Confusion and Amalgam: The Firm's Productivity and Related Concepts Performance, Effectiveness, Efficiency and Production
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Productivity has always been important and universally recognized for the prosperity of any country. In both developed and developing countries, both in the marked based and centrally planned economies, the main driver of economic growth is increased productivity. One of the fundamental characteristics that distinguish developed from developing countries is the abundance of labour and the scarcity of capital. It was the combination of these factors of production whose efficiency is measured by productivity that enables enterprises to become more competitive and dynamic. The productivity concept has now become a common word, used not only by technicians, engineers, business leaders, labor unionists, but also by politicians, economists and sociologists.
This research paper is an opportunity to study a crucial notion in the world of business, and on which we have an excess of definitions in international research but which remains unrecognizable or misunderstood by a large part of our economy players. Indeed, the latter make more use of concepts such as performance, effectiveness or efficiency rather than talking about productivity, even better than the few who use this concept confuse it few who use this concept confuse it with production.
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