Presentation by -

Roll No.
50 51 52 53 54 55

Student Name
Hemangi Sutar Bharti Talwar Durgesh Yadav Kamlesh Yadav Shailendra Yadav

Productivity is never an accident. It is

always the result of a commitment to excellence, intelligent planning, and focused effort. Paul J. Meyer

Productivity
Productivity is a measure of the efficiency of production. It is a ratio of what is produced to what is required to produce it. Usually this ratio is in the form of an average, expressing the total output divided by the total input.

OR
In a simple term it can be said: Productivity is the ratio between Output of Work and Input of Resources

Productivity
Input Output

PROCESS

Productivity = Output Input

Productivity
Objectives of Productivity
1.

Results are the best way to compare effectiveness. Productivity is the best tool for comparing effectiveness. Effort (Yield) is directly related to the effectiveness and efficiency of production.

2. Quality of management is a key differentiator. The quality of management differentiates one business from another in the same field. Its a game of survival of the fittest. 3. Focus on continuous productivity improvement. Managements most important job is continuous productivity improvement. It leads to innovations. Being productive doesnt necessarily mean making more things, it means producing more of the right results efficiently.

Productivity
How Productivity is measured?
It can be improved by either increasing the amount of output using the same level of inputs OR Reducing the number of inputs required to produce the Output. But most of the time to find out the accurate measure of productivity can be complex. There are 2 approach for measuring productivity are as follows:

1. Total Factor Productivity 2. Labour Productivity

Productivity
Total Factor Productivity
It is the ratio of total outputs to the inputs from labor, capital, materials & energy: TFP = Output Input (Labour + Capital + Materials + Energy)

It represent the best measure of how the Organization is doing.

Managers need to know about productivity with respect to certain

inputs.

Labour Productivity

Productivity

It is the ratio of total outputs to a major category of inputs. Eg: Many Organizations are interested in Labour productivity, which can be measured as Labour Productivity = Output____ Labour Cost
It provides information on whether improvements in each

element are occurring.

Factors Influencing Productivity

CONTROLLABLE (OR INTERNAL) FACTORS

1.

Factors Influencing Productivity

Product factor The product meets output requirements product is judged by its usefulness. The cost benefit factor of a product can be enhanced by increasing the benefit at the same cost or by reducing cost for the same benefit.

2. Plant and equipment Productivity can be increased by paying proper attention to utilization, age, modernization, cost, investments etc. 3. Material and energy Efforts to reduce materials and energy consumption brings about considerable improvement in productivity.

Factors Influencing Productivity

4. Human factors & work method
Productivity is basically dependent upon human competence and

skill. Ability to work effectively is governed by various factors such as education, training, experience aptitude etc., of the employees. Improving the ways in which the work is done (methods) improves productivity, work study and industrial engineering techniques and training. 5. Management style
This influence the organizational design, communication in

organization, policy and procedures. A flexible and dynamic management style is a better approach to achieve higher productivity.

Factors Influencing Productivity

UN-CONTROLLABLE (OR EXTERNAL) FACTORS
1.

Structural adjustments It include both economic and social changes. Economic changes that influence significantly are: (a) Shift in employment from agriculture to manufacturing industry, (b) Import of technology, and (c) Industrial competitiveness.

2. Natural resources Manpower, land and raw materials are vital to the productivity improvement. 3. Government and infrastructure Government policies and programs are significant to productivity practices of government agencies, transport and communication power, fiscal policies (interest rates, taxes) influence productivity to the greater extent.

WAYS TO IMPROVE PRODUCTIVITY

Productivity of any system can be improved either by proper use of resources or by effective utilization of system or processes. Some action plans are:
Machine Management Work Process Work Design Work Environment Program Technology

PROBLEMS & MANAGEMENT

In todays political environment, the push for increased productivity, responsiveness and accountability affects an organizations ability to effectively achieve its objectives. Different issues will emerge over time, and they must be addressed.

