Productivity:

The ratio between the volume of output as measured by production indiced and the corresponding volume of labour input as measured by production indices and the corresponding volume of labour input as measured by employment indices.

The following three basic types of productivity:

1. Partial productivity
2. Total factor productivity
3. Total productivity

Partial productivity

It is the ratio of output to one type of input e.g. labour, capital and material productivity are the example of partial productivity:

Labour productivity = Output(total product)/Labour input

Similarly, material productivity = output/ Material input

Material productivity in manufacturing concern is a vital factor in ensuring a high level of effectiveness and efficiency. Matertial productivity is best measured by maretial yield.

Material yield is the weight of finished products accepted by customers when compared with weight of all material used for production processes.

Capital productivity is frequently measured as the output of goods or services in a given number of machine hours.

Capital productivity = Output/capital input.