Benefits of higher productivity
The next picture depicts a listing of nine benefits of higher productivity.
Image credits © Prof. Mudit Katyani.
The nine primary benefits of higher productivity are:
- Higher profit,
- Employees welfare,
- Better return
- Nice relations,
- Customer satisfaction,
- Good credit rating,
- Goodwill,
- Better credit terms, and
- Low turnover.
Now let's hash out briefly these of import benefits of higher productivity.
- Higher profit : Higher productivity enables the fellowship to scope to a greater extent than output. This results inward to a greater extent than profits to it. This profits tin last used for expansion in addition to other activities.
- Employees welfare : Higher productivity brings to a greater extent than profits to the company. This profits tin last used to render improve facilities in addition to working weather to the employees. So, it results inward welfare of the employees.
- Better return : The fellowship gets improve render on investment due to higher productivity. So, they pay a improve dividend (share of profit) to the shareholders. The marketplace toll of the portion volition besides increase.
- Nice relations : Higher productivity results inward dainty relations betwixt the management in addition to the employees. Good working conditions, facilities in addition to incentives motivates employees to laissez passer on their best to the organization.
- Customer satisfaction : Higher productivity results inward improve client satisfaction. This is because customers are provided alongside good-quality products at depression prices. Satisfaction of customers volition upshot inward their loyalty towards the company.
- Good credit rating : Higher productivity results inward a proficient credit rating past times fiscal institutions. This volition enable the fellowship to larn inexpensive funds from the marketplace to come across working in addition to fixed upper-case missive of the alphabet requirements.
- Goodwill : Due to higher productivity, the fellowship volition select a proficient corporate picture (goodwill) inward the minds of social entities. This includes: The shareholders, government, suppliers, fiscal institutions, customers, etc.
- Better credit terms : Higher productivity helps the fellowship to larn improve terms from the suppliers. The suppliers may laissez passer on improve credit terms due to its goodwill.
- Low turnover : Higher productivity enables the fellowship to render improve facilities in addition to working weather to the employees. This volition brand the employees loyal. Hence, employee turnover in addition to absenteeism volition reduce.
