Definition of Productivity and its Measurement - Navigasi Berita a -->
Skip to content Skip to sidebar Skip to footer

Definition of Productivity and its Measurement

Navigasi - Productivity is a comparison between output and input and prioritizes how to utilize both the sources in producing a good or service (Hasibuan, 2005: 128).

Definition of Productivity and its Measurement
Definition of Productivity and its Measurement

Productivity is how to produce or increase the results of goods and services as high as possible by utilizing human resources efficiently. Therefore, productivity is often defined as the ratio between output and input in certain units (Sedarmayanti, 2001: 57).

Productivity is one of the measuring tools for companies in assessing the work performance of their employees. Productivity is a concept that describes the relationship between capital, land, and energy used to produce these results (Basu Swasta, 2002:281).

Based on the explanation above, it can be understood that productivity can be interpreted as a comparison between output (goods and services) and inputs (labor, materials and money).

Low productivity is a reflection of the organization/company that wastes its resources. And this means that in the end the company loses foreign power and thus reduces the scale of its business activities.

The low productivity of many organizations/companies will reduce the growth of the industry and economy of a nation as a whole.

The procedure for measuring productivity is symbolized by the following formula:

ATO=(Total Revenue)/(Total Assets)

Factors Affecting Productivity

The importance of efforts to increase productivity for companies has become fundamental. For this reason, it is very important to know and understand the factors that can influence it.

Because without knowing and understanding these factors, it will be difficult for the company to make a strategic plan which will later be used for improvement in an effort to increase the effectiveness and efficiency of the company.

According to the Regional Work Productivity Development Center, there are six factors that determine labor productivity (Soedarayati, 2001: 7), namely:

Work attitude

That is the willingness to work in shifts, can accept additional tasks and work together in a team.

Skill Level

These are skills determined by education, training in supervisory management and skills in industrial engineering.

The Relationship Between Labor And Leaders That is the relationship that is reflected in the joint effort between the organization's leadership and the workforce to increase productivity through quality control circles and committees regarding superior work.

Productivity Management

Namely efficient management of resources and work systems to achieve increased productivity.

Labor Efficiency

Namely, such as workforce planning and additional tasks based on efficient work steps.


That is something about entrepreneurship which is reflected in risk taking, creativity in trying and being on the right track in doing business.

Based on the six factors above, it can be understood that the six play an important role in increasing company productivity, the better the six factors, the better the company's productivity will be.