Increasing Productivity of a Business

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Recommended: Maslow's Hierarchy of Needs

Increasing Productivity of a Business

Productivity is the measurement of the level of efficiency within a

business. It measures the relationship between the level of inputs and

outputs of a business. There are two types of productivity, identified

as labour productivity and capital productivity. It is beneficial for

a business to have high productivity levels since the more produced by

a business the more it can sell therefore increasing the revenue for

the business. It is also beneficial because a higher productivity

means more products can be produced for the same cost (this is because

each unit cost is lower) thus making more profit on each product.

This view can be compromised as both a positive and negative view for

a manager to have. Generally you would expect managers with an

autonomous style of management to take this view. Many people have

looked in to management, Frederick Taylor developed methods in the

early part of the 20th century. Taylor used techniques to increase

production based on the view being discussed. Not everyone agrees with

Taylor though, another management theorist Abraham Maslow built on the

work of Elton Mayo creating the "Hierarchy of Needs", which states pay

is a basic requirement and other needs can not be satisfied if an

employee is not content with pay.

Financial methods have been proven to increase labour productivity.

Schemes such as the piece-rate system where the payment method

involves the employee receiving an amount of money per each unit that

he or she produces. This method is directly linked with productivity

levels of employees.

Financial methods used in the workplace are used to b...

... middle of paper ...

...cts can be made quicker and to a better quality and in

the long run it would work out cheaper for the business. In addition

investing money into research and development would enlarging

productivity as more efficient production procedures could be found.

In conclusion, increasing the wages of employees can be effective in

increasing productivity but may not be the most efficient method as it

can have its problems and drawbacks therefore other methods should be

considered by a business wanting to increase productivity. In my

opinion I think that both financial and non-financial techniques

should be used side by side to increase the productivity levels of a

business and if a business is seriously looking into increasing their

productivity by large amounts it should look into escalating

productivity through its capital.

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