| A. PRODUCTIVITY – EARLY VERSIONS | | | | interaction between people and companies in |
| Productivity, from 1940s (just after the 2nd | | | | disparate locations). Key forces shaping this |
| World war), was considered as a domain of the | | | | decade were the a global recession, due to the |
| Engineering faculty to analyse the relationships of | | | | shift in the manufacturing process as well as the |
| the output that can be produced in a specified | | | | product delivery to remote locations, |
| period of time. It was related to the concept of | | | | popularisation of personal computers, boom of the |
| efficiency, which is the amount of output | | | | dot-com and the drastic rise in the Internet |
| produced relative to the amount of resources | | | | activities, particularly beginning from the early |
| (time and money) that go into the production. | | | | 1990s. |
| Improved productivity, benefits a business by | | | | The productivity in this period assumed a new |
| lowering the cost and increases the leverage to | | | | dimension of a small physical output creating a |
| compete better and make profit. | | | | large value, while a large physical output creating |
| World labour and manufacturing organizations | | | | only a small value. As a result, everything which |
| standardised the concept of Productivity as the | | | | were big or maxy prior to 1990s, started |
| ratio between the Physical output (Products) to | | | | assuming the dimension of mini. (Automobile, |
| the Physical input (Labour, material, power etc…) | | | | Camera, Computers, Mobile, TV etc…) |
| More output quantum with less input quantum, | | | | It was atake-off period for a Globalised |
| provides a higher and favourable Productivity | | | | productivty. Increases in productivity also started |
| index. | | | | influencing the society more broadly, by improving |
| B. PRODUCTIVITY MOTIVATORS. | | | | living standards, creating income, and generating |
| More productivity index has a direct impact on | | | | economic growth. Because of this there were |
| lowering the Cost per unit of the Output product, | | | | drastic changes in patterns of social behaviour, |
| indirectly improves the profit of that product at a | | | | resulting from new communication technologies |
| constant price and universally assists the | | | | and changed/broadened male-female relationships. |
| continued existence and growth of the companies. | | | | This situation closed the gap between the |
| Hence, the companies made attempts to increase | | | | Productivity and Management Decision process. |
| the productivity in a variety of ways. The most | | | | E. MANAGEMENT DECISION INTEGRATION. |
| obvious methods involve automation and | | | | Productivity is an output emerging from the basic |
| computerisation which minimise the tasks that | | | | management decision, which prefixes the quantum |
| must be performed by employees. Recently, less | | | | output as well as the selected quantum inputs. |
| obvious techniques are being employed that | | | | Productivity is hence preceded by the Input |
| involve ergonomic design and worker comfort. It | | | | management decisions and the output |
| was found that a comfortable employee, can | | | | management decisions. When the term |
| produce more than a counterpart who struggles | | | | productivity is globalised, then implicitly the term |
| throughout the day. In fact, some studies claim | | | | Management Decision is also gets globalised. Hence |
| that measures such as raising workplace | | | | both Productivity and Management Decision should |
| temperature can have a drastic effect on office | | | | be measured with reference to a common |
| productivity. Experiments done by the Japanese | | | | globalised unit. |
| Shiseido corporation also suggested that | | | | C. CURRENT PRODUCTIVITY DIMENSION |
| productivity could be increased by means of | | | | As a result of globalization and internet links, the |
| perfuming or deodorising the air conditioning | | | | scope and the concept of Productivity has |
| system of the workplaces. | | | | broadened to a two dimensional unit, integrating |
| Till 1990, the productivity motivators were | | | | the quantum productive needs of the corporate |
| constrained to the methodology, performance and | | | | sectors as well as the socio-economic status of |
| profitability of individual corporate sectors. | | | | the nation. Similarly the Management Decision |
| C. PRODUCTIVITY DEPLOYMENT | | | | methodology is also broadened to the same dual |
| During the post-2nd world war period (1947 to | | | | units. |
| 1991) there was a Cold war situation in the world. | | | | Corporate survival now greatly depends on the |
| It was a geopolitical (Territorial superiority), | | | | National socio-economic survival, through the |
| ideological (Ruling startegy superiority), and | | | | broadened E-business scattered globally, appealing |
| economic (International superiority) struggle | | | | and attracting international social groups. Also the |
| between the capitalistic United States and its allies | | | | intangible factors of Psychological, Social, |
| (West), and the communistic Soviet Union and its | | | | International and Universal dimensions have |
| allies (East). It lasted from about 1947 to the | | | | assumed a priority influence on the productivity as |
| period leading to the collapse of the Soviet Union | | | | well as the management decision of all the |
| on December 25, 1991. | | | | government and private sectors. Hence, |
| During this period, both the Eastern and Western | | | | productivity along with management decision has |
| nations in cold war, drastically increased aggregate | | | | to be measured through both the Quantum and |
| supply of various goods to prove their superiority. | | | | Socio-economic development units (SED). |
| The deployed various productivity optimisation | | | | 01. Productivity = SED goals/Input > 1 & |
| techniques to get drastically more output with a | | | | SED goals/Output > 1 subject to Quantum |
| possibly less input. | | | | (Output/Input) > 1. |
| This inducted an increases in the aggregate | | | | 02. Social rate of return is important than |
| demand for these goods in the international | | | | Quantum rate of return. |
| market, covering the neutral, developing and | | | | 03. Intangible elements are important than tangible |
| under developed nations. These in turn, not only | | | | elements. (Psychological, Social, Inter national, and |
| decreased the unemployment situation in both the | | | | Universal). |
| Eastern and Western nations, but attracted a | | | | 04. Management decisions are optimum when |
| large scale immigration of labour from the | | | | SED goals/Input decisions > 1 & |
| developing and under developed world. As a | | | | SED goals/Output decisions > 1, |
| result, the international inflation remained stable. | | | | Subject to Output decisions/Input decisions > 1 |
| D. PRODUCTIVITY TAKE-OFF | | | | 05. This is universally applicable to all developed, |
| Just after the end of cold war, during 1990s | | | | developing and under-developed nations. |
| (from 1990 to 1999 inclusive) there was an | | | | 06. This proved through an Algebraic Model. |
| economic expansion in the United States leading | | | | More details and the mathematical derivations on |
| to a massive increase in worker productivity and | | | | this new concept is available in “A Redefined |
| globalisation (complex series of economic, social, | | | | Productivity and Socio-economic Development |
| technological, cultural and political changes with | | | | oriented Management Decisions" at |
| increasing interdependence, integration and | | | | DR.VSRS. |