Productivity - GCSE Business Definition

Productivity is a measure of how efficiently resources are used to produce products. It is measured as output per unit of input over time.

In GCSE Business, understanding the rate at which businesses use their resources, such as labour and capital, to generate their products is important. High productivity indicates that a business produces more with the same or fewer resources. This leads to lower unit costs and higher competitiveness. Understanding productivity helps businesses improve performance, reduce waste, and increase profitability, which are essential concepts in business strategy and operations management.