Productivity is often associated with the link between what is produced and the means used.
According to the dictionary of the Royal Spanish Academy (RAE) , productivity is a concept that describes the capacity or level of production per unit of cultivated land, work or industrial equipment. Depending on the perspective from which this term is analyzed, it can refer to various things. Here we will present some possible definitions.
In the field of economics , productivity is understood as the link between what has been produced and the means used to achieve it (labor, materials, energy, etc.). Productivity is usually associated with efficiency and time: the less time is invested in achieving the desired result, the more productive the system will be.
The best productivity
Productivity tests the capacity of a structure to develop products and the level at which available resources are used. Better productivity means greater profitability for each company . In this way, quality management seeks to help every company increase its productivity.
Some of the essential aspects that should not be forgotten when setting up a company that produces goods or services are: quality , production , efficiency , innovation , technology and new working methods . These are concepts that have to do with productivity in the short and long term; the company's life expectancy will depend on how much or how little these issues are respected.
Proper time management is essential to achieve good productivity.
The performance
In a company, productivity is essential to grow or increase profitability and to achieve good productivity, the methods used, the study of times and an organized system to pay employees ' salaries must be carefully analyzed.
If we wanted to find a synonym for the term, we could stick to the term performance , since productivity requires good management of resources in order to achieve results that make all the work carried out within the company efficient, not only with regard to the manufacturing or production of the service, but also with regard to the methods used and the internal relationships of the company.
The way in which companies can measure productivity is through a calculation in which a comparison is made between inputs and products , where efficiency is what represents the cost per unit of each product.
It is essential to define the trend of our company in terms of production, making comparisons of the results of the productivity study in different periods of time. In this way, we can make those changes that are necessary in order to improve work, increasing efficiency and becoming a more profitable company . For this increase in productivity, it is necessary to take into account a series of elements that can vary over time, these are: land and buildings (state of the establishment where production is carried out), materials (availability), human resources (qualification of the personnel available) and energy, machines and equipment (way in which production is carried out).
Other notions associated with productivity
The concept of total factor productivity , which is associated with the performance of the economic procedure estimated in physical or monetary units, by association between the factors involved and the products achieved.
Global productivity is a concept used by large companies to improve productivity by controlling and examining its determining factors and the elements that intervene in it. In this sense, new technologies, the organization of work and personnel, the study of cycles and distribution are part of the analysis.
And finally, labor productivity , which refers to the increase or decrease in performance arising from variations in work, capital, technology or another factor.