Productivity , Importance of Productivity , Kinds of Productivity Measurement

       -: Productivity :- 

A ratio of actual output ( production ) to the inputs is known as productivity . 

i.e. 

Productivity= Output/Input 

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Importance of Productivity :- 

1- Productivity is a tool required in evaluating and monitoring the performance of an organisation especially a business organization . 

2- Proper use of productivity measures can give the manager an indication of how to improve productivity .

3- Productivity measures can be used to compare its performance with similar firms and competitors, compare performance among different departments within the firm . 

  -: Kinds of Productivity Measurements :- 

Productivity measurement are of following five types - 

1- Land Productivity 

2- Material Productivity 

3- Labour Productivity 

4- Machine Productivity 

5-Capital Productivity 

1- Land Productivity :- The Productivity of land and building is said to have increased if the output of goods and services within that area is increased . 

2- Material Productivity :- The ratio of number of units produced to the cost of material is known as material productivity . 

3- Labour Productivity :- The ratio of number of units produced to the man hours utilized is known as labour productivity . 

4- Machine Productivity :- The ratio of actual output to the actual machine hours utilized is known as machine productivity . 

5- Capital Productivity :- The ratio of turn over to total machine hours required to produce that turn over is known as capital productivity .