When the world witnessed the industrial revolution in England in the early twentieth century, it may not have been envisaged that in the coming years it would take on gigantic leaps and catapult the world into an age of speed. The concept of speed was not just limited to transportation on terra firma but also on other frontiers like sea transport and air travel. Further, air travel slowly gave way to exploration of space and man dreamed of one-day establishing colonies on other planets.
However, back on earth there have been problems related to the modernization of industries where factories would slowly move from a labour intensive operation to capital-intensive operations. Yet, there is always the question of how to increase profits while minimizing costs. Thus, certain industrial circles have accepted the fact that the foremost challenge that any company faces is that of whether to have a capital intensive or labour intensive operations.
Whatever the road that is taken, profitability through better productivity is a question of paramount importance in any entrepreneur’s mind. In an attempt to provide answers, many different companies and certain industries as a whole have accepted certain realities. While others have either worked around or through them to achieve their single most important factor of profitability through better productivity which encompasses a whole new concept of co-existence while facing the problems that crop up from time to time when it comes to smooth functioning of the enterprise.
When productivity is discussed whether it be in board meetings or on the street, it encumbers one main fact which is output that any company produces. However, is this the sole (and independent) factor? The following are some pointers that can show the reader certain facts that companies have pushed under the carpet or plainly ignored. However, these factors have a major part to play in any boom or bust story of capitalistic ventures.
- One of the key factors that any company has to determine is what is the ratio of human intervention that they are ready to put up? This depends on what kind of business is the company involved in. There are certain industries where minimum human dependence can work wonders, while in some ventures human intervention is the sole distinguishing factor for the making or breaking of the company.
- In a labour intensive operation, the company top management needs to identify areas where improvements need to take effect. These can be achieved through meaningful interactions with employees at all levels.
- One of the important factors that may not be seen as affecting the output in the longer term is human resources. However, whether a company has just started operations or has been in the business for a sizeable period, the Human Resources team should be a well-oiled team. It has to have its fingers not just on the right buttons in the company, but also knows the pulse of the industries and the knack of attracting the right kind of talent that will help keeping the company on track to higher profits in the near and distant future as well.
- Whether a company outsources some of its non-core functions or not can also have an impact on the productivity of the enterprise in the longer term.
- Another aspect that contributes to the productivity of the contributing factors directly is the amount of compassion (or the absence of it) that the top management views its lowest ranked employees as well as that of its external service providers.
In view of the above points, which though are not a comprehensive list but some pointers, the overall health of any company cannot just be seen for the moment but also predicted to go north or southwards in the long term unless corrective steps are taken by the management.