What is Productivity ? Why it is very Important for HR in Global Recession ?

What is Productivity ? Why it is very Important for HR in Global Recession ?

Productivity is a measure of the efficiency of production. Productivity is a ratio of production output to what is required to produce it (inputs).
Productivity = Value / Time
(productivity equals value divided by time)

By this definition there are two primary ways of increasing productivity:
1) Increase the value created
2) Decrease the time required to create that value
Productivity is about the effective and efficient use of all resources. Resources include time, people, knowledge, information, finance, equipment, space, energy, materials.

To manage the resources of a business it is essential that you understand exactly what needs to be done to meet customer demand establish a plan that clearly identifies the work to be carried out define and implement the methodologies that need to be used to complete all activities and tasks efficiently establish how long it will actually take to complete each activity and task determine what resources you need to meet the plan
provide the necessary resources and initiate the plan constantly monitor what is actually happening against the plan identify variances and take the relevant actions to correct them or modify the plan.

A recession is a decline in a country's Gross Domestic Product (GDP) growth for two or more consecutive quarters of a year. A recession is also preceded by several quarters of slowing down. An economy, which grows over of period of time, tends to slow down the growth as a part of the normal economic cycle. An economy typically expands for 6-10 years and tends to go into a recession for about six months to 2 years. A recession normally takes place when consumers lose confidence in the growth of the economy and spend less. These leads to a decreased demand for goods and services, which in turn leads to a decrease in production, lay-offs and a sharp rise in unemployment. Investors spend less; as they fear stocks values will fall and thus stock markets fall on negative sentiment. Risk aversion, deliverable and frozen money markets and reduced investor interest adversely affect t capital and financial flows, import - export and overall GDP of an economy. This is what exactly what happened in US and as a result of contagion effect spread all over the world due to high integration in the global economy.

The measure of productivity is defined as a total output per one unit of a total input. In today's arena the most common word we come across are recession and downturn. Recession or crisis is the part of the normal cycle of business. It is certain that they will sooner or later occur. Therefore, it makes just as much sense to plan for recession or downturns as it does to plan for good, economic times. The management people and employees may experience anxiety around a number of issues during an economic crisis or downturn. In this recession period HR play an important role to make the industry sustain and the entire economy flourish.


Regards,
amrita Kumari ( BBA, MBA)
Junior HR Executive
www.AeroSoftCorp.com
www.AeroSoft.in
www.AeroSoft.co.in
www.AeroSoftseo.com
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