... dividing the output over a certain period by the number of workers employed. This ratio measures output per employee and is a useful indication of the efficiency of the labour force. However, problems may arise when deciding on which members of staff get counted. For example, maintenance crew and management. Should part timers etc be included? Labour productivity could have improved due to tools and equipment being improved, the way in which shifts are organised and the may of workers may have been cut down. * Capital productivity can be calculated by dividing output by the amount of capital employed in a given time period. Improvements in the productivity of capital may not be the results of more efficient capital alone. * Added value can be measured by reducing the external expenditure from the sales revenue. This is a measure of the companies overall performance and shows the money available for reinvestment ...

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