The development of this topic, we want to approach it with the broadest possible prism, where it includes everything that in our opinion this term can encompass, that is, man as an essential factor, the company as a primary organization and the nation as a monolithic unit in charge to meet the needs of citizens
Due to the above we will divide the subject into three parts:
- Productivity by staff Productivity of work in the company Productivity at the national level.
We will also try to unite the traditional concepts, methodology and calculations, which are still practically valid, with the most innovative aspects recently raised by the International Labor Organization (ILO), as well as by Organizations (companies, institutions, etc.) who apply Excellence as an essential premise to guarantee the satisfaction of the material and spiritual needs of their employees, their clients and the population in general.
It is not usual to treat productivity in this way, but we consider it important to maintain coherence between people, companies and the nation, not depersonalizing the last two since these are made up of people who are the ones who really maintain them, develop them and at the same time must receive its fruits to satisfy their material and spiritual needs as we stated in the preceding paragraph.
Productivity by Staff
This sui-generis aspect, although we cannot measure it directly in numbers, nor control it statistically, is of vital importance in the development and obtaining good results in business productivity and at the nationwide level.
When we express "productivity by staff" we do not refer only to the treatment, characteristics, focus or other aspect concerning executives, professionals and leaders, but to all employees of an organization, because it is the set of these and their cohesive and enthusiastic work the one that can carry out the obtaining of good results and not a group of any category, no matter how important it is or how intelligent and capable its members seem to us.
With the previous paragraph we are not minimizing the importance of the work of certain groups or professions, on the contrary what we do is highlight it, but forming part of a group that is one hundred percent of the employees.
Logically, each person and each group will have their objectives to fulfill and their functions to carry out all this in correspondence with the strategic objectives of the organization.
It is not a secret today that of the resources available to an organization, the most important is human, that is, people and as such it must be treated, both for its natural condition and for the influence they have on the results of any activity, then we can categorically affirm that "people are the most important asset of any organization".
Main aspects to consider
- First of all, it is necessary to have confidence in people and in what they can achieve, prevailing the criterion that they wish to act in good faith and not with the intention of hindering work, whoever does not assume this position towards others, we think will not be able to have confidence in yourself. Elimination of bureaucracy, establishment of clear, precise, stable objectives that are combined with those of the people. Let's reinforce the idea that just as the entity has expectations and interests related to the employees, they also have them with respect to the entity. Develop programs aimed at the care of workers, which must be systematically updated and perfected, including material incentives, but also moral ones (especially recognition of work and personal performance). We will include,All things being equal, in the treatment of productivity by staff, to clients as they are also considered very important for a company, so in a general sense, we must adapt and apply what is stated in this material to those who are considered by many as our boss, for being the essential reason for the existence of any company. In this regard John McConnell expressed "Take care of customers and members of the company, and the market will take care of you." When we speak of attention to employees and customers we must do so without formalities, with real attention, with well-defined facts and with great concern and concern for their needs, with all possible equity and without the slightest trace of individual privileges. Respect everyone in the broadest sense,listen to them asking for their opinion and of course take it into account by acting accordingly. Remember, it is not always the top executives who come up with brilliant ideas. Try that sincere courtesy applies the same to everyone and from everyone to others. Encourage successes and celebrate them with the participation of all without excluding someone, admitting mistakes in the development of the work being consistent with them, understand work errors, not indiscipline, or negligence. Leading today is not commanding or taking action with employees, it is giving them confidence, motivating them, instilling enthusiasm, raising the pride of belonging to the organization, of being part of a team. We can, perhaps, force them to attend work now stay a specified number of hours,but we certainly cannot force conscious work of superior quality. The main officials of the Organization must "always have time" to attend to the workers and provide them with adequate information depending on their requirements. Assessing problems with everyone, "avoiding secrets", the lack of information discourages. A group of aspects has been listed that of course are not the only ones but that allow us to rely on these as a guide to enrich them with others.A group of aspects has been listed that of course are not the only ones but that allow us to rely on these as a guide to enrich them with others.A group of aspects has been listed that of course are not the only ones but that allow us to rely on these as a guide to enrich them with others.
We will present the Philosophy of Jimmy Treybig Ex - Director of Hewlett Packard as being of interest.
- All people are good. ¨ Employees, workers, executives and members of the management form a single being. Each person in the company must know the essence of their activities. Every employee must profit from the success of the company. The role of the leader is to create an environment conducive to the application of the first four points.
With the same approach, Herman Miller and Max Depree presented what they called "Bill of Rights" stating that people have the following rights:
- To be essential To understand To be involved in an activity To that there are reciprocal obligations between the staff and the company To govern one's own destiny To be someone who can be trusted To ask others for help
Some aspects that today are considered of utmost importance in the development of the work of any entity of production, services or other activity have been exposed; Taking into account the man as a central element and in this, recognizing that in any company or organization, the most important employees are those who produce or provide the service directly, however, this does not justify inappropriate privileges.
