Production And

Productivity

Lacine Riley

Kimanda
Wright
 PRODUCTION

Production is the process of making or manufacturing goods and

products from raw materials or components. Production takes inputs
and uses them to create an output which is fit for consumption; a good
or product which has value to an end-user or customer. Production
creates products which humans want and are willing to pay for, which
boosts the economy. Production is a fundamental requirement for all
economies and societies.
An example of production is the manufacturing of cars. Cars are made
by assembling parts together. For example, rubber tires are added to
metal bodies to make seats installed before the car is driven off the
production line.
 PRODUCTIVITY

Productivity, in economics, measures output per unit of input,

such as labor, capital, or any other resource. It is often calculated
for the economy as a ratio of gross domestic product (GDP) to
hours worked.

An example of productivity is being able to make top notch school

projects in a limited amount of time. An example of productivity
is how quickly a toy factory is able to produce toys.
The Importance Of Productivity

National governments are keen to increase productivity

because it means that their country becomes more
competitive, producing greater and better output. Rising
productivity leads to rising incomes and rising export sales
as well as more profits for domestic firms. Key government
policy will always relate to increasing the productivity of
labour (making a country’s people more productive)
 FACTORS AFFECTING THE LABOUR
SUPPLY
Factor # 1. Participation Rate as Labour Force

Factor # 2. Number of Hours the Labourers is Willing to

Work

Factor # 3. Speed or Intensity of Work

Factor # 4. Efficiency or Skill of Work

Importance of positive work ethic

Productivity level also depend significantly on the attitude

that employees have to their work, and how the work ethic
varies between the individuals.Employees who are ethically
positive, honest, hardworking, and driven by principles of
fairness and decency in the workplace, increases the overall
morale and enhances the performance and productivity of
an organization. A company that has established behavioral
policies can improve its reputation and help ensure its
long-term success.
Use Of Capital To Increase
Productivity
Capital relates to the resources used by a business (such as
machinery, equipment, computers, tools etc) to produce
goods. Capital can also be used to create other capital goods,
such as machines and machine tools
Land use and declining productivity
in the region
In some respects, human development has led to falling
levels of productivity in the caribbean region. For Example,
Haiti has been largely deforested as a result of nearly all of
the trees being chopped down to create charcoal cooking
fires or for other uses. This loss of trees reduces the land’s
productivity.
What Are Human Resources ?

Human resources are the employees who makes up the work

force of an organisation. Human resources development
involves improving the contribution made by employees at
work by providing opportunities for them to become more
effective and motivated. The human resources department
of a company will create systems such as appraisals and
appraisal interviews to identify ways in which employees are
seeking personal development.
Human Resources cont’d

They can then provide employees with regular opportunities

to take up learning and other development opportunities.
Better-trained workers tend to work faster and more
efficiently.
 DIFFERENCE BETWEEN
PRODUCTION AND PRODUCTIVITY
BASIS FOR PRODUCTION PRODUCTIVITY
COMPARISON

Meaning Production is a function of Productivity is a measure of

an organization which is how efficiently resources are
associated with the combined and utilized in the
conversion of range of inputs firm, for achieving the
into desired output. desired outcome.

What is it? Process Measure

Represents Numbers of units actually Ratio of output to input

 CONCLUSION

In conclusion, production and productivity are not

contradicting terms, but these are closely connected one.
Production is a conversion process, in which the firm is
engaged, whereas productivity is all about how efficiently the
company allocates its factors to produce the output, with least
amount of wastage and essential quality. In short, the
efficiency in production is the firm’s productivity.