WHAT IS PRODUCTIVITY?
Productivity measures the efficiency of input in producing the output. It is simply calculated by dividing the output/input.
Output refers to end-product of the process which can either be the finished goods or the services rendered.
Input refers to the amount of resources that are utilised in producing the goods or in providing the services.
Output | Input |
Gross Domestic Product (GDP) | Employees |
Total Output | Total man-hours worked |
Value Added | Labour Cost |
Monetary Value of Production | Capital/Fixed assets |
Quantity of physical unit produced | Energy |
Net Sales | Material |
Services |