Ph.d., as. prof. Nikiforova L.A., Derrick N.V.

Vinnytsia National Technical University

Concept productivity and its essence as an economic category


Understanding productivity as a categorical concept helps to solve the problem of economic theory and business practice that associated with the analysis of correlation of results and costs in a general sense call effectiveness, the outcome of which affects on the development of economic activities of any enterprise, especially it is the possibility of drafting measures to improve the particular company.

Any economic category is a concept, but not every concept is an economic category. Economic categories reflect production relations. In economics apply concepts that related with economic policy, superstructural phenomena, but they are not a real economic categories. In essence, the concept of productivity is an economic category, as well as economic categories are theoretical, abstract, logical concepts, which in general show basic, essential features of economic processes and phenomena and determine the nature of the research and theoretical thinking era (demand, prices, profit, property, etc.) [1]. Labor productivity as a categorical concept is understood as efficiency (fecundity) of labor costs, the ability to create a specific work per unit of time a number of material goods. While the term "productivity" is interpreted differently in various sources different (table 1), but the common feature is the incorporation of labor rights and the outcome of such work .


Table 1 The definition of " productivity "


Interpretation productivity


Mocherny S.W.

Efficiency of production activities of people in the creation of material goods and services [2].


Zavinovska G.T.

Cost effectiveness of concrete labor which is determined by the number of products produced per unit time , or the amount of time spent per unit of production [3].


Lukashevich V.M.

Source and synthesis rate of production efficiency [4].


Adam Smith

Increasing skill of each worker to save time when moving from one activity to another [5].


Hrynchutskyy V.I.

The factor that characterizes the efficiency , effectiveness and cost of labor is determined by the number of products produced per unit time , or the cost of labor per unit of output , or work performed [6].


Ilyash A.I.

Index of employment of employees which provides output growth [7].

Such as any categorical notion, productivity is a composite index based on three main elements of work: extensiveness, intensity of labor and productive labor force (fig. 1) [8].







Figure 1 − Basic elements of labor


Extensity and productive labor force in effective economic conditions tend to increase. The unlimited source of productivity growth is technical and technological improvement of production under the influence of scientific and technological progress. Over the past few decades in developed countries, labor extensive grain decreased more than twice, the intensity of labor was not increased, and productivity increased several times, which demonstrated a significant increase in wealth and consumption all segments of the working population. That is due to technological progress labor productivity is growing so fast that makes it possible to produce more and more consumer goods with less work [4].

The notion of productivity related to the concept of labor efficiency and output, labor input.

The effectiveness of labor as an economic category that describes the results of work, taking into account a number of social and psychological aspects (fig. 2).






Figure 2 Social and psychological aspects

Application of category "effectiveness of labor" in today's economic and social life is increasingly spreading. This is due with increasing number and roles:

- Workers exchange and monetary system;

- Working scientists, engineers, workers, engineers and technicians engaged in the pilot production of new equipment, machinery, consumer goods;

- Work in the intangible areas of social production [7].

In terms of market reforms interest in efficiency and productivity is being increased. Increasing of productivity should be at the first place in the activities of any company that wants to achieve maximum results at minimum cost. Productivity is the key issue in the economy, and a right understanding of this category, ability to identify and calculate accurately, find new reserves to improve productivity is the main purpose of professional economists and managers [9].


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4. Lukashevich VM Labor Economics and Labor Relations : Training. handbook . / VM Lukashevich . - Lviv: The New World - 2000 , 2008. - 248 p.

5. Kozyuk V. History of Economics and Economic Thought : From the earliest civilizations to the early twentieth century. : Teach. handbook . / V. Kozyuk , LA Rodionova . - K. : Knowledge, 2011. - 566 p.

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8. Boguniy DP Fundamentals of labor economics : educational . handbook . / DP Goddess , OA Grishnova . - 3rd ed . - K.: Knowledge Press , 2002. - 387 p.

9. Didichenko NG Evaluating the effectiveness of staff / NG Didichenko, KO Zubkov - [electronic resource]. - Mode of access: Economics/62210. doc.htm.