Increasing Productivity
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Increasing Productivity

senior editor

Indian firms have been on a decade-long crusade to improve organizational productivity as to be very much present on global map. Much of the productivity improvement efforts have focused on the workforce. The early stages included reengineering jobs, increasing computer usage, and working employees harder.

These approaches have done as much good as possible in some firms. Some ideas for the next step in productivity improvement include:

  • Outsource: Contract with someone else to perform activities previously done by employees of the organization. For instance, if UPS can deliver products at lower cost than a manufacturing company can internally, then the firm could outsource shipping to UPS.
  • Make workers more efficient with capital equipment: A study of productivity in our countries found that in each country the less spent on equipment per worker, the less output per worker.8
  • Replace workers with equipment: Certain jobs are not well done by humans. The jobs may be mindless, physically difficult, etc. For example, a ditch usually is better dug by a person operating a backhoe than by a person with a Shovel.
  • Help workers work better: Replace complicated methods and rules, or find better ways of training people to work more efficiently.
  • Redesign the work: Some work can be redesigned to make it faster, easier, and possibly even more rewarding to employees. Such changes generally improve productivity.

The need for productivity improvement will never end. With global competition there will always be a need to produce more at less cost, which entails working both harder and smarter in many situations.

Individual productivity

A given individual performance depends on three factors: Ability to do the work, Level of effort, and Support given that person.

Recruiting and selection are directly connected to the first factor, innate ability, which involves choosing the person with the right talents and interests for a given job. The second factor—the effort expended by an individual—is influenced by many HR issues, such as motivation, incentives, and job design. Organizational support, the third factor, includes training, equipment provided, knowledge of expectations, and perhaps a productive team situation. HR activities involved here include training and development and performance appraisal.

Conclusion:

Productivity is the word which has its importance in every organization helping it to survive in fierce competition. Even China has build its Export giant image on global map for its concept produce more at less cost based on these increasing productivity.

By Nilesh Shah

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