Friday 14 December 2018

Organizational productivity - The Concept.

An Organizational Productivity is defined as the most significant parameter to establish how used the factors of production of a country, industry or company; Therefore, productivity indicates how available resources are managed.

Although productivity is a necessary. But not sufficient for success economic organization, obviously the higher the productivity of one major company. It will also be the probability that this survive and prosper economically in the time.

Introduction to Organizational productivity

How to measure and evaluate the productivity is related to operations management. Which, together with the financial analysis, seeks to evaluate the productivity of the organizations through indicators. That reflect quantitatively the degree of compliance with the objectives. It also taking into account aspects as important as technical knowledge, social dimensions, and the attitudes of the human factor towards the work and the company itself.

Productivity is the measure of what as well resources are harness in the Organization and are use to achieve a certain result. Productivity is the highest level of performance with the minimum expenditure of resources.

In this sense, an organization is considered productive when it reaches their goals as a result of getting to transform their assets into products, optimizing the use of its resources so that ensure you the lowest possible cost.

However, the concept of productivity can be studied from five different perspectives:

  • Perspective of the economy: is conceive as the amount of products generate divide by the number of associate goods. Such as: labor, capital, acquired intermediates and time. This approach is typically apply to measure productivity in terms of macroeconomic, as industries or countries.

  • Engineering perspective: is equate with the efficiency of an operation, based on energy as the main, and the amount of work applied to generate products. This approach would be use to measure the productivity of an organization or part of it.

  • Accounting perspective: focuses on the financial aspect of the organization which is designed through different variables financial, efficiency and profitability.

  • Perspective of Administration: is considered a complex concept since who have to measure and assess factors such as quality, quantity of resources and applied products, operational disruptions, financial returns and absenteeism from work.

  • Organizational psychology perspective: from this point of view is related mainly with the effectiveness and efficiency of the human factor derived from the development of its functions and tasks.

Expose perspectives

Even though they differ with respect to the factors that facilitate the measurement of productivity according to the purposes. That are pursuing, can be considered complementary. However, each one of them shows that it is undeniable that productivity. It consider as an objective variable for measuring the competitive development of a modern organization.

However, the determinant to increase the productivity of an organization and achieve the objectives are people who work in it. The mechanism by which this productive increase occurs is, first and foremost, motivational. If the staff is motivate it will work more and work more efficiently in the sense. That their efforts will be more orient towards the organizational goals.

See a presentation which will help us to better understand the subject which we are dealing today.

The improvement of productivity.

The core of the improvement in productivity is undoubtedly achieve its measurement. Any approach to productivity to be effective requires evaluation. The evaluation system must rest on a measuring system. There are several approaches and important techniques. That can be use to design an assessment system that allows you to measure the level of productivity achieve in the company. In other words, measure productivity through systems or techniques. Whose central focus is to analyze results, without losing sight of the analysis of the resources used.

Two systems can be use for this:

Management by objectives (MBO) and Scorecard (Balance Scorecard). Management by objectives (MBO). It has a good time to be in the practice of business management and remains as much a widely used concept. Management by objectives is probably one of the most interesting developments in the art of business management and in particular in the approach to achieve results.

Concept of the application

The scorecard is a new concept of application. Both depart for your design and implementation of the strategy of the company. But on the other hand, the task of establishing and measuring results both have as common core. Both should get rich designing in a way so don't forget. To consider the evaluation of the resources use, i.e., that consider both the effectiveness and efficiency: productivity.

As always, leave an educational video which describes the methodology necessary to improve productivity in industries. Since the realization of studies of methods and times to production planning:


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