What is productivity (in Business) and how important is it?

Question

What is productivity (in Business)? I would really appreciate it if someone can explain productivity in SIMPLE terms. How does lowered productivity affect a company?

Answer 1

productivity is a business' ability to get the job done and well...produce stuff. if a company has low productivity they will fall behind on deadlines and the companies overall earnings will suffer.

Answer 2

in a simple form its how much money you make per hour as a company. if you workrd for me and i paid you 10.00 a hour and your work made me 20.00 a hour it would be good but if i paid you 10.00 and you only made 9.00 i would loose money and it would be bad.