Why Is Productivity Important In Operations Management?

Productivity is an essential factor to consider when it comes to sales. It plays a key role in the competitiveness and profitability of an organization. It’s pretty simple; the higher the productivity level of your company, the higher the profits you’ll generate for your company. Today, there are many reasons why productivity is important in an organization.

For instance, in operations management, productivity is one key factor that helps your employees to achieve their goals. Read further to discover everything you should know about the relationship between productivity and operations management.

What exactly is operations management?

So, here’s a quick question; why is “productivity” important in operations management? For you to better understand what productivity means, let’s start by talking about what operations management is all about.

Operations management is an important aspect of every production company. It helps to oversee the entire operating system of the company. Apart from controlling all processes, operations management also assists in handling different issues in an organization, such as operation, maintenance, design, and improvement of the available systems.

Why is productivity important in operations management?

Two factors that influence the productivity of a company are total output and total input. When the total output is higher than the total input, the company is said to have made higher productivity.

It’s simple; productivity is the ratio of a company’s total output to its total input.

Productivity = total output/total input

Total output is the total value of what a company produces. Total input, on the other hand, is the total value of all the resources used during the production of the company’s products and services.

So, why is productivity important in operations management?

  • Productivity is essential as it has an enormous impact on a company’s total output.
  • It’s key to a company’s profitability, sales, and long-term relevance in the industry.

Low productivity is something that every organization tries to avoid. Apart from reducing a company’s productivity, low productivity can also lower employee morale, causing more issues,  such as delays in project timelines, lack of employee performance improvement, and a high turnover rate of workers.

Key factors that boost productivity in operations management

Now that you know why productivity is important in every operations management, what’s next is to do all you can to boost it. For you to avoid the aforementioned issues that come with low productivity in your business operations, you need to put the following factors into consideration:

  1. Training

Training is one of the key factors you can rely on to boost productivity in operations management. Surely, additional training sessions for your employees cost a lot upfront. However, over that, the return on investment (ROI) of this move is higher productivity.

Giving your employees adequate training is one of the few effective ways to increase their productivity. With the right training, your workers will have a better understanding of how to avoid costly errors and reduce waste during operations.

  1. Comfortable working environment 

Having a good working environment is another good way to boost employee morale and increase productivity in operations management. Improving your workplace working conditions includes giving your workers space and privacy to carry out their duty. It also includes improving communication and offering employees basic amenities.

  1. Support

For your employees to remain productive in your organization, you need to provide them with the right support. It’s normal for your employees to struggle in certain areas. When this happens, your organization should take time to understand the employee and identify where the issues are coming from. To improve the employee’s productivity, the company can train them in the exact areas, where they’re struggling.

  1. Salary

Do you offer your employees fair wages? If not, you need to understand that unfair wages could decrease the morale of your workers. Pay them fairly and watch how they’ll become excited and motivated to deliver you more profits.

  1. Talent Coaching

If your productivity isn’t close to your target, it could also mean that you lack talents in your organization. To increase your productivity, you need to incorporate coaching into your talent management.
With the right talent coach, such as Betty Enyonam Kumahor of The Cobalt Partners, your company will only hire top talents. That’s not all; the right coach will also help to nurture the talent in your workers, which is key to building an effective and productive workplace.

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