Assignment

of
Human Resource
Planning
Productivity Definition and Concept,
Total factor Productivity

Submitted By:
Swati Kaushal
Shreya Shrivastava

MBA/15001/13

Ravindra Kumar
Madhusudan Kumar

MBA/15004/13

Ratnesh Kumar
Saumya Singh

MBA/15003/13
MBA/15005/13
MBA/15006/13
MBA/15055/13

Introduction:
Human resource planning initiatives in any organization need to account
for productivity trends and extent of technological changes
Traditionally, productivity was considered as an input-output relation
measurement.
Orthodox views attribute productivity to labour efficiency as output can
immediately be related to labour efficiency.
Organization operate on team efforts, by distributing different functional
areas to different departments, ultimately success depends on effective
joint effort of different team group.

History:
With the declaration of the International Year of Productivity in 1992,
productivity consciousness has gained worldwide momentum.
The concept of productivity was originally enunciated by classical
economists Like Adam Smith, David Ricardo and J. S. Mill in the 18 th and
19th centuries in the form of Law of Diminishing Return to all resources.
However, in the 19th century, Frederick W. Taylor thesis task study gave a
more reasonable slogan on the issue i.e., human worth can be made
infinitely more productive not yet by working harder but by working
smarter.
In India, the productivity movement and consciousness gained momentum
with the establishment of National Productivity Council (NPC) in 1958.

Defining Productivity:
From the economic point of view, productivity means the yield from:
Each factor of production (land, labour, capital and organization)
Each input (raw material, fuel, time and knowledge)
And overall yield of the joint factor and resources enumerated above.

From management perspective, productivity in its broadest sense is the

quantitative relationship between what we produce and resources which
we use.
There is distinct difference between production and productivity.
Production means a process of transformation of raw material and other
inputs into finished goods. But productivity denotes surplus generation.

Defining Productivity: (Cntd.)

To define the term productivity in terms of input-output relationship, while
production is transforming into output, by adding values, productivity is to
get higher output over given input.
Productivity can be increased by interchanging the input ratios, while in
such changing process the output will proportionately increase more that
the change in input ratio.
Conventionally, productivity was understood as an inevitable outcome of
labour efficiency, i.e., only efficient functioning of the workmen could
contribute to productivity improvement.

Defining Productivity: (Cntd.)

In complex corporate system, this emphasis on a single factor gradually
lost its importance as with single efficiency of workmen, productivity
cannot be improved or corporate success cannot be achieved.

Functional efficiency of all other factors of production and all other subsystems of all such factors has been finally considered as the ultimate goal
for over all corporate efficiency and, productivity there after has been
considered as the efficiency of total factors instead of emphasis on
efficiency of labour (single factor approach).

Improving Productivity:
Positive action can be summarized under six heading which is known as
parameters to improve productivity:

Improve basic process by research and development

Provide more and improved physical mean of producing
Simplify and improve the product and reduce the variety
Improve method of operation
Improve organization, planning and control
Increase manpower effectiveness at all levels

Important factor which can affect productivity:

There are six factors, which are as follows:

Nature and quality of raw material

Basic nature of processes employed
Amount of plant and equipment employed
Efficiency of plant and equipment employed
Volume continuity and uniformity of production
Utilization of manpower

Total Factor Productivity:

Total factor productivity means the efficiency and contribution of each
factor of production like land, labour, capital and organization.
Factor endowments of each such factor together contribute to the national
income
Such factor endowment are rent, wage, interest and profit
Each department of organization contributes toward productivity with
efficiency and effectiveness

Total Factor Productivity: (Cntd.)

Marketing department contributes toward productivity with such following
areas:
Developing the market for future growth for development of organization
Keeping in view changing customers demand intimating the users
sentiment from time to time to production department to prepare it for
product innovation, catering users demand
Tapping the prospective potential users to increase the market share
Keeping view on competitors strategies and implementing necessary
changes
Exploring the export potentiality and tapping foreign buyer

Total Factor Productivity: (Cntd.)

Product planning and control contributes toward productivity with such
following areas:
The raw material planning
The manufacturing planning
The distribution planning

Total Factor Productivity: (Cntd.)

Manufacturing lead time contributes toward productivity with such
following areas:
To ensure delivery of the product in time
To maintain optimum supply of finished goods and work-in-progress
To maintain flexibility in the manufacturing operation
To develop and coordinate schedule and order to the production
department to follow-up production schedule
To maintain optimum inventory