PRODUCTIVITY MANAGEMENT
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Productivity Is Never An Accident, It Is
A l w a y s A R e s u l t O f A C o m m i t m e n t To
Excellence, Intelligent, Planning, & Focused
Efforts
- Paul J Meyer
BY
KARAN ASHAR -03
SWAPNIL GHAG – 09
BLENDINA KOLI – 15
HIRAL MOTANI – 21
KUNJAN SHAH – 28
K.J. SOMAIYA INSTITUTE OF MANAGEMENT STUDIES
Dated- May 02, 2021
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INTRODUCTION
Productivity is an attitude of mind. It is the mentality of progress, of the constant improvements of that
which exists. It is the certainty of being able to do better today than yesterday and continuously. It is the
constant adaptation of economic and social life to changing conditions. It is the continual effort to apply
new techniques and methods. It is the faith in progress.”
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Productivity refers to the physical relationship between the quantity produced (output) and the
quantity of resources used in the course of production (input).
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It is the ratio between the output of goods and services and the input of resources consumed in
the process of production.
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CONCEPT OF PRODUCTIVITY
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FACTORS AFFECTING PRODUCTIVITY
Controllable Factors
Humans ability &
willingness to work
Humans –
Ability & Willingness
to Work
Technology (Machinery
& Plant Layout)
Managerial &
Organizational
Managerial&
Organizational
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FACTORS AFFECTING PRODUCTIVITY
Uncontrollable Factors
Natural
Economic
Sociological
Political
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IMPORTANCE OF HIGHER PRODUCTIVITY
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Reduce the cost of production per unit
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Improve the profits of the business
•
Better quality of goods at low price
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Higher wages or salaries with better working condition
•
Higher Employment opportunities
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Improve balance of payments for the country by exporting goods
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Control inflation in the country by better utilization of the resources
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PRODUCTIVITY INDEX
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A productivity index is the ratio of productivity measured in some time period.
Current Period to the productivity measured in a base period
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Tracking productivity indexes over time, managers can evaluate the success, or
lack thereof, of projects and decisions
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EXAMPLE
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Current Year Productivity = 1.75 , Base Year Productivity = 1.93
 Productivity Index = 10%
 Conclusion : This would indicate that the firm’s productivity had increased 10% of the
productivity of the base period.
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If the Current Year Productivity measurement fell to 1.66
 Productivity Index = 0.95
 Conclusion : 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.
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OTHER PRODUCTIVITY INDEX
Partial productivity Indices depends upon factors used; it measures the efficacy of
individual factor of production
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TECHNIQUES TO IMPROVE PRODUCTIVITY
Work Study
Research &
Development
Workers’ Participation in
Management
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TECHNIQUES TO IMPROVE PRODUCTIVITY
Incentive Schemes
Flexitime- An alternate
work Pattern
Job Enrichment
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TECHNIQUES TO IMPROVE PRODUCTIVITY
Quality of Life
Management by Objectives