Work Productivity in the company
We will begin our study taking into account three aspects that, although closely related, are conceptually different:
- Production Labor productivity Labor intensity
Production
It is the result of the process, that is, the amount of products that have been produced, in a given unit of time, with a certain level of productivity, it also depends on the number of workers used, the intensity of work, the duration of the working day.
In production there are different elements called "Production Factors" which are those that intervene in the production process as a variable or with the possibility of it, and when this occurs the quantity or quality of the result obtained is altered.
With the quantity of a finished product and the quantity of a Factor “N” employed, we can describe the “Production Function” in relation to that factor.
These aspects described can be applied to any branch of material production.
Labor productivity
It is the effectiveness of the rational activity of the individual, in the sphere of material production.
Productivity is measured by the quantity of products produced per unit of work time, according to the average levels of skill and intensity of work.
P. Drucker, in Management: Tasks, Responsabilities, Practices. It raises three challenges on which the management of the company must focus, two of them are related to productivity
"The first is the challenge of increasing productivity in the most demanding way" and "The third challenge of management is to measure and increase the productivity of knowledge work."
Intensity of work
It is the degree to which physical and mental energies are consumed in the work process, that is, the degree of tension, the rhythm in the production process.
Work should be done with a medium intensity, which is the one with which it is possible to achieve the highest productivity, without affecting the health of the worker and achieving the most complete and rational use of their physical and mental capacity.
Some considerations on these aspects.
- Increasing labor productivity means saving labor expenditure per unit of production, while increasing labor intensity does not have this saving. Labor productivity is only applicable to the production of material goods. The intensity of work up to a certain average level constitutes a factor of growth in labor productivity. One of the most important and decisive factors in the development of a company is the increase in productivity. Labor productivity must not remain static but must always tend to increase.
Aspects that influence the increase in productivity
There is truly a group of aspects that contribute to increased productivity, however these do not act in the same proportion in all cases and their effect is not the same, and even some of them are beyond the reach of our will. According to P. Drucker, in The New Society, "The greatest incentive for productivity and efficiency are social and moral stimuli rather than financial ones."
The different authors tend to group these aspects together for their study, and they do not coincide in the way they are grouped. In our case we will do it in two large groups that are:
1. Technical - Materials
2. Economic - Social
Technical - Materials
Here we group all those that depend on the development of the means of production and their use, such as:
- The technical progress The production capacity The use of the production capacity The distribution of the work force The characteristics and use of raw materials and materials The increase in quality The performance of adequate maintenance and repairs
Economic –Social
They are those related to changes in the composition and employment of the labor force, as well as in its qualification and in labor relations. These include:
- Raising the cultural, technical, scientific and professional level of workers. Elevation of working conditions and the general welfare of workers. Improvement of the methods and organization of work as well as the organization of production. Elevation of the standard of living. That decisions on labor productivity are made with an agreement between the entity and the workers and not as an imposition of the former.
Another aspect that has an influence on increasing productivity is natural conditions, although with the development of science and technology, this is less every day in a general sense, but it still maintains a great influence on mining and agriculture.
Methods to measure work productivity in the company
Productivity in the broad sense can be measured as the number of units of a product divided by the amount of a factor (or several factors) of production.
In our case, to measure productivity we will frequently use the time factor and the number of workers.
We will address two ways to measure labor productivity, one traditional with its successes and limitations and the other the novel method shown by the ILO Institute for Labor Studies and Research called the Productivity Measurement and Monitoring System (SIMAPRO).
Traditional methods:
- Natural MethodValue Method
Natural method
Through this method, production is measured in physical units.
It is very simple to apply, but it has the disadvantages that it can only be applied in homogeneous productions and it also does not allow to take into account the production in process.
Example: 3000 (same) motors are produced in a factory. The number of its workers is 100 and they worked 1500 hours in the month.
Calculate labor productivity per worker and per hour.
The general formula is:
Example:
The previously studied engine factory no longer produces identical engines but of different power, now producing 600 5 hp engines and 40 30 hp engines with the same workers and in 1400 hours in a month. Let's find the productivity.
We must find a common unit of measurement, which in this case must be the power in CV, then:
Now let's find the productivity.
Value method.
This method consists of giving the monetary value corresponding to the production, regardless of the type that is taken (gross, mercantile, net).
Its application can be for any type of production and both for finished production and for the one in process.
