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 indirect and direct efforts invested in its production.”
productivity
This term is different from production. While productivity refers to the ratio of output to input, output refers to the increase in output over a given period of time. The writers did not elaborate on this definition of productivity in relation to the relationship.
Productivity ratios refer to units of a single product (i.e., labor costs, total cost, or number of work days) to a single product (financial measures such as value added, profit, or physical measures such as standard labor minutes). or tons produced)
All these given definitions and ratios do not include efficiency, the important concept in evaluating productivity.
Efficiency
This term as a notion assumes the ability to identify changes in the productivity relationship. A manager wants to assess the possible scope of productivity improvement and compare it with his competitors. Efficiency takes this factor into account and compares it to various known potentials.
A good example of efficiency measures are typical labor productivity measures of standard hours versus productive hours. And they can have a good index of labor productivity of how well the labor force is being used or worked. They show whether organizations are “doing it right”, whereas they do not give an indicator of whether organizations are doing it “right”.
Effectiveness
This term can be defined as “maximizing efficiency as a value”. Actually, it cannot be understood as “higher benefits per cost, but higher measurable benefits per measurable cost.”
Productivity and efficiency usually consider how people work. Things like adaptability, initiative, cooperation, and flexibility would not be included in the input measures.
Baldamus (1961) noted: “Efficiency, as a word, has no scientific basis, we tend to assume that making efficiency maximum is certainly desirable, if not the main objective of the industrial enterprise.”
The writers linked efficiency to concerns about the rise of a custom cult that excludes many of the less quantifiable and essential ingredients of a successful business.
Consider this value of the extremely efficient production of non-tradable goods or perhaps a person pursuing his own goal and refusing to cooperate with his colleagues who are left behind. This is an example of maximized individual efficiency, but not an example of organization.
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 expanded caliber of staff.
Productivity, at this point, must have a strategic dimension. However, when considering effectiveness, new market developments and technologies should be taken more into account.
