Reference no: EM132927776

Think and Solve 3: Managing Productivity

Productivity refers to the physical relationship between the quantity produced (output) and the quantity of resources used in the course of production (input).

"It is the ratio between the output of goods and services and the input of resources consumed in the process of production."

Productivity is the ratio between output of wealth and input of resources used in production processes.

Output means the quantity of products produced and the inputs are the various resources used in the production. The resources used may be land, building, equipment, machinery, materials, labour etc.

Productivity means an economic measure of output per unit of input. Output refers to the total production in terms of units or in terms of revenues while input refers to all the factors of production used like capital, labour, equipment, etc.

Employee productivity needs to monitored and developed for a company to remain profitable. Productivity issues should be addressed by management and the human resources group as soon as these issues appear. Your management team needs to become familiar with descriptions of productivity issues to identify them early and take appropriate action.

Question 1

1. Why issue on productivity need to be observed by the management?