According to Currie, productivity is defined as “the quantitative relationship between the resources we use and what we produce.”

Beeching and Smith added: “The volume of production is obtained in a given period of time in relation to the total of indirect and direct efforts invested in its production.”

productivity

This term is different from production. While productivity refers to the relationship between output and input, output refers to the increase in output over a given period of time. The writers did not detail this definition of productivity in relation to relationship.

Productivity indices refer to units of a single product (i.e., labor costs, total cost, or number of days worked) to a single product (financial measures such as value added, earnings, or physical measures such as standard minutes of work). or tons produced)

All these given definitions and ratios do not include efficiency, the important concept of productivity evaluation.

Efficiency

This term as a notion assumes the ability to identify changes in the productivity ratio. A manager wants to assess the potential extent of productivity improvement and compare it to his competitors. Efficiency takes this factor into account and compares it to several known potentials.

A good example of efficiency measures are typical labor productivity measures of standard hours compared to productive hours. And they can have a good labor productivity index of how well the workforce is being used or working. They show whether organizations are “doing it right”, while they do not give an indicator of whether organizations are doing “right”.

Effectiveness

This term can be defined as “maximizing efficiency as a value”. In reality, it cannot be understood as “greater benefits per cost, but greater measurable benefits per measurable cost”.

Productivity and efficiency normally consider how people work. Things like adaptability, initiative, cooperation, and flexibility would not be included in the entry measures.

Baldamus (1961) noted: “Efficiency, as a word, has no scientific basis, we tend to suppose that maximizing efficiency is certainly desirable, if not the main objective of the industrial enterprise.”

The writers related efficiency to concern about the rise of a cult of tailoring that excludes many of the less quantifiable and essential ingredients of a successful business.

Consider this value of extremely efficient production of non-tradable goods or perhaps a person who pursues his own goal and refuses to cooperate with his colleagues who are left behind. This is an example of individual efficiency maximized, but not an organizational example.

Measuring productivity brings us a qualitative dimension in which efficiency is a factor. But the problem is that some of the components of productivity are easier to measure than others.

Materials consumed or labor hours are easier to quantify than product quality, customer satisfaction levels, or the caliber of staff.

Productivity, at this point, must have a strategic dimension. However, when considering efficacy, new developments and technologies on the market should be taken more into account.