It would generate more employment opportunity Overall productivity reflects the efficiency of production system. More output is produced with same or less input. The same output is produced with lesser input. More output is produced with more input. The proportional increase in output being more than the proportional increase in input. 1.4 Productivity Measurement: Productivity may be measured either on aggregate basis or on individual basis, which are called total and partial measure. Total productivity Index/measure = Total output Total input = Total production of goods and services Labour+material capital+Energy+management Partial productivity indices, depending upon factors used, it measures the efficiency of individual factor of production x13 Labour productivity Index/Measure = Output in unit Man hours worked Management productivity Index/Measure Output Total cost of management Machine productivity Index/Measure = Total output Machine hours worked Land productivity Index/Measure - Total output Area of Land used or Partial Measure = Output Labour Output or Output or Output Capital Materials Energy PROBLEMS: Example-1 The input and output data for an industry given in the table. Find out various productivity measures like total, multifactor and partial measure. Output and Input production data in dollar ($) Output 1. Finished 2. Work in progress 3. Dividends 4 Bonds 5. Other income 2.500 1.000 Input 1. Human 2. Material 3. Capital 4. Energy 5. Other Expenses 3,000 153 10.000 540 1,500