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Business studies> People> Productivity

Productivity is a measure of a firm's efficiency.

A common way of measuring it is labour productivity which is calculating the output per person.

Productivity can be increased by:
Investment in new technology,
Training of staff,
Motivating staff,
Improving management.

The problem with increasing productivity is that the company may not have the money available to implement these improvements.

The more productive a firm is, the more competitive it can become (higher profit, lower prices etc.)