Organizational productivity is directly related to resource cost and your position in terms of competition in the market. Having efficient human resources leads to decreased costs due to greater productivity. At the same time, there could be miscommunication and conflicts among employees that reduces the productivity of an organization, increasing costs and decreasing profits. Meeting your organization’s goals will become more challenging with a lack of productivity, so focusing on these conflicts is essential.
The key to dealing with all these issues and maintaining productivity within your organization is to use the right strategies and tools to accomplish your goals through efficient management. In this article, we explain what organizational productivity is and how to measure it, and we describe the seven best ways to improve it.
What is organizational productivity?
Organizational productivity is the effectiveness of an organization in achieving its goals utilizing the available resources. It is essential because it can directly impact an organization’s efficiency, growth, and success. An organization that lacks productivity may fail to compete for a stronger market position.
Meanwhile, if you achieve an organizational performance improvement, employees will get better results, which will boost satisfaction and motivation. Employees who work efficiently reduce resource costs, creating a stronger market position and growth. It also leads to employee retention.
How to measure your organizational performance
To increase efficiency and gain productivity of your organization, it is essential to measure organizational performance. As you measure the performance using different KPIs and metrics, you will be able to point out the shortcomings that hold you from ascending in the market against your competitors. Here are some examples to consider:
1. Create your effectiveness model
The model can be goal, system, or constituency-based, meaning that you will check performance and effectiveness according to that model. Here is how the different models may work:
In the goal-based model, you may see the effectiveness and performance of your organization, considering how well it meets the goals.
In a constituency-based model, you may calculate how well constituents’ expectations are met.
In system-based models, your organization is assessed as a system to see how well it operates.
2. Measure your organization’s performance in terms of staff effectiveness and shared values
Check how effective your human resources are in terms of their duties. This effectiveness can be tested on individual and team levels, considering shared values. For example, you may measure the performance regarding the number of employees and individual qualities according to the effectiveness model you created.
3. Measure your organization’s performance in terms of strategy and structure
Strategy defines the vision behind any goal and your organization’s plan to achieve it. Meanwhile, the organizational structure (employees working on different levels within the organization) can help you understand authority relationships. As an organization grows, the structure becomes more complex, which can increase confusion about duties and responsibilities.
The strategy and its effectiveness often depend on the organizational structure. For example, when planning a project, you may define different roles, considering authority relationships. Finding loopholes when assessing an organization’s structure helps you tell who is accountable for any lack of performance.
4. Measure your organization’s performance in terms of skills
Organizations today focus on gathering a variety of skills with in-depth expertise. For example, measuring the skills considering organizational requirements may tell if your set meets the requirements or if you need to outsource specific tasks due to a lack of talent.
7 Ways to improve productivity in an organization
If your business is struggling with organizational productivity, here are seven methods to improve productivity in an organization.
1. Give every team member ownership of their duties
As a leader, you must give every team member ownership of their duties, allowing them for decision-making. It also makes them accountable for their work, creating a sense of responsibility. As every employee is responsible for performing their specific duty, productivity enhances at both individual and team levels.
If you want to know how to make an organization more effective, giving every employee responsible for their duties is your answer.
2. Promote documentation
Want to find out how to improve organizational efficiency and effectiveness? Promote documentation as it maintains a solid copy of anything communicated with a team. Documenting everything from team meetings to goals and timelines will keep everything in one place. As everything is available in documents, finding specific information will be easier for every member regarding their tasks.
3. Use effective communication channels
To improve organizational efficiency and effectiveness, you need to work on the communication gaps within your organization. These gaps may exist among individuals working within a team and among teams themselves.
This lack of communication leads to conflicts within the organization, which, in turn, lead to a lack of productivity. As a result, you may need the proper channels and tools to enhance communication among employees and teams.
4. Leverage team building activities
Team building activities play an essential role in improving organizational performance. These activities allow individuals to explore their strengths and weaknesses while working in a team. They also help promote communication and develop relationships at every level of an organization.
The long-term impact of team-building activities is that the workplace becomes happier, with higher employee satisfaction and motivation. Thus, it improves the productivity of the whole organization. Therefore, team-building activities must be selected carefully to ensure fun while resolving conflicts.
5. Keep the milestones and goals clear
The organizational, team, and individual milestones, goals, and roles must be clearly defined. Ambiguity in instructions may lead to confusion and a lack of responsibility. With everything discussed, everyone knows what they need to accomplish and how many resources they can utilize. With clear goal-setting, every employee is responsible for performing their specific duty, enhancing individual and team productivity.
6. Reward your employees in every possible way (bonuses, time off, recognition)
Employees often lose motivation when they don’t feel appreciated for their efforts. Giving a bonus is one way to reward your employees, while it is not always essential. Simple appreciation, recognition for accomplishing something, and even some time off early are more than enough to keep employees motivated.
Remember that motivated employees are better workers, and their chances of staying with the same organization are higher.
7. Leverage the right project management tools and other software
The last tip for improving an organization’s performance involves leveraging the right software. Today, you can find all-in-one platforms that help organizations handle everything from timeline management and communication to project management. If you don’t find one that meets all your requirements, you can get it designed and developed by professionals. That’s where Dworkz comes in.
Consider Dworkz as your partner company for UI/UX design and development for B2B SaaS
At Dworkz, we provide development and UI/UX design services for B2B SaaS companies. With our assistance, you can get fully-fledged technical support, from concept generation to implementation.
If you wish to improve your organizational productivity with automation and internal solutions, our team is here to help. Be it a CRM, HR solution, or training software like Kantola Training Solutions, it will be designed with your business goals in mind. Get in touch if you require any type of platform developed for your company.
What is organizational productivity?
It is an organization’s efficiency in utilizing its resources to meet the defined goals. The resources can be time, staff, or anything else, while the goals usually include meeting project requirements or staying ahead of the competition. It can measure both quantitative and qualitative values regarding the organization and productivity.
What are the key steps to take for organizational improvement?
The key steps required to improve organizational performance include:
Using resource and project management tools.
Using a suitable communication medium.
Aligning the whole team with duties they can be held accountable for.
Investing in team building.