Dstinguish between 'productivity' and 'production'.It is a question from the subject"PRINCIPLES OF MANAGEMENT." The answer is required for...

Productivity of an organization is defined as the ratio of outputs produced by the organization and the resources consumed in the process. Thus we can describe productivity mathematically as:

Productivity = Output / Inputs

Here the output refers to the quantity of and services produced by the company, and inputs refers to the quantities of resources such as labor, material, physical facilities, and energy consumed for producing the same.

Production is the total output produced by an organization in a given period. These outputs consist of the goods and services that are supplied by a company to its customers.

Productivity is concerned with the inputs used in the process. Thus productivity represents only the numerator in the above equation for productivity.

Productivity is used to assess the extent to which certain outputs can be extracted from a given input. We can measure productivity for a single input resource such as manpower used, or for multiple resources. There can be many different types of productivity measurement depending on the type of resources considered. Some of the most common types of productivity measurements include labor productivity, machine or capital productivity, material productivity, and land productivity. Here the term ‘land’ is used to denote all natural resources rather than just land.

Managers also need to pay attention to the total production to make sure that a company is meeting the requirements of products and services required by the customers.

Managers also need to pay attention to production for production planning and scheduling.

Similarly, long term planning of sales volumes and production capacities also requires focusing on production.