Categorized | Business, Finance

The Forces That Drive Improved Productivity

Money Management SoftwareOrganizations and nations all over the world strive to improve and sustain productivity due to its profound impact; it leads to more income and high growth rate. There are forces that drive improved productivity and they can be grouped into two broad categories as explained below.

  1. Internal motivation.
  2. External motivation.

Internal motivation

These forces can be further categorized into two:

Individual internal motivation

Some people are naturally more ambitious than others and tend to be more productive. These people are self-driven and seek more work and responsibility. Individual internal motivation is determined by an individual’s background, culture and personal beliefs.

This internal motivation can be increased by setting personal goals and adapting a positive attitude towards work. Viewing work as a responsibility and not merely work to be done increase ones commitment while personal goals act as the internal drive which ultimately improve productivity.

Organizational internal motivation

These are forces that exist within the organization and are mostly designed by management to improve productivity. They include:

  • Recognition and appreciation – sincere appreciation of work well done encourages individuals to continue working hard, while at the same time motivates others to improve productivity in order to be recognized.
  • Internal training and coaching – helping employees achieve their full potential not only motivates them but also improves the overall productivity of an organization.
  • Creation of strong work groups and team spirit – individuals in a cohesive unit influence one another to work harder and set standards for each other. An influential leader inspires the group and provides direction by setting the group’s goal, and then ensuring they are achieved.
  • Setting high, clear and achievable organizational goals – unclear objectives lead to confusion while too high/low goals lead to low motivation among the members. Productivity tends to improve if all members know and understand what is expected of them.
  • Allowing employee participation in setting goals and decision making – employees’ commitment and acceptance of goals and decisions increase if they are involved in the process of making them. Taking opinions and suggestions before making the final decision is important.
  • Encouraging healthy competition among individuals and groups – competition leads to more productivity as each tries to outdo the other. However, too much competition may lead to hostility and poor working environment.

This list is long but it’s clear that organizational internal motivation depends on organizational culture and management’s ability to influence the members to be more productive.

External motivation

These are factors that exist outside the organization and are outside the scope of management, however, they play an important role in its operations. They include:

  • Competition – actions of competitors may lead to improved productivity in order to keep up and survive in the market.
  • Technological advancement – new and more effective technology makes work easier and improve employees’ morale leading to more productivity.
  • Government policies – policies in favor of the operations of an organization such as subsidization and reduction in taxes encourage improvement in productivity.
  • Demand variations – increase in demand of an organization’s products forces the employees to produce more in order to meet the demand and leap more benefits.

In conclusion, improvement in productivity is influenced by many forces, however, the most outstanding one is the organizational internal motivation which heavily relies on leadership.

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