User:Teshan Senaratne

'''Critically analyze the challenges and opportunities of effectively and efficiently managing productivity and performance to increase profit, alongside a commitment to appropriate management of the human resource and with consideration for the sustainability of the planet. '''

Productivity[1] is generally defined as a ratio of output volume to input volume. In other words, it assesses how efficiently inputs for production such as labor and capital are utilized to create a certain level of production in an economy. Productivity is seen as a vital source for economic growth and competitiveness, and for many international compares and country performance assessments, it is therefore essential statistical information. Productivity data, for example, are used to study the impact on economic performance of product and labor market laws. Growth in productivity is an important feature in the modeling of economic[2] productive capacity. Various productivity measures exist and their use depends on either the objective of measuring productivity and/or data availability. Gross Domestic Product (GDP) per hour worked is one of the most often used indicators of productivity. This measures better than just production per employee, the utilization of labor inputs.

Productivity/profitability relationship

Productivity is a measure[3] that considers the quantity of input needed to generate an outcome (such as labor or material) (e.g. the final product or service). You generally have a high productivity if you employ less resources to get more output.

Profitability is left over after payment of all expenses and taxes. By generating more products you may boost your profitability and spend less for the resources needed to manufacture and sell them.

Many factors can influence productivity[4], including external events, such as a busting supplier or an increase in the cost of commodities. The most probable impact on productivity[5] is management decisions internally in relation to resource allocation, budgeting, and processes.

Performance evaluations[6] can be one means of measuring your business production levels. Working with your team to build individual performance objectives based on their own personal development and broader corporate objectives will help to monitor their working effectively. Employees whose performance goals are achieved regularly can operate at a higher level of efficiency, whereas employees who struggle to achieve their goals may require more assistance to work more effectively. In addition to the way of measuring[7] it within a company, business managers can encounter other challenges when examining how efficiently employees work. The typical means of assessing productivity for a customer service job, such as call center employees would be the number of calls made during a changeover by a customer care agent. However, the level of service that was provided to clients is not taken into consideration. The necessity of efficiency monitoring is so attached. While productivity examines the output of an employee compared to his/her input (for example the amount of time he/she has spent at work), efficiency examines the quality of his work and the output. As a result, some companies may want to combine the two measures with the quality output only.

The amount of hours worked by an employee can sometimes be mistaken for productivity. It does not necessarily mean that if someone stays registered till 7pm when everyone else is up for the day, they work more than everyone else. The productivity should be judged by the actual output[8] and the quality of their job rather than by the quantity of time they are spending. Productivity measurement and monitoring may provide a variety of advantages for small organizations. In addition to allowing you to evaluate output levels in your company, you can also track the degree of service your staff provides to your clients. This can help you keep your company's customer service consistent. Measuring efficiency[9] at the workplace could potentially help both the person and the company. When people are focused the most, the usage of productivity meters can highlight certain periods of the day. For instance, in the morning somebody could concentrate better than at 3 pm. That could lead to a flexible working schedule which allows the individual to start working earlier in the day and conclude earlier. This might help both the employee because they can have a flexible working arrangement and the company because they would work the most productive times.

These are the critical challenges and opportunities of managing productivity and performance to improve the profit within respective organizations. Utilizing organizational resources directly increase the margin levels of and respective business models. To maintain continues profit levels we need to increase the productivity of business models in advance.

Invest in the tools and systems that are appropriate to your company to allow your team to perform specific administrative activities, and free them for work that is most likely to benefit your enterprise. It could come as no surprise that happiness influences the productivity of employees. The gladness made people 12% more productive according to a study by the Warwick University. For smaller and quicker wins, it's possible to enhance moral standards such as giving your team a free breakfast one morning or arranging team trips. Indeed, Productive working conditions are not only excellent for the profit margin of a firm, they also influence employee satisfaction[10]. Unproductive work environments can cause employees extra stress and even force talented team members to seek work elsewhere. Business owners and managers therefore need to know how to create work conditions in which their employees can be productive.

