Successful companies create a surplus through creative productive operations within a time period with due consideration of product quality.
Productivity = output/input (with in Time Period, Quality consideration)
Formulae to improve productivity
1) Increasing by consuming same input.
2) Decreasing output by maintaining the same output.
3) Increasing output and decreasing input to change ratio favorably.
There are various kinds of input such as
Total Productivity combines various inputs to be arrived at a composite one input. Peter F.Drucker, one of the most prolific writers in management observed.
“The greatest opportunity for increasing productivity is surely to be found in knowledge work itself and especially in management.
Effectiveness and Efficiency
Effectiveness is achievement of objectives.
It is the activity of the end with the least amount of resources; Managers cannot know whether they are productive unless they first know their goals.