Productivity is a common measure of how well a business unit is using its resources (or factors of production). In its broadest sense, productivity is defined as:
According to the International Labour Organisation (ILO), ‘The ratio between the volumes of output is measured by production indices and the corresponding volume of labor input is measured by employment indices.
Productivity is a measure of how much input is required to achieve a given output”.
According to Peter Drucker, “Productivity means a balance between all factors of production that will give the maximum output with the smallest effort”.
When an industry is considered as a whole, the productivity can be expressed in terms of the ratio between the value of the goods and services produced to the value of the resources utilized for this production.