Productivity

The origin of productivity management is deeply rooted in the context of mass production therefore issues of productivity are mainly analyzed in this sphere. This may be the main reason for the prolonged neglect of the productivity issues in the sphere of service. Service organizations are recognized as the largest and fastest-growing segment of the economy in the world.

Productivity shows whether the activity of an organization is efficient and effective. Though the terms like productivity, efficiency and effectiveness are used together and practicians sometimes alternate their meanings, however we must not identify productivity with efficiency and/or effectiveness. Productivity requires both efficiency and effectiveness, because a certain activity will not be productive if it is only efficient, but not effective, or effective, but not efficient. Productivity in economic position is defined as the relation between output and input. Input element in an organization consists of resources used in the product creation process, such as labour, materials, energy. Output consists of a given product, service and the amount of both.

The basic definition of productivity is: Total Output Productivity = ----------------------------Total Input

Mostly productivity is analyzed in manufacturing sphere. Productivity in the service sector was not analyzed before the end of the twentieth century, while productivity in manufacturing has been analyzed for more than two hundred years. Many researchers argued that application of productivity concept in service sector is more complicated task than its application in manufacturing.

Changes that have taken place in the broking industry in the past five years a) Increase in derivative volume and particularly Options. STT is changing the composition of the market and shifting the market towards options as STT applicable is lower. b) Brokerage rates are coming down. Presently around 25% of the brokerage rates were applicable 5 years earlier. c) Large network of franchisee / branches of the brokers d) Increased focus on marketing by the brokers e) Operational and compliance cost are increasing substantially f) Commodity market is growing at much higher rate and at par with equity and future market g) Currency market were launched and having a good pace. Options have also been introduced. Likely to be a major volume driver in future. h) Broking firms are well- equipped to manage the risk under highly volatile markets i) Substantial part of the volume coming from Algo Trading / System Trading. Major challenges faced by the broking industry? 1. Getting right marketing employees 2. Productivity of the marketing employees non intiative, less proactive,etc. 3. Keeping the operating overheads low- maximum usage of technology,

e) Continuous investment in technology, trading platform f) Competitive intelligence continuous follow up with the competitors movements & amending the plans accordingly in order to achieve the target.

Providing training & development programs to the existing employees as well as to the new recruiters. Bringing back to the investors who have stopped trading. Educating the customers & keeping them updated them with the new products & encourage them for investment. Encourage the employee participation for achieving the target by giving them bonus & incentives.

g) Continuously declining brokerage rate h) Risk Management System to take care of increased volatility in the market Steps taken by broking houses to encourage investors awareness? Bonanza Portfolio has regularly conducted investors conferences along with the commodity and currency exchanges to create awareness about these new market segments and products like ETFs. We have also worked closely with various Mutual Fund AMCs to educate investors about the Exchange Platform for Mutual Fund Investments.