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5 views

product 4

Uploaded by

edu.teachercha
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© © All Rights Reserved
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Productivity is the relationship between the quantity of output

(goods and services produced) and the quantity of input (i.e., resources such as labor, materials,
machinery, and energy) that are

used in production.

Productivity = Output/Input

Productivity is concerned with how efficiently goods and services

are produced and the value created by the production process. If

a product is made at the lowest cost with high quality and can be

sold competitively in the market at a price higher than its cost of

production, then its productivity level is considered high. The objective of productivity is to maximize
output and minimize input.

Productivity = Efficiency + Effectiveness

The other element of the productivity equation is effectiveness. This

relates to the attainment of the desired goals or outcomes set by

the producer of a product or service. If the customers are highly

satisfied in using the product or service, this could mean higher revenues and repeat orders for the
product or service. It could also

mean higher return on investments for investors and even a better

image or reputation for the company or organization.

IMPACT OF PRODUCTIVITY

Productivity is an integrated concept, a combination of

principles from various disciplines such as science, engineering,

economics, finance, and psychology. Productivity improvements

or enhancements are generally achieved through collaborative

efforts that target specific issues affecting an organization. In

short, achieving improved productivity involves a managed

and systematic process; it does not happen by coincidence or

accident. Improvements may be planned once at the end of a

staged process, incrementally from step-wise initiatives, or in spurts

through breakthroughs or innovations.

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