Productivity is a continuous process. It is a measure of a business's output compared to its input. High productivity occurs when fewer labor and material costs (input) are used to produce more output while maintaining quality. When the productivity of a company increased, then it will help to fight competition and create profits.
Productivity is based on two factors. One is workforce productivity that means the total amount of output produced by the workers in a certain period. The second is personal productivity means the output of an individual in a certain period. If a company wants to improve workforce productivity, then they have to increase personal productivity also. Especially in the case of a leader, manager, person in charge that will assist lower staff.
Factor Affecting Productivity
1.) Manpower
2.) Technical factors
3.) Finance
4.) Time
5.) Location
6.) Lack of Training
7.) Employee Satisfaction
8.) Government
1.) Manpower
Manpower is the key asset of any organization, which helps to run the operation of the company. Management has to put the right man in the right place. Example - Team leader will lead the team, guide them, and monitor them to work as per the set plan and goals. The physically fit worker has to place on machinery for producing goods with smoothness.
2.) Technical factors
Technical factors are the most important because the production process happens over it. These include layout and size of the machinery, the correct design of machines and equipment, research and development, automation and computerization, etc. If the organization uses the latest technology, then its productivity will increase.
3.) Finance
Finance is like the pumping heart of the organization. Finance work as the breath of the organization. The organization breathes in the revenue and any other income or breath out expenses such as salaries, bills, loan settlement, rent, etc. Whether it is fixed or working capital, it will lead to the survival chances of the organization.
4.) Time
As it is said, time is money. Management should set a time frame required to perform every activity. Example - production time, idle time, inspection time, the time required for repair and maintenance of machines, etc. If an organization changes the time for an activity, then it should be taken care that other activities or quality of output do not suffer.
5.) Location
In several ways, the location of a business can impact productivity. Factors such as law and order for corporates, infrastructure facilities, nearness to market, nearness to sources of raw materials, climate, skilled workforce, etc. A near business location also makes it convenient for the staff to travel easily.
6.) Lack of Training
A lack of staff training can turn down a business back from success. There are different activities taken place in a company. So, every activity requires a different individual or group of people. The amount of training needed will also differ. Management should ensure that staff has given proper training to be more productive.
7.) Employee Satisfaction
If employees are not satisfied with their work, then it affects productivity. They will not use their full potential to perform the job. The reason behind employee dissatisfaction can be mental or physical pressure, workload, work environment, underpaid, Poor management, Limited Career Growth, Unsupportive Boss, etc.
8.) Government
The government has made a number of rules that the corporate world has to follow. Some of these benefits the corporate while some are not. But companies have to follow these rules in any order. If companies fail to follow these norms, the government can take strict action against the management. These rules also change from time to time.
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