Productivity vs. Performance

Executives and managers alike tend to confuse productivity with performance. Some consider both terms as interchangeable or synonymous when they are not. But before I explain the relevance of these dissimilar terms in a workplace, allow me to define each.

Productivity, according to a business dictionary, is a measure of the efficiency of a person, machine, factory, or system that converts inputs into useful outputs. Performance is defined as the accomplishment of a given task measured against preset known standards of accuracy, completeness, cost and speed. In other words, productivity is the quantity of work while performance is the quality.

Understanding the difference between the two as it relates to employees in a company will allow for a better, more efficient work environment. At least, executives and managers would understand what expectations they are communicating to their employees.

When companies use these terms interchangeably, the employee is often accused…