Productivity and efficiency are two different terms but both have the same importance in managing a big business. Startup businesses should focus on increasing the productivity and efficiency as it will serve as a basis of growth and success. Defining both terms is like looking at the difference between quantity and quality. In short, productivity is focused on increasing the quantity of work while efficiency is geared towards accurate and reliable results.
Achieving productivity and efficiency may be too difficult but it is actually easy once you know the right methods to use. There are operational strategies that have proven to provide a fast and quality work output and there are innovative technologies that contribute to that. Speed up your admin with technology such as an industrial Letter Opener or fasten report submissions by taking advantage of Google Docs. These are just a few examples of achieving both productivity and efficiency at the heart of big business.
Productivity Defined
Productivity is defined as the actual work output measured over a period of time. This is done to see the capability of the company to meet the demands of the consumer, or to assess its operational abilities to produce the amount of work needed to warrant investment in expanding the business. It is easy to measure productivity. All you need to do is observe and record the amount of work done by a specific department you want to improve on. For example, you want to improve the manufacturing process of your company so you record the actual production per week. Try to increase the productivity by assessing your employees and working methods and impose a different kind of process to actually increase the production.
Efficiency Explained
Efficiency, on the other hand, is geared towards achieving a reliable result. This may mean better report formats, lesser expenses, few resources and many others. It is best to achieve efficiency in big business so that the revenue earned will not compromise the promising net profit. A business that saves a lot of money will have higher chances of growth and development. For example, you want to lessen the company’s expense by looking at an efficient financial report. This will serve as the basis on which expense needs to be controlled and which ones will remain. This can also be applied to any upcoming projects like construction and marketing campaigns.
Balancing Both
Achieving both productivity and efficiency can be done through initiating awareness to key people in the company. Such awareness will give them an idea of the importance of both factors so they can fully implement a program that will result in higher quality and quantity of work. You may also want to be careful in imposing rules. For example, you may want to achieve efficiency by giving bonuses to the employees or you want to increase productivity by implementing stricter office rules. These can be both damaging and productive so every program should be reviewed in detail.
