Productivity

Managemen
t
 Defining Productivity
• Productivity is a measure of the efficiency of production.

• It is a ratio of actual output (production) to what is required to produce it

(inputs).

• Productivity is measured as a total output per one unit of a total input.

 Improving Productivity
If the level of output is increased faster than that of input, productivity
will increase.
Conversely, productivity will be increased if the level of input is decreased
faster than that of output.
An organization may also realize a productivity increase by reducing the
input by a large level that reduces the output by only a small amount.
Finally, producing more output with a reduced level of input will result in
increased productivity.
 Steps to improve productivity
Develop productivity measures for all operations; measurement is the first step in managing
and controlling an organization.

Look at the system as a whole in deciding which operations are most critical, it is over-all
productivity that is important.

Develop methods for achieving productivity improvement, such as soliciting ideas from
workers (perhaps organizing teams of workers, engineers, and managers), studying how
other firms have increased productivity, and reexamining the way work is done.
 Steps to improve productivity
Establish reasonable goals for improvement.

Make it clear that management supports and encourages productivity improvement.

Consider incentives to reward workers for contributions.

Measure improvements and publicize them.

Don't confuse productivity with efficiency.

Objectives

• To provide a link between the establishment

of an effective productivity measurement
system and the human task of improving Productivity
organisational performance
• To improve managerial, planning and Improvement
problem-solving skills
• To improve teamwork and human relations
Programs
• To set up an effective productivity
information system
• To trigger a breakthrough to a higher level of
organisational performance
• To help revitalise the organisation and its
climate
 1. Obtain Upper Management Support

2. Create New Organizational Components

Productivity 3. Plan Systematically

Improvement
Program 4. Open Communications

5. Involve Employees

6. Measure and Analyse

 Benefits of improved productivity
Profitability

Increasing productivity lets a firm make more products without increasing costs. Producing more
creates the opportunity to make more sales, which in turn offers the potential to increase
profits.

Business Growth

Increasing productivity can give a firm opportunities to grow. High productivity and revenue can
give companies the cash flow necessary to take risks, make investments and pursue new
projects.
 Benefits of improved productivity
Meeting Consumer Demand

The demand small businesses face can come and go in spurts, which makes it difficult to plan exactly
how many workers and how much equipment is necessary. Increasing productivity can improve a firm's
ability to respond to shifting demand without having to take on new employees or expand.

Competitiveness

Increasing productivity can boost the level of competition in a market. When one firm is able to be
more efficient with its resources, it encourages other companies to improve productivity as well in
order to compete.
INDUSTRY EXAMPLES OF PRODUCTIVITY
WORK LIFE
BALANCE

One needs to have a

good work life
balance to ensure
maximum
productivity
 Policies in the organizations with
reference to leave arrangements:

Carers Leave
Study/ Training leave
Career breaks
Cultural / Religious breaks
Bereavement leave
Policies in the organization with reference to
Parenting and Pregnancy Policies

1. Unpaid maternity/ paternity and adoption leave

2. Paid Maternity leave
3. Paid paternity leave
4. Paid adoption leave
5.Employer assistance with childcare
 Policies in the organization: with
reference to flexible work arrangements
Job Sharing
Flextime
Part-time work
Compressed hours
Shift work
Annualized Hours
Home Working
Mobile Working
 Hot Desking
 Gradual Retirement