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DEPARTMENT OF BUSINESS MANAGEMENT
SUBJECT:- Human Resources Management
TOPIC :- Employee Productivity
SUBMITTED TO :- SUBMITTED BY :-
DR. SURENDRA KUMAR ARJUN SINGH
MBA IInd SEM
 Productivity
 Productivity means the amount of products or
services produced with the resources used
 Productivity
= Quantity of products or service produced
Amount of resources used
Productivity varies with the amount of
production relative to the amount of resources
used.
 Increase output using the same or a lesser
amount of resource.
 Reduce amount of resource used while
keeping output constant or increasing it.
 Use more resource as long as output
increases at a greater rate.
 Decrease output as long as resource use
decreases at a greater rate.
 Capital - Number of products produced
Divided by asset value
Materials - Number of products produced
Divided by dollars spent on materials
 Direct Labor - Number of products produced
Divided by direct labor-hours
 Overhead - Number of products produced
Divided by dollars spent on overhead
 For some firms, production labor (touch
labor) represents a very small part of the
firm’s total costs
 For other firms, particularly service firms,
direct labor cost remains a significant cost
and the need to improve labor productivity is
still a serious concern
 Physical work environment
 Technology, equipment, materials, lighting,
layout
 Product quality
 Defects, scrap, rework
 Employee job performance
 Employee ability, motivation
 Employee Job Performance
 Motivation is perhaps the most complex
variable in the productivity equation.
 Only unsatisfied needs are motivators.
 Maslow identified five basic needs:
physiological, safety, social, esteem, and
self-fulfillment.
 The higher level needs (social, esteem, and
self-fulfillment) might hold the most promise
for motivating.
Advantages
 High production rates
 Low wage rates
 Low skill requirements
Disadvantages
 High turnover, tardiness, grievances,
sickness, and sabotage
 Low production quality at times
 1. Make sure correct methods are being used
to perform the operation being studied.
 2. Break the operation down into basic tasks
(elements).
 3. Determine how many cycles to time. A
cycle is one complete set of the elemental
tasks.
 4.Compute the allowance fraction for the
operation. The allowance fraction is the fraction
of time that workers cannot work through no
fault of their own.
 5. Compute the mean observed time for each
element:
(Sum of observed element times)
(Number of cycles timed)
Arjun Negi

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Arjun Negi

  • 1. DEPARTMENT OF BUSINESS MANAGEMENT SUBJECT:- Human Resources Management TOPIC :- Employee Productivity SUBMITTED TO :- SUBMITTED BY :- DR. SURENDRA KUMAR ARJUN SINGH MBA IInd SEM
  • 2.  Productivity  Productivity means the amount of products or services produced with the resources used  Productivity = Quantity of products or service produced Amount of resources used Productivity varies with the amount of production relative to the amount of resources used.
  • 3.  Increase output using the same or a lesser amount of resource.  Reduce amount of resource used while keeping output constant or increasing it.  Use more resource as long as output increases at a greater rate.  Decrease output as long as resource use decreases at a greater rate.
  • 4.  Capital - Number of products produced Divided by asset value Materials - Number of products produced Divided by dollars spent on materials  Direct Labor - Number of products produced Divided by direct labor-hours  Overhead - Number of products produced Divided by dollars spent on overhead
  • 5.  For some firms, production labor (touch labor) represents a very small part of the firm’s total costs  For other firms, particularly service firms, direct labor cost remains a significant cost and the need to improve labor productivity is still a serious concern
  • 6.  Physical work environment  Technology, equipment, materials, lighting, layout  Product quality  Defects, scrap, rework  Employee job performance  Employee ability, motivation  Employee Job Performance
  • 7.  Motivation is perhaps the most complex variable in the productivity equation.  Only unsatisfied needs are motivators.  Maslow identified five basic needs: physiological, safety, social, esteem, and self-fulfillment.  The higher level needs (social, esteem, and self-fulfillment) might hold the most promise for motivating.
  • 8. Advantages  High production rates  Low wage rates  Low skill requirements Disadvantages  High turnover, tardiness, grievances, sickness, and sabotage  Low production quality at times
  • 9.  1. Make sure correct methods are being used to perform the operation being studied.  2. Break the operation down into basic tasks (elements).  3. Determine how many cycles to time. A cycle is one complete set of the elemental tasks.
  • 10.  4.Compute the allowance fraction for the operation. The allowance fraction is the fraction of time that workers cannot work through no fault of their own.  5. Compute the mean observed time for each element: (Sum of observed element times) (Number of cycles timed)