Productivity - Definition & Steps

Published in Human Resources Terms by MBA Skool Team

What is Productivity?

Productivity is defined as the amount of output obtained per unit input employed in the form of labour, capital, equipment and more. There are varied ways of measuring productivity as per the industry under consideration. For example, in a factory the productivity can be measured by taking into consideration the number of hours needed for production of a unit, whereas in services the efficiency of an employee is the revenue generated by him/her with respect to the salary he draws from the organisation.


Productivity is built on the pillars of teamwork and zeal for achieving the shared vision of the organisation and its employees. High productivity can only be ensured if there is a willingness to keep learning and upgrading one’s skills at all levels. Also, every individual’s role is valued and they are given a sufficient opportunity to express their ideas for the betterment of the organisation.


Steps to Improve Productivity

There are several means to improve workplace productivity. Some of them are mentioned below:

1. Innovative and high-performing employees: For HR managers, the biggest challenge in maintaining team productivity is to hire, develop and retain employees which are self-motivated, agile, have good capabilities and are continuous learners.

2. Effective management: Even the best employees cannot perform effectively without the presence of a proper support and supervision system. A great manager is another important factor. Leaders define the direction, goals, roles and purposes of the workforce and also prioritise them. They are also instrumental in providing the much needed tools and resources for employee development. HR must step in when they find that managers are the weak link in ensuring efficiency and try to develop great managers.

3. Performance metrics: Having an effective system for measuring and reporting processes and performance aids in reinforcing individual and team goals. Proper feedback and results help in achieving continuous improvement.

4. Effective rewards: Coupling performance and goals directly with monetary and non-monetary benefits can play a major role in ensuring high employee productivity.


Hence, this concludes the definition of Productivity along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.

Continue Reading:



Share this Page on:
Facebook ShareTweetShare on Linkedin