Productivity and The Implication in Small Medium Industries

Abstract

Productivity is a concept that expresses the relationship between results (the number of goods and services produced) and the resources used (the amount of labor, capital, land, etc.) to produce those results (products/services)  (Panjaitan, 2018). The concept of productivity is closely related to the extent to which a process has output by consuming certain inputs. Productivity is the relationship between input and output that focuses on the output of a process. Combinations can usually be used to reach a certain level of output. Indicators of work productivity itself are the ability of workers, how workers can improve the results achieved, morale, self-development, quality of products, and work efficiency (Samahati, 2020). Productivity is important to analyze as a sign that a process of product or service has been optimally successful. So that the company gets a significant profit. Productivity is closely related to the ratio between the results (goods and services) divided by the resources used. So that the more workers do a good job such as using a little resources and eliminating waste, the more productive work progress will be  (Nurhayati, 2018). The more optimal the resources processed, the more income from a company will increase. Because it means that the company does not need to buy or provide too many resources to produce a product or service. With few resources and optimal processes, the company can be said to be successful in optimizing its work process.