Main areas of concern / Problems faced :

Management techniques and practices Human resource issues Performance assessment and analysis tools

PROBLEMS & MANAGEMENT

Main areas of concern / Problems faced :
Management techniques and practices

Never before have organization operated in such a changing climate. Rapid, accelerating change has departments responding to internal & external pressures, technological innovations, political & institutional concerns in unique and creative ways. Historically, the institutional context for implementing departments programs was relatively standardized. Today, these organizations find that traditional management techniques no longer lead to effective, efficient delivery of services, nor do they promote the public accountability necessary in todays political environment.

PROBLEMS & MANAGEMENT

Main areas of concern / Problems faced :
Human resource issues

The human resources (HR) profession is moving from a role of maintaining the status quo in organizations to being a partner in change by helping organizations make the best use of their human resources. High turnover in positions such as engineering and information technology and the loss of experienced employees as a result of retirement incentives have forced organizations to take a closer look at how they use their employees talents. Organizations are starting to recognize the high cost of turnover and mitigate the conditions that cause it.

PROBLEMS & MANAGEMENT

Main areas of concern / Problems faced :
Human resource issues

Outcomes of this new focus include the following:

Employers are more responsive to employee needs; Employees are better matched to the employers mission; HR is recognized as an important element in maintaining

a successful business; Training is seen as a performance improvement tool, not an end in itself.

PROBLEMS & MANAGEMENT`

Main areas of concern / Problems faced :
Performance assessment and analysis tools

Advances in information technology and ready access to data have affected organizations positively. These developments enable organizations to improve productivity and to better target existing resources by using an array of performance assessment and analysis tools. Some of these tools include : Performance measurement systems, Activity-based costing and management systems Results- and customer-oriented assessments of an infrastructure

PROBLEMS & MANAGEMENT

Main areas of concern / Problems faced :
Performance assessment and analysis tools

Some of these tools include : Organizational self-assessments Internal and external benchmarking processes Broad-based and segmented customer surveys Budgets based on performance or level of service Asset-costing and asset-management systems Knowledge management.

Controlling
In the words of E.F.L Brech, Control is checking current performance against predetermined standards contained in the plans, with a view to ensuring adequate progress and satisfactory performance. It is the measurement and correction of performance in order to make sure that enterprise objectives and the plans devised to attain them are being accomplished. Management Control Assure that resources are obtained and used effectively and efficiently in the accomplishment of the organizations objective

Controlling
STEPS IN A CONTROL PROCESS
There are three basic steps in a control process:
1. 2. 3.

Establishing standards Measuring and comparing actual results against standards Taking corrective action

NEED FOR CONTROL

1. 2. 3.

To measure progress To uncover deviations To indicate corrective action

Control of Overall Performance

Planning & control are increasingly being treated as an interrelated system. Along with techniques for partial control, control devices have been developed for measuring the overall performance of an enterprise or project within it.

Some reason for control of overall performance

Overall Planning must apply to enterprise or major division of

goals. Decentralization of authority in Product or territorial division Overall control permits the measurement of an integrated area managers total effort, rather than parts of it.

Control of Overall Performance

Many overall controls in business are financial. Since finance is the binding force of business, financial controls are certainly an important objective gauge of the success of plans. Financial controls, like any other control, have to be tailored to the specific needs of the enterprise or the position. Doctors, Lawyers and Managers at different organizational levels do have different needs for controlling their area of operation. Financial analyses also furnish an excellent window through which accomplishment in non financial areas can be seen. A deviation from planned costs, for example, may lead a manager to find the causes in poor planning, inadequate training of employees, or other non financial factors.

Direct & Preventive Control

Controls are necessary to check whether the performance conforms to the plans prepared by the organization.

Two types of controls :

1) Direct control
2) Preventive control.

Direct Control
Direct control is carried out once the deviations from the plans

are observed and then steps are taken to rectify them.

These are also known as Post action controls & measure results

after the process.

Managers measure actual performance, compare this

measurement against standards & identify & analyze deviations.

Then to make necessary corrections, they must develop for

corrective action & implement this program in order to arrive at the performance desired.

