For example, employees of printing firms use machines for typesetting, printing, and binding to produce books. Employees of General Nutrition Centers (GNC) use its manufacturing plant (which is the size of four football fields) to produce more than 150,000 bottles of vitamins per day. Motivation and morale of people are very important factors that determine productivity. Improved quality of raw materials and increased use of power have a favorable effect on productivity. An effort to reduce materials and energy consumption brings about considerable improvement in productivity. Job performance of employees depends on their ability and willingness to work.
Treatment of Surplus Materials Already Charged to a Job
It is calculated as the ratio of the quantity of output produced to some measure of the quantity of inputs used. Productivity of each resource can be measured separately. The method of calculating productivity considering more than one resource is called multi-factor productivity approach to measuring productivity. Total productivity (total productivity index) refers to the productivity of all resources put together.
More significant in the lives of many people are the goods which are cheaply available now that had not been invented at Federation. Antibiotics, for example, have played a material role in lowering the mortality from infectious disease from about 30 per people in 1907 to 1 per people in 2017, and cost very little today. Customers are provided with good quality products at low prices. Higher productivity results in better customer satisfaction. Does not consider intangible factors of input and output.
What is productivity?
Third, they determine whether to delegate some production tasks to suppliers. Several factors must be considered when determining the optimal site. Clear communication should be there between management and workers.
So, there are many factors which can influence productivity; such as internal and external. While productivity growth rates can be compared readily across countries, productivity level comparisons require estimates of relative prices across countries. For example, if the cost of a hamburger in Japan is higher than the what is the ratio of output to input cost of a hamburger in Australia then the value of output in Japan will appear higher.
- Material productivity is the ratio of output to materials input.
- Following are productivity indices for individual inputs.
- Profit sharing or bonus, labour welfare measures and good working conditions also help in this objective.
- Most industries do not have proper records of the inputs of land, labor, capital and machines.
- Reducing the input by maintaining the output as constant.
- Close ties with land and native place hampered stability and discipline among industrial labour.
It usually consists of five to fifteen members who collectively identify, analyze and resolve work-related problems and may even implement solutions. Flexitime is a relatively new work pattern which is a major departure from tradition. It allows the workers to set their own work hours subject to a minimum number of hours per week. During a particular period all workers are required to be present. Such a period is called ‘core hours.’ Subject to these limitations workers are given the freedom to decide when they will work.
Most of the highly productive companies all over the world have used it to gain the loyalty of consumers and meet their needs. Satisfaction of customers will result in their loyalty towards the company. GDP can be determined in three ways, all of which should, in principle, give the same result.
Why Political Behaviour In Organizations Increases?
It facilitates full utilization of plant capacity and achievement of production targets. In appraising an organization’s potential for improving productivity, its current operations and management practices should be examined to decide how they should function in the future. A large number of techniques have been developed for improving productivity.
(v) Availability of quality goods at reasonably low prices helps to improve the standard of living in the country. (i) It helps to reduce the cost of production per unit through more economical or efficient use of resources. It is only by improving productivity that employees can get better wages and working conditions and more employment opportunities. Higher productivity brings lower prices for consumers and higher dividend for shareholders.
Higher productivity requires elimination of waste in all forms. Higher productivity leads to economic growth and social progress. Social Factors like Social customs, traditions and institutions influence attitudes towards work and job.
For example, the production schedule for a bicycle may set a time of two hours for each frame to be assembled and one hour for each wheel to be assembled. The routing process is periodically evaluated to determine whether it can be improved to allow a faster or less expensive production process. General Motors, DaimlerChrysler, and United Parcel Service have streamlined their routing process to improve production efficiency. Routing is the sequence (or route) of tasks necessary to complete the production of a product. Raw materials are commonly sent to various work stations so that they can be used as specified in the production process.
The total work content of the job consists of basic work content and excess work content. Mechanization, automation and rationalization are major breakthroughs for increasing productivity. These schemes are effective provided the productivity gains are equitably shared with workers. Wage incentive schemes seek to motivate employees by paying extra remuneration. Profit sharing or bonus, labour welfare measures and good working conditions also help in this objective.
Products and services
Higher productivity is of special significance in an underdeveloped country like India. Mass poverty and unemployment cannot be eliminated without increasing productivity in agriculture, industry and all other areas of human activity. According to John W. Kendrick, “the chief means where by human kind can raise itself out of poverty to a condition of relative material influence is by increasing productivity”. The size of the plant and the capacity utilization has direct bearing on productivity. Production below or above the optimum level will be uneconomical and will tend towards lower level of productivity. The arrangement of machines and position in the plant and the setup of the wore-bench of an individual worked will determine how economically and efficiently production will be ferried out.
The output of simple businesses can sometimes be measured in physical units, such as the number of shoes or tons of steel. However, when thinking about entire industries or the economy as a whole, the range of different outputs need to be added together. Single-Factor Productivity is a measure of output against specific input. Partial productivity is concerned with efficiency of one class of input.