Productivity

Definition

Productivity is the average rate of worker output, typically measured in hours.

Purpose

The purpose of measuring productivity is to assess the efficiency and effectiveness of labor in producing goods or services. High productivity indicates better utilization of resources and time.

Examples of Use

• In manufacturing, productivity can be measured by the number of units produced per hour.
• Office environments may measure productivity by the number of tasks or projects completed within a set timeframe.
• Productivity assessments help businesses identify areas for improvement and streamline operations.

Related Terms

• Efficiency: The ratio of useful output to total input, closely related to productivity.
• Output: The amount of goods or services produced.
• Labor Utilization: The extent to which the workforce is effectively employed.

Notes

Improving productivity often involves optimizing processes, investing in employee training, and leveraging technology to automate repetitive tasks.