Productivity can be defined as a measure of how much a firm makes with a given amount of resources. For example, a firm that produces $100 worth of goods and services per employee per hour is more productive than one that produces $50 worth of goods and services per employee. In a sense, then, productivity is a measure of efficiency. It measures how efficiently a firm uses the resources that it has. Therefore, productivity is a useful measure for managers. The higher the productivity, the more efficient the firm. This means that productivity can be used to measure increases or decreases in efficiency.