Nine Principal Benefits Of Higher Productivity

Benefits of higher productivity

The next picture depicts a listing of ix benefits of higher blogspot.com//search?q=what-is-productivity-definition-meaning">productivity.

Image credits © Prof. Mudit Katyani.

The ix primary benefits of higher productivity are:

1. Higher profit,
2. Employees welfare,
3. Better return
4. Nice relations,
5. Customer satisfaction,
6. Good credit rating,
7. Goodwill,
8. Better credit terms, and
9. Low turnover.

Now let's hash out briefly these of import benefits of higher productivity.

1. Higher profit : Higher productivity enables the fellowship to attain to a greater extent than output. This results inward to a greater extent than net turn a profit to it. This net turn a profit tin endure used for expansion in addition to other activities.
2. Employees welfare : Higher productivity brings to a greater extent than net turn a profit to the company. This net turn a profit tin endure used to render ameliorate facilities in addition to working weather condition to the employees. So, it results inward welfare of the employees.
3. Better return : The fellowship gets ameliorate render on investment due to higher productivity. So, they pay a ameliorate dividend (share of profit) to the shareholders. The marketplace position toll of the portion volition too increase.
4. Nice relations : Higher productivity results inward squeamish relations betwixt the management in addition to the employees. Good working conditions, facilities in addition to incentives motivates employees to plough over their best to the organization.
5. Customer satisfaction : Higher productivity results inward ameliorate client satisfaction. This is because customers are provided amongst good-quality products at depression prices. Satisfaction of customers volition lawsuit inward their loyalty towards the company.
6. Good credit rating : Higher productivity results inward a proficient credit rating past times fiscal institutions. This volition enable the fellowship to teach inexpensive funds from the marketplace position to come across working in addition to fixed working capital alphabetic character requirements.
7. Goodwill : Due to higher productivity, the fellowship volition choose a proficient corporate picture (goodwill) inward the minds of social entities. This includes: The shareholders, government, suppliers, fiscal institutions, customers, etc.
8. Better credit terms : Higher productivity helps the fellowship to teach ameliorate terms from the suppliers. The suppliers may plough over ameliorate credit terms due to its goodwill.
9. Low turnover : Higher productivity enables the fellowship to render ameliorate facilities in addition to working weather condition to the employees. This volition brand the employees loyal. Hence, employee turnover in addition to absenteeism volition reduce.