How can productivity be measured if an industry standard can

How can productivity be measured if an industry standard cannot be found? Can productivity be assessed in absolute terms?

Solution

Productivity is measured on the basis of output created by per unit of inputs. It can be calculated in an organization. Though it requires to be compared with the industry average level to assess the efficiency or performance level of the productivity. If industry standard is not available, then the organization can do it on a relative basis and relative performance of the productivity is calculated. Here, the organization can identify 4 or 5 similar size organizations and identify their productivity level and take the average. Now, the organization has the average productivity level of the similar size organizations and comparative assessment takes place.
If productivity data of competitor organizations are not available, then past productivity data of the organization in past financial years, can be used to assess the performance level and productivity in the latest financial year.
Productivity can be calculated in absolute term, but it can only be compared with other sets of productivity data to measure the performance level. If industry average is not provided, then past productivity data can also be used for comparative analysis.