Productivity and Its Significance in our Economy
To maintain a perfect track record and reach the zenith of success is the ultimate goal of all the entrepreneurs. Whether it’s a small-scale or a large-scale business, you must keep your focus on being productive if you want to achieve your targets. Productivity is actually the efficiency of an organization to convert their resources to goods in the prescribed time and quantity. To increase the productivity, one has to produce the maximum output from a given input without any delay.
Productivity vs. Efficiency
People often get confused between the meanings of these two terms. When we talk about efficiency and productivity, we are actually talking about quality and quantity respectively. While productivity depends on the rate at which the goods are being produced and delivered, efficiency depends on the quality of the goods produced and also on the wastage incurred by the company while producing those goods. In short, both efficiency and productivity play crucial roles in maintaining an organized workflow.
One of the major benefits of being productive is the financial gain. The prime objective of every organization is to attain maximum profit. When you strive hard to improve the productivity of your company, you are simultaneously increasing the profit too.
Even a small delay in delivering the goods is not acceptable in the current competitive world. The reputation and productivity get affected when you go beyond the agreed delivery date. A company might lose a deal or even worse, a client if the goods are not produced on time. Productivity is, thus, not only about producing good quality products but also is about supplying them at the earliest.
Consumer satisfaction is actually an add-on benefit attained when you supply the best quality goods on or before the date mutually agreed with the client. An organization’s goodwill mainly depends on their clients. A consumer can literally spoil your reputation in the market with a minor negative feedback. Hence, if you wish to keep your top position in the job market intact, you have to make sure that all your consumers are equally satisfied with your work. This can only be achieved if you work towards increasing the productivity of your company.
Boosting Up the Spirits of Employees
With highly efficient machinery and advanced software alone, you cannot achieve your targets on time. Employees are the integral parts of a company whose efficiency and productivity would eventually help to raise the standards of that firm. In order to enhance efficiency and productivity of the employees and also to make sure that they complete their assignments within the designated time, boosting their morale is highly recommended. When an employee gets appreciated for his good work, it boosts up his self-confidence and thereby increases his productivity. An employee’s increase in productivity forms the backbone for the overall escalation of productivity of the company.
Promoting Team Work
Every work cannot be completed by an employee individually, no matter how efficient he is. At times, teamwork becomes necessary to complete gargantuan projects without having to postpone the date of delivery. Hence, it is the responsibility of an organization to maintain harmony and trust among the employees through group activities and training programs.
To create awareness among the employees about the seriousness of their works and the necessity to finish their tasks on time, proper training sessions must be provided to all the employees irrespective of the hierarchy. This ensures the management that all the employees are informed equally about the quality and standard of work anticipated from them. Properly trained employees always exhibit more productivity and efficiency compared to an employee without any training.
An increased productivity not only benefits an organization or a company but also its employees. Productivity is, in fact, the production of maximum merchandises from the available resources at a very low cost. A rise in the productivity ensures more profit to the company and also a better compensation to its employees.
Nowadays, to analyze the effect of technological advancements and other changes in the energy systems and logistics on the growth of productivity, organizations maintain a graphical record called the Production-Possibility Frontier (PPF). This helps to decide on the necessary course of action to be taken when a sudden drastic drop in the productivity is observed.
The economic growth, driven by increased gross domestic product (GDP) and overall economic outputs, promotes a better standard of living for the participants within the economy. Hence, for the better economic advancement of the system and the participants within the system, a rapid growth in the productivity has to be ensured.