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What is productivity?
Productivity describes various measures of the efficiency of production. Often, a productivity measure is expressed as the ratio of aggregate output to a single input or an aggregate input used in a production process, i.e. output per unit of input, typically over a specific period of time. The most common example is the (aggregate) labor productivity measure, e.g., such as GDP per worker.
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The Old Productivity Formula
The basic productivity formula(productivity= output divided by input) worked well in the industrial age as the output and input were clearly defined and measurable.
Today’s leaders need innovative solutions to measure and improve productivity in a knowledge-based workplace, as the...
The Evolution Of "Productivity"
- Back in the Industrial Revolution context, productivity was translated into the amount of production per factory or per worker for a given day.
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Abuse Masked as Productivity
In the late 18th and early 19th century, during the Industrial Revolution, machines moved production from handmade in the home to factories. A frenzy of producing more goods more quickly became a kind of national pastime.
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