Productivity vs. Efficiency: Understanding the Difference

Productivity vs. Efficiency: Understanding the Difference
3 min read
28 December 2022

Have you ever wondered about the difference between efficiency and productivity? Both terms are frequently used in the business landscape. Many people believe that the two terms are synonyms. No doubt, they are related. However, they are actually two different concepts. To improve the efficiency and productivity of employees, companies use the staff scheduling application. Before you start using the application, understanding the difference between the two is vital. Here is all you need to know. Let's explore!

  • Definition

To understand the difference, having knowledge of the definitions of efficiency and productivity is important. Simply put, productivity refers to the rate at which tasks are performed by employees or products are produced by machines. It indicates the output per unit of time. 

Often, people associate productivity with numbers. However, it is actually much more than numbers. It measures the performance achieved with the specific input. If you are able to produce better output with same resources, productivity increases. Also, if you produce the same output with fewer resources, productivity increases. 

Efficiency is different from productivity. It refers to the degree to which resources are utilized for achieving maximum output. In other words, it refers to the state of producing optimum output with minimum wastage and limited resources. Moreover, it indicates the effective or maximum utilization of the available resources. 

  • Calculation

The calculation of efficiency and productivity can also show the difference between the two terms. To calculate productivity, here is the formula you can use.

Productivity = Total Output/ Total Input

On the other hand, for the calculation of efficiency, the formula is:

Efficiency = Actual output/ standard output

Efficiency can also be calculated in percentage form. 

Efficiency = (Standard hours/ Amount of time worked) x 100 

  • Main Focus

The main focus of productivity is quantity. For instance, the more products produced, the higher the productivity. However, efficiency focuses more on quality. While productivity determines the output quantity, efficiency measures the output quality. 

  • Type of Measure



Productivity is considered to be a raw measure. However, efficiency is referred to as a refined measure. Productivity shows how much of a specific task is achieved. On the other hand, efficiency shows the amount of productivity that helps in profit generation. Productivity is only the output. However, efficiency involves built-in control over quality. 

Correlation Between Efficiency and Productivity

If you are planning to leverage a staff scheduling application, you must also have an idea of the correlation between efficiency and productivity. Productivity refers to doing more work at the same time. On the other hand, efficiency is about doing the same work in less time. No doubt, efficiency and productivity are two different concepts. However, they are interdependent. 

Conclusion


By now, you must have an idea of the difference between the two vital terms. Both efficiency and productivity matter to organizations. Enhancing both of them can help your business stand out and stay competitive in the modern era. Want to enhance your business efficiency and productivity? In that case, leverage the best resource management software  and increase overall productivity. 

In case you have found a mistake in the text, please send a message to the author by selecting the mistake and pressing Ctrl-Enter.
Ankit Sharma 2
Joined: 1 year ago
Comments (0)

    No comments yet

You must be logged in to comment.

Sign In / Sign Up