Why Productivity Matters?

Hi All,

In your day to life as well as in professional life, you might heard about productivity slots. Do you know how to measure productivity and why it is important? Let’s discuss this in detail.

Why Productivity is important?

For Companies:

    Higher productivity results in lower costs, lower prices, faster service, higher market share, higher profits. 

For Countries:

    Higher standard of living, increased wages, more charitable giving.

For Individuals:

    Getting more things done, might result in quality of life, work life balance.

How to measure productivity?

    There are many ways to measure productivity, we are discussing based on measurable input and output cost.

   Partial Productive =  Outputs / (Single Kind of Inputs) 

   Multi-factor Productivity= Outputs / (Labour + Capital + Materials + Energy) 

Measuring Companies productivity is easy as we know inputs and outputs, Measuring Countries productivity is really complex. Any country will be more productive if percentage of productive citizen is more. On individual level, productivity can be measured based on work life balance and focus. 

As an individual level, we all should try to be productive whether in our corporate life or personal life. Time is very important input for an individual, as Elon musk clearly mentioned, if you give your self 30 days to clean a room, room will be clean in 30 days. If you give 3 hour to clean room , it will be clean in 3 hours. 

Thanks

Netsuite Guru

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