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Discuss the Impact and Pros and Cons of New Productivity

Presented to:
Perry Barton

Team Project
MGMT 2215

By:
Charlene Smith

Date:
March 26, 2015

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Discuss Impact and Pros and Cons of New Productivity


In todays society, new productivity seems to be measured globally by numerous policy
makers and executives which contributes to its pros and cons. Many managers often face the
ultimate challenge of discovering ways to boost productivity of both knowledgeable and skilled
employees alike. This challenge alone could potentially dominate the management agenda of
future decades to come. Even more importantly, it could determine the competitive performance
of companies throughout the nation. This paper will focus on the how productivity plays an
importance role in organizations, which correlates to the pros and cons of productivity.
According to research, productivity has no single comprehensive definition. Productivity
is defined as an industrial context is output of an aspect of production per unit of input
(Archive Productivity). Productivity is also described as a systematic technique that is used to
measure the quantity of output, mechanical equipment, the production of goods, providing
quality services for the purpose of creating income. There are many benefits when it comes to
improving productivity for finance managers in particular. For instance, lowering operational
costs has always been a primary concern for most companies. This generally equates to
employees receiving a higher standard of living through increased wages. In short, when
companies can do more with less resources, they can typically increase the salaries of employees
without having to elevate prices of products and services or sacrificing normal profits. Therefore,
this allows more opportunity for companies to expand and develop. In addition, productivity
makes products and services more affordable or enhanced. Many would agree that the inflation
of gas prices has altered the decision of many consumers to invest into purchasing hybrid cars or
vehicles that are more fuel efficient. As a result of this increasing demand, automobile
manufactures have developed innovated ideas on creating fewer inputs that would allow greater
output which would result in an increase in productivity. For example, an automobile that gets
forty miles per gallon is more productive and fuel efficient than one that gets thirty miles per
gallon. By contrast, in continuous-flow production, products and services produced continuously
as opposed to at a discrete rate. Another benefit would be to increase profitability and gaining a
greater share of the economy market. There are several elements that can impact productivity
such as capital investments in technology, work tactics, quality of products and the social
environment.
Broadly speaking, technology has always played a vital role in productivity. In fact,
productivity improving technology can be traced back to antiquity. During the Industrial
Revolution (1750-1900), however, occupations and business establishments changed radically.
During this era, unskilled laborers operated equipment which eventually began to substitute high
salaried, experienced workers. Also during this time period, John Smeaton, the father of civil
engineering, designed bridges, canals, harbors and lighthouses. Without Smeatons brilliance,
Navy soldiers during this period would have endured lengthier stretches in order to complete
their shore duty assignments. In addition, the transportation systems of today would be in a
complete frenzy. Without lighthouses, it would be difficult for voyagers to detect danger when

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traveling towards the coastlines across the nation. History has positively impacted modern day
technology which has tremendously improved. For example, satellite and light-emitting diode
(LED) are presently being used verses the out-of-date lighthouses and lanterns that were used in
the 1800s. History has also helped managers to realize that constant changes in technology are
essentially needed for the elevation of productivity. Based on these factors, organizational
leaders must prepare their workers with the necessary tools and techniques that are needed to be
effective in the global market. Many would agree that resourceful and hardworking people are
more likely to be satisfied with new output because the foundation of productivity. According to
research, many experts believe that the initial automated banking machine was invented by a
businessman named Luther Simjian. In the 1960s, Simijan proposed the idea to a New York City
bank to accept several of his automatic-deposit machines. This would streamline the productivity
of the customers not having to wait in line to be serviced. Instead this creation would allow
customers to be able to see their banking transaction that could be printed out on a receipt. As
time progressed, customers became more comfortable with the idea of self service. By the end of
1977, Automated Teller Machines (ATMs) were displayed throughout New York City. Today it
is estimated that there are approximately 2 million ATM machines around the world (Automated
Teller Machines-History). It has been predicted that in the next five to ten years that
technological innovations will introduce new changes to banking institutions across the county.
ATMs that were introduced in the 1980s will eventually be more useful than they have been in
the past. It has been predicted that bank tellers may soon be obsolete. Although, customers will
still be able to contact banking institutions, they will be prompted to use the automated phone
system for customer service assistance. Banking transactions will be accessible with the touch of
peoples cell phones and computers. Paper checks will be scanned instantly and deposited
directly into customers accounts without having to interact with a live bank teller (Bond). This
prediction means that productivity will be streamlined and companies will save a vast amount of
money by not having to recruit as many staff. As a result, innovation will change the lives of
many people. As new technology continues to mature, researchers must figure out ways to obtain
better performance.
Fredrick W. Taylor was a famous mechanical engineer and author who published a book
titled The Principles of Scientific Management. The book referenced to four basic principles that
managers should use including: development of a science for each element of work; the precise
selection, instruction, education, and development of employees, managers should collaborate
with employees to ensure that their assignments are done in accordance to principles of the
science that was created; and he further suggested that there is almost equal division of work and
the responsibility between management and employees. Surprisingly, it was later determined that
there were several downsides of Taylors principles. Conversely, scientific management
principles improved productivity and had a substantial impact on industries. Taylor believed that
workers were motivated by monetary incentives. Therefore, he promoted the idea of "a fair day's
pay for a fair day's work." In other words, if a worker did not perform well, Taylor felt that the
employee did not deserve to be compensated as much as his equal counterpart who was a highly
productive employee (Taylor).
In operations management, there are three types of productivity which include: partial
productivity, multifactor productivity, and total productivity. Partial productivity is used by
managers in order to predict the cost or number of input that it would take in order to produce
output. Labor is typically the most common used when determining partial productivity. For

