Significance of Productivity Concept

By : P. N. Kumar

Page No: 325-331

Abstract
In the old days, productivity was the way of measuring the value of economic activities of man by comparing the value of the combination of his inputs (factors) and output (Revenue). He understood that every factor has different/alternative uses and by varying the combination, he could increase his profits. He realised that time is money, and if time is saved from one activity and used in another, it would raise the revenue. Therefore, the way to increase profit was to reduce the cost of inputs and keep the same input cost or increase the profit by using stimulants of growth inter alia, use of better seed, fertilizer, machinery, the incentive to labour, new techniques, and processes, new skills learned by education and knowledge, and better logistics, with the sole objective of increasing output in minimum time by application of PERT / CPM, and Sigma Six techniques. 
Now, the consideration of starting new economic activity and improving productivity in that pursuit has shifted from maximum profit to a fair amount of profit, but with mental satisfaction, creating opportunities for employment, using all the government incentives, using the latest technologies and know-how, using various productivity software available, but always observing government policies and regulations, protecting self from risks and adverse impact of obstacles, emerging from the delay in the approval of projects, and nature’s calamities, and market upheavals. The usefulness of the concept of productivity must survive as passion in the mind of every individual, who must aim at increasing profits and gains, because if every individual at the micro level grows, then, the nation at the macro level will also grow multiple times.

Author :
P. N. Kumar : M A (English, Economics), FCS, LLB, Member ICA, ILI, FACT Gurgaon, India.
 

DOI: https://doi.org/10.32381/PROD.2024.65.03.10