PRODUCTIVITY

MEANING
 Productivity refers to the output
relating to the inputs.
 Productivity refers to the amount of
goods and services produced with the
resources used.
It is measured by using the following
formula
PRODUCTIVITY=Quantity of goods and services produced
amount of resources used.
 Variables
There are two variables in measuring
productivity
 The amount of production.
 The amount of resources used.
 Ways of increasing
productivity
• Increase production using the same or a
smaller amount of resources.
• Reduce the amount of resources used
while keeping the same production or
increasing it.
• Allow the amount of resources used to
increase as long as production increases
more.
• Allow production to decrease as long as
the amount of resources used decreases
more.
Improving productivity does not mean
Adding more inputs but using the
resources better.
Working harder, it means working
smarter,
Not just doing things right but doing
right things.

Today's economy demands that we do

more with less – fewer people, less
money, less time, less space and
fewer resources in general
 More productive
Men organization Goods and
Money
services
machine

INPUTS
OUTPUTS

Less productive
Men organization Goods and
Money
services
Machine

INPUTS
OUTPUTS

COMPARISION OF HIGH AND LOW PRODUCTIVE ORGANISATIONS

 BENEFITS
Productivity benefits the whole
economy, besides contributing to the
success of the organization. Any
economy is made up of multiple
organizations and if all organizations
prosper because of increased
productivity, economy itself tends to
benefit.