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Definition

Productivity

Strategic managers constantly try to increase the productivity of their systems. Firms that can improve the input-output relationship normally increase profitability. Thus ,firms almost always state an objective for productivity. Commonly used productivity objectives are the number of items produced or the number of services rendered per unit of input. However, productivity objectives sometimes are stated in terms of desired cost decreases. For example, objectives may be set for reducing defective items, customer complaints leading to litigation, or overtime. Achieving such objectives increases profitability if unit output is maintained.

Webster Dictionary Meaning

1. Productivity
- The quality or state of being productive; productiveness.
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