Importance of productivity to service organizations
In his book "The Competitive Advantage of Nations", (1990) Michael Porter identified that productivity in a business is the capability of a business organization to utilize its available resources to produce profitable goods and/or services as desired by its customers. Productivity is an essential element to any service organization that aims for success and values the overall efficiency of the business. Higher productivity essentially means greater income and profit, thus creating an effectively operating organization. Productivity in a service organization is important because it develops and increases the overall effectiveness and efficiency of the organization. When a business utilizes its resources and the skills of all employees by transforming their assets into goods and services it creates greater output to provide to customers, therefore the higher products being produced then the more profit will turnover. Consequently, by producing quality and profitable service it will then lead to a reduction in production cost. Due to this, the organization will have an advantage over their competitors by producing cheaper quality goods or
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Managers and higher heads should make it their duty to keep each member of the organization abreast of all the operations of the business and the goals to be met. During the recruiting and training process of a job, there should be an orientation section that not only welcomes the new employees to the organization but also informs them of the values and goals that should be met. When employees are educated about the standards of the company, they will aim to reach similar levels. They will be eager to learn new techniques and accept responsibility. Furthermore, communication about the policies set for the expected behaviour among the staff is vital for the total efficiency and effectiveness of
However, before a hired employee enrolls in a training program, they must go through orientation. Orientation provides new employees with the information they will need to succeed in a company (Woods 163). Orientation helps reduces the stress of beginning a new job, gives an overview of the business, and provides the employees with the expectations within the workplace. After orientation, the employee will begin training. Training is specialized to the position that the new employee is about to enter. Training should encompass the knowledge and skills that one should know to be able to complete the day-to-day tasks. For a training program to be successful, it should include the following
Many organizations have developed written statements known as Mission and vision statements, which support employee performance and motivation strengthening the organizations culture and helping reach goals. Some organizations promote high performance restructuring by dedicating the introduction of a team approach to work structuring, and high skill variety and feedback on performance, which results in job characteristics and improved satisfaction. Organizations nowadays are forced to pay extra attention to their employees’ needs and customers’ needs by means of employee recognition, goal alignment and work force engagement. For teams to be engaged and effective, members must feel appreciated, and believe in their leaders (Dixion & Hart, 2010). Organizational culture obtained with Path-goal theory is equivalently important because appropriate culture is required to sustain or facilitate established high performance efforts. With high employee performance and goal alignment organizations use management by objective (MBO) an integrative approach for management that supports the attainment of customer satisfaction through wide variety of tools and procedures that the end result will be higher quality of goods and services achieving business excellence (Evans J
According to Rue and Byars (2010), “orientation is not a one-time obligation, but an ongoing process” (p. 207). Training of employees can also be defined by this statement. Having an effective orientation and training plan is essential to the success of new employees and the organization as a whole. Ineffective training and orientation creates dissatisfaction with new employees which reduces morale and increases turnover (Giangreco, Sebastiano, & Peccei, 2009). The first step to successful entry of the new employee is planning the orientation.
When trying to improve productivity for a company, one must first understand what it means to be productive and what it means to not be productive. Jonah classifies that, “I have come to the conclusion that productivity is the act of bringing company closer to its goal. Every action that brings the company closer to its goal is productive. Every action that does not bring a company closer to its goal is not productive” (Goldratt, 32). But when determining on what is productive and not productive, the actual “goal of the company must first be determined. “ If the goal is to make money, then an action that moves us toward making money is productive and an action that takes away from making money is non-productive” (Goldratt, 41). Alex has finally realized what it means for his company to be productive, but the key is to know how to see if the company is meeting the goal that is desired or in this case making money. There are certain measurements that can “ express the goal of making money perfectly well, but which also perm...
So, there should be an efficient and optimum use of resources with the modernised techniques that provide them competitive advantage over the competitors and make them an efficient organization.
Moreover, the company has placed great significance on open and honest communications with the employees on many levels. Even more, leadership expected a plan that would utilize all human assets in a way that would support the organization’s attitude in servicing customers and employees. As such, they found it important to centralize the staffing initiative in order to maintain the unique corporate culture created in the beginning. Every one of these strategies would be focused on centralizing staffing, brining in the best possible employees, and retaining each on a high
For an increase in productivity a firm should focus on increasing its revenue and reducing its cost. This will lead to the longevity and success of a business. In the manufacturing industry, this means efficiency in internal processes. The knowledge and skills of people contributes to innovation and productivity improvement. Increasing pressures on the manufacturing sector stem from skills shortages and growing competition for talent. Well-connected people who are capable of collaborating and have access to peer knowledge can contribute to the success of a
Determinants of Productivity Determinants of Productivity Productivity is the quantity of output formed by one unit of production input in a unit of time. Inputs used in the production of the goods and services are the major determinants of any country’s productivity; they are also called factors of production. There are four major determinants of productivity in any country’s economy. Land: the land itself, and raw materials such as oil and minerals beneath it. The natural resources that are available without alteration or effort on the part of humans.
Rodgers, Robert, and John E. Hunter. "Impact of Management by Objectives on Organizational Productivity." Journal of Applied Psychology 76.2 (1991): 322-36. Print.
To help staff understand the complexities of the early phase of organizational development. The manager must provide a clear understanding of the purpose of the organization to the employees. Emphasizing the importance of recognizing the direction the company is going and how its methods of working can be improved. Plus, explaining the identification of general objectives would lead to the clarification of responsibilities and purpose at each level of the organization. When a manager discusses these issues with his team, he is encouraging ownership by the employees. (Moore, 2004)
Nevertheless, there remains a debate over the differences between productivity and performance, and how they are measured. Performance is comprised of seven dimensions, of which one is productivity, as well as effectiveness, efficiency, quality, profitability, quality of work, and innovation (Haynes, 2007). Productivity is defined as “the relationship between outputs and the inputs provided to create those ou...
Will facilitate the employees to get a better understanding of the working of the company.
Staying ahead of the competition and increasing profits are the fundamental objectives for every organization. However, many firms today continue to invest extensively in business development activities and less on employee productivity. This mindset ignores the firm’s chief asset and its core foundation, its workforce.
There are various challenges faced and even more opportunities for organizational behavior to assist workers in improving the workplace as a whole, people skills, productivity, and customer service. Understanding and taking time to learn and educate one’s self is how attitudes develop and affect behavior is a key component to organizational Behavior. The bottom line is that the more tuned into the needs of its employees, the more successful a company is likely to become. A company will absolutely benefit a great deal so long as employees and management alike are able to control and monitor their attitudes for the appropriate
A follow up and evaluation process has to be done in order assess the new employees progress beyond the first day of arrival in the organisation . This follow up and evaluation will assist in establishing whether there are any obstacles in integrating the new employee in this new environment, they could be either political , socialism and whether mentor support is sufficient to integrate the new employee in this new environment. It will also serve as enquiry toll to establish if is there are any training needs needed by the employee further to those that have been offered by the employer.