Productivity is a very close term in business activities and self-development. Today, the meaning of productivity has even become a hot topic that is often discussed by business people.
The reason is, it greatly affects the success of a business, especially those related to employees. Productivity is the most basic factor in the context of competition in the business world.
What Does Productivity Mean?
Productivity comes from the absorption language productivity which is a combination of the words product and activity. The meaning of product itself is goods or services, while activity means action or activity.
Thus, the meaning of productivity in general is an activity to produce products or services by utilizing existing resources.
In practice, the meaning of productivity is usually used to assess the efficiency level of machines, companies, systems, and employees. From this description, it can be concluded that productivity has several building elements that are mutually supportive and related. What elements are they?
- Effectiveness, which is a measure or standard of determination when choosing a method to carry out activities in order to achieve targets.
- Efficiency, which is a measure or standard of determination when carrying out activities by saving resources.
- Quality, namely standardization that states the fulfillment of requirements, specifications, and consumer expectations.
The Meaning of Productivity According to Expert Opinions
To understand the meaning of productivity more deeply, you can look at various opinions expressed by experts. Below are some of them:
- >Heny Kuswanti Daryanto
Productivity is a concept that describes the relationship between goods or services (results) with the resources needed to achieve results. These resources can be in the form of energy, capital, workers, and so on. - The Meaning of Productivity According to J. Ravianto
According to Ravianto, productivity conceptually shows the relationship between a unit of time and the work of one worker to produce a product. - Muchdarsyah Sinungan
Muchdarsyah argues, that the meaning of productivity is the correlation or relationship between the real results of a product with the actual input. - Husein Umar
Husein explained that productivity is a comparison between the output or results achieved by utilizing inputs or resources. - Kung H. Chen, Thomas W. Lin, and Blocher Edward J.
The three agreed, the meaning of productivity is a correlation between the amount of output produced and the input needed to produce that output. - Eddy Herjanto
Eddy Herjanto revealed that productivity is a measure or value that states how to manage resources and utilize them to achieve optimal results.
Factors Affecting Productivity
Within an organization or business, there are several factors that can influence or increase productivity. These factors are:
1. Personal Factor
This factor is closely related to the meaning of labor productivity, because it involves actors or people who carry out activities. The points included in this factor are:
- Quality of employees
- Positioning
- HR training and development
- Career path
- Working environment conditions
- Opportunity to express opinions or suggestions
2. Factors of Production
There are several points that are included in the factors of production, such as coordination, planning, and the quality of raw materials. In addition, there are also points of control and standardization of the production process which is no less important.
3. Technical Factor
The level of productivity of a company is highly dependent on technical factors. If the company uses high-tech machines, the results obtained will also be maximized.
To achieve the meaning of productivity above, technical factors must go through careful planning. Here are some points to consider:
- Determining the location and size of the factory or company
- Types of machines used and their layout
- How to operate machinery and other equipment
- Application and development of computerized technology
4. Location Factor
The existence of the location factor plays a very important role in terms of business productivity. Because, in that place the production process and capital turnover will take place.
Therefore, you have to consider many things when setting up a business. Several factors can be used as a benchmark for determining the location, namely:
- Distance from location to source of raw and supporting materials
- Distance to market or consumer
- Available infrastructure facilities
- Security and convenience of the location
5. Financial Factor
As you know, financial factors are related to finances. It is not only a matter of fulfilling employee rights, but also managing and controlling capital.
6. Management Factor
Good management is able to maximize resources to produce quality products at a fairly low cost. In other words, management factors must be able to regulate other factors.
7. Organizational Factors
Within the company, organizational factors have a broader scope and are structured. There are five points that must be considered, when preparing the organization, namely:
- Defining the organization
- Type of organization to apply
- Responsibility and authority of each individual and department
- Allocation or division of scope of work
- Skill in handling the job
8. Government Factor
The establishment of a business cannot be done just like that, but must be in accordance with the applicable laws and regulations. You must pay attention to the rules and policies that have been set.
Strategies to Increase Business Productivity
To obtain maximum results, companies must arrange various strategies to increase productivity. At least, you can do the following steps:
1. Pay Attention to the Work Environment
A comfortable and safe environment will make employees feel at home and work hard. Therefore, prepare good and complete work facilities in the company.
2. Monitoring and Evaluation
Routine job evaluation is proven to increase employee productivity and effectiveness. Prepare an appropriate control and supervision system, so that it functions optimally.
3. Job Training
The job training program will increase the experience, insight, and skills of employees. The hope is that the purpose of the meaning of productivity can be achieved well.
You can also give employees the opportunity to get promoted or commonly known as the career ladder. This is powerful enough to pump up the morale of the employees.
4. Employee Welfare
Employee welfare is an important factor that affects the health and mental condition of employees. Indirectly, it will also affect employee productivity.
5. Giving Reward
Is there anyone who doesn’t feel happy and proud when they get a reward? Therefore, implementing a reward strategy is worth a try.
However, be careful not to let this decision create unfair competition among employees. In addition, make sure you have done careful planning.
Do not let the system harm the company, both in terms of material and immaterial. You can take advantage of the services of a consultant to assist in the planning and implementation of the system.
Use the iREAP POS App!
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