Productivity refers to the physical relationship between the quantity produced (output) and the quantity of resources used in the course of production (input). After making these adjustments, Australia’s labour productivity is high by international standards but is middling among other wealthy nations. Management can increase productivity by taking the actions like; management technique, communication and promoting group activity, work culture and motivation. It is difficult to find out the exact number of productive man-hours. This is because wages paid to the employees also includes the cost of idle time. It is very difficult to measure the productivity of service sectors e.g. banking, insurance, education, etc.
Ability to work is governed by education, training, experience, aptitude, etc. of the employees. These factors are so interrelated that it is difficult to identify the effect of any one factor on productivity. In simple terms Productivity is the ratio of output to some or all of the resources used to produce the output. The output to input voltage ratio is 1.6 and with this, we can find out the voltage gain.
- Salaries are also generally higher in the North than the South for a given occupation.
- This is because wages paid to the employees also includes the cost of idle time.
- Raw materials are commonly sent to various work stations so that they can be used as specified in the production process.
- This method includes material planning and control (MPC), purchasing, logistics, material storage and retrieval, source selection and procurement of quality material, waste elimination.
- Does not consider intangible factors of input and output.
Productivity: Meaning, Concept, Factors, Importance, Formulas, Techniques, Measurement and Other Details
Managers attempt to utilize the resources just described in a manner that achieves production at a low cost. They combine the various resources with the use of work stations and assembly lines. A work station is an area in which one or more employees are assigned a specific task. A work station may require machinery and equipment as well as employees. Productivity has become almost synonymous for progress. Therefore, higher productivity is essential for improving living standards and for the prosperity of a nation.
It is an approach for integrating the individuals with the organization. The focus of MBO is on participative goal setting, joint evaluation of performance and results to be achieved. It would indicate that the organization’s productivity has fallen to 95%; that means there is 5% drop in current year productivity from the base period productivity.
Productivity – Formulas of Productivity Index (With Examples)
The measure of productivity is defined as a total output per one unit of a total input. Productivity measurements must show a linkage with profitability; after all, it is the bottom line that is the ultimate barometer of a company’s success. Inputs in any what is the ratio of output to input production process comprises capital, labor, material and energy. The concept of multi-factor productivity was developed by Scott D. Sink, multi-factor productivity measurement model considered labour, material and energy as major inputs.
A specific part of the production process is completed at each work station. Inventory control is the process of managing inventory at a level that minimizes costs. It requires the management of materials inventories, work-in-process inventories, and finished goods inventories. (viii) Higher productivity means better utilization of the country’s resources, which helps to control inflation in the country.
What is productivity?
A link is created between the organizational goals and individual’s targets so that an employee can see how his work contributes to the goals of the organization. Subordinate’s participation in setting goals and action plans and in reviewing performance provides a good measure of self-control. As a result there is improvement in the understanding, motivation and morale of the individual. However, MBO requires education and training of subordinates and a democratic leadership style on the part of managers. Scientific task planning ensures timely supply of inputs, proper maintenance of plant, efficient work scheduling and regulation of day-to-day ‘ activities in the plant.
Productivity – 4 Ways to Improve Productivity and Quality of Products
Therefore, labour and capital are considered to be the most significant in contribution in the process of production. (iv) Producing variety of products to increase the setup time. However, a number of top managers treat this concept as bad and in such cases the quality circle programme fails to click. It cannot thrive without positive commitment and support of top management and without grass-root support.
Elimination of sick and inefficient units also helps to improve productivity. Technological factors exert significant influence on the level of productivity. Organization factor include various steps taken by the organization towards maintaining better industrial relations such as delegation and decentralization of authority. These factors also influence motivation likewise the existence of group, with higher productivity as their goal is likely to contribute to the organization objectives. Law and order, stability of Government, harmony between States, etc. are essential for high productivity in industries. Taxation policies of the Government influence willingness to work, capital formation, modernization and expansion of plants, etc.
In the NXP datasheet, these are shown as a “Divide by 10” block in the reference path and a “Programmable Divider” in the feedback path in Fig. As far as I can tell from briefly reading the datasheets, these are external components that the user is meant to supply, not internal blocks in the HC[T]4046 chip. So there is no set frequency multiplication ratio for this chip — it’s determined by these external components.
So productivity of all resources put together gives total productivity. (b) Willingness to work – Motivation and morale of people is the second important group of human factors that determine productivity. Working conditions like working hours, sanitation, ventilation, schools, clubs, libraries, subsidized canteen, company transport, etc., also influence the motivation and morale of employees. For the long term growth of the firm and the economy as a whole, it is impertinent that a high level of productivity is maintained.
These price differences may reflect differences in fast food worker wages and store rents, rather than differences in quality of service. Machine productivity is the ratio of machine units of output per machine hour, output per unit machine. Capital productivity is the ratio of output to capital input and it is measured in Rupees. Energy Productivity is units of output per kilowatt-hour (Rupee value of output per kilowatt-hour). Labour participation in management is considered an effective tool for improving productivity.