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How to Pep-Up Productivity?

Productivity Analysis:

Productivity is defined in terms of utilization of resources, like material and labor or it is the ratio of output to input. For example, productivity of labor can be measured as units produced per labor hour worked. It is closely associated with quality, technology and profitability.

Now you will be able to understand why there is a strong emphasis on productivity improvement in a competitive business environment. It can be calculated at firm level, at industry level, at national level and at international level. That is what we call as GDP, NDP, and PPP.

Gross Domestic Product – ‘GDP’: The monetary value of all the finished goods and services produced within a country’s borders in a specific time period, though GDP is usually calculated on an annual basis.

Net Domestic Product – ‘NDP’:  An annual measure of the economic output of a nation that is adjusted to account for depreciation, calculated by subtracting depreciation from the gross domestic product (GDP).

Purchasing Power Parity – ‘PPP’:  An economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency’s purchasing power.

Efficiency can be improved by

(a) Controlling inputs,

(b) Improving process so that the same input yields higher output, and

(c) By improvement of technology.

Factor Productivity:

When it is measured individually for each input resource to the production process it is called factor or partial productivity.

Total Productivity:

When it is measured for all the factors of production together, it is called total factor productivity.

How to pep-up productivity

What are the types of Productivity Analysis?

1. Trend analysis: Studying productivity changes for the firm over a period of time.

2. Horizontal analysis: Studying efficiency in comparison with other firms of same size and involved in similar business.

3. Vertical analysis: Studying output in comparison with other industries and other firms of different sizes in the same industry.

4. Budgetary analysis: Setting up a norm for productivity for a future period as budget and planning strategies to achieve it.


1. Capital/labor ratio: It is a measure of whether enough investment is being made in plant, machinery, and tools to make effective use of labor hours.

2. Scarcity of some resources: Resources such as energy, water and number of metals will create problems.

3. Work-force changes: Change in work-force affect productivity to a larger extent, because of the labor turnover.

4. Innovations and technology: This is the major cause of increasing productivity problems.

5. Regulatory effects: These impose substantial limitations on some firms.

6. Bargaining power: Bargaining power of organized labor to command wage has a detrimental effect.

7. Managerial factors: The planning and strategic skills of a manager play a big role in boosting the productivity of an organization.

8. Quality of work life: It is a term that describes the organizational culture, and the extent to which it motivates and satisfies employees.

Here are the top 10 productivity killers in the workplace you’ll want to watch out for:

1. Cell phone/texting

2. Gossip

3. The internet

4. Social media

5. Snack breaks or smoke breaks

6. Noisy coworkers

7. Meetings

8. Email

9. Coworkers dropping by

10. Coworkers putting calls on speakerphone

See Also – Top Productivity Killers in an Organization

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