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How Management Affects Productivity In The Long Run

How Management Affects Productivity In The Long Run

Every business is looking to maximize productivity. Higher productivity leads to an increase in profits, highly motivated employees and loyal, satisfied customers. It is the perfect recipe to keep all stakeholders in the business happy. Several factors affect productivity in the workplace. At the heart of sustained productivity is a smart balance between technology and available resources, employees drive and efficient management.

The role of management in driving productivity

Management has the overall view of the organization including its position in the industry, employees and the core objectives. It is also responsible for crafting the operational strategies to achieve the given goals. The business leadership has a key role to play in driving efficiency. It starts with proper talent placement. Hire the right people for the job. Besides skills and experience, attitude and motivation are also essential elements when hiring.

The leadership should have a transparent strategy that encourages employees to participate in a vibrant corporate culture. The management’s first stop when trying to improve productivity is to evaluate the internal policies and administrative practices. A proactive policy on technology upgrades as well as the replacement of non-functional equipment drives efficiency. The leaders themselves should stay current on developing trends in the industry. How can management inculcate a culture that improves productivity?

1. Financial incentives

Economic motivators are an excellent way to ensure productivity. The corporate policy should target all levels of employees with a comprehensive and transparent plan. The economic incentives should be supported by relevant performance targets to make them sustainable.

2. Lead by example

Employees draw great inspiration from members of the leadership team that they admire. They emulate their actions and develop closer relationships based on mutual respect. Remember that people respond more powerfully to what they see than what they hear. Additionally, people in power are always being judged. Leaders who walk the talk are effective influencers.

3. Constructive feedback

Regular, thoughtful communication works to build employee commitment and encourage performance. The leadership should devise a respectful strategy of delivering negative feedback as the particular occasion demands. It helps the workforce stay on the right track and take corrective action quickly.

4. Cultivate a culture of respect

Respect for individual employees signifies to them that they are valued as part of the business. It works to align the core objectives of the company with what they do on a daily basis. Employees who feel respected perform well beyond their job descriptions. It’s the first step in getting the workforce to connect with the leadership’s vision.

5. Continuous training

Companies have traditionally focused employee training on the senior level and management positions. All workers should have access to adequate training that opens the doors to improved performance and career development options. This is especially crucial in the early formative phases of employment when workers are looking for job security and growth options.

6. Offer material and emotional support

Employees need to know that leadership is behind them. Inefficient processes and outdated equipment should be replaced with functional and up-to-date infrastructure. Avoid unfair criticism and offer valued support. Support the workers when they face challenges on the job and in their personal lives. It makes them feel like a part of the family. It is an excellent strategy to enhance employee loyalty. Similarly, the leadership should strive to create a working environment that supports an active work-life balance.

7. Recognize and reward excellence

Praise and recognition should be given when rightfully earned. It can be more powerful than financial incentives especially on the lower levels of employees. Rewarding performance inspires the employees to do more.

Issues affecting productivity

One of the biggest threats to productivity is capital restructuring. A business can be forced to reposition its assets due to poor performance. In a vicious cycle, it may also have got to the restructuring stage due to low productivity. This creates a cycle of employee stress, job insecurity, and uncertainty. A stressed workforce results in reduced efficiency, creativity and motivation. They get ill more often increasing the cost to the employer in terms of higher healthcare budgets and absenteeism.


High productivity offers numerous benefits to employers, the workforce, and stakeholders in the business. It is vital for the management to implement innovative strategies that ensure sustained efficiency. This includes keeping the infrastructure in tip-top condition and making other necessary resources available to the employees. Similarly, the leadership should appreciate the power of the soft capital and employ proactive tactics that increase their drive and makes them feel like a part of the family.