What is Productivity?
Productivity can simply be defined as “A measure of aggregate output over aggregate input”. Inputs may be considered as labor, machine, factory, system, etc. It measures how much output is generated per unit of input, that is:
On the broader side, Productivity is an economy’s ability to produce goods and services (outputs) using capital inputs (such as machinery, computer software, and land) and labor inputs. High productivity means that a large amount of output is produced with little input.
Growth in productivity can come from either:
- Increasing output, while maintaining the same level of inputs
- Maintaining output while reducing the level of inputs, or Combination of the above.
How it works/Example:
Productivity is usually expressed as a ratio of output to inputs. It can be expressed as units of a product (e.g. cars) per worker-hour (total number of hours worked by all workers on that car). Given the cost of the worker-hour, productivity can also measure the efficiency of a company.
These measures are quantitative and relatively easy to measure. However, other factors of productivity, such as creativity, innovation, teamwork, and even quality are qualitative and more difficult to measure.
The concept of Productivity could mean different things to many (e.g. a Businessman, a Production Manager, an Engineer, a Customer, an Investor, or an Employee or Worker). In other words, Productivity can be explained in many ways and at various levels so perspectives individual, organizational, enterprise, industry, sector, national or international).
Productivity Related Topics:
For more information related to the productivity you may visit following websites/links:
http://www.apo-tokyo.org/wedo/measurement
http://www.scott-grant.co.uk/pages/scott-grant-productivty-solutions.php
http://www.stevepavlina.com/blog/2005/10/what-is-productivity/
https://en.wikipedia.org/wiki/Productivity
http://www.oecd.org/std/productivity-stats/40526851.pdf
http://www.waytogo.sg/what-is-productivity/what-is-productivity-about
http://www.pc.gov.au/news-media/pc-news/productivity-and-how-measured/productivity-and-how-measured-pc-news-201505.pdf
http://bpap.mpc.gov.my/calculator/WhatProductivity.asp
http://www.pc.gov.au/news-media/pc-news/productivity-and-how-measured/productivity-and-how-measured-pc-news-201505.pdf