Productivity

Productivity measures the amount of output produced in relation to the resources used. While calculating productivity, the amount of output produced by each worker is considered. Higher productivity means that workers are more efficient.

Methods of improving productivity

• Providing proper training
• Ensuring proper incentives are given(both financial and non financial)
• Improving working practices
• Improving labor flexibility(allowing workers to set their own hours)

Other methods of improving productivity

• Downsizing(firing inefficient workers)
• Work study - a production technique involving carefully planning the production so that the best technique can be applied
• Relocation - changing location to reduce cost of production
• Outsourcing - giving full or partial production to another company in order to reduce the cost of minimizing capacity