Human Resource Management (Hrm, or Simply Hr) Is a Function in Organizations Designed to Maximize Employee Performance in Service of Their Employer’s Strategic Objectives.[1] Hr Is Primarily Concerned with How People

CHAPTER 1

Productivity and Yield

One of major causes of a company’s decline is low productivity. Failure to meet targeted productivity can result in high cost per unit, hence higher prices, and making your goods, services, or commodities not competitive enough. Many Businesses try very hard to remain competitive in market. Therefore, it is important for business to implement strategies to make improvements in productivity levels.

In this chapter, we look at three sections on how productivity is measured and applied within the organization to improve performance:

Section 1.1 Functional Productivity

Section 1.2 Productivity Options

Section 1.3 Yield Management

Section 1.1 Functional Productivity

One may generally consider that there are three distinct areas inherent in any business: marketing, finance, and operations; all other business disciplines fit somewhere under one or more of these areas. For example, finance could include investing, real estate, insurance, or banking. While management is considered an academic discipline by itself, it is actually composed of all three areas: financial management, marketing management, and operations management. Operations management is the area concerned with the efficiency and effectiveness of the operation in support and development of the firm’s strategic goals. Other areas of concern to operations management include the design and operations of systems to provide goods and services. To put it succinctly, operations management is the planning, scheduling, and control of activities that transform input (raw materials and labor) into outputs (finished goods and services). A set of recognized and well-developed concepts, told, and techniques belong within the framework considered operations management. While the term operations management conjures up views of manufacturing environments, many of these concepts have been applied in service setting, with some of them actually...