abhishreshthaa
Abhijeet S
The Goal of Managers: -
1) Profit: -
2) Productivity: -
Productivity =total outputs
total inputs
The formula indicates that productivity can be improved by:
a) Increasing the outputs with the same inputs
b) Decreasing the inputs but maintaining the same outputs
c) Increasing the outputs and decreasing the inputs to change the ratio favorably.
Companies use several kinds of inputs to increase the productivity such as:
The greatest opportunity for increasing productivity is surely to be found in knowledge work itself, and especially in management.
3) Effectiveness and Efficiency: -
1) Profit: -
- Non Business executives sometimes say that the aim of the business managers is simple-to make a profit. But profit is only a measure of a surplus of sales dollars (or any other currency) over expense dollars.
- In a very real sense, in all kind of organization whether business or non business the logical and publicly desirable aim of all managers should be a surplus.
- Thus the manager must establish an environment in which people can accomplish group goals with the least amount of time, money, material and personal dissatisfaction or in which they can achieve as much as possible of a desired goal with available resources.
- In a non business enterprise such as a police department as well as in business units ( such as accounting department) that are not responsible for total business profits, managers still have goals and should strive to accomplish them with the minimum resources or to accomplish as much as possible with available resources.
2) Productivity: -
- Another way to view the aim of all managers is to say that they must be productive. After World War 2 the United
- States was the world leader in productivity. But later on its productivity began to decrease.
- Today the urgent need for productivity improvement is recognized by the government, private industry and universities.
- Often we look at Japan to find answers to our productivity problem.
- Now there is no true meaning of productivity but it can be defined as the ratio of total output over total input within a time period with due consideration for quality.
Productivity =total outputs
total inputs
The formula indicates that productivity can be improved by:
a) Increasing the outputs with the same inputs
b) Decreasing the inputs but maintaining the same outputs
c) Increasing the outputs and decreasing the inputs to change the ratio favorably.
Companies use several kinds of inputs to increase the productivity such as:
- Land
- Labor
- Capital
- Machinery
- Raw material
The greatest opportunity for increasing productivity is surely to be found in knowledge work itself, and especially in management.
3) Effectiveness and Efficiency: -
- Productivity majorly depends upon the effectiveness and efficiency in individual and organizational performance
- Effectiveness is the achievement of objectives
- Efficiency is the achievement of the ends with vast amount of resources when we say that an individual has to be effective we are trying to say that he should have an objective and he should try to achieve it and when we say that an individual has to be efficient use are trying to say that with the help of his talent capabilities and knowledge he should try to achieve the ends by utilizing minimum resources.
- Thus effectiveness talks about what is to be done and efficiency talks about how it should be done. The manager of a firm has to be both effective as well as efficient.
- There are the key factors on which the productivity of the company depends.
- Manager cannot be only effective he has to be efficient at the same time.
- Effectiveness and efficiency are the two sides of same coin managers cannot know whether they are productive unless they first know their goals and these of the organization.