Productivity Benchmarks And the Process of Benchmarking
Companies in different industries may have different productivity benchmarks. The productivity benchmark of companies belonging to the same industry may even have subtle differences in their productivity benchmarks. In its basic economic definition, productivity is the ratio of output to input. In most cases, it entails to production and processes. Mostly, the output refers to the product or service in production while the inputs are the resources used for conversion process. Benchmark, on the other hand, is the standard by which all items are compared and measured. The benchmark of one industry can be different from that of another industry, which can be attributed mostly to the differences in products or services.