User:Lakshani29/sandbox

Introduction
Productivity can be defined as the ratio of output per unit divided by input. “Productivity is generally defined as a measure of the amount of output generated per unit of input”. It is identified as a measure of efficiency of the production process. Production is creation of goods and services. Factors of production can be identified as inputs required for creating a good or service which include land, labor and capital. The importance of productivity has been very well identified in the literature of. In order to achieve the sustainability of the organization it is important to consider productivity, quality and performance in a broader manner. “On the other hand, productivity has been identified as the most important driver of long-term economic growth and one of the most vital factors affecting manufacturing company competitiveness”.

What is Productivity?
Organizations are competitively trying to gain productivity in order to increase profits. Main key term of profit is to increase the productivity of the organization. There are three main essential functions in produce such as production of goods and services, operation management, marketing and finance which traces how efficiently the organization performs. Such functions would differ based on the type of the good or service that the organization produces.

Challenges of Productivity to increase profit
According to they have identified three key challenges in terms of productivity. Such as ageing population, tightening of global competition and climate change. “Further they have identified few more trends/challenges that influence on productivity such as increase of services, growing significance of innovation activity and high-level competence, strengthening of information intensiveness, growth of cross-cultural interaction, constant change and business, development of technology, internationalization and networking”. “Understanding how people behave and how human and social capital could be used at most effective way, was identified the most essential challenge of productivity improvement and thus also as the most central challenge in productivity research”. “The focus of productivity research was recommended to be directed towards work organization and leadership practices”.

Opportunities of Productivity to increase profit
According to “Production efficiency is an economic term describing a level in which an economy or entity can no longer produce additional amounts of a good without lowering the production level of another product”. If the productivity of an organization fails, it will lead the organization for a lower profit. There is emerging competitiveness in the market which creates new needs from new consumers and existing consumers. This would further create the requirement of producing new products to the market. New developments in the market and Fast moving technology are key opportunities of productivity.

What is Performance Management?
Performance management is a mechanism that assists the managers to monitor and appraise the work of employees. Objective of performance management is to make a working environment where employees can perform accordingly to their capacity in order to produce work effectively and efficiently. Usually organizations create effective performances and expand new processes to measure performance. There are five performance objectives such as quality, speed, dependability, flexibility and cost.

Challenges of Performance to increase profit
When there are competitive organizations in the market it is very much challenging for an organization to increase their profits while working efficiently. In banking industry there are many commercial banks in Sri Lanka and such banks have already initiated new processes within the organization in order to strengthen their processes. According to competition in banking sector is much effected for public banks as newly established private banks.

Opportunities of Performance to increase profit
Employees normally expect to have the job satisfaction which they would get while working and recognizing the job profile. Organizations have the ability to provide the employees promotion/rewards to make them satisfied. Also, the management has the ability to appraise their employees’ performances individually and provide with career plans based on their potential. “The career plans of individuals should be the bedrock on which the organization builds its succession planning”. As a result, the efficiency and effectiveness of work would be increased.

How Productivity of Nations Trust Bank has impacted on Its Profit
NTB is one of the leading private banks in Sri Lanka. Bank is mainly focusing on the productivity through digitalization. “A key achievement during the year was the Bank’s ability to considerably enhance efficiency and productivity through digitalization and new ways of working” In 2020 bank had to face many challenges due to the impact of Covid-19 and the bank had to look at the ways of cost reductions in order to increase profit. As the organization drive by efficient leaders, bank has taken decisions to place strategies on cost efficiencies by revising processes, lean initiative projects. Through this bank was able to increase the productivity of employees. As a result organization was able to reduce expenses by 9% during 2020.

According to the analysis done, NTB has combined their working premises in order to utilize the effective spaces of existing location. “Two of the Bank’s five operating premises within Colombo were shifted to other existing premises, which resulted in considerable cost savings and more optimum utilization of space”. Also, NTB has automated 30% of their manual processes in operations by initiating workflows and straight forward processes. This has resulted in increasing efficiency of productivity of employees. But NTB could have done better in automating processes as they already using digitalized system. NTB should have a strategy by now to completely go on digital.

As a result, in cost management bank had the opportunity to go in depth of the bank processes and recognize ways to increase efficiency of processes and assign the right person in respective job roles and centralized the operations management which led to efficiency in cost management. “Driving productivity and efficiency will be a key priority in 2021 and we are hope to onboard digital mechanisms through which productivity can be measured and rewarded”. As a result of Covid-19, NTB has taken necessary actions against maintaining the motivation of employees and also conducted call outs for employees in organization wide to understand the difficulties during the pandemic period. “The CEO also directly engaged with a cross-section of the employees to gauge preferences for working from home”. With such leadership decisions the bank was able to maintain the productivity of human recourse which leads to increase the profits of the organization.

As per organization has driven the business with paperless system which replaced with e-leaflets. This was launched in the intention of obtaining product information by scanning QR code in the branches. Meanwhile bank has started new digitalized process for customer on boarding. Further they successfully reduced paper consumption by 43% during 2020. Such initiatives have taken by the bank considering the sustainability of the planet and also to increase the productivity and performance of the organization. According to NTB has invested 14Mn for Corporate Social Responsibility initiatives. “CSR is widely enhanced to transmit these three particular elements in designing CSR including society, economic, social and environmental basis where all these refer to the enhancement of community involvement”. As part of CSR projects NTB has upgraded chosen ICT labs in schools in Sri Lanka. Also as a responsive to Covid-19 bank has issued 4,500 scrub suits for healthcare staff

How Performance has influenced on Profit of Nations Trust Bank
NTB has focused on their strategy in four ways such as business focus, customer experience, cost and efficiency management, digitization and automation. Bank has mainly focused on new digital platforms and improving digitalization. Due to Covid-19 bank had the opportunity of improving digitalization organization wide and consumers also tend to use digitalized platform for banking. As a result, bank gained the processes in terms of improving QR code scan base transacting facility where the bank implemented Frimi product. Bank has positionated Frimi as a sustainable revenue model in 2020. Further, bank should focus on enhancing mobile banking and FriMi through an introduction of new features to the market.

As employees expected to have job satisfaction, it is important for an organization to appraise the employees based on their performance and reward accordingly. But as per NTB they have not done any increment changes for rewards scheme in 2020 than 2019. This has resulted in having resigned employees from this organization. Even the vacancies were filled within the internal employees it has mainly impacted in organization productivity since the organization has to spend considerable cost in order to train employees for the selected vacancies. In order to avoid such situation NTB could have make an increase in reward scheme to retain well experienced employees.

Conclusion
This analysis concludes by arguing that the productivity and performance are important factors for an organization to increase profit. This research show NTB is mainly focusing on increase productivity by reducing cost and implementing automated processes. It has result in increased the profit of the bank meanwhile bank has failed to retain certain employees as there was no increment in reward scheme. Sustainable leadership is required for an organization to make decisions and increase profits