Productivity

Question 1

What is productivity?

Answer 1

• considers relationship between input and output.
• greater the output in relation to input, the higher the productivity.

Question 2

How do you calculate productivity?

Answer 2

Output / input

Number of goods produced / number of employees

Sales revenue / number of employees

Question 3

How do businesses increase their productivity?

Answer 3

• monitoring employees.
• setting realistic targets.
• making work enjoyable.
• offer training.
• cut down on meetings.

Question 4

What is the importance of increase productivity?

Answer 4

• decrease labour costs.
• more profit, debts paid off quicker.
• measure of performance so can monitor efficiency.