost up their success are investing a lot of money and faith in the methods to track their plants and office efficiency. Before we drill down the topic, let’s discuss what Productivity is?
What is Productivity?
Productivity is the determining which aids the business in tracking effectiveness, economic growth, and competitiveness. According to Economists, Productivity is the measuring unit that measures output per unit of input. But at the corporate level, Productivity is the measure of companies effective at the production process. It calculates by the number of units produced relative to labour hours of work or is determined by the company’s net sales by working hours. Productivity is also a project management tool using which the project’s success can be determined or can be set.
Types of Productivity
Productivity is the classic economic unit to measure the production of goods and services. As a business professional, you might have heard about several types of Productivity. Productivity is crucial as it defines the efficiency of an organization of converting inputs into outputs. Each set of Productivity discussed below is important as it answers a different set of questions. Productivity can be categorized into several groups.
Here are the some discussed below –
- Labour Productivity – In order to enhance efficiency in the organization and boost production, bosses or higher officials often instruct to boost team productivity. Labour productivity is measured by the employee’s efficiency in transforming something into a more valuable product.
- Capital Productivity – When you say business is capital productive, it implies that the firm can efficiently use its capital and resources. Capital productivity shows how better and efficient capital is used to generate output. It’s the ratio of output to the input of capital.
- Material Productivity – Material productivity can be determined by the output generated per unit of material used. Material productivity focuses on enhancing production or generating more outputs by using less material or resources.
Total Factor Productivity – Its unlike usual productivity types, It isn’t simple output by input ratio. Rather it measures all the factors that aren’t captured under labor, capital, and material Productivity. Factors analyzed under the total factor are general knowledge, organizational structures, management techniques, and so on.
Factors Affecting Productivity in an Organizations
Productivity is an important parameter for calculating performance, growth, success, profits in an organization. It’s the desire of every organization to achieve a milestone. But several factors hinder a business from achieving targets. The question which puzzles every professionals and business managers is” What factors influences productivity?”, Surely you might be keen to know about factors that affect Productivity.
Important Factors that Affects Productivity
- Technical Factors: Technology backbones productivity, Without technological advancements or modern types of machinery, you even can’t imagine competing in today’s market. Productivity largely relies on technology. Some of the technical aspects include sizes and the number of machinery, design of equipment, automation, etc.
- Production Factors: Productivity is even associated with production factors. The topmost quality of raw material should be used. Each department should be in well coordination, strategies, and actions should be planned and monitored thoroughly. The production steps should be simplified.
- Personnel Factors: No business could sustain without a team of skilled professionals. Productivity is directly related to personnel factors. The right employees should be appointed. They should be properly trained. A proper and friendly work culture should be developed. Motivation, brainstorming, or appreciation should be done periodically, which boosts confidence and interest in working amongst the employees. Not even mentally, employees should even be motivated financially with incentives, bonuses.
- Organizational Factors: Even if your workers are happy and machinery is in good shape. Several factors can affect your works and halt your production, productivity is proportional to organizational factors. A simple organizational structure should be adopted. Rules and duties to every individual should properly be defined, so there aren’t any internal conflicts.
- Finance Factors: When finance in business is judiciously used, productivity increases. Finance is the life-blood for every business. Cash flow should be efficiently managed and controlled, both overutilization and underutilization should be avoided.
- Management Factors: Management is the aspect of a business that binds all its units and departments. Management should be professional, future-oriented, competent. It should do the optimum utilization of the resources available and should aim for maximum output at a minimal cost. They should build cordial relations with the customers and generate leads and even create a positive and encouraging workplace environment. Efficient management is the key secret of a successful organization.
- Government Policies: Productivity is often gets influenced by government policies. Management should have proper knowledge about the rules and policies. A small mistake can lead to heavy penalties and sometimes even cancellation of license.
Ways to Improve Productivity
Often times you might have Googled about “How can you improve productivity?”, Surely after seeing the results, you might be bemused. The article over the internet doesn’t ease but complicates the process of enhancing Productivity. There are multiple ways available to enhance Productivity. But the prime question is, is the management ready to increase the productivity of the company? Productivity is the main objective, as well as the aspiration of the company. But the management wants to achieve in a shorter period using the limited resource. Enhancing Productivity isn’t a big deal or requires financial investment.
Here are a few simple techniques to improve business techniques:
- Train your Employees About Newer Techniques: Using advanced technologies empowers the organization. Train your employees on newer technologies, as skilled employees give a company a competitive advantage. Training employees keep them motivated and prevent them from switching or resigning from a job.
- Internal Communication: There shouldn’t be a communication gap as it restricts the employees from sharing valuable feedback, suggestions, and so on. Good communication and cordial relations should be there in between employees with managers and vice versa. For such purpose, management can arrange team meetings, seminars that encourage the professionals to interact with the management.
- Motivation: Motivation is an indispensable task for companies; it uplifts the work environment of the organization. A monthly motivational dose can spike the employees’ interest. Employee recognition, appraisal, incentives, improving work facilities are some of the ways for motivating employees.
- Don’t be Outdated: Remember! Don’t be outdated, as it enables the competitors to knock you down in the intense market. Don’t let your computer, programs become obsolete, instead be parallel with the industrial trends and often opt the latest technologies to stay ahead of your competitors.
Your company’s success hinges on the productivity factor. It works on the formula- the more you produce per hour, the lower the production cost, the higher the bottom line. Anything which uplifts the work culture can increase productivity. Numerous ways can boost up Productivity. Such as leisure and entertainment can swing the mood of the employees and make them focused. A cautionary word, organizations, shouldn’t just focus on Productivity as the key driver. But should even consider competitive ability. If you have any strategy or idea on how to Improve Productivity? Then share down below in the comment box.