FACTORS THAT AFFECT IMPROVEMENT OF PRODUCTIVITY

It has been observed that the following nine factors should be taken care of if an
organisation has to effect changes needed to improve productivity and
profitability:

1. Work that is challenging, creative, and interesting and provides an opportunity

for “stretch” performance.
2. Participation in decisions that have a direct effect on the individual’s job.
3. Compensation that is tied to performance and to share the productivity gains.
This needs a realistic appraisal.
4. Communication and authority channels in simplified form.
5. Competent supervision.
6. Recognition of achievement.
7. Opportunity for self-development.
8. Opportunity for stewardship, care of and attention to customer and co-worker
needs.
9. Organizational style and patterns should be more flexible to the possible
extent.
These provisions for providing job satisfaction and necessary motivation is not a
simple task. It is really very complex in nature. No simple changes or group of
changes such as revision of pay, or job enrichment will be sufficient nor will any
misdirected notions of “human relations” or paternalism will yield any result.
Certain basic techniques, methods, and programs are available for the
organization and to the individual manager which taken together will go a long
way for creating a proper environment for improving productivity. These are
known as Results Management Methods which forms the basis of managing
subordinates. They are as follows:

1. Job Development: Matching the content and level of an employee’s job

responsibility to his or her skills and abilities.
2. Performance Appraisal: The process of appraising a subordinate’s
performance against previously set and established goals. This provides
feedback on performance, a tool for self-development, and a device for
recognition of performance.
3. Subordinate Development: Providing the environment for continuous learning,
self-development, and growth on the job.
4. Communication: Improving the communication process using upward
communication so that subordinates are informed about matters which affect their
jobs.
5. Leadership Style: The adoption of leadership and supervisory styles that
promote “ results thinking” and hence improvement in productivity and job
satisfaction.
6. Delegation and Control: Learning and practicing the art of delegation utilizing
self-control by subordinates.
7. Organisational Style: Adopting an organisational form that provides for
flexibility in authority and communication and overcomes the inflexibility of the
classical bureaucracy.
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