Productivity is defined as the ratio of output to input. It measures production efficiency. Economic growth depends on inputs, while productivity increases are driven by improvements to the production function. Productivity can be improved by achieving more output with the same or less input through research and development, new equipment, simplifying products, improving methods, better planning, and increasing employee effectiveness. Productivity studies analyze technical processes and engineering relationships to increase efficiency. Automation, computerization, ergonomic design, and worker comfort can boost productivity, while labor productivity looks at average output per worker or per hour worked.

1. Productivity
In economics, Productivity is the ratio of
what is produced to what is required to
produce.
Productivity is the measure on Production
efficiency.

2. Productivity Model
• Economic growth is input dependent.
• Productivity increase is the production function.

4. Productivity Improvement
How to realize Improvements:
• Achieving more output for the same input
• Achieving the same output from less input
• Achieving much more output for slightly more input
• Getting slightly less output for much less input
How to improve the productivity ratio of an organization,
• Improve basic process by research and development (long term)
• Improve and provide new plant, equipment, and machinery (long term)
• Simplify product and reduce variety (medium term)
• Improve existing methods and procedures (short term)
• Improve the planning of work and the use of manpower (short term)
• Increase the overall effectiveness of employees (short term)

5. Productivity Improvement
• Productivity Studies
– Analysis of technical processes and engineering
relationship.
– Related to concept of Efficiency.
• Increase in Productivity
– Automation and computerization
– Ergonomic design and worker comfort.
• Labor Productivity
– Average output per worker or per worker-hour
– Not the Marginal product of Labor (by increasing no.
of workers)