It has the disadvantage that distortions appear in the productivity index as a consequence of the effects of various aspects such as:
- Change in the assortment or structure of production Variation in the prices of raw materials or other materials used in production Change in the quantities of raw materials or materials used in production Variation in the prices of finished products
ILO method (Productivity measurement and monitoring system - SIMAPRO)
This method suggests that the study and measurement of productivity should not be reduced to a simple relationship or mathematical formula, excluding indicators such as product quality, timely delivery, quality of the production process and others of great importance.
The approach to relationships:
It would lead us to think in a simplistic way that by reducing the working time or the workers we increase productivity, which is mathematically true, but we should not reduce the problem only to this detail, since this would not have the criteria of the workers, that is, it would be a one-party decision that would run by the management of the company.
With the criterion set out above, we would not take into account the development of the process, but only the final quantification.
The essential feature of this method is the decisive consideration of the development of the activity as well as the criteria of the workers.
The concept of productivity must have an intrinsic monitoring and measurement of it, which is why it is necessary to improve the process in its entirety, that is, its design and execution.
To improve the design we must take into account the methods and organization of work and organization of production; In terms of execution, the performance of the worker is of utmost importance.
The adequacy of these aspects together with an organizational culture, a correct communication towards, from and between the workers constitute important aspects in raising motivation, an essential element to guarantee the desired productivity.
Although we have not alluded to them, there are other aspects to take into account such as the level of knowledge, skills and experience of the worker; as well as equipment, tools and technology, but the essence of everything is man since if his disposition is not to carry out the task adequately, having the aspects raised is not enough, but we reiterate that we must not downplay any aspect. Productivity is not a static but a dynamic element, nor is it an end in itself but a means, a diagnostic tool to continue improving comprehensively.
Then, in order to follow the problem and take corrective actions, the method must allow us to perform a measurement to evaluate the process comprehensively and in all areas.
Precisely the methodology developed and proposed by the ILO through SIMAPRO allows us to guarantee these requirements.
Methodology "Productivity Measurement and Monitoring System" (SIMAPRO).
This methodology provides us with the execution of several phases, through which we can elaborate the measurement and monitoring indicators, which are the following:
1. Definition of the objectives of the company.
2. Definition of the objectives for each of the areas of the company.
3. Identification of critical activities.
4. Identification of areas for improvement.
5. Identification of measurement indicators.
6. Identification of maximum and minimum values of each indicator.
7. Identification of positive and negative points of effectiveness.
8. Identification of the average value of the indicators and the zero point of effectiveness.
9. Identification of intermediate values of the indicator and intermediate points of effectiveness.
10. Construction of graphics.
I consider very illustrative an example related to the subject and the sugar industry that appears in the text "Seminar on Measuring Productivity and Efficiency" (R. Wilde, September 1997) which we present below in a synthesized way.
1. Definition of the objectives of the company.
In this phase, the company's objective must be defined, with the participation of all those who are understood to be able to contribute and clarify it.
With the criteria of the participants, the objective or objectives that are understood will be formed, always trying to synthesize the proposals in one, whenever possible.
2. Definition of the objectives for each of the areas of the company.
In the same way that the company's objective was defined, that of each area or department should be defined, taking into account that it is in function of guaranteeing the general objective of the company.
3. Identification of critical activities.
Based on the objectives of each area, the critical activities that prevent or hinder reaching their objectives will be identified.
In this aspect, these critical activities should not only be listed in isolation, but also that they should be improved to achieve the objectives in a general sense. The participation of workers remains an essential element.
4. Identification of areas for improvement.
In this phase, the best proposals will be identified to solve the actions or obstacles that prevent reaching the objective of the area. Take into account defining what to do to solve or improve each critical activity.
5. Identification of measurement indicators.
From the solution proposals, indicators will be identified to measure whether progress is being made in eradicating critical aspects of the process.
Only the three or four (at most) critical activities should be indicated, from highest to lowest, in order of importance, especially those that have to do with the attitude of the workers and managers of the company.
Important in the previous aspect is the request of how to measure with the indicators each one of the indicated proposals.
6. Identification of maximum and minimum values of each indicator.
To arrive at the maximum and minimum values for each indicator, it is necessary to ask the following questions: What is the best thing that could happen in a working day? What is the worst thing that could happen in a workday?
7. Identification of positive and negative points of effectiveness.
In this phase, the positive and negative points that correspond to the maximum and minimum values of the indicator will be identified. Steps to follow at this point:
- Explain to the participants what effectiveness is. Ask, if the maximum value of the indicator is reached, what score of effectiveness would be given to this value on a scale of –100 points to 100 points of effectiveness. I would also ask if there is a minimum value of the indicator, which score would also be given with the previous scale. All the values are recorded taking into account that when the maximum value is achieved the effectiveness points will be positive, that is, effectiveness points are gained and when the opposite happens they are lost.
