In a business setup, productivity involves the comparison of ratios of input factors to the output. It can be defined as how effectively a business can convert the inputs to outputs.
The inputs include capital, labour, raw materials, and machinery, whereas the output is the goods or services. A business owner can improve business productivity by ensuring that resources are utilized for maximum outputs.
In business, the equation of productivity is often described as:
Productivity = outputs / inputs
Choosing the right quality of the inputs will influence the outputs; therefore, better inputs lead to better outputs, resulting in improved productivity and vice versa.
Business productivity is determined or measured within a given time duration. As such, efficient utilization of the set time frame is essential.
Business productivity applications are designed to enhance productivity. For instance, time tracker and invoicing tools. Online timesheets are also very effective.
Measure of productivity is often complicated since it varies depending on the industry’s type and size. Large companies have higher productivity than small businesses, and there exists a difference in the goods and services business when it comes to measuring productivity.
Unlike in a manufacturing business where productivity can be measured by the number of goods produced or sold, the services’ industry measure of productivity may be slightly different.
For productivity to be achieved, proper managerial concepts should be adopted.
The business also needs to have clear set goals and objectives towards ensuring productivity is achieved. Technology, labour, and supply chain management are the key factors that should be considered to ensure that a business is productive.
The use of technology in the business process ensures that there is minimal wastage of time and resources and ensures that the production is fast and efficient. The acquisition of modern machinery and equipment will ensure that production is effective. Some equipment also minimizes the need to acquire a large labour force, which will ensure a lower input factor and guarantee higher productivity.
In the modern world, technology advancement and automation are highly used, which means that businesses have to shift from conventional business methods.
For example, the adoption of internet technology allows for the comparison of raw materials from various suppliers and procuring from the ones that have reasonable pricing.
Technology also allows for monitoring and surveillance of employees’ work output.
Employees form a key business resource since they ensure day to day running of the business and are also crucial to enhancing the business’s productivity. Aside from recruiting competent and qualified staff, other practices such as motivation will greatly improve employee input and overall productivity.
Providing a conducive working environment and the necessary protection equipment will ensure that employees’ performance is enhanced. Motivation such as insurance and regular training also greatly uplifts the workers’ morale and makes them give their best towards a business.
Flexibility in a business, such as providing leaves and off-duty days, ensures the well-being of employees by giving them ample time to re-energize.
Effective communication builds strong working relationships and ensures there is the freedom to correct and guide the workers and compliment them, which leads to improved productivity.
Time management is crucial in ensuring productivity by utilizing the work hours to the maximum.
Informal meetings should be minimized, and workers should be monitored to ensure they are available for the working hours provided.
Communication tools such as social media groups and online chats can ensure that important communications are relayed more efficiently and save on working hours.
The implementation of rigid work schedules and routines is not always efficient in businesses. For instance, workers may meet the required working hours and not perform to their optimum. Adopting flexible work schedules such as working from home should be promoted, especially after analyzing individual worker performance.
The restriction of non-work-related sites within a business can also greatly improve a business’s overall productivity since there is a tendency among employees to waste time browsing the internet on personal interests rather than business matters.
For a business to improve its productivity, there is a need to identify and analyze the current status and identify existing gaps that can be improved on.
Regular and durational employee performance analysis guarantees productivity.
There is also a need to benchmark from competitors to learn and improve a business in the modern world. Outsourcing is also a viable option to improve productivity, especially from consultancies.