If a working environment becomes toxic the productivity of all workers will decline. Average cost increases.
Productivity, a metric of economic performance, compares the output (amount of goods and services produced) with the input (amount of resources used to produce those goods and services). There are two common approaches to estimate productivity: output per worker and output per worker/hour. For a manufacturing organisation, productivity can be measured by the quantity or price of the finished goods each employee can produce in a given period of time. Employee productivity, sometimes referred to as workforce productivity, is a measure of an individual employee's or a group of employees' effectiveness. Productivity can be calculated based on an employee's output over a specific time period. The common definition of productivity is the volume of output divided by the volume of inputs.
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