The importance of productivity in business?

Productivity is about how well an organisation converts resource inputs into goods or services. Workplace productivity is about how firms can utilise labour and skills, innovation, technology and organisational structure to improve the quantity and quality of their output. Basically it's about exploring all the ways that can make a working environment more efficient. Why is productivity important? • Basis for improvements in real incomes and economic well-being. • Monetary policy (inflationary pressures) • Fiscal policy (financing of health, education, welfare) • Slow productivity growth = conflicting demands for distribution of income more likely