Performance is ... A performance formula

Performance is a measure of performance. At the same time, this indicator is used both to assess the performance of assigned tasks by the personnel of the firm or enterprise, and for the operation of machine tools, personal computers, their components and separate software. Usually, performance refers to the amount of products or the amount of information processed per hour, minute or second. The inverse value - labor intensity - reflects the time spent on output or analysis of data.

The basis of effective business

The key issue on the agenda of any enterprise is the growth of labor productivity, i.e., reducing the time spent on manufacturing products and increasing the volume without the additional costs of hiring new workers. Therefore, the strategy and the goals and objectives based on it should take into account the main reserves of its increase and factors that stimulate staff to work better in qualitative and quantitative terms. Without this, no competitive advantages can make the enterprise the leader in the industry.

The formula for productivity

Economic statistics deals with the study of the efficiency of the enterprise using a number of indicators. The main are the development and labor intensity. Actual productivity is just the quantity of output produced at the enterprise for a certain period of time. If we denote Q as the output of goods, T is the labor input in hours, then we can formulate a formula. Thus, the productivity is a product of Q and T, or P = Q x T.

The result reflects the real efficiency of the enterprise. For forecasts, the cash output is calculated. This allows managers or managers to understand what the maximum amount of output a company can produce at this stage of technology development. The additional costs and the probability of downtime in this formula are not taken into account.

Other ways to assess effectiveness

In the branch economy, the evaluation of labor productivity (PT) is carried out using two methods: direct and factor. For the first method, the following indicators are needed: output in the current (O1) and base (O0) periods, as well as the corresponding number of personnel (P1 and R0, respectively). In this way,

ПТ = (О1 х Ч0 / О0 х Ч1) х 100-100.

When using factor account, performance is an indicator that is calculated in several stages. On the first, the parameters are classified. Factors are divided into groups: organizational-technical, voluminous and structural. The first parameter relates to the release of employees and is equal to the ratio of the number of personnel in the current period and the difference - in comparison with the previous one - in percent.

Labor productivity by volume factor is determined by the product of growth in output and the proportion of permanent workers (in total) in percentage, divided by 100. The structural component is equal to the result of multiplying the labor intensity by the specific weight of this product in the total output. Total productivity is determined by the addition of growth for each of the three factors.

Increase in labor productivity

The basis for running any business is the rational and effective use of available resources, including labor. It is logical that management seeks to increase the output of products without additional costs for hiring employees. Experts identify several factors that improve performance:

1. Managerial style (the main task of the manager is to motivate staff, create an organizational culture in which activity and diligence are valued).
2. Investing in technical innovation (buying new equipment that meets the demands of the time, can significantly reduce the time costs of each employee).
3. Trainings and seminars on further training (knowledge of the specifics of production allows personnel to participate in the improvement of the production process).

Staff efficiency reserves

As the productivity formula shows, this indicator is not unchanged, and can be adjusted by a number of factors. Among them, the main place is occupied by technological progress and the correct organization of labor. Improvement of the technical component of production, the complex automation of functional processes and the establishment of communication between individual units can reduce the time costs for production. On the other hand, the growth of labor productivity can be achieved through the application of methods of scientific management. However, it is important to understand that increasing this indicator does not always contribute to improving the efficiency of the enterprise as a whole. This is due to the fact that, according to the classical economic theory, the factors of production along with the labor is raw materials (land) and capital.

National Features

Production in the economy is the main object of study at the international level. Since the aging of the population is observed in most developed countries of the world, the extensive way of its expansion becomes impossible. Therefore, management refers to an intensive increase in labor efficiency. Russia in terms of productivity growth is ahead of the G7 countries, Central and Eastern Europe. This indicator for the Russian Federation averages 4%. However, now the pace has gradually slowed down, which is due to the not quite properly chosen model of economic growth.

In 2003-2008, labor efficiency improved by 6%, and in 2014 - only by 0.8%. At the same time, productivity in various industries is growing unevenly, so experts suggest that high unemployment can be a factor in overcoming the crisis. This is due to the fact that the dismissal of workers in low-profit industries will lead to the overflow of labor force into more efficient segments of the national economy.