• Improving productivity is crucial for businesses as it increases output, reduces costs, and ultimately, improves profitability.
  • It also allows businesses to remain competitive and meet customer demands.

Ways to raise labour productivity

  1. Providing training and development programs for employees to enhance their skills and knowledge. For example, providing sales training for sales teams to improve their sales productivity.
  2. Implementing performance-based incentive schemes that motivate employees to increase their productivity. For example, offering bonuses or promotions to employees who meet or exceed their productivity targets.
  3. Creating a positive work environment that encourages employee engagement and motivation. This can be achieved through various methods such as providing flexible work hours, employee recognition programs, and team-building activities.
  4. Using technology to automate repetitive tasks and streamline processes. For example, using inventory management software to improve supply chain productivity.

Ways to improve capital productivity

  1. Conducting regular maintenance checks and repairs to ensure that equipment and machinery are functioning optimally. This reduces downtime and improves efficiency.
  2. Upgrading equipment and machinery to newer models that are more efficient and productive. For example, replacing older machinery with newer models that require less maintenance and consume less energy.
  3. Improving production processes by redesigning layouts, optimizing workflows, and reducing waste. This can be achieved through methods such as lean manufacturing and Six Sigma.
  4. Investing in research and development to develop new products or improve existing ones. This can increase sales and profitability, and ultimately improve capital productivity.


  • Improving productivity is an ongoing process that requires constant evaluation and improvement.
  • By implementing the above strategies, businesses can improve their labour and capital productivity, increase output, and ultimately improve their profitability.

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