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Importance of Productivity Measurement: Factors That Affect Productivity
Importance of Productivity Measurement: Factors That Affect Productivity
In today’s competitive world, every company and even small business should think about improving
their productivity. With always narrower margins businesses must thrive to find other ways to profit
and many times the answer falls on productivity improvement.
To improve productivity, it is necessary to measure your current business. Only then can an
organization effectively deal with it. Measuring productivity has a whole host of benefits.
Support innovation
Facilitate planning and control: it may determine which products or processes should be
expanded and which should be phased out.
Monitor performance and provide feedback: The measurement system provides a means to
check progress toward an objective.