Most businesses exist for the primary purpose of earning a profit. Earning a profit requires maximizing sales and minimizing costs. Productivity involves getting as much as possible accomplished in as little time as possible. This increases sales by enabling you to have more product available, and it reduces costs by lessening your payroll.
For many businesses, payroll is a major operating expense and controlling payroll costs is a priority. Saving money by increasing productivity and lessening payroll expenses is not simply a matter of asking employees to do more in less time; it can also be a matter of studying your operations to make them smoother. If you own a clothing manufacturing company, you can improve productivity and lower payroll costs by minimizing bottlenecks in your production processes, identifying and remedying areas where production gets backed up because consecutive processes are not in sync. This increases productivity by eliminating employee downtime.
Improving productivity in the workplace also saves time. Aside from the financial benefits of reducing payroll, saving time allows your employees to work in other areas of your business, such as planning, strategizing and improving infrastructure. If you devote extra attention to processes that tend to get lost in the shuffle, your company will run more smoothly and you will create a higher-quality product.
Productive operations are good for employee morale, creating a sense of accomplishment and pride. Productivity also helps to avert the consequences of a badly run workplace: If your employees finish their workload in a satisfying time frame, they are less likely to feel burned out and frustrated. This creates a positive feedback loop: Morale improves productivity, and productivity improves morale. Your employees will enjoy their jobs, make fewer mistakes and make your job easier as a manager.
A productive workplace improves your relationships with your customers by enabling your company to complete projects on time and even early. If you charge customers for the time it takes to complete their orders, then your productive operations will also save them money. If employee morale is high because your staff is productive and satisfied, this will positively impact customer service because happier employees are friendlier employees. In addition, creating the impression that your company is well-run builds your reputation and attracts new customers.
- Photo Credit machine 4 image by Vitezslav Halamka from Fotolia.com
Why Is Motivation Important?
Motivation is the catalyst that encourages someone to perform certain types of activities for a certain period of time. For a company,...
Why is Workplace Diversity so Important in Today's Business Environment?
Diversity is a broad term that refers to a wide range of differences in gender, age, race, disability or condition, sexual orientation,...
Why Is Quality in Customer Service Important?
Quality customer service is a vital ingredient in a company’s ability to maintain profitability and continued success in business. Not only does...
Why Is Effective Communication Important in Management?
Effective communication from managers helps employees function more efficiently and be more productive.
Why Leadership Is Important in Business
The importance of effective leadership is undeniable. Consulting firm Gaebler Ventures perhaps puts it best on their website by saying, "Great leaders...
Why it Is Important to Manage Diversity in the Workplace
The workplace is growing more diverse every day. There are more Hispanics and international people moving to America as well as people...
Why Is Teamwork or Cooperation Important in the Workplace?
A workplace is necessarily composed of individuals, but a workplace in which these individuals don't work together in positive ways will never...
Importance of Productivity in an Organization
Is there anyone in the world who does not believe production is important? That is the whole point of a firm, to...
The Difference Between Productivity & Output
Companies measure productivity and output to assess the efficiency of their operations. However, these two standards are not synonymous. While a company...
The Importance of Employee Productivity
Any successful business knows much of its success is due to diligent workers with excellent productivity. Employees who put forth extra effort...