Lesson 1, Topic 1
In Progress

1.17. Productivity Conceptual Model

ryanrori January 25, 2021

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A simple way of looking at productivity in a business organisation is to think of it in terms of the productivity model shown below.

Essentially, productivity is a ratio to measure how well an organisation (or individual, industry, country) converts input resources (labour, materials, machines) into goods and services.

This is usually expressed in ratios of inputs to outputs. That is (input) cost per (output) good or service. It is not on its own a measure of how efficient the conversion process is. 

The Productivity Conceptual Model below takes the form of a ‘productivity tree’. The roots denote the inputs to the system, the trunk the conversion process and the leaves and fruits the system’s outputs.

From: www.agriseta.org.za

The successful management of this process is ultimately the key to survival of any organisation. It should be the concern of, and a development goal for all organisational members, irrespective of their position.

Improvements in productivity can be achieved by:

  • Achieving more output for the same input
  • Achieving the same output from less input
  • Achieving much more output form slightly more input
  • Getting slightly less output for much less input

In the short term, an organisation can improve productivity through its employees by:

  • Properly motivating and coaching its employees
  • Providing the right information at the right time to its employees,
  • Using simple productivity improvement tools and techniques and
  • Rewarding employees in a an appropriate way