The problem with productivity measurement is deciding which are the best outputs and inputs to use. All organizations should be concerned with how they convert their resources to output.
Output can take form of products manufactured, goods sold and services provided.
So, productivity can be defined as how efficiently inputs are converted into outputs. There are different ways of measuring productivity and different companies adopt them in different ways. Trends These five factors are fundamental to any productivity measurement system. The common language of outputs and inputs forms the basis of analyzing productivity whether at organizational, industrial sector or national levels. A reliable productivity measurement system should also take account of the effects of inflation and price increases.