Importance of Productivity:
[1] Productivity may be defined as the ratio between output and input. Output means the amount produced or the number of items produced and inputs are the various resources employed, e.g. land and building, equipment and machinery, materials, labor etc. [2] Productivity is an overall measure of the ability to produce a good or service. It is relates with the efficiency of a machine. Just as it is desired to increase the efficiency of a machine, it is also aimed at to raise the productivity within the available resources. [3] Higher productivity leads to a reduction in production cost, reduces the sales price of an item, expands markets, and enables the goods to compete effectively in the world market. Improved Productivity is the essential requirement of Management, Workers and end user i.e. customers of any organization. [4] In any organization, if productivity increases, then profits increase. The resulting profits can then be used to pay for wage increases (inherent in inflation) without having to raise prices. In this way, productivity gains actually help in growth of organization