Direct Control
Desired Perform ance Actual Perform ance Measureme nt of actual Performance Comparison of actual Performance against standards

Implement ation of corrections

Program of corrective action

Analysis of causes of deviations

Identificatio n of deviations

Direct Control
Advantages :
1) Flexible in operation. 2) Reliable results. 3) Economical 4) Friendly in operation

Disadvantages :
1) Questionable Assumptions Underlying Direct Control. 2) Its more like a post mortem i.e. analyzing post occurrence.

Preventive Control
These are also known as Steering Controls or Feed forward

Controls & are designed to measure results during the process so that action can be taken before the job is done or the period is over.
They serve as warning posts principally to direct attention

rather than to evaluate.

What managers need for effective control is a system that will

tell them in time to take corrective action, that certain problems will occur if they do not do something now.
Preventive control monitor input into a process to accertain

whether the inputs are as planned, if they are not, the inputs, or perhaps the process, are changed in order to obtain the desired results.

Preventive Control
Advantages :
1) Undesirable events can be prevented before occurrence. 2) Effective & Efficient 3) Helps in avoiding financial / non financial impact

Disadvantages :
1) Does not provide any reference for managers such as statistical or historical data. 2) Stress for regular review of model, input variables & their variances. 3) Expensive

Preventive Control
Requirements for Preventive Control :
1) Make a thorough & careful analysis of the planning & control system & identify the more important input variables. 2) Develop a model of the system. 3) Take care to keep the model up to date, in other words the model should be reviewed regularly to see whether the input variables identified & their inter relationships continue to represent realities. 4) Collect data on input variables regularly & put them into the system. 5) Regularly assess variations of actual input data from plannedfor inputs & evaluate the impact on the expected end result. 6) Take action. Like any other technique of planning & control, all that the system can do is indicate problems, people must obviously take action to solve them.

Meaning

Reporting

Reporting is the regular provision of information to decisionmakers within an organization to support them in their work. Reporting acts an effective tool of delivery of information for managers. Forms of reports - Graphs & MIS - Text and tables and typically, are disseminated through an intranet as a set of regularly updated web pages (or "enterprise portal"). - Alternatively, they may be emailed directly to users or simply printed out and handed around, in the time-honored fashion.

Reporting
Types of Management Reports
Metric Management - In many organization, business

performance is managed through outcome-oriented metrics. For external groups, these are Service Level Agreements (SLAs). For internal management, they are Key Performance Indicators (KPIs). Typically, there are agreed targets to be tracked against over a period of time. They may be used as part of other management strategies such as Six Sigma or Total Quality Management (TQM).
indicators on the one page, like a dashboard in a car. Typically, vendors will sell you "canned reports" (pre-defined reports with static elements and fixed structure). However, this approach should allow users to customize their dashboard view, and set targets for various metrics. It's common to have traffic-lights defined for performance (red, orange, green) to draw management attention to particular areas.

Dashboards - A popular idea is to present a range of different

Reporting
Types of Management Reports
Balanced Scorecards - A method developed by Kaplan &

Norton that attempts to present an integrated view of success in an organization. In addition to financial performance, they also include customer, business process and learning and growth perspectives.
Ad Hoc Analyses - Typically undertaken once to deal with a

specific initiative, and then never revisited. They often involve building a model in a spreadsheet to allow exploration of "whatif" scenarios. Alternatively, they may take the form of a written brief or one-off report for management.

Reporting
Types of Management Reports
Interactive Querying - This refers to specific technology that

allows an analyst (or savvy manager) to manipulate directly the presentation of data. The analyst can select dimensions (eg. time, location, department, employee etc) and "drill-down" (expand) and "roll-up" (collapse) the data.
Data Mining (and Advanced Statistics) - Here, techniques

such as neural networks and machine learning are used to discover novel, interesting and useful patterns in the data. This is best suited for analyses such as classification, segmentation, clustering and prediction.

Reporting
Advantages of Reporting
Helps in decision making Helps management to built controls Enables comparison of past verses future performances Acts as an important tool for effective & efficient working.

Enables optimum utilization of resources in future

Helps organizations in employee appraisals & rewarding

deserving productive employees.