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instance, residential construction companies often measure labor productivity by determining the
average number of hours of labor is needed for the completion of building a home. This means
that the market price of the home is based on several factors such as labor, materials, and the
baseline start and completion date. Multifactor productivity is used to indicate how much capital,
materials, labor, and energy it would take to produce a specific output. In order for manages to be
successful it is highly recommended that they use both types of productivity. Doing so will help
them determine what factors need to be modified or adjustments are required to improve the
overall quality of productivity. Total productivity is measured by the combination of all the
effects of all the resources used in the production in goods and services. According to a recent
article, productivity declines When a company uses outdated and clunky methods to carry out
its desired goal (May).
In order for an organization to maintain at a competitive edge they must invest in the
right technology and recruit the best talent possible. However, most managers comprehend that
failing to meet targeted productivity can be detrimental to the company. This often leads to
wasting financial capitals of stakeholders. Therefore, it is extremely imperative that businesses
implement strategies to make improvements in various productivity levels. In addition, managers
can make productivity improvement by periodically examining areas, and ensuring that the work
environment cultivates a friendly climate and is safe while maximizing the use of employees to
best accommodate the business need of the company. Managers must also provide employees
with both negative and positive feedback. This will serve as a safeguard that employees fully
comprehend how they can advance and progress within the company.
By contrast, there are other factors that can decrease the productivity levels of employees
which include: poor management style, out-of-date equipment or systems, personal problems,
employee dissatisfaction, and turnover. Ineffective management practices decrease a company's
productivity in several ways. Employees often struggle to succeed under the guidance of poor
management. This is a disadvantage to the employee because they are not given the opportunity
to receive adequate coaching that is needed in order for them to reach their full growth potential.
Employees who do not feel valued by their superiors did not perform to their full capacities. In
addition, companies that use obsolete systems cause a decrease in morale because the employees
may feel as though they are not using the skillset that they were taught in school or college. For
example, if one firm use software programs to automatically record and track data, while another
manually collects it by hand, the second company's productivity level will be highly reduced
because the employee collecting and tracking data is at a standstill. Another cause of a decrease
in productivity is employees that experience personal problems. Studies have concluded that they
tend to be less productive than those who are not experiencing similar problems. In particular,
the combination of stress and poor health contributes to low levels of productivity. Dissatisfied
employees are also generally unproductive which causes a company to lose money. This
sometimes can be linked to employees not being able to spend time with their family as result of
having to work long hours. Many studies have suggested that when employees are passionate

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about their jobs usually get the work done effectively. For that reason, employees who like their
jobs will put their career ahead of other desires. Whereas, employees who are unclear about their
job roles or the lack of proper training will perform at a lower level of productivity. Journalist
Shelley Frost stated in a recent article that high turnover can damage the overall morale of
employees. When employees leave, supervisors and colleagues are often burdened with picking
up extra shifts or assignments until a new employee is hired and begins working (Frost).
According to a famous psychologist Abraham Maslow, peoples needs are arranged in a
hierarchy which is formulated from levels low to high. The low level represent the physiological
aspect and the high represents self-actualization. Based on this pyramid, people are motivated by
their lowest unsatisfied need first. Therefore, as each need is met, a person may be able to work
their way upwards. Managers must determine what the needs are of their employees and address
them accordingly. Maslows hierarchy concludes that people are motivated by physiological,
safety, belongingness, esteem and self-actualization. Maslows theory also suggests that people
are highly likely to move down the needs hierarchy as up. This is because they are unable to
achieve the desired satisfaction at the next higher need level as anticipated (Williams). Therefore,
some people will naturally be motivated by affiliation, while others will be motivated by growth
and esteem. This explains why the productivity level among employees are not always similar.
For example, Mary has received several promotions during her five years of employment at
Victory Nissan. Mary is also a top performer and was recently featured in a local newspapers for
selling the most cars. Michael also works at Victory Nissan and he has been unable to sell nearly
as many car. However, Michael enjoys working with a reputable company and he gets to
occasionally enjoy golfing with the CEO of the company.
Productivity and employee motivation contributes to the overall success of any
organization. When employees are motivated they tend to produce more output. According to a
journalist, Extraordinary motivated people are driven to go above and beyond (Economy).
These are the employees who are most likely to climb the career ladder and receive pay raises.
Many companies across the nation try to develop their own techniques of motivating skilled
workers to continuously be productive which is usually good, but also has its ups and down.
Although having happy employees has many benefits, the costs can sometimes outweigh the
benefits. The pros and cons are as follows:
Pros:
1. One of the biggest wins for many organizations is having knowledgeable workers who
are well equipped to handle the constant changes in new productivity. Those workers are
highly satisfied with their job and continuously bring in higher revenue for their
organization.

