Definition of Productivity
The definition of productivity according to management practiced Peter Drucker.
“Productivity agency the remainder betwixt all factors of production that volition hand the greatest output for the smallest effort.”
Productivity is expressed or measured every bit a mathematical partitioning of 2 of import parameters (functions) viz., output too input.
The concept of productivity is depicted inward the next illustration.
Image credits © Prof. Mudit Katyani.
Meaning of Productivity
Productivity is a human relationship betwixt output too input. It is expressed or measured every bit a ratio of output too input. In other words, it equals output divided past times input.
Some examples of productivity standard are every bit follows:
- Productivity of a manufacturing unit of measurement tin last measured inward damage of the pose out of goods produced inward to a greater extent than or less fixed total of fourth dimension (usually inward hours).
- Generally, productivity of a service industry is measured inward damage of income generated past times an employee inside an organization.
Nowadays, organizations hand to a greater extent than importance to productivity too less importance to efficiency.
The iii primary indicators of higher productivity are every bit follows:
- Best utilization of the available human too textile resources.
- Minimum wastage too losses of materials.
- Quantitative too qualitative production of goods at lower cost.
