Determining Efficiency, Efficiency, and Productivity

Currie says that productivity is defined as "the quantitative relationship between the resources we use and produced"

Beeching and Smith added, "The volume of production has been made to produce indirect and direct efforts over a set period of time. "

Productivity

This term is different from production. While productivity refers to the ratio of output and input, production implies an increase in production over a given period of time. Productivity rates refer to one unit of one output (that is, labor cost, total cost, or number of working days) (only as value added, profits or physical measures, such as standard work minutes or tonnes produced

These definitions and ratios do not include efficiency, an important concept of productivity assessment

Efficiency

This term assumes productivity as a concept identification of change. The manager wants to measure the potential impact on improving productivity and comparing it with their competitors. Efficiency takes this factor into account and compares it with many known potential

. A good example of effectiveness measures is the typical production performance of the labor productivity of normal working hours compared to production hours. And they have a good productivity index of how useful the workforce is or how it works. They show that organizations are "doing well," while not giving an idea of ​​whether organizations are doing this well: "Maximizing efficiency as a value". In fact, it can not be interpreted as "the most profitable cost, but the most measurable benefits to measurable costs".

Productivity and efficiency generally takes into account how people work. Things like adaptability, initiative, cooperation and flexibility are not included in the input measures.

Baldamus (1961) pointed out: "Efficiency as a word has no scientific foundation, we assume that maximizing efficiency without a desirable question unless it is the main purpose of the industrial enterprise."

Writers use efficiency with the consideration linked to the emergence of a culture that excludes the quantifiable and essential components of a successful business. Look at the value of the highly productive value of non-marketable goods, or maybe a person who follows his own goal and refuses to cooperate with his colleagues. This is an example of individual maximized efficiency but is not an example of the body.

Productivity measurement is a quality dimension in which efficiency is a factor. But the problem of some components of productivity can be more easily measured than others

It is easier to quantify the materials used or work time than product quality, customer satisfaction level, or staff caliber.

Productivity at this point must be a strategic dimension. However, in assessing efficiency, new market developments and technologies have to be taken into account.

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