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What is Productivity

What is Productivity

Productivity is defined as the efficient use of resources, labour, capital, land, materials, energy, information, in the production of various goods and services.  Higher productivity means accomplishing more with the same amount of resources or achieving higher output in terms of volume and quality from the same input. 


This is usually expressed as output/ Input = productivity.


Very broadly productivity captures our ability to transform our physical and human resources to generate the desired outputs.

It is important to note that productivity improvement or the effective use of available resources is the only way for future development in the society.  Productivity improvement results in direct increases in the standard of living under conditions of distribution of productivity gains according to contribution.

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