What is the Difference Between Output and Productivity?
To measure a company's effectiveness and ensure its growth, it is essential to evaluate certain parameters. Productivity and output are two key points to monitor. Find here the difference between output and productivity, as well as the various ways to measure these two variables, including personnel productivity calculation software.
Output at Work
Definition
The definition of output is the amount of something produced by a person, machine, or industry. In a business context, output can be defined as the amount of work accomplished in a given period. It is often specific to an employee or a particular team. It is measured in the number of tasks performed, projects completed, or products delivered. Output can also be related to a specific machine or process. The concept of output makes it possible to emphasize the technical efficiency of one of the factors in a process.
Influencing Factors
For an employee, the output related to their job can be influenced by various parameters. These include:
- The professional's skills;
- Their motivation;
- The tools they have;
- The organization of the workstation.
Productivity at Work
Definition
Productivity is a very different concept from output. It corresponds to the amount of work provided divided by the means implemented to achieve this result. We can distinguish between hourly productivity, per capita productivity, or even capital productivity. Nowadays, the calculation of productivity at work must include the concept of quality. This allows for a complete picture of the company's effectiveness, acting on problematic points and thus improving performance.
Influencing Factors
A company's productivity can be modified by many factors. These include, among other things, the elements that influence output, such as:
- Staff motivation;
- Their skills and training;
- Communication within teams and with the hierarchy.
In addition to these human factors, the quality of tools and work processes has a significant impact on productivity.
Output and Productivity: Different but Connected
As we have just seen, there is indeed a difference between output and productivity at work. However, these two variables are of course connected. If the output is high, productivity is generally improved. Within a rather productive company, we can also identify processes or employees who are not very efficient. Conversely, an employee may have good output in their job, if the processes are not optimized and quality is not taken into account, productivity will not be higher.
Thus, we understand that there is a difference between productivity and output, that the two are connected, but that they are both essential to the good health of a firm.
Different Ways to Measure Productivity and Output
It appears essential to evaluate these two parameters regularly to know and improve the company's performance. To this end, different tools can be put in place. In particular, there is software that allows measuring the productivity of personnel and the productivity of the various work processes. These tools must also take into account the quality of processes and products through quality indicators defined beforehand. Customer satisfaction is also a good indicator of productivity including the quality of work provided.
Output, taken separately, can be estimated more directly. It is possible to measure the number of tasks accomplished by an employee or a team, the number of products delivered, etc.
In all cases, it is important to define objectives and KPIs (key performance indicators) upstream. The analysis of the data collected through these measures constitutes a real support for the leader of a company. This allows them to know the strengths and weaknesses of their company, to consider areas for improvement, and thus to increase their overall performance.
