In the modern era of globalization and liberalization where, battle of products, through mass media, is exciting the endless desires, the word “Productivity” has become synonymous for progress. Productivity refers to the physical relationship between the quantity produced (output) and the quantity of resources used in the course of production (input).

        Productivity measurement includes partial or factorial productivity and overall productivity. Measurement of productivity is a very difficult task because it depends on so many factors. It can be measured separately for each factor of production such as men, machines, materials etc. Productivity measurement is helpful in goal setting, cost reduction, resource allocation, motivation for improvement, forecasting output and national income etc. This paper attempts to explain various models of productivity measurement.

KEY WORDS: Productivity, Input, Output, Financial Ratio.