What is productivity?
A simple way of looking at productivity in a business organization is to think of it in terms of the productivity model below.
Essentially, productivity is a ratio to measure how well an organization (or individual, industry, country) converts input resources (labor, materials, machines etc.) into goods and services.
This is usually expressed in ratios of inputs to outputs. That is (input) cost per (output) good / service. It is not on its own a measure of how efficient the conversion process is.
The Productivity Conceptual Model below, takes the form of a 'productivity tree'. The roots denote the inputs to the system, the trunk the conversion process and the foliage and fruits the systems outputs.
The successful management of this process, is ultimately the key to survival of any organization. It should be the concern of and a development goal for all organizational members, irrespective of their position.
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