Productivity might be described as the rate of production per unit of input expenditure involving time and cost.
Productivity
Productivity might be described
as the rate of production per unit of input expenditure involving time and
cost. Some describe productivity as the judicious use of productive
resources-physical as well as mental. It is the numerically stated measure of
how well an operations system functions and an indicator of the efficiency and
competitiveness of a single firm or department. Productivity is used by people
to mean different things. To the employers, productivity means lower and lower
costs. To the employee it could mean harder and harder work, and therefore lesser real wages than the past years for
work of equal intensity and hardship.
Productivity is considered to be
a function of factors like physical factors, situational factors and individual
factors. An employee’s productivity is determined by that person’s motivation
and ability to perform a task. In case of teamwork, a group’s size, compositions,
norms, interpersonal understanding, cohesion and its leadership would determine
the group’s productivity. In the same way, an organization’s productivity would
depend on its culture, climate, leadership, vision and missions, learning and
entrepreneurship. The exponents of productivity regard labour productivity as
one of the basic rods of measurement of economic development and as one of the
key determinants of national income.
Tom Peters and Waterman, the
specialists on organizational excellence, have paid due emphasis on
productivity improvements that are achieved through people. According to them,
progressive organizations would treat the ordinary members of the organization
as the basic source of productivity and quality gains. These organizations do
not regard capital investment and labor substitution as the fundamental source
of productivity enhancement. Their people orientation is marked by performance
consciousness, but the personal achievements stem mainly from developing
mutually high expectations and peer review rather than exhortation and
complicated command and control systems. They work very hard to cut the need
for intrusive forms of corporate management, believing that the less of direct
intervention from higher management the better it is for the productivity of
the organization.
Peter Drucker (2002), the
renowned Management Guru identified different types of productivity such as
plant productivity, material productivity, financial and capital productivity,
machine productivity and human productivity. Human productivity is further
classified as managerial and labour productivity. He has emphasized
productivity through the following statement “A productivity measurement is the
only yardstick that can actually gauge the competence of management and allow
comparison between managements of different units within the enterprise, and of
different enterprises”.
Poor productivity is the result
of several factors like lack of adequate planning, failure to be proactive in
preparing for alternatives, incompetence, insufficient training, weak
discipline, low standards and disharmonious relationship between the employer
and employees. Other phenomena that could result in productivity problems
include de-motivation, lack of commitment towards job and organization,
tolerance towards wasteful practices, bloated human power, nepotism, impeding
bureaucracy, dysfunctional competition, conflicts and alienation among
employees. Inadequate office support, lack of proper equipments, shortages of
supplies, excessive reporting requirements and unpredictable workloads are also
common situational constraints.
Productivity could also be
affected by certain restrictive practices which might be in the form of
outmoded, irrational or unreasonable rules or customs which unduly hinder the
efficient use of labor. At times, work groups might seek to maintain
traditional rights and prerogatives in the context of changed circumstances and
technological advance. Some times, wage-productivity linkage might have to be
examined for commensurability. Hence it might not be worthwhile for any manager
to aim straightaway at productivity improvement without addressing these
underlying impeding factors.
Productivity in certain cases
might also be impaired due to human causes. This might include pressures from
co-workers to limit one’s performance in order to check work targets from
shooting up or prevent downsizing. Inadequate performance by co-workers could
also affect a person’s productivity if the latter is an internal customer of
the former. There could be situational constraints due to colleagues in the
form of turnover of key personnel and absenteeism. Elton Mayo, the father of
Human Relations ‘School of management thought’ concluded that behavior and
sentiments were closely related. He established that group influences
significantly affected individual behavior, that groups’ standards established
individual worker’s output and that money was less a factor in determining
output and productivity than aspects like group standards, group sentiments and
groups’ security.
The problem of increasing
productivity implies the complete, appropriate and efficient utilization of
available resources of human beings, machines, money, power, land, time and
other wherewithal.
Productivity as a concept connotes a mass attack on
waste of every type of resources and in all fields of production. It implies
development of a constant urge to find improved, cheaper, quicker, easier and
safer ways of doing a job, manufacturing a product or providing a service.
Tags : Human Resources Management - Compensation And Productivity
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