Worker productivity levels
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The productivity index represents the relationship between the production of a process and the time in which the process is performed. This indicator is quite important when it comes to measure the efficiency of companies, either individually or as a whole.
Mathematically the way to represent and calculate this index is through the following formula:
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Productivity index of the activity= production of the activity / consumption of the activity
Below there is the figure that analyzes the productivity index in Colombia over the last 10 years.
In the graph the horizontal axis represents the variation in years and the vertical axis shows the variation in points of the index. Therefore, it is observed that since 2010 there has been a favorable trend in the competitiveness of Colombian workers. Since 2010 the index has increased almost 0.3 points and it is expected that the trend continue to increase in 2017.
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The productivity index is a great variable to evaluate the productivity not only of each company and all companies as a whole but also to determine the efficiency and effectiveness of the productive processes within the companies. According to the results of the index at a national level stakeholders can determine the efficiency of Colombians in complying with business tasks and their performance in it. Additionally, this index determines the performance of a company as it helps the owners to establish whether the company is efficient compared to other companies in the industry, if an adequate management of the resources and the raw material used is being carried out, and possible benefits that a company can generate to its stakeholders.
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