Write short notes on the productivity index

Que: Write short notes on the productivity index.

Answer:

The productivity index is used to compare the productivity during the current year with the productivity during the base year.

Productivity index = Productivity during the current year /  Productivity during the base year

The base year is any year which the company uses for comparative study.

Since productivity is a relative measure, for it to be meaningful or useful1 it must be compared to something. By tracking productivity indexes over time, managers can evaluate the success, or lack thereof, of projects and decisions


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