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Definition and effect of productivity on corporate performance

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  • Eilon, Samuel

Abstract

The discussion of productivity is usually dominated by considerations of the productivity of labour, but in general terms a productivity ratio may be defined as the number of physical units of output per unit of resource input. This gives rise to many productivity ratios and it can be shown that they are inter-connected, so that an improvement in one ratio can be achieved at the expense of others. Furthermore, an improvement in labour productivity need not always result in reduced unit costs and increased profitability. The relationships between all these measures need to be explored through a modelling approach to determine the conditions under which productivity contributes to improved corporate performance. Some examples demonstrate the use of the proposed methodology.

Suggested Citation

  • Eilon, Samuel, 1987. "Definition and effect of productivity on corporate performance," Omega, Elsevier, vol. 15(5), pages 389-393.
    • Handle: RePEc:eee:jomega:v:15:y:1987:i:5:p:389-393
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    Cited by:

    1. Monjurul Hasan, A S M & Trianni, Andrea & Shukla, Nagesh & Katic, Mile, 2022. "A novel characterization based framework to incorporate industrial energy management services," Applied Energy, Elsevier, vol. 313(C).
    2. Wilden, Peter, 1988. "Zum Entwicklungsstand betriebswirtschaftlicher Produktivitätsbetrachtungen," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 221, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.

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