Effective and Efficient Management of Performance Production for Increase Profits

 

Introduction

Achieving organizational goals is not only increase profits, but it’s also a process of managing productivity and performance of inputs effectively and efficiently to affecting profitability. Industry giants like Amazon are profitable organisations. But the problem is how much they are sustained their increase of profitability in challenged and dynamic business world.

 Organisations produce products or services to fulfil human needs. By providing products to consumers organizations make revenues. Production is the process of inputs converting to output that product or service. In this process productive workforce is one of the most important factors, So it’s so important to manage this human resource to optimize their input to make profits.

 Productivity & Performance

Productivity is simply can define as the relationship between inputs and outputs of production. According to the OECD Productivity Measuring manual, Productivity is the efficiency of user inputs such as land, labour capital for production. (Krugman, 1994)

 

Output	= Productivity
Input

 

 Performance management is to create the best possible use of all resources to achieve goals efficient and effectively (Sadraei & Rostam, 2019). Development of process can measure with performance analysis. By Defining goals to achieve with smart objects, development plans also relating to process effectiveness and, quality and efficiency performance is getting measure. 

 

 

Effective and Efficiency

 

Doing right things and doing things right is simply describe as effective and efficient. Organizations are looking to improve their efficiency of the process, by use of a maximum of resources also re-engineering and improve the process to effectively achieve goals. (Krugman, 1994)

Effectiveness is always goal-oriented, it’s not considered the effort and time to achieve the goal. Another way of doing things right is optimal calculation. (Krugman, 1994) 

Manage productivity and performance to improve profits, it needs to do in an effective and efficient way.

Managing productivity is to focus on the resources of production. The main resources for production are Land labour capital. These work as inputs for production. As Susan, (2012)’s Effective human management increases the employee’s contribution to the organization effectively (Susan, 2012). 

Components of productivity are effectiveness and efficiency. Effectiveness is to matching outcomes of the task align with goals. Because of this organisation must define the task well and add the conditions also the responsibilities (Sadraei & Rostam, 2019). Defining how to execute each task increase the performance of labour. Providing guidance needful training with knowledge to human resources increase the ability to execute given tasks effectively and efficiently, (Amiri, 2017)

 Challenges and Opportunities

As a Challenge of implementing, the gap of information is major. To perform efficiently employees, need the information. (Kaupa & Atiku, 2020)Lack of information makes the process inefficient even employee is a skill full and efficient. Management should communicate their expectations, goals, prioritisation and challenges clearly to their subordinates (Holzer, et al., 2017).

Initiating daily updates, create an agile environment, effective communication does a major role to overcome information gaps. This will good opportunity for management to see how employees are progressing on given daily tasks. also, if there is a need for improvement in work, learnings can be identified quickly without waiting last minutes.

Lack of efficient tools is another challenge when managing productivity and performance. (Kaupa & Atiku, 2020) Technologically empowerment increase productivity with efficiency.

When they have corrected equipment to do the correct task, it is getting easier and motivate the employee to work, that directly increase the efficiency (Holzer, et al., 2017).

However, stepping beyond traditional empowerment of employees creating a good work environment, (Hayward, 1976) enough breaks with good organizational cultures and safety parameters including benefits are motivate employees to work hard give their maximum effort productively to the organization.

According to Maier on Future on work web, Toxic environments are most challenged in the organization, to make profits with unhappy employees and must overcome. Excessive meetings also another challenge to overcome, (Maier, 2018), it takes more work time to discussion and reduce the working hours, it reduces the productivity of employees, also efficiency and effectiveness with a deadline.

Employees are not encouraged not apricated are unproductive. (Maier, 2018) They tend to make mistakes and failures which causing to reduce efficiency, by taking care of them with giving needful training, feedbacks with improvement points are encouragement to take them back to track.

Building KPI- Key performance Indicators are used to measure how employees are performed in the given time period (Sadraei & Rostam, 2019). Giving goals to achieve to the employees and monitor them quarterly, six months and annually can lead to productivity by measuring how they meet productivity targets.

 

Conclusion

To increase profits, the productivity of the workforce is important. This will require sound management of Human Resource management and the optimisation of resources. Through sustainable practices, productivity can be improved through the conscious utilization of resources.  

Changing the organizational and leadership culture, in order to enhance productivity and performance in order to create sustainability. The performance management systems should be implemented but with due consideration to human aspects. Employees should not slave on KPIs. Organizations can capitalize on opportunities to enhance their reputation value. It will attract new talents to the organization also increase employee retention. and minimalize cost of production, optimize the usage of resources,

They need a new sustainable brand of leadership that will focus more on other stakeholders rather than shareholders. Sustainability will lead to profitability.

They will have to develop clear cut strategies to achieve their CSR goals. These strategies should be funded adequately.

Make employees a part of the sustainability initiatives. Give them ownership of the agenda, let sustainability cascade downwards by making employees involved in sustainability by incorporating sustainability to KPIs