Differentiate between production and productivity

1 Answer

Answer :

Following points differentiates production from productivity. 1. Production is step by step transformation process of inputs into outputs having desired utility and quality whereas productivity is defined as human effort to produce more and more with less and less inputs of resources. 2. Production refers to absolute output whereas productivity is a relative term where the output is always expressed in terms of inputs. 3. Production is value addition process while productivity is efficiency of production system. 4. The production may rise without the corresponding rise in productivity and vice versa i.e. increase in production may or may not be an indicator of increase in productivity and vice versa.

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