8. Identification of the average value of the indicators and the zero point of effectiveness.
In this phase, the average value of the indicators and the zero point of effectiveness will be identified.
Steps to follow:
Finding a midpoint between the maximum and minimum values of the indicator that does not necessarily have to be found by the semisum but can be defined from analyzing which value is not good but is not bad either, or a value that is feasible to improve but not put the production process at risk, explain and define that it is necessary to arrive at a single value by choosing the most advisable value according to everyone's criteria and that value will be the zero point.
9. Identification of intermediate values of the indicator and intermediate points of effectiveness.
10. Construction of graphics.
These last two phases can be carried out in parallel and in which the average values of the indicator will be identified.
Productivity at the nation level
Generalities
The final step of the productive pyramid is constituted by the nation where all the wealth must be accumulated, for this reason when speaking of productivity at the national level we must make a parenthesis and enter into reasoning the economic growth of the country, as well as the essential features and characteristics of this one. According to Muñoz Cidad, Cándido in «International Economic Structure“ The long-term economic growth of a country takes place when economic agents find adequate incentives to dedicate efforts to exploiting its productive potentialities, which are determined by their own endowments and by the international framework favorable".
Essential aspects to take into account.
We must focus that without economic growth there is no development.
According to the cited author "Economic growth can be measured by GDP per inhabitant and that is a function of the efficient allocation of labor, capital and natural resources, as well as a factor called technology or residual factor that collects the part of economic growth not explained by the above factors »
Being consistent with what was stated at the beginning of this work, we must reason that man as an essential element from the lower productive levels to the highest at the level of the nation is the one who creates the values through production or services and in turn must be Whoever receives the fruits or results of these, without complying with what has been stated, in our opinion we cannot speak of economic growth.
Let's look at two essential aspects:
- The population in all countries, in a general sense, is growing. The needs of people are increasing over time.
Taking into account the above, production or services must grow at a higher rate every day, which guarantees sustained growth, which must be based on productivity growth.
To ensure this, a strategy needs to be defined and applied. As we study, productivity in its broadest sense is the ratio between production (result, output) and the factors used (inputs, inputs).
Among the strategies we can use the following:
1. Increase production and decrease factors.
2. Increase production and maintain factors.
3. Increase production faster than factors.
4. With equal production and decreasing factors.
5. Decrease production at a lower rate than factors. We consider the first three to be the main ones because they are proactive, valuing number 3 as the most fundamental and most widely used.
For the study of productivity, the variation of a single factor is usually used, keeping the others as constant, in this case the factor is work and in its most used form "the number of workers" or "hours of work".
In both cases, these indicators have their characteristics and difficulties, saved in part by the use of some adjustments to them.
Several aspects can be cited that induce the use of this factor, work, to measure productivity, among which the following stand out:
- It is the most important factor since it is the one that brings the greatest added value to the product. The calculations induce less error than with the use of other factors. The center of productive activity is man.
Productivity measurement
Productivity in a nation must be measured and compared by periods according to what is established, taking a base period since the increases of the stage analyzed must be closely followed.
100
Where:
P production
T work
to current period
b base period
Any period can be used maintaining the appropriate relationship, the most important thing is to give the necessary follow-up to these measurements and thus guarantee that the corresponding decision is made.
Summary
First of all we know that the subject is not exhausted with what is exposed in this material since there is still much to contribute and deepen in this aspect of productivity because of how important and decisive in the development of any organization or country.
In this brief summary we will emphasize some aspects that in the opinion of the author, and others as well, are essential for the knowledge, application and development of the topic addressed.
- Productivity should not be an end but a means to ensure continuous improvement. The participation of all members of the organization is essential in all treatment related to productivity. Productivity should not be seen as an isolated element but as part of a coherent system also made up of elements such as quality, costs, attention to workers, orientation the customer and others The increase in productivity and the way in which this will be carried out must be an agreement between the organization and the workers and not a decision of the organization The process related to productivity must adequately comply with a cycle that guarantees the actions of measurement, comparison, planning and increase of this.Define an adequate strategy taking into account the characteristics of the organization or country as well as the strengths and weaknesses.
Bibliography
CETSS, Organization of Work and Wages
González, Lázaro. Introduction to the study of the Labor Economy.
Muñoz Cidad, Candido. International Economic Structure.
Orlov, Pedro. Manual of Labor Economics in Cuba (Volume I).
Peters, T.; Austin, Nancy. Passion for Excellence.
Peters, T.; Waterman, Robert. In Search of Excellence.
Porter, Michael E. The Competitive Advantage of Nations.
Wilde, R. Productivity Measurement and Monitoring System (SIMAPRO).
Beatty, Jack. The world according to Peter Drucker.
Drucker, P. The new society.
Drucker, P. Management: Tasks, Responsabilities, Practices.
