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.)