Mr. Dilip Kale, Manager (Administration) of Alfa India Co. Ltd. is worried these days. He wants to develop a standardized system for computing the efficiency or productivity of his employees. There is no documentary evidence of any earlier exercise on productivity measurement carried out. Superintendents, juniors and senior officers, junior and senior clerks, peons and sweepers, helpers, typists, telephone operators, etc. carry out their responsibilities in an adhoc manner. There is no standardized norm for computing and assessing individual productivity. Normal or average productivity, quantifiable and non-quantifiable productivity, technical (operational) and supportive productivity etc. are to be first defined. As far as possible, the ‘definition’ and ‘measurement’ of productivity should be acceptable to all. There should be minimum possible subjectivity in the computation of productivity.
Somehow, Mr. Kale’s subordinates have been resisting to the idea of ‘defining and computing productivity’. They feel that any written norm or standard may be misused by the superiors or the management, to harass them. Some of the employees are afraid that their inefficiency and negligence will be brought to light if ‘standard productivity’ is defined and implemented. But most of the young employees are of the opinion that ‘productivity’ must be measured and linked up with various important policies on wages, promotion, training, increments, penalty, reward etc. They also know that if ‘employed productivity’ is known to the management, many future plans can be easily decided. The company can take newer challenges if ‘labour productivity’ is well defined.
Worldwide, ‘improvement in productivity’ has become the key word. Improved productivity reduces cost of operations and ultimately increases the profit of the company. Increase in profit would ultimately help the employees in getting better remuneration.
Q.
1) Define Productivity.
2) Discuss various ways of measuring productivity.
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