In simpler terms, productivity is a measure of the effectiveness of a person, machine, factory and system in converting inputs into useful outputs. Technically, “productivity” is about how people combine resources to produce goods and services. It is about creating more from available resources such as raw materials, labor, skills, capital goods, land, intellectual property, management capabilities and financial capital. With the right choices, higher output, higher value, and higher revenue can be achieved for every hour worked. Productivity in a business is the ability of an organization to use its available resources in order to produce profitable goods or services as desired by customers. It is productivity that measures the performance of an organization and it can also be used by companies themselves to evaluate their own progress. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get the original essayProductivity is a key determinant of profitability. Productivity is calculated by dividing the average production per period by the total costs incurred or resources (capital, energy, materials, personnel) consumed during that period. Basically, it is the measurement of output (outputs) of a production process per unit of input (labor and capital). Productivity is an overall measure of the ability to produce a good or service. More specifically, productivity is the measure of how well specified resources are managed to achieve timely objectives, as stated in terms of quantity and quality. So there are two main ways to increase productivity: increase the numerator (output) or decrease the denominator (input). Of course, a similar effect would be observed if inputs and outputs increased but output increased faster than inputs or if inputs and outputs decreased but inputs decreased faster than output. Organizations have many options for using this formula: labor productivity, machine productivity, capital productivity, energy productivity, etc. A productivity ratio can be calculated for a single operation, a department, a facility, an organization or even an entire country. Productivity is an objective concept. As an objective concept, it can be measured, ideally against a universal standard. Organizations can monitor productivity for strategic reasons such as business planning, organizational improvement, or comparison with competitors. It can also be used for tactical reasons such as project control or monitoring performance against budget. Productivity is also a scientific concept and therefore can be defined logically and observed empirically. It can also be measured in quantitative terms which qualify it as a variable. It can therefore be defined and measured in absolute or relative terms. However, an absolute definition of productivity is not very useful; it is much more useful as a concept dealing with relative productivity or as a factor of productivity. Productivity is useful as a relative measure of actual output versus actual input of resources, measured over time or against common entities. As output increases for a given level of input or the quantity of input decreases for a constant level of output, an increase in the..