Productivity measures economic performance by comparing the output of goods and services to the inputs used in their production. It indicates the efficiency of the production system and can be affected by various factors including human ability, plant capacity, material supply, and economic conditions. Productivity can be improved by increasing output with the same input, reducing inputs while maintaining output, or maximizing output with minimal input increase.

1. Productivity
A measure of economic performance that compare the amount of
goods & services produced (output) with the amount of input used to
produce those goods &services
That ratio between output & input of a process/ factors

2. 1 output refers to all total production in terms of unites or in terms of
revenue while
2. input refers to all the factors of production used like-capital, labour,
equipment's land& machinery , materials etc.
3. Productivity refers to the efficiency of the production system and an
indicator to: how well the factors of production (land, capital, labour &
energy ) are utilized.

3. • Productivity can be increased by:
1 increasing the output using the same input
2 reducing the input by maintain the output as constant
3 increasing the output to a maximum extent with a smaller increase in
input

4. • Productivity can be measured by:
Productivity= quantity of goods & services produced/amount of
resources used
Productivity= unites of output/unites of input
Productivity= p= O/I

5. Factors affecting Productivity
1. Human factor: ability to work/willingness to work
2. Size & capacity of plant
3. Product design & standardization
4. Timely supply of material & fuel
5. Repair & maintenance
6. Production planning & control
7. Plant layout & location
8. Material handling system

6. Factors affecting Productivity
9. Inspection & quality control
10. Research & development
11. Inventory control
12. Reduction & utilisation of waste
13. Managerial : competence & attitude of managers
14 Natural: physical, geological, geographical, climate conditions, natural
resources like-water, fuel, & minerals influence productivity
15 Political: law & order, stability of govt, harmony between state
16 Economic: size of the market, banking & credit facilities, transport, &
communications system, etc.