productivity

Question 1

define productivity

Answer 1

the amount of output that can be produced with a given input of resources

Question 2

labour productivity

Answer 2

output per worker over a period of time

Question 3

calculation for labour productivity

Answer 3

output in given time/number of workers

Question 4

capital productivity calc

Answer 4

ouput / amount of capital employed in a given time period

Question 5

factors influencing productivity

Answer 5

• specialisation of labour
• division of labour
• education and training
• motvation of workers
• capital intensity
• how flexible workers are in different jobs

Question 6

capital productivity

Answer 6

how much capital is being used, like machinery etc

productivity tends to increase when there’s been advancements in technology and a business becomes more capital intensive

Question 7

productivity and competitiveness

Answer 7

more productivity = more output = lower cost per unit = lower prices = more sales

Question 8

efficiency

Answer 8

making the best possible use of all business resources, production is efficient if costs are minimised

Question 9

factors influencing efficiency

Answer 9

• outsourcing (specialised work at a lower cost)
• relocating (cheaper labour/rent)
• downsizing/delayering (cut costs for staff)
• investing in new technology (new machinery may be quicker)
• lean production
• kaizen (continuous improvement)
• JIT

Question 10

difference between labour and capital production

Answer 10

labour: people
capital: machinery

Question 11

how can you improve productivity

Answer 11

• increase capital
• motivate workers
• train workers so they are highly skilled

Question 12

what are some issues of increasing labour productivity?

Answer 12

• focusing on high output can affect the quality of the performance, like customer service
• more mistakes are likely to occur

Question 13

benefits of increasing productivity

Answer 13

• improves competitiveness (cost per unit reduced)

Question 14

benefits of increasing capital

Answer 14

• more efficiency
• don’t have to spend money on wages
• machinery works 24/7