The expansion of an organization depends on the vision of its management team. Sharing this vision across all staff ensures that everyone has their job objectives on the same page. The clear definition of corporate objectives helps employees comprehend why particular tasks have been assigned to them. It also enhances the value of employee feedback and allows corporate processes to continuously improve. While it is vital for managers and leaders to seek employee feedback on an ongoing basis, it is also necessary for employees to submit feedback that improves their work quality. Management is a crucial element in the proper management of productivity. Motivate employees to communicate their productivity objectives and how they will be measured. Incentives can also encourage employees to achieve productivity goals. Make sure you thoroughly specify the targets so that no increase in production speeds at the cost of quality. That is why companies standardize methods to maintain the quality of their products and services to a consumer level. Managers must inform staff of these standards and ensure that each team member is incorporated in them. Collaborating with colleagues provides the skills, information and training needed to operate effectively is a vital element in standards formulation and enforcement. For example, a person who runs a timely project has to emphasize the importance of achieving time limits without sacrificing product or service quality. Therefor leaders and managers are accountable for keeping their staff informed about their daily activities and how their work goals might be achieved. Leaders with good corporate communication skills are crucial for clearly defining what work has to be performed and the best manner to achieve it. It helps employees stay on target with all this information, especially in demanding working environments. If all those involved in a project are certain of their position and duties, less errors will naturally occur and productivity will rise.

In addition, experts at human resources (HR) in firms who regard corporate social responsibility (CSR) as a significant driver of their financial achievement might have an influence on this purpose. Although the companies that want to be the best place to work and companies that are seeking to manage their employee relationships in a socially responsible manner are given considerable guidance, the HR Manager sees a lack of information as important to integrate the CSR values of their company across the organization, which is committed to helping CSR to become part of the company's DNA by the executive. The company of the future has experienced major transformations so that CSR no longer works separately, but is part of an employee experience in an organization that lives its principles. Along with organizational productivity and performance utilizations organizations are possible to generate profits and values which are capable of maintaining better human resource values with higher satisfactions. These are not only for the business wellbeing but also for the perfect working and living alignment for the human resources as well. It outcomes with appropriate management of the human resource and consideration for the sustainability of the world. The human resources management function addresses the recruitment, administration, development and encouragement of employees, including the provision of functional and specialist support and employee participation systems, and the management of regulatory compliance systems with employment and human rights standards. This study is not concerned with the regulatory, wage and benefits parts of the human resources mandate and other transactional issues. This is all about how the business productivity and performance along with human resource management works for the business and human wellbeing. There is where the business mostly addresses the workers and human resources requirements in advanced. As human resources is the most critical aspects of the business it is required to manage the human resources by human resource to meet business end goals. To that we need proper alignment between productivity and performance inputs to have better outcomes.

In summary, In companies, increasing in productivity is crucial since it means greater profit to supply more goods and services to consumers. With increasing productivity, a firm may convert resources into revenue, pay stakeholders and maintain financial flows for development and expansion. The ultimate choice for companies to address is improving efficiency, yet there are only three ways to boost profitability: Increase income more quickly than costs and reduce expenditure where profits makes higher satisfactions.

Reference

[1] Compare: American Heritage Dictionary Archived 2019-03-31 at the Wayback Machine "business [:] 1. The activity of buying and selling commodities, products, or services".

[2] "Business And Productivity Apps Market Worth $58 Billion By 2016 [REPORT]". Dazeinfo. 2014-05-12. Retrieved 2018-06-27.

[3] Brayton, G.N. (February 1983). "Simplified Method of Measuring Productivity Identifies Opportunities for Increasing It". Industrial Engineering.

[4] Craig, C.; Harris, R. (1973). "Total Productivity Measurement at the Firm Level". Sloan Management Review (Spring 1973): 13–28.

[5] Jorgenson, D.V.; Griliches, Z. (1967). "The Explanation of Productivity Change". Review of Economic Studies. 34 (99): 249–283. doi:10.2307/2296675. JSTOR 2296675.

[6] Kurosawa, K (1975). "An aggregate index for the analysis of productivity". Omega. 3 (2): 157–168. doi:10.1016/0305-0483(75)90115-2.

[7] Saari, S. (2000). Productivity measurement as a part of profitability measurement (In Finnish). p. 164.

[8] Saari, S. (2004). Performance Matrix (In Finnish). MIDO OY. p. 280.

[9] S. (2006a). Productivity. Theory and Measurement in Business. Productivity Handbook (In Finnish). MIDO OY. p. 272.

[10] Debreu, G. (1951). The coefficient of resource utilization. Econometrica, 19(3):273–292.