«Efficiency» and «productivity» are usually considered to be similar in meaning. Nevertheless, when it comes to personnel management, efficiency and productivity are quite different. Efficiency approach is about doing the same in less time, while productivity approach is about doing more in the same time.
Executives have been encouraged to take an efficiency mindset to their business lately, but there are limitations in improving labor efficiency:
The second approach used by companies is based on productivity rise. Organizational and efficiency consultants Michael Mankins and Eric Garton have examined the data from the last 30 years on the matter. The research has shown the following:
It’s a matter of skillful management to reveal “star players” and inspire employees, but “organizational drag” and bureaucracy can be overcome with the help of automation software. This includes document management systems, task management and project management software, time tracking apps.
Competitiveness requires constant optimization and automation of business processes.
The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.