Productivity makes analysis of ability of organisation to transform labor, capital, and material into valuable goods and services. This, of course, is not a brand new concept. The challenge is to show the concept into useful measures management can use. Peter Drucker put the case for productivity measurement as follows: “Without productivity goals a business has no direction, and without productivity measurement a business has no control.” the aim of productivity measurement, therefore, is control. Measurement of productivity drives both from financial accounting and value accounting. It also reflects the qualitative aspects. The term lice efficiency, effectiveness, capacity utilization and performance are used interchangeably in the concept of productive management. The study, measurement of research of production isn't so important, but its improvement is a vital criteria. Improvement in productivity can keep the value of production and price index checked. Higher productivity achievement means accomplishing more with the identical amount of resources or achieving higher output in terms of volume and quality for same input. As per "International Encyclopedia of Social Sciences" (1968) productivity refers to a category of empirical output input ratio that's widely utilized in economic history economic analysis and policy. Thus productivity may be a measure of input efficiency. It indicates what percentage units of output are obtained from a unit of input. Introduction of formal productivity accounting together with the financial and value register can be a watch opener to the company houses. Production per person hour has become the history of the past. What we want in the game of productivity management isn't simply the output by input concept of productivity but the excellent framework to assess how effectively the various assets bases of a corporation are acquired, developed and maintained and the way effectively these asset bases are utilized towards achievement of corporate objectives.

KEYWORDS: Productivity, Economic Analysis, Conversion Efficiency, Profitability, Efficiency.