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Explain Productivity in terms of management.
Productivity may be defined as the ratio in between output and input. Output implies the amount produced or the no. of items produced whereas inputs means different resources employed, for example: land and Building, materials, equipment and machinery, labour and so on. Productivity can be increased when more products can be obtained from similar amount of inputs namely available resources. The factors that affect productivity in services and manufacturing are: -
* System or product Design.
* Machinery and Equipment.
* The skill and effectiveness of the worker
* Production Volume.
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