What is PRODUCTIVITY MEASUREMENT?

Foundations of Business (MindTap Course List)
6th Edition
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Chapter8: Producing Quality Goods And Services
Section8.7C: The Impact Of Automation, Robotics, And Computers On Productivity
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What is PRODUCTIVITY MEASUREMENT?

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Step 1: Productivity

Productivity is the efficiency present within firms, or industry or any organization as a whole which converts the inputs into outputs. The inputs can be in the form of labor, capital, and raw materials. The productivity improves where the level of output increases for the same level of input each process. It indicates that the inputs are being utilized more efficiently than before. It only considers the inputs used and does not value the outputs.

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