Benefits of higher productivity
The next icon depicts a listing of nine benefits of higher blogspot.com//search?q=what-is-productivity-definition-meaning">productivity.
Image credits © Prof. Mudit Katyani.
The nine head 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 speak over briefly these of import benefits of higher productivity.
- Higher profit : Higher productivity enables the companionship to arrive at to a greater extent than output. This results inwards to a greater extent than net to it. This net tin live on used for expansion together with other activities.
- Employees welfare : Higher productivity brings to a greater extent than net to the company. This net tin live on used to supply meliorate facilities together with working weather to the employees. So, it results inwards welfare of the employees.
- Better return : The companionship gets meliorate render on investment due to higher productivity. So, they pay a meliorate dividend (share of profit) to the shareholders. The marketplace cost of the part volition likewise increase.
- Nice relations : Higher productivity results inwards squeamish relations betwixt the administration together with the employees. Good working conditions, facilities together with incentives motivates employees to laissez passer their best to the organization.
- Customer satisfaction : Higher productivity results inwards meliorate client satisfaction. This is because customers are provided alongside good-quality products at depression prices. Satisfaction of customers volition consequence inwards their loyalty towards the company.
- Good credit rating : Higher productivity results inwards a practiced credit rating past times fiscal institutions. This volition enable the companionship to instruct inexpensive funds from the marketplace to run into working together with fixed uppercase requirements.
- Goodwill : Due to higher productivity, the companionship volition accept a practiced corporate icon (goodwill) inwards the minds of social entities. This includes: The shareholders, government, suppliers, fiscal institutions, customers, etc.
- Better credit terms : Higher productivity helps the companionship to instruct meliorate terms from the suppliers. The suppliers may laissez passer meliorate credit terms due to its goodwill.
- Low turnover : Higher productivity enables the companionship to supply meliorate facilities together with working weather to the employees. This volition brand the employees loyal. Hence, employee turnover together with absenteeism volition reduce.
