A brief presentation on Productivity and performance + how we can improve productivity in organizational level. Please leave your valuable comments.

1. Submitted by,
Ashwin Kumar Roy S
1st M.F.Sc. Seafood Safety and Trade
School of Industrial Fisheries
CUSAT

2. INTRODUCTION
 Historically, the term is believed to have been used for
the first time in 1776 by the economist Quesny.
 Towards the close of 19th century it was understood as
“the faculty to produce”.
 According to Peter Drucker, productivity is defined as
“that balance between all factors of production that
will give the greatest output for the smallest effort.
 Productivity may be described as a relationship
between output and input.

3.  It is the ratio of output to the input.
 Symbolically, P= O/I , where P= productivity, O=
output, and I= input.
 The output may be measured in terms of the units of
goods or the value of goods and services, while input
refers to combination of the raw materials, machinery,
worker’s time, power, effort

4. LABOUR PRODUCTIVITY
 The productivity of labour is the ratio between the
output and the number of man-hours worked
 Symbolically, PL= O/MH
 PL= productivity of labour
 O= output in terms of units or quantity or value
 MH= number of man-hours spent on production
 Man-hours= the number of workers employed on
production X the number of hours worked.

5. PRODUCTIVITY OF OTHER FACTORS
 Productivity of machine= total production in length,
weight etc./ machine-hours worked
 Productivity of material= weight or volume or number
or length of finished goods/ weight, volume, number,
or length of raw material used
 Productivity of land( generally used in agriculture)=
total production/ area of land used

6. MEASURES OF PRODUCTIVITY
 Generally the productivity of labour is measured in the
following ways:
1. Labour cost per unit of output
2. Output per man-hour
3. Static
4. Dynamic
5. Partial factor
6. Multi-factor
7. Total factor

7.  The labour cost per unit output: is ascertained by
dividing the total wages paid to the workers by the
number of units produced by them.
 The output per man hour: is the ratio between the
total Work Load Units (WLUs) by total available man
hours. The output per man-hour method is widely
used measure in labour productivity.
 Static: P= O/I in a given period of time

8.  Dynamic: P(1)=O(1)/I(1); P(2)=O(2)/I(2) then P(2)/P(1)
yields a dimensionless index that reflects change in
productivity between periods. ((P(2)-P(1))/P(1))*100
yield the percentage change between 2 periods.
 Partial Factor: Uses a single Input factor, e.g.: output
per labour-hour
 Multi Factor: Use more than one Input factors e.g.:
output per direct cost (labour, materials and overhead)
 Total Factor: Uses all Input factors

9.  One man-hour is the expenditure of one hour of time
on the job by one person regardless of the output.
 Man-hours are of three types:
1. Paid man-hour
2. Worked paid hour
3. Actual worked hour

10. 1. Paid man-hour: This is represented by the ratio of workload
units to total technical, clerical and assistant time in hours,
for which employees are being paid, whether or not the
employees are on site. It determines cost-effective use of
personnel. It identifies the overall productivity of all
employee resources dealing with the workload.
2. Worked paid hour: Total paid man-hours – total paid man-
hours not worked.
3. Actual Productivity : It is based on actual worked hours. It is
useful to assess the impact of non-workload activity. Total
actual worked hours =total worked hours– paid hours
devoted to untimed activities. Untimed activities include:
Breaks (coffee breaks, lunch breaks), training others,
ordering and inventory of supply, preparing monthly
activity reports, staff meetings.

12. FACTORS AFFECTING
PRODUCTIVITY
1. TECHNOLOGICAL DEVELOPMENT
 The Plant : The size of the plant and the capacity
utilization will have a direct bearing on productivity.
Production below or above the optimum level will be
uneconomical and will tend towards lower levels of
productivity.
 Research and Development : Investment in research
and development may yield better methods of work
and better design and quality of products.

13.  Plant and job layout : The arrangement of machines
and positions in the plant and the set-up of the work-
bench of an individual worker will determine how
economically and efficiently production will be carried
out.
 Production processes : Advanced production processes
involving the use of integrated and automatic
machinery and semi-processed materials have been
known to help in raising levels of productivity.
 Power, raw materials etc. : Increased use of power and
improvement in the quality of materials have a
favorable effect on productivity.

14.  Scientific management techniques : Better planning of
work, simplification of methods, time, emphasis on
need for reduced wastage and spoilage are some of the
contributions of the scientific management movement
to the cause of higher productivity.

15. IMPORTANCE OF PRODUCTIVITY
 Reduction in the cost of raw materials (through
increase in the productivity of raw materials)
 Reduction in labour cost per unit of output.
 Reduction in overheads and power costs per unit of
output.
 Reduction in the price of goods.
 Increase in wages and salaries (through schemes for
sharing the gains of productivity)
 Increase in the reserve fund that can be utilized for
expansion and modernization.

16.  Better standards of living for people through increase
in their incomes and improvement in the quality of
goods that can be made available at cheaper prices.
 Increase in the competitive strength of the country in
export market through reduction in cost of production
and improvement in quality of output.

17. PERFORMANCE
 It has been emphasized that the human factor is a
critical factor in the success of an enterprise or an
industry.
 The employees’ attitude and performance have an
immense bearing on productivity.
Job performance of employees is broadly
determined by three factors:
a) Ability
b) Motivation
c) Physical condition of work

18. ABILITY
The ability of an individual employee to perform well on his
job is of fundamental importance in productivity.
The personal factors which govern the prerequisite of
higher productivity are knowledge and skill.
 Knowledge is acquired trough training, education and
interest on the part of the learner, that shows how
important education is for higher productivity.
 Skill is affected by aptitude, personality and also by
education, experience, training, etc.
A person who is deficient in knowledge and skill is
likely to be less productive than a person who is normal in
these respects.

19. MOTIVATION
The willingness of the employee to work for an
organization is related to his productivity in an important
way.
• The motivation of an employee will depend upon the
organization, structure, leadership, need satisfaction
and influence of trade union.
• Some of the features of the formal organization which
influence motivation are delegation and
decentralization, organizational efficiency, job
evaluation, training, and provision for two-way
communication etc.

20. TYPES OF MOTIVATION
Positive Motivation
 Positive motivation or incentive motivation is based on
reward.
 The workers are offered incentives for achieving the desired
goals.
 The incentives may in the shape of more pay, promotion,
recognition of work, etc.
According to Peter Drucker, “the real and positive
motivators are responsible for placement, high standard of
performance, information adequate for self control and the
participation of the worker as a responsible citizen in the
plant community”.

21. Negative Motivation
 Negative or fear motivation is based on force or fear.
 In case, they do not act accordingly then they may be
punished with demotions or lay-offs.
 The fear act as a push mechanism.
 This type of motivation causes anger and frustration.
 It generally becomes a cause of industrial unrest.
In spite of the drawbacks of negative motivation,
this method is commonly used to achieve desired
results. There may be hardly any management which has
not used negative motivation at one time or the other.

22. TECHNIQUES OF MOTIVATION

23. PHYSICAL CONDITIONS OF WORK
 The importance of a proper work environment and
physical conditions on the job has been emphasized by
industrial psychologists and human engineers.
 It is important that the work environment ensures the
greatest ease at work through better ventilation, better
lighting, improved safety devices, reduction in noise,
etc.
 Equally important is the introduction of suitable rest-
pauses to enable the men to recoup their energy lost in
continuous work.

24. Thank you