productivity

Introduction

• Productivity means that the balance between all factors of production that will give the greatest output for the smallest effort. ------peter drucker.

Need and importance of productivity.

Better utilistion of resources

Increase in profits

Increase in shareholder wealth.

Improves corporate image

Increase in salary and wages.

Fulfills social responsibility

Face international competition

Factors affecting productivity.

Capacity and skill of employees

training

level of technology

Work environment.

Proper planning.

Unity of command

Measures to increase productivity.

De centralisation

Process re engineer

Better technology

Laying benchmarks

training

Monetory and non-monetory rewards

Difficulties in measuring productivity.

No standard

norm.

Lack of proper

records.Group work.

Multiple responsibili

ties.

Intangible output

Inflationary trends.

Variable and inconsistent

output.Multiple products.

Mmm

• Productivity from factors of production should help earn sufficient returns

and so be effectively measured.