PRODUCTIVITY, CHANGE AND INNOVATION: HOW

ITS EFFECT ON COMPETITIVENESS

PREPARED BY

AHMAD SAUFE BIN NAWI

2009114839

SUMBITTED TO:

ASSOCIATE PROFESSOR DR. AZIZ BIN SULAIMAN

22ND FEBRUARY 2010

 PRODUCTIVITY, CHANGE AND INNOVATION: HOW ITS EFFECT ON COMPETITIVENESS

Company nowadays faces many challenges on how to remain competitive in the

stiff market. In the era of globalization, each market player must have their own strategic

business plan in order to cope with more complex issue such as free trade agreement,

human capital development, and volatility of economic scenario and deregulation of

economic scenery. In the context of Malaysia economy, the government stress to the

market player to be more productive, innovative and adopt the changes happen in the

economic to be more competitive. Business in Malaysia is expected to increase their

productivity by emphasis on the quality of the goods and services produced with the

most efficient ways such as using the minimum labor capital. As a result, it will reduce

wastages and increase efficiency of the organization. High productivity growth is vital for

the long term growth of the nation and it can be achieve whereby the organization

produced high productivity and generate high revenue per worker. The increasing trend

of consumer demand for better goods and services and competition become the distinct

forces driving up productivity. The organization somehow must increase their

productivity to meet the incremental of consumer demand for quality products and

services. On the other hand, the introduction of competition leads the organization

towards efficiency in producing goods and services. This situation makes the consumer

less tolerant of substandard goods and services and is willing to fork out quality and

satisfactory.The organization must be sensitive to change in order to be competitive in

the stiff market. In addition, the leadership of the organization must have the ability to

learn and be prepared before any changes occurred. Peoples in the organization
especially the bosses give their subordinates the space needed in order they can learn

and familiar with the change so that at the end of the day the process of adaptation of

the changes will be smooth. The changes made by the management should consider

from bottom to top level of employees in the organization. It signifies that the change

should start from the grass root and then follow by the top management. In another

word, the manager strengthens the change from the root before adopting the change to

the top level of management. On top of changes and adaptation should be consider by

the management is to be innovative to remain competitive in the market. Besides having

high productivity and ability to adapt changes, the market player should emphasize on

some innovative ways in increasing their productivity and same goes to the adaptation

changes in the economy. The manager should have be creative and innovative in

adopting changes for instance innovative effort made by Packet 1 Sdn Bhd (internet

provider) in promoting their product (low and affordable price) and that kind of effort can

be classified as its distinctive competency. In a nut shell, to be competitive in the market

nowadays the top management must be prepared to adopt the changes suit with

organization goals and objective by using innovative ways in increasing the productivity

so that there will be efficiency in making business .