productivity

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noun pro·duc·tiv·i·ty \ˌprō-dək-ˈti-və-tē, ˌprä-, prə-ˌdək-\
Updated on: 26 Jul 2017

Definition of productivity

  1. 1 :  the quality or state of being productive

  2. 2 :  the rate per unit area or per unit volume at which biomass consumable as food by other organisms is made by producers

Examples of productivity in a Sentence

  1. The country has low agricultural productivity.

  2. The company is looking for ways to improve worker productivity.

  3. There has been an increase in productivity.

Recent Examples of productivity from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'productivity.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of productivity

1808


Financial Definition of PRODUCTIVITY

productivity

What It Is

Productivity refers to the measure of output (e.g. products) from a production process per unit of input (e.g. labor and capital).

How It Works

Productivity is usually expressed as a ratio of output to inputs. It can be expressed as units of a product (e.g. cars) per worker-hour (total number of hours worked by all workers on that car).   Given the cost of the worker-hour, productivity can also measure the efficiency of a company.

These measures are quantitative and relatively easy to measure.  However, other factors of productivity, such as creativity, innovation, teamwork, and even quality are qualitative and more difficult to measure

Why It Matters

In most business models, profitability is a function of productivity, price, and volume.  In other words, a company's success is measured by how efficiently it uses its resources to produce its product, the price it can sell its products, and how many products it can actually sell.  When comparing companies within a sector, for example, it is very important for investors to understand the relative productivity comparisons between companies producing the same products.


PRODUCTIVITY Defined for English Language Learners

productivity

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noun

Definition of productivity for English Language Learners

  • : the rate at which goods are produced or work is completed



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