Lesson 2: What is productivity?
Now let’s start by explaining what is productivity?
There are different definitions when it comes to productivity. Wikipedia would say that “productivity describes various measures of the efficiency of production.” From an economic point of view, it’s measuring the output that comes from the input. The classic definition describes productivity as a way to measure efficiency. And we prefer to define productivity as achieving results quickly and with minimal effort. Basically, we are all trying to have more free time to do whatever we want.
In a generic sense, productivity is the relationship between the inputs involved and the output produced in a process. It is the quantitative correlation between the resources used and the results produced.
In the words of Peter Drucker, an Austrian-American management consultant, and author, productivity is a balance between all factors of production that will give the maximum output with the smallest effort.
The only way to improve the standard of work in a business setting is by increasing productive efficiency, in this case by getting more work done in less time with fewer resources involved, both monetary and non-monetary.
It is the consistent modification of monetary and social aspects by applying new techniques and mechanisms to produce the highest quality results. It is largely dependent on an individual’s competence and skills.
Now that you know what is productivity, let's learn how you can increase and maximize it in a business setting.