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Measuring Productivity in Organizations and Factors that Affect Productivity

October 25, 2011  by: rekhas  Points: 12   Category: Others  Earning $0.40   Views: 391

Productivity also calculates the employee, team or departmental efficiency and how they use organizational resources to maximize productivity. Moreover, productivity is also an important tool for managers.


Production is the process by which, the organization using its inputs or resources such as, men, money, materials, energy and information to transform them into finished goods and services. Productivity helps to measure the organization's efficiency by taking a ratio of its inputs and outputs. If the numeric value of this ratio is higher, it shows that the organization has higher efficiency.

Productivity also calculates the employee, team or departmental efficiency and how they use organizational resources to maximize productivity. Moreover, productivity is also an important tool for managers. It helps managers to keep an eye on the work progress. Managers can track the efficiency in utilization of organization's resources by using productivity tools.

Types of Productivity

There are two types of productivity namely, Total productivity and partial productivity. Total productivity considers the sum total of all the inputs used in production of the total output to measure organization productivity using the ratio of total output versus total input. Partial productivity calculates efficiency by considering total outputs versus particular inputs. The partial productivity ratio thus uses total output versus partial input ratio.

Productivity Problems and Measurement

Productivity is the main concern of managers. High productivity enables organizations to overcome stiff competition. Productivity helps to measure employees' competitive skills and efficiency in an organization.

Factors that affect Productivity

Technology changes rapidly and employees need to update their skills frequently. Sometimes, organizations need to hire people due to obligations from society and legal areas. In such cases, there is a compromise on productivity due to inadequate skills of employees. When workers think the management exploits them with more workload, they resort to strikes and absenteeism. This leads to loss of productivity.

Measuring Productivity

For some tasks, we can measure productivity numerically. For instance, the number of goods produced, number of products sold and so on. However, it is difficult to measure non-material tasks such as research and development etc. Therefore, it is important to quantify the work done, in order to measure the efficiency of productivity.

Thus, the productivity of knowledge workers is tough to measure than that of industrial employees. The knowledge worker output is tough to quantify. They constribute indirectly to the final result. In either case, productivity is essential for organizations to survive and beat competition.


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