What are the different types of productivity?

Every company needs to measure productivity to make sure they aren’t wasting time or resources on their tasks. Inefficient companies bear a lot of costs and lose time and money. All profitable companies focus on reducing costs, improving efficiency and increasing profits. This is why it is important to understand the different types. Productivity To be able to maximize each.

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What is productivity?

Basically, productivity is a measure of the amount of output produced per unit of input.Enterprise enterprise Track efficiency and measure productivity The production process is running. It is calculated either by the number of units the company produces per working hour or by the net sales per working hour.

Factors that affect productivity

A company’s productivity is affected in several ways.Enterprises need to track these factors so that they do not diminish. Productivity level..


It is important that the company hires the right employees. If employees do not perform their functions effectively, it can have a significant impact on productivity. Conversely, the right employees for the right job increase productivity levels. It is also important for companies to equip their employees with skills through training programs. A skilled workforce helps improve the productivity level of any organization.

Equipment and machinery

In addition, companies, regardless of industry, need to have the right equipment and machines to improve their productivity. If the machine is not up to date, the company will not be able to compete with its competitors and will lose customers. Using the right equipment also improves employee performance and productivity.

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floor space

If the space covered by multiple departments is not intelligently and creatively designed, productivity levels can be problematic. Some companies plan floor space with maximum precision and wiseness so that more closely linked departments are not too far apart. However, if a company has a large work area with random placement of departments, productivity levels can drop significantly.

Productivity type

Productivity is a term used for the overall efficiency level of a company, but there are different types that can be focused on.

Labor productivity

Labor productivity is a measure of how much economic yield a company has been able to generate per working hour. It is also the efficiency with which the workforce has transformed inputs into products with much higher perceptual value. For example, in a software company, it’s a measure of how efficiently a company is using resources to write and implement the code it needs.

When a company strives to improve labor productivity, it can be achieved by innovating the way things are done, investing in physical capital, and increasing human capital. When companies measure labor productivity, they are also trying to figure out if the measurements made in these three areas were effective.

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Capital productivity

Capital productivity is used to determine the efficiency of fixed assets. It is a measure of the amount of output relative to the amount of physical capital used as input.

Capital productivity is measured by either the output generated throughout the year or the final output at the end of the year, using the parity valuation of the fixed assets used. Profitability is inversely proportional to the ratio of capital to output.

Material productivity

Material productivity is a measure of the output produced relative to the amount of input material used. Of course, when it comes to software companies. In such cases, the number of resources required to develop the software or complete the project is measured.

Every company needs to know if the utilization level is at least as good as the industry level. If they can improve utilization levels well beyond the industry-level basic minimum levels, they are really stepping up to the competition.

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Productivity measurements are needed to determine a company’s level of efficiency in converting inputs into outputs. For example, fabric and textile manufacturers rely on the help of raw materials, people, and machines to make fabrics. When calculating the productivity level of a textile manufacturer, the amount of fabric produced is divided by the raw materials used, the cost of the machines used, or the effort required.that is Of the project manager Work to increase productivity by using skills such as operational skills and leadership skills required to realize large and complex transformation projects.

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