Organisational productivity

Drivers of productivity improvement in APS agencies are many and varied. They include the need to use resources in an efficient manner, to fund the efficiency dividend and wage increases, to meet business goals, and to deliver outcomes for the Australian Government and the community. Improving productivity is not a matter that can be viewed in isolation; it is part of an agency’s culture and mindset. A continued strategic focus on improving productivity and overall levels of effectiveness is vital if the APS is to fulfil its role in assisting the Government to meet its stated outcomes.

Broadly, productivity improvements can arise from process issues (including having the right infrastructure) and labour issues. There are many ways in which agencies can address process issues, including through business process improvement, embracing modern information and communications systems, and reducing unnecessary internal red tape. Each agency will have its own priorities. On the labour side also, there is a myriad of options available to agencies, such as the use of performance management systems, productivity-based workplace agreements, investing in learning and development activities for employees, and reducing levels of workplace absence. There is also a growing body of evidence to suggest that focusing on improving the extent to which employees are actively engaged with their work and their organisation can drive labour productivity improvement.

This chapter begins by examining productivity improvements achieved in the APS. It then focuses on three key HR influences on labour productivity—employee engagement (including the views of APS managers on how to improve efficiency and effectiveness), learning and development, and workplace absence. In examining these three areas, this chapter draws on both employee perceptions and agency practices. A range of other issues relevant to organisational productivity is dealt with in other chapters, including performance management in Chapter 7 and effective governance structures in Chapter 9.