Posts Tagged ‘globalization’
A nation prospers when production activities are managed intelligently, diligently, and harmoniously. Otherwise the cost of resources will be high. Thus, the poverty of nation is an outcome of weakness in the organization and management of their production resources.Productivity stands for composite efforts of all the factors contributing to production. Productivity should not be confused with increased production. Higher production does not necessarily mean higher productivity. Higher productivity can be achieved by better utilization of resources. Higher productivity results in cost reduction and thus causes higher profitability and enhances competitiveness.Production, productivity, innovation, organization, management and employment are social processes required to manufacture product. The involvement of the social actors is essential, viz, industrialists, businessmen, managers, engineers, technicians, workers, farmers, political leaders, scientists, planners, policy makers, bureaucrats, administrators, accountants, salesmen, clerks and so on.Productivity is strongly related to the culture of society and motivation of employees. A motivated employee uses resources economically, efficiently, and effectively with greater care.. Culture also plays a determinant role in directing workers to work- place and making them to use resources efficiently and effectively. Culture also initiates and motivates society for a higher performance.Productivity is not everything, but in the long-run it is almost everything. A country’s ability to improve its living standard over time depends almost entirely on its ability to raise output per worker.
Higher production does not mean higher productivity. Higher productivity can be achieved only by better utilization of resources. Though higher productivity results in cost reduction and thus favors profitability and competitiveness, profitability is not a measure of productivity as some times profit can be achieved while resources are inefficiently and ineffectively utilized. Poor capacity utilization, outdated technology and machinery, poor maintenance and excess manpower are indicators of inefficiency in the organization. Inefficient utilization of resources does not lead to productivity.Theories of motivation have indicated that people are motivated by various needs. These various needs are motivated by different satisfiers. If the organization is in a position to know what motivates its workers and provides rewards or incentives based on their needs and wants, it will definitely increase their productivity. However, there is an argument among researchers that since there is no guarantee that giving someone a reward will lead to increased effort or that increased effort means better performance that will lead to higher productivity, because productivity is a function of many elements of which reward is only one of the factors.In most cases it is assumed that job satisfaction and productivity are always interrelated, but some findings revealed that this thought is not necessarily seen a correct one since relationship between satisfaction and productive efficiency cannot be taken for granted. Assumption to increase productivity of the employee might be possible through satisfying their needs.As it is clearly seen from aforementioned discussions, productivity signifies a continual striving towards the economically most efficient mode of production of goods, commodities and services needed by a society. Hence it constitutes an important requirement for raising the living standard of the people in a nation. Productive efficiency is of crucial importance for managing inflation by lowering the costs of goods, services and commodities consumed by people. Productivity is the essential prerequisite for increasing exports, achieving export led growth, attaining techno-economic development and generating wealth for investment, consumption and social welfare.In Ethiopia major economic reforms have been undertaken after liberalization since 1992 with the objective of increasing productivity and competition among the companies. The new policies have liberalized many government controls on production capacity, imported capital goods and intermediate inputs making them cheaper and more accessible to both domestic and international competition. These reforms have altered the economic environment in which the textile industry operates.
Philadelphia Accountant We help small business owners with accounting, business plans, tax preparation and much more. Visit our site or call 215.342.4200.