Productivity is closely related to the Production System, the system where the factors of labor, capital / capital in the form of machinery, working equipment, raw materials, factory buildings; managed in an organized way to bring the goods / services effectively and efficiently. The production process is expressed as a series of activities required to process or change the set of inputs into a number of value-added output.
Productivity is identified with the efficiency, in terms of a ratio between output and input. Productivity increases when there is the addition of a professional from the output per input. When the input in a state of constant, and while the output produced continues to grow, then this would indicate that the resources effectively and efficiently. Two major factors that determine productivity are :
1. Technical Factors
The factors related to the use and application of better application of working methods more effectively and efficiently, or use raw materials more economically.
2. The Human Factor
Factors that affect the efforts made in completing the work of man in the duties and responsibilities. There are two main things that determine, the ability of the employment of workers and work motivation.