Importance of Productivity

by

G.M.S.P. Aponso 5266FM2009008

Productivity
Productivity is the result or the sum of all effort that it takes to deliver a product or service. Productivity is frequently referred to as output and, to some degree, can be measured. The output generated by a person, organization, or other entity is measured in terms of (the number of) units or items produced and services performed within a specified time frame. Thus, productivity is the economic value of goods and services. It becomes the value or result of the "price" of a product or service minus all "costs" (supplies, materials, human labor, etc., which frequently are monetary) that go into the effort. In the simplest terms, productivity is the ratio between the quantity of goods and services produced and the quantity of resources used to produce them. Economists have come up with a number of intricate ways to measure productivity, but any business owner knows that if he or she is producing more of a product with the same number of resources, productivity has gone up. Of course, the opposite is true if fewer products are being produced.

Why productivity is important for me ? Productivity literally means individual ability to produce. While many may think that ones productivity just builds ones own business or helps building the business of the company they are working on, they are wrong. Individual productivity, before helping his/her job or business, helps them in the first place. I think that it is more important for individual to know what he/she could draw from individual productivity, rather than knowing what others could use from individual productivity. According to Earns fame If you are able to produce more than what you are actually expected to, then you get appreciation. If you can not produce the amount expected of you then you are deemed less productive or incapable of producing stuff. Hence if you are productive, at least to the expected level, then you can easily earn fame at your work or family. A highly productive person is always sought for advice, new projects, representation and so on and hence your productivity will earn you fame. He easily develops a brand. A productive person is not just someone, he/she has inbuilt, high profile qualities that make him productive. For instance, he/she has the right attitude, an organized work schedule, lots of confidence and motivation and his/her passion to improve expertise in the field of his work. As a consequence, his self esteem develops perfectly.

Importance of Productivity

by

G.M.S.P. Aponso 5266FM2009008

The importance of productivity measurement in an organization. Most businesses exist for the primary purpose of earning a profit. Earning a profit requires maximizing sales and minimizing costs. Productivity involves getting as much as possible accomplished in as little time as possible. Productivity of an organization is defined as the ratio of outputs produced by the organization and the resources consumed in the process. Thus we can describe productivity mathematically as: Productivity = Output / Inputs Here the output refers to the quantity of and services produced by the company, and inputs refers to the quantities of resources such as labor, material, physical facilities, and energy consumed for producing the same.

Productivity is used to assess the extent to which certain outputs can be extracted from a given input. We can measure productivity for a single input resource such as manpower used, or for multiple resources. There can be many different types of productivity measurement depending on the type of resources considered. Some of the most common types of productivity measurements include labor productivity, machine or capital productivity, material productivity, and land productivity. Here the term land is used to denote all natural resources rather than just land.

Measures of productivity describe how well the resources of an organization are being used to produce input. They are very useful in achieving and maintaining high level of performance in any organization, particularly in improving the efficiency of various operations within the organization as well as for the total organization. Productivity measures are also used for planning, monitoring, and improving performance at national levels.

Productivity measures provide a means to managers to ascertain, plan control and improve efficiency at different levels of organization. The also facilitate comparison of performance of different companies within a market or industry. This helps manager set improvement targets for organizations long term strategic plans, and in developing suitable competitive strategy.

Productivity measures are also essential for motivating employees through payment of incentive for high productivity. In addition, the availability of comparative performance data itself becomes a tool for self motivation of employees.

Importance of Productivity Productivity Gap

by

G.M.S.P. Aponso 5266FM2009008

A productivity gap (or capacity gap) is the difference between what a person can do and what that person actually does. That is, every person has the ability to achieve at a certain level. If a person is not motivated and is not working up to potential, that person's productivity gap is usually quite large. The same principle applies to a work team, organization, and so on. It is desirable to estimate potential (of a person, work unit, company, etc.) to determine where productivity gaps exist (and how large they are) and find ways to close them. Motivation Productivity is directly related to how motivated a person is to perform a task or activity. Many businesses devote much time and effort to finding ways to motivate employees. Worker enhancement programs (for an individual, team, company, etc.) that are built on ways to motivate workers (toward self-motivation and long-term motivation) can optimize productivity. Organizations that are most successful in motivating workers provide a variety of programs (formal and informal avenues within and outside the organization) to meet the needs of their employees. Productivity Benchmarks Factors that enter into productivity benchmarking for an organization include overall operations, worker training, technology, continuous quality improvement, and management philosophy and strategy. Management strategy includes how and at what level decision making takes place usually greater productivity gains are realized when decision making is pushed to its lowest level possible and is still effective. Also, an organization's efficiency may depend just as much on borrowing and lending strategies (e.g., requiring immediate payment on goods sold while practicing delayed payments to creditors) to maximize resource availability as it does on efficient operations and a safe environment. Thus, there are many important factors included in maximizing ROImost factors depend on making the right decisions at the right time. What is a good decision for one company may be bad or devastating for another. Productivity Growth and Economics Productivity growth is defined as a measure of the amount of goods and services that are produced during a specified period of time. Once a standard has been determined, the standard (benchmark or identified level of production) becomes the measure against which all future production can be compared. The annual growth rate is of particular interest to individuals, since the productivity growth rate is directly proportional to a person's wealth. That is, as productivity levels go up, so does an individual's buying power. In turn, the total economy benefits from the boost.