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-Aquinnah Shequat Social Media Coordinator www.aquinnahshemquit. wixsite.com/aquinnah/blogProductivity is the efficiency of the process by which inputs such as time, effort, or money result in outputs such as products or services. Productivity can be measured as a rate of output per unit of input, for example gross domestic product (GDP) per capita.The fundamental law of productivity states that total efficiency of a system can never exceed total effectiveness and also that total effectiveness cannot exceed total efficiency. Therefore, an increase in human productivity can benefit well-being only if the marginal gain in human effectiveness exceeds the marginal cost of inputs.Productivity may also be defined as the ratio of output to input. Another way of defining productivity is by dividing net output by hours worked, indicating how much output an employee generates per hour of work. The OECD defines it as "the ratio of a volume measure of output to a volume measure of input".Productivity is also a significant factor in business success, and thus serves as a financial asset for businesses. Many authors have explored the factors that may influence productivity by companies. An efficient firm is one that maximizes its production function. The production function describes a firm's productivity as a function of a few inputs: a fixed input capital stock, labor, and an input for their product or service, although the validity of this is disputed. In order to maximize total productivity, firms can cluster together in geographic areas to form geographical clusters with similar geographic characteristics, thus skewing the market toward more efficient firms. In addition, firms may engage through mergers and acquisitions to gain economies of scale and achieve greater human capital. All of these factors can increase productivity. The choice of inputs (both capital and labor) can also influence productivity, as for example when an employee is hired at a high salary but does not perform as well. Also many arguments have been made that the growth in productivity is slowing down globally which means that investment in research & development may not be as efficient as it should be leading to a higher wage bill which will ultimately decrease the level of GDP that an economy produces. In a study by OECD for its first comprehensive review on growth and change in the world economy, they state: "In periods of rapid growth, improvements in production processes often outstrip those from raising labour productivity...
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