What is the difference between productivity and performance? Why is it important to know the difference

When it comes to defining and also differentiating between productivity and performance, there is still a lot of uncertainty. Although senior managers and human resources professionals may use the two terms interchangeably, there are significant differences between the two ideas.

Performance:

Many individuals fail to recognize the blend of tangible and intangible components that make up performance. It's a phrase we occasionally use to describe a worker's ability to do work to a particular standard, depending on their goals or objectives. On the other hand, the performance includes a lot more. The effectiveness of an employee is influenced by a variety of elements, including communication, punctuality, the desire to contribute, and general mood at work. It's critical to consider an employee's treatment of coworkers when assessing their performance and efficiency. The profitability and culture of your business may be greatly influenced by employee performance, both measurable and intangible. As senior managers and HR professionals, you set performance standards and expectations for workers. These expectations have an impact on how well employees perform and, most significantly, how productive they are.

Productivity: 

A measure of production over time has historically been used to describe productivity. The expression was first used to characterize agricultural production in the nineteenth century. The term "productivity" was used to describe which types of soil, areas of land, or plant species produced the best yield. To choose what to plant, where, and also when throughout the year, this data was evaluated throughout time. In business, the phrase "productivity" is frequently used to refer to the volume, caliber, and importance of work in relation to corporate objectives. The number of hours worked, or certainly, the amount of money invested directly relates to productivity. Almost always, productivity is calculated in this way. Businesses aim to produce as much as they possibly can with the fewest resources. Numerous factors have an impact on productivity. There are indeed a lot of misconceptions about it as well. These beliefs may negatively affect employee morale, which might lower output and efficiency levels for your business.