8 Factors That Affect Productivity

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Productivity is an essential economic principle that many countries and companies look at to see how they are doing economically. Though we can look at productivity for individuals, economic productivity is usually looked at for governments and companies.

Many factors can affect a company’s productivity, such as management, leadership, technical skills, production, organization, and even location. Productivity requires that all the involved factors be carefully analyzed so that business decisions can be made with efficiency in mind.

Even though productivity affects all aspects of our lives, we will discuss factors affecting a company or manufacturer’s efficiency.

Here Are The 8 Basic Factors That Can Affect Productivity

Management and Leadership

Management and leadership can severely affect the efficiency of a company. If the manager is disorganized, difficult to work with, and does not know what they are doing, this can impact efficiency and productivity.

Management of an organization should have the technical expertise, be professional, exhibit excellent judgment skills, and have the ability to lead a team. A good manager also needs to be future-oriented by helping to bring the company into the future.

The management must have the necessary technical skills and know-how for manufacturing productivity. If they do not have these skills, they may not be able to make the right decisions.

Technical Skills

The world is forever changing, so technical skills are now more critical than ever. Those companies who have the right technological tools and know-how to use them will usually have a higher level of productivity.

Productivity and technology go hand in hand. The most productive companies will embrace and use technology to help them.

Technology factors are not limited to the use of technology tools but can also include the technology used to produce goods and services. If a company can adequately use the technical skills or technology available to them efficiently, that company will usually also have high productivity.

Production Factors

Production factors and technology go hand-in-hand, and both can affect productivity. Production factors are about the ability of a company to plan and execute the manufacturing process in the most efficient way possible.

Production factors require a lot of skill in the manufacturing process. Productive manufacturers can differentiate between what is considered productivity and what is not; everything in the manufacturing process is viewed with productivity in mind – things like the quality of raw materials to the entire production process.

Every aspect of the manufacturing process should be looked at, analyzed, and viewed with productivity in mind.

Organizational factors

A company’s organization or lack of organization will directly impact how productive a company is—everything from how effective the workers, office, or administrative staff are.

How a factory floor is laid out and organized, and all its processes will affect productivity. Everything can affect productivity either negatively or positively.

Productivity tools as Six Sigma look at productivity issues in detail. To learn more about Six Sigma, you can read our blog, Is Six Sigma A Farce? 11 Reasons Why Not, by clicking this link.

Personnel and Worker Issues

Personnel or worker can severely affect productivity. Everything from selecting the right people for the position to finding the highly skilled workers needed to manufacture your products or run your company can affect your productivity.

A high staff turnover can also severely affect a manufacturer’s or company’s ability to be productive. If you constantly have to train and retrain workers, your productivity will hurt.

Finance Factors

Financial factors can also severely affect a companies ability to be efficient. Working capital or the lack of it can severely hurt a business and its efficiency.

Included in this are the returns on the investment and business. The management needs to make sure they get the proper returns on the business and have the finances to continue to fund the company.

Location Factors

Where you are located can affect your productivity. In many parts of Asia, companies will try to be close to their suppliers to quickly obtain the parts and services they need to be as efficient and productive as possible.

Your company’s location can affect your productivity; in some places, it may be hard to find skilled labor, raw materials, proper economic structures, or other facilities that can significantly influence productivity. Things like steady electricity can affect your productivity; if you do not have any electricity for 2 or 3 days a week, this will affect your productivity.

Government Factors

Some governments are very pro-business; the governments try to do things that will help businesses and manufacturers thrive. Governments that try to make the barrier to entry into a market or manufacture in a location as low as possible can help with productivity.

Other areas may have government rules and regulations that can make it challenging to be efficient. The government may have policies, rules, or regulations that make it hard to be productive.

At Mondoro, we strive to have productivity as we understand that productivity is significant for manufacturing and other processes. We seek to try to use technology to ensure we are as productive and efficient as possible.

If you are interested in seeing how Mondoro can help you – we would love to talk to you to see how we can help you.

Find out more about how Mondoro can help you create, develop, and manufacture excellent home decor and home furniture products – don’t hesitate to contact me, Anita. Check out my email by clicking here or become a part of our community and join our newsletter by clicking here.

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Related Content

8 Reasons Productivity Makes You Happy

There are many ways that productivity can help to make you happy. Studies have shown that some of the most productive people are also the most content. Productive people accomplish things, learn new things, achieve goals, and do the other things in life that help ensure they are effective and happy. The good news is that productivity can help to make you happy. 

By clicking here, you can discover more by reading 8 Reasons Productivity Makes You Happy.

What Is Meant By Production & Productivity, Their Difference Explained

Production is about manufacturing goods from the raw material form to a finished product. Productivity is considered part of the production process. Productivity is about how efficient a country or company is; it is an economic principle. There is a formula that is used to calculate productivity.

Click this link to find out more about What Is Meant By Production & Productivity, Their Difference Explained.

Anita Hummel

Hi, I am Anita Hummel. I am the President of Mondoro. I am passionate about helping you CREATE, DEVELOP, and MANUFACTURE home decor and home furnishing products. I am also an avid blogger with a love of travel and riding my motorcycle around the streets of Hanoi, Vietnam.

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8 Factors That Affect Productivity