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Improving Business
Productivity: Top 4
Measures | Business
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This article throws light upon

the four categories of
measures to improve
productivity in business. The
measures are: 1. Technological
and Scientific Measures 2.
Motivational Measures 3.
Psychological Measures 4.
Modern Measures.

Productivity
Improvement Measure
# 1. Technological and
Scientific Measures:
Certain technological and
scientific measures to improve
productivity are as follows:

(i) Improved Raw-Materials:

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Better quality of raw materials

improves the morale of employees
and accordingly their productivity.
It also increases the productivity of
machines.

(ii) Better Technology:

Plant and machinery based on and

operated according to latest
technology are a great aid to
increasing productivity. Use of
traditional ploughing devices and
lack of use of mechanization in
large areas of agricultural land,
accounts for low agricultural
productivity in India.

(iii) Good Working

Conditions:

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Working conditions consisting of

lighting, ventilation, safety devices,
cooling and heating devices for
work place etc. must be good;
otherwise productivity is likely to be
low.

(iv) Scientific Selection and

Training of Workers:

As suggested by F.W. Taylor, the

father of Scientific Management
Movement, workers must be
scientifically selected and properly
trained in work methods and
procedures – in order to raise
employee productivity.

(v) Work-Studies:

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Work studies like time and motion

studies, studies on plant layout,
material handling etc. are a great
aid in raising industrial
productivity.

(vi) Research and

Development:

There is a need for maintaining a

‘research and development’ division
in an enterprise, for improving
productivity. This division may
come out with discovering better
techniques of production and may
suggest improvement in existing
plant and machinery, plant layout
design, material handling systems
etc. That is why modern progressive
companies spend huge sums of
money on research and
development.

(vii) Production Planning and

Control:

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A good system of production

planning and control leads to better
utilisation of plant capacity and
orderly performance of productive
operations, including quality
control. All these factors lead to
improvement in employee and
organisational productivity.

Productivity
Improvement Measure
# 2. Motivational
Measures:
Some motivational measures
to improve productivity may
be:

(i) Incentive Schemes of Wage

Payment:

Incentive schemes of wage

payment, linking higher
productivity to higher wages,
usually act as a motivational device
for workers. Such schemes
definitely help in improving
workers’ productivity.

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(ii) Workers’ Participation in

Management:

Involvement of workers in
management through suggestion
schemes, joint consultations etc.
help in raising workers’
productivity. An outstanding
technique in this context is
Management by Objectives (MBO),
under which superiors and
subordinates are jointly involved in
goal setting.

The advantage of workers’

participation in management is that
workers get committed to decisions,
in the making of which they are
personally involved. As such,
workers’ participation in
management usually leads to an
increase in human productivity and
organisational efficiency.

Productivity
Improvement Measure
# 3. Psychological
Measures:
Some psychological measures
to improve productivity may
be suggested to be the
following:

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(i) Job Enlargement and Job

Enrichment:

Job enlargement means making the

job cycle lengthier by adding
greater variety of operations for job
holders to break boredom and
monotony associated with
specialized jobs. Job enrichment
means, granting operational
autonomy to job holders regarding
job-related matters; or giving more
responsibility to job-holders; or
making work of a challenging
nature etc.

Job enlargement and job

enrichment is a psychological
device to make work interesting;
and elicit more productivity from
workers.

(ii) Harmonious Human

Relations:

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Management must create

conditions for promoting
harmonious labour – management
relations or other aspects of human
relations in the enterprise. Such
relations help to increase
productivity, by raising the morale
of people. Moreover, minimum
conflicts among people as a result
of good human relations would also
help raise productivity and
production, in the enterprise.

Productivity
Improvement Measure
# 4. Modern Measures:
Certain popular modern
measures to improve
productivity are:

(i) Flexi-Time:

Flexi-time is an alternative pattern

of making people work with
interest; which considerably adds to
their productivity. Under this
system, workers set their own work
hours, subject to minimum number
of hours per week. This reduces the
dictatorial approach of supervisors
in making people work according to
their (supervisors’) dictates.
Working mothers, aged persons are
all the praise for this system.

(ii) Quality Circles:

The concept of quality circles was

developed in Japan during early
1960 and widely used in the U.S.A.
during later 1970 and early 1980. In
India, companies like BHEL, HMT,
Modi Rubber, J.K. Synthetics etc.
have successfully implemented this
concept.

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A quality circle is a small group of

employees (say five to ten)
belonging to the same work unit;
who frequently meet with their
supervisor (known as the quality
circle leader) to identify, discuss
and solve work related problems of
their work unit.

Quality circles provide

opportunities for interaction among
people. People give suggestions for
effective improvements in their
work-unit performance. The
excellent work performed by quality
circles is also rewarded. Quality
circles help to increase productivity
through participation of employees
in solving work-problems.

Related Articles:
1. Techniques for
Improving the Quality of
Work Life | Employee
Management
2. Techniques for
Improving the
Productivity of an
Organization

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