The term productivity has been used to refer to individual groups, organisational units, entire organisations , industries and national economies. Today, the majority of definitions say that productivity is a measure of outputs divided by inputs. For instance, inputs can be raw materials, energy, etc, whereas outputs can be furniture, cars, services etc. With regard to Human Resource Management the main interest lies in the invested labour and capital in relation to the units produced. By measuring the productivity of an organisation the achieved efficiency can be found out and will show how effectively the invested resources have been used. Generally it can be stated that the higher the ratio, the more efficient are the used inputs. From a business point of view the main organisational goal is to reduce costs until only unavoidable costs remain. Thereby it is essential to realise that an appropriate measurement system in every organisation is crucial.
In contrast to productivity, performance refers to the output of an individual employee. The achieved output is compared to determined standards the worker is expected to meet. The units of the standards depend upon the nature of the job and the more complex the job the more difficult it gets to measure the performance. For these more complex jobs performance appraisal systems have been designed which will be discussed later. For instance, p ossible criteria to measure the level of performance of more simple jobs can be the number of produced products, the number of rejects or the wastage of raw materials. However, quantity, quality and time are indicators in any case to measure performance.
Table of Contents
- 1. Explain the difference between the two concepts of performance & productivity
- 1.1 Productivity
- 1.2 Performance
- 1.3 Conclusion
- 2. Discuss the need to improve productivity & performance in South African organisations.
- 3. Discuss techniques which managers can take to improve employee performance and productivity
- 3.1 Introduction
- 3.2 Technology
- 3.3 Motivation
- 3.4 Training, Development & Coaching
- 3.5 Management by Objectives
- 3.6 Performance Appraisal
- 3.7 ISO9000
- 3.8 Total Quality Management (TQM)
- 3.9 Conclusion
Objectives and Key Themes
This work aims to differentiate between performance and productivity, explore the need for improvement in South African organizations, and discuss managerial techniques to enhance employee performance and productivity. The paper analyzes the relationship between individual employee performance and overall organizational productivity.
- Distinction between Performance and Productivity
- Challenges to Productivity and Performance in South Africa
- Managerial Techniques for Performance Improvement
- The Role of Technology in Enhancing Productivity
- Importance of Employee Motivation and Training
Chapter Summaries
1. Explain the difference between the two concepts of performance & productivity: This chapter clarifies the often-confused terms "performance" and "productivity." Productivity is defined as the ratio of outputs to inputs (e.g., labor, raw materials) across various scales, from individuals to national economies. Performance, conversely, focuses on the output of an individual employee relative to established standards. While the measurement of productivity in simpler jobs might involve quantifiable metrics like product output, more complex roles necessitate performance appraisal systems. The chapter concludes that while distinct, performance and productivity are closely related; high individual performance is crucial for high organizational productivity, thus emphasizing the importance of focusing on improving employee performance.
2. Discuss the need to improve productivity & performance in South African organisations: This chapter addresses the significant challenges facing South African organizations, including high unemployment, the HIV/AIDS pandemic, high crime rates, a substantial unskilled workforce, and illiteracy. These problems are linked to South Africa's relatively weak economy and the enduring legacy of apartheid, particularly the scarcity of skilled labor and persistent inequalities. The chapter argues that improving productivity and employee performance is essential to overcome these issues, suggesting that increased productivity can lead to job creation, reduced crime, and enhanced international investment. The impact of globalization on productivity and the link between productivity growth and GDP growth are also highlighted using examples from the US economy.
Keywords
Productivity, performance, South Africa, employee performance, management techniques, organizational productivity, motivation, training, technology, globalization, economic growth, performance appraisal.
Frequently Asked Questions: A Comprehensive Language Preview on Performance and Productivity in South African Organizations
What is the main focus of this document?
This document provides a comprehensive overview of performance and productivity, focusing on the differences between the two concepts, the challenges faced by South African organizations in improving these areas, and various managerial techniques to enhance employee performance and productivity. It explores the relationship between individual employee performance and overall organizational productivity.
What are the key differences between performance and productivity?
Productivity is defined as the ratio of outputs to inputs (labor, raw materials, etc.), applicable across various scales. Performance, conversely, centers on an individual employee's output relative to established standards. While distinct, they are closely linked; high individual performance is crucial for high organizational productivity.
What are the major challenges to productivity and performance in South African organizations?
South African organizations face significant challenges, including high unemployment, the HIV/AIDS pandemic, high crime rates, a substantial unskilled workforce, illiteracy, and the enduring legacy of apartheid. These factors contribute to a relatively weak economy and a scarcity of skilled labor.
How can managers improve employee performance and productivity?
The document outlines several managerial techniques: leveraging technology, improving employee motivation, implementing robust training and development programs, employing management by objectives, utilizing performance appraisal systems, and adopting quality management approaches like ISO9000 and Total Quality Management (TQM).
What is the role of technology in enhancing productivity?
The document highlights technology as a crucial tool for improving productivity, although specifics on the types of technology are not detailed.
Why is employee motivation and training important?
Employee motivation and training are crucial for enhancing performance. Motivated and well-trained employees are more likely to be productive and contribute significantly to organizational success.
What is the relationship between productivity and economic growth?
The document suggests a strong correlation between productivity growth and GDP growth, using examples from the US economy to illustrate this point. Increased productivity can lead to job creation, reduced crime, and enhanced international investment.
What are the key takeaways from this document?
This document emphasizes the critical importance of distinguishing between performance and productivity, addressing the unique challenges facing South African organizations, and implementing effective managerial strategies to improve both employee performance and overall organizational productivity. It stresses the interconnectedness of these factors for national economic growth.
What are the keywords associated with this document?
Productivity, performance, South Africa, employee performance, management techniques, organizational productivity, motivation, training, technology, globalization, economic growth, performance appraisal.
- Quote paper
- Arne Linnemüller (Author), 2005, Productivity and the Management of Performance, Munich, GRIN Verlag, https://www.grin.com/document/45571
