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Why worry about productivity


Why worry about productivity

  • The world is a competitive place and customers are looking for value for money (VFM)
  • The economic wellbeing of Seychellois and those of other countries depend on all organization making efficient use of their limited resources.
  • To provide appropriate social, health and education, the government relies on taxation revenues from productive private and parastatal organization in turn the public services organization must manage their budget efficiently and effectively.
  • Shortage of goods causes price to increase (inflation) as goods become scarcer, therefore high level of productivity helps to keep inflation under control and helps to keep the cost of living under control .
  • Thus we should appreciate that productivity has implication at the national (Macro) as well as at the organizational (Micro) level. Effective and productive organizations are necessary to create prosperous countries.
  • All individuals and organizations are providers and consumers of goods and services
  • Only providers of goods and services of superior economic value survive to consume other goods and services.
  • Important determinants of economic value are innovations, quality, timeliness and cost.
  • Through the discipline of the market, profits should accrue and income be taxed to be enable society to care for the aged, the sick, the poor, the unemployed.
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