Diff between productivity and efficiency in the workplace

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What is Productivity? Note: The following sections on productivity and efficiency are essential to get a good idea of what the two terms are before comparing them. However, if you already know what they mean and their pros and cons, feel free to skip to our comparison section.

Productivity measures the rate at which you produce a given output. If a business manages to produce more goods and services per labor hour, it essentially has higher productivity rates. However, productivity is measured differently in each business. For example, if in week 1 you produce units and in week 2 you produce , your productivity was higher in the second week. However, measuring the productivity of a more complex service like sales productivity could be more challenging.

You can see how a specific employee, department, or branch is performing compared to others during a given period of time. This way, you can understand whether their operations are running smoothly and how to improve low productivity levels. Pro: Accurate Performance Measure You can measure productivity to assess personal performance. This can help you recognize and address problems much faster, as you can determine if your employees are progressing or regressing.

This can be money, raw materials, time, etc. This way, you can have an employee with outstanding productivity measures who completes work quickly. If they are wasting more resources than your other employees to generate that output, then you might end up actually making a loss from all that increased productivity. So, how can you account for the resources you use to achieve your desired goal? What is Efficiency? Efficiency measures the level of resources you needed to get a specific output.

If you can generate high total output with fewer resources, while maintaining a high quality standard, you are more efficient. For example, you have 2 manufacturing plants with equal production rates of tools per month. Essentially, the goal of efficiency is to achieve the same result with little or no wasted resources. For example, if you have to choose between production line A and B, you can first look at their productivity. If A can produce units per hour while B produces , you will want to go for option A.

However, you also have to look at their efficiency expressed as energy consumption. Pro: Helps Formulate Your Business Strategy Around Working Smarter, Not Harder Efficiency helps you see your business from another angle and make a more informed decision on how to structure your operations. This way, you can set up your strategy around working smarter, not harder.

You can aim for productive efficiency rather than simply being productive. This means you not only increase output volume, but focus on performing it in a shorter time with fewer resources. For example, if a machine is suddenly less efficient, then the metric will not point to the problem causing this drop. Also, measuring labor efficiency is challenging as many intangible variables go into what you invest in a worker and the factors that affect their output.

Productivity vs Efficiency Key Differences Here are the two key differences between productivity and efficiency: 1. Productivity Measures Quantity While Efficiency Measures Quality Productivity is all about the quantity of work done in a certain amount of time, while efficiency is about producing quality output while paying attention to resource consumption. Productivity is a good personal performance metric. As it focuses on output, it can measure the overall productivity of an employee.

If you notice low employee productivity levels, that might be a result of many things. It ascertains, how effectively the resources are combined and used by the firm for getting a maximum possible outcome with available resources. In other words, productivity is closely connected to the yield, i. It can be calculated as under: There are two types of Productivity: Total Productivity: When the change in output is caused by changed in the quantity of all or more than one variable, it is called as total factor productivity.

Partial productivity: When there is a change in output, due to the change in one input, it is called as partial factor productivity. Definition of Efficiency Efficiency is used to mean a state of producing a maximum number of quality products with limited inputs, i.

It can be calculated as: Efficiency determines how well the output is produced, or objective is attained as planned with minimum costs. Simply put, it is always measured against a defined standard, in essence, the actual output produced will be compared with the standard output, in order to ascertain the efficiency in the production process. Efficient firms target to reduce the unit cost of producing the product. And to achieve this, the firm looks for different ways to do the same thing, i.

Key Differences Between Productivity and Efficiency The difference between productivity and efficiency are discussed in the following points in detail: Productivity means the rate at which the goods are produced by the organization, i.

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Productivity is a good personal performance metric. As it focuses on output, it can measure the overall productivity of an employee. If you notice low employee productivity levels, that might be a result of many things. Your employee might be facing personal issues, overworking, or may just need help with their tasks.

Efficiency is a good process performance metric. When using efficiency, you can evaluate how many resources a process needs. You can also understand what causes inefficiency and wasted resources. This can be a great starting point to analyze how to save more resources and time. Efficiency is also the preferred metric when it comes to machine performance. The Best Apps to Help You Optimize Your Productivity and Efficiency To make it easier, use apps to measure your employee productivity and to help you achieve increased efficiency.

Time Doctor is used by businesses of all sizes. But how exactly can Time Doctor help you increase team productivity and efficiency? Simple Time Tracking Efficiency is all about reducing the resources you put in to get results, right? And time is one of the most valuable resources you have! To ensure that you have a reliable way to track the time you spend on tasks, just use Time Doctor. You just have to: Sign in with your credentials.

Hit the Start button to start tracking your work time. Note: Time Doctor also lets you track time automatically for maximum ease of use. Productivity Ratings Measuring productivity can be challenging. After all, you need to ensure that resources like time are spent on the right things. To help you with that, Time Doctor helps your employees keep up with their web and app usage during work hours. How does it work? You can rate each website or app with 4 different Productivity Ratings: Productive Neutral Unrated You can rate work-related sites and apps as productive — and gaming, social media platforms, and news websites as unproductive.

It shows how much time each employee spends on different activities. Hours Tracked Report: Informs you on how many hours employees spend working for a specific time period. Timeline Report: Shows the total time tracked, time spent on each task, and time spent on breaks. Timeline Detailed Report: Gives you a detailed breakdown of each task. Your employees can also take a look at a few of these reports for a better idea of where they can improve to become more productive and efficient.

Idle Time Tracker Efficiency is all about making the most of the resources you have. And to ensure that your employees make the best use of their time, Time Doctor has a built-in idle time tracker. Time Doctor monitors the mouse and keyboard activity of your employees. As idle time is usually associated with wasted time, it can be a useful metric for your employees to keep a check on their efficiency levels.

Note: To protect privacy, Time Doctor does not record what keys are pressed. It only determines if any keys are used only when the timer is running. Powerful Integrations Time Doctor integrates with over 50 other powerful employee management and productivity apps. It can be measured by identifying the number of outputs produced with the given set of inputs. It ascertains, how effectively the resources are combined and used by the firm for getting a maximum possible outcome with available resources.

In other words, productivity is closely connected to the yield, i. It can be calculated as under: There are two types of Productivity: Total Productivity: When the change in output is caused by changed in the quantity of all or more than one variable, it is called as total factor productivity. Partial productivity: When there is a change in output, due to the change in one input, it is called as partial factor productivity.

Definition of Efficiency Efficiency is used to mean a state of producing a maximum number of quality products with limited inputs, i. It can be calculated as: Efficiency determines how well the output is produced, or objective is attained as planned with minimum costs. Simply put, it is always measured against a defined standard, in essence, the actual output produced will be compared with the standard output, in order to ascertain the efficiency in the production process.

Efficient firms target to reduce the unit cost of producing the product. And to achieve this, the firm looks for different ways to do the same thing, i.