2. It is quite clear that many people believe that they are more productive and creative when
they have more positive emotions. In fact, people usually perform better when they are
happier. If workers have the advantage and contentment on a given day, they not only

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come up with new ideas or solve a complex problem that same day, but also the next day
and many other days to come. On the other hand, the organization leaders are responsible
to make jobs essentially motivating for people perform their job efficiently.

3. Businesses can create competitive advantage through people by developing a work force
that are filled with intelligent, well trained, highly motivated, and more dedicated than
their competitors work forces. Organizations that invest in their employees will remain at
a competitive advantages which will be fairly difficult for other companies to duplicate.

4. Motivating is extremely important for many knowledgeable workers. If jobs are


internally motivating, workers with high knowledge and experience will become an
expert in their fields because they are simply more engaged and they are always open
with new ideas which can be beneficial for both the workers and the organization alike.

Cons:
1. Some people get discouraged from adapting to new productivity simply because they are
pleased with their current way of doing things and cannot adapt to changes. For example,
some content workers can be less open to changes because they have too much selfsatisfaction which may cause them to simply be disengaged from the significance of the
task. As a result, this can be costly to the organization and themselves.
2. In order for most companies to succeed, they sometimes have to make difficult choices
all the time which allows some people to win and some to loose. In such case, workers
become dissatisfied with their position and began to search for alternatives which can be
problematic for some organization to find the right applicant for those unfilled positions.

3. There are many factors to consider as to why people are unhappy with adapting to
changes, but many organization managers and leaders fail to pay attention to the existing
data in reference to motivating workers. Nonetheless, because happiness boosts
performance, many people will be less engaged and harder to coach on new productivity
if they are not happy. For that reason, companies need to build more trust in their workers
and less stress.

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4. Another drawback with new productivity is that companies sometimes create a high
complexity that causes people to be less productive in their day-to-day tasks. If many
workers are equipped with the right training tools and are contented with their job,
companies can assure that those workers will be more efficient and effective with their
work. Thus, this will lead to higher satisfied workers.

5. Many studies have concluded that companies that ignore their knowledgeable workers,
usually loose them to other competitors. There are many reason for this, but because
people are not properly compensated for their hard work and talent. As a result, they
usually resist changes.

From a historical perspective, productivity has always been the main driving force behind the
economy. Many would agree, the American knowledge-based economy is increasingly marked
by the labor markets demand for more highly skilled and knowledgeable employees. Every day
new electronic devices, new apps and new services are being produced so that people can enjoy a
higher standard of living; as well as staying abreast of todays latest technology. Although, most
managers seem to be becoming increasingly more cognizant that they must find logical solutions
to overcoming the challenges that involve the pros and cons of productivity. Companies that fail
to pay attention to their productivity levels often end up paying a huge price when it comes to the
reduction of production and high cost of productivity. This often results reduced sales and with
low profits. Thus, productivity can be considered a measure of success or failure for any
organization.

Work Cited

"Achieve Productivity." Achieve Productivity. N.p., n.d. Web. 18 Mar. 2015.


Bond, Casey. N.p., n.d. Web. 22 Oct. 2014.
Economy, Peter. "12 Habits of Extraordinarily Motivated People." Web.
"Frederick Taylor and Scientific Management: Understanding Taylorism and Early Management
Theory." Taylorism and Scientific Management. N.p., n.d. Web. 18 Mar. 2015.

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Frost, Shelley. "Problems of High Turnover Rates." Small Business. N.p., n.d. Web. 19 Mar.
2015.
May, Kristen. N.p., n.d. Web. 10 Mar. 2015.
Panay, Mark. Contactzilla. Web. <https://contactzilla.com/blog/5-psychological-theoriesmotivation-increase-productivity/>.
Williams, Chuck. Principles of Management. 5th ed. Oh: n.p., n.d. Print