We explain what productivity is, the types that exist and factors that affect. Also, why is it so important and examples.
When talking about it, we refer to the economic measure determined by the comparison between the goods or services produced, and the expectation or the minimum indispensable production quota. Or said in simpler terms: it is the relationship between what has been produced and what needs to be produced , taking into account the factors and inputs necessary to start the process.
Thus, certain systems, processes or even workers can be more or less productive , based on their performance (the amount of products obtained in a given period of time) and their efficiency (the amount of resources they invest in obtaining the product) . In any case, the greater the productivity, the greater the profitability , that is, the greater benefits, so that every form of organization or company always seeks to increase its productivity margins by evaluating its production schemes .
Thus, in many cases productivity increases when significant changes are made in the production chain , which means that it can be a consequence of strategic decisions.
Its three types of are usually recognized:
Productivity is a key element in the survival of companies and organizations . First of all because of its direct impact on profitability, given that the increase in productivity margins usually results in an increase in the final profit ; and secondly, because it also has to do with the management of the organization’s resources, such as material inputs, energy , human capital and labor, thus also having ecological consequences (greater productivity, greater consumption of water and energy, or greater underproduction of pollutants, for example), social (a fall in productivity can cause massive layoffs, for example) or of another nature, in a given society.
A perfect example of productivity is that of factory workers , say, canned. This factory has a certain structure based on its productive factors: there is a certain number of workers in the factory working during a certain daily schedule (or a number of hours per week), producing a certain daily amount of canning.
If the number of workers increases, it would also be possible to increase productivity , assuming that the number of machines used to work also increases, which would result in a greater number of canned products produced per day. This, of course, would affect the faster consumption of the raw material ( metal from cans, energy, water, etc.), so that the new rate of production could only be maintained with a proportional increase in these inputs. Therefore, there are various routes towards increasing the productivity of the company.
On the other hand, if the number of workers decreases or they begin to work less hours, or there are blackouts, or if the raw material is scarce, productivity will begin to decrease and with it, the profitability of our canning factory.
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