What Is Productivity Management and Why Is It Important in Business

Productivity management is the process of monitoring and improving the efficiency of an organization, group, or individual in completing tasks and achieving goals.

This can involve setting targets and metrics, analyzing performance data, identifying and addressing inefficiencies, and implementing strategies and tools to improve productivity.

It is a vital aspect of business management as it helps organizations to increase output and achieve their goals while minimizing wasted resources.

What is Productivity?

Productivity is a measure of how efficiently an organization, group, or individual converts inputs (such as labor, materials, and energy) into outputs (such as goods or services).

It is often expressed as a ratio of output to input, and is used to evaluate the performance of a business, worker, or system.

Productivity can be increased by improving processes, technology, and worker skills, which can help to reduce costs, improve quality, and increase output. It is a key indicator of an organization’s competitiveness and profitability.

Productivity Management Aspects

To manage self-productivity, we need to clearly understand the purpose of life. And these life goals need to be achieved without sacrificing the process.

Keep the plan from being completed, but we are sickly. Managing the balance between dreams and processes is one of the keys to productivity self-management.

The explanation above seems simple to explain the concept of self-productivity, which is far more complex.

Therefore let’s elaborate further. At least three aspects need to be known to understand self-productivity management. Next, we call it MPD.

1. Focus on the individual, not the organization

In contrast to the more organization-oriented approach to time management, the MPD approach is more individual-oriented.

For MPD, organizational productivity will be achieved if the productivity of each individual is successfully optimized. Therefore it is necessary to achieve a win-win position between the interests of employees and the organization.

Organizational productivity is a collection of self-productivity. The logic is simple, if every individual in the organization achieves optimal productivity, the organization’s productivity will also be optimal.

The involvement of everyone in the organization is an absolute requirement to achieve this. So, organizational productivity can only be achieved if we focus on developing individual productivity.

2. Life perspective above work perspective

Self-productivity management emphasizes each individual sees self-productivity from the perspective of life as a whole, not just work.

Humans are multidimensional beings. Using the perspective of life as a whole, it is hoped that integration will occur in various human dimensions.

So that the work produced will be consistent and long-term. Without that, work performance could only be temporary and not related to what one wants to achieve.

3. Process-oriented not output

The process is not output, downstream is not upstream. That is, MPD is process oriented with an emphasis on achieving an optimum balance.

Whether it’s a balance between short-term and long-term achievements, a balance between doing something meaningful and doing something fun, or a balance between achieving goals and process.

With a process-oriented approach, MPD places more emphasis on forming productive habits from day to day. The process approach also requires an understanding of the increasing workload.

In this sense, a person can only try to improve his ability to manage as many job demands as possible. But suppose the person faces a system that needs to be corrected, an unorganized boss, or work unrelated to his life goals. In that case, this effort will only cause frustration.

So MPD pays attention to how one manages workload and seeks to understand why one might have arrived in that situation.

Management Productivity Goals

The goal of productivity management is effectiveness and efficiency, empowering the minimum possible resources to obtain maximum results. Effectiveness is the degree of achievement of the output of the production system.

Efficiency is a measure that indicates the extent to which resources are used in the production process to produce output.

Suppose effectiveness is oriented towards better results or work, and efficiency is oriented towards less input. In that case, productivity management is oriented towards both.

How to Improve Productivity

Productivity Improvement Steps, Comprehensive and integrated productivity improvement stages:

1. Analyze the situation

The first step in productivity management is to analyze the situation before deciding or taking action to be determined. Example: In a hospital, patient visits have decreased drastically usual, so there is no need to add new workers/nurses.

2. Designing a productivity improvement program

To increase productivity, it is also necessary to have a basic program with the right, effective and efficient design.

Example: To increase outpatient visits at a hospital, promotional steps can be taken, either through advertising media or by directly carrying out programs for free blood sugar checks, free circumcisions, etc.

3. Creating awareness of productivity

Awareness of all parties involved in a company/institution is essential to increasing productivity, as expected. Example: Employees turn off electrical devices that are not being used to save energy to save costs.

4. Implementing the Program

To increase the productivity of the program that has been prepared and decided, it must be implemented in its implementation to achieve the final goal.

Example: HR skills improvement program by holding various pieces of training such as infant infusion techniques and so on, to increase productivity.

5. Evaluate the program and provide feedback

To assess the final results, it is necessary to evaluate the program by providing feedback. Example: Evaluating the effects of infant infusion technique training, are the nurses more professional after attending the training?

How Does Management Affect Productivity?

Effective management can greatly enhance productivity, leading to increased market value and growth, as well as the ability to weather difficult times such as a recession.

The actions of managers and the organization can have a significant impact on the productivity of the business. The role of managers in improving and maintaining productivity levels within their teams is crucial.

According to a Gallup study, up to 70% of the variation in employee engagement can be attributed to management. A skilled manager understands the strengths and weaknesses of each team member, and works to optimize the output of each individual.

Additionally, managers also take into account the stress levels and mental well-being of their teams, providing support as needed.

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