How can a company measure its productivity?

Measuring productivity involves assessing how efficiently a company converts inputs into outputs over a certain period. The correct choice emphasizes analyzing output relative to input over time, which provides a clear view of productivity levels. This measurement helps a company understand how much value it is generating compared to the resources it is utilizing.

When output is evaluated against input, it becomes possible to identify trends, efficiency gains, and areas that may require improvement. This approach not only offers a quantitative measure but also allows businesses to make informed decisions about resource allocation and process enhancements, fostering an environment of continuous improvement.

Other methods such as analyzing input costs relative to output can provide useful financial insights, but they do not directly measure productivity in a comprehensive sense. Evaluating employee satisfaction surveys provides important information about workplace morale and can influence productivity, yet it does not measure output effectiveness. Monitoring customer feedback gives insight into customer satisfaction and product quality but doesn’t directly relate to productivity measurement itself. Collectively, these other methods play supportive roles but do not define productivity in the same direct manner as analyzing output relative to input over time does.