Podcast
Questions and Answers
Explain how job rotation can serve as a non-monetary incentive to improve worker productivity.
Explain how job rotation can serve as a non-monetary incentive to improve worker productivity.
Job rotation increases variety in tasks, making work more engaging and interesting for employees. This can lead to higher motivation and subsequently, increased productivity.
Describe how specialisation could be applied within a car manufacturing company to improve productivity?
Describe how specialisation could be applied within a car manufacturing company to improve productivity?
Departments could specialize in activities such as design, engine production, or marketing. Workers would focus on specific tasks within these departments, concentrating their skills and improving efficiency.
What are some of the challenges involved in measuring labour productivity in a multi-product plant?
What are some of the challenges involved in measuring labour productivity in a multi-product plant?
It is difficult to determine how much each employee contributes to each product. Some staff might work on multiple products, and it is difficult to accurately measure how much time they spend on each.
In what ways can flexible labor practices, like flexitime, boost productivity in a service-oriented business such as a call center?
In what ways can flexible labor practices, like flexitime, boost productivity in a service-oriented business such as a call center?
How does investing in education and training improve labour productivity? Give 2 concrete ways.
How does investing in education and training improve labour productivity? Give 2 concrete ways.
What is the main advantage of using a capital productivity ratio for a business?
What is the main advantage of using a capital productivity ratio for a business?
Explain how changes to a factory layout can lead to increased productivity.
Explain how changes to a factory layout can lead to increased productivity.
What are the components of labor productivity?
What are the components of labor productivity?
Can firms use only financial incentives to improve productivity?
Can firms use only financial incentives to improve productivity?
Give a scenario where shift work arrangements can be advantageous for maintaining productivity.
Give a scenario where shift work arrangements can be advantageous for maintaining productivity.
Flashcards
Productivity
Productivity
The amount of output that can be produced with a given input of resources.
Labour productivity
Labour productivity
Output per worker per period of time.
Capital productivity ratio
Capital productivity ratio
Output divided by the amount of capital employed.
Specialisation
Specialisation
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Division of labour
Division of labour
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Job rotation
Job rotation
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Working practices
Working practices
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Labour flexibility
Labour flexibility
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Flexitime
Flexitime
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Study Notes
- Productivity is the amount of output that can be produced with a given input of resources.
- Businesses commonly measure the productivity of specific resources over a period of time.
- Labor productivity is output per worker per period of time.
- In 2017, a mobile home factory with 40 workers produced 1200 homes; its labor productivity was 30 homes per worker.
- A capital productivity ratio is calculated by dividing output by the amount of capital employed in a given period.
- A factory using 10 sewing machines completes 900 garments daily; the productivity of capital is 90 garments per machine each day.
- Businesses aim to improve productivity to lower costs and increase profit.
Factors Influencing Productivity
- Modern businesses use specialisation, producing a limited range of goods (e.g., Coca-Cola for soft drinks).
- Specialization is also common internally (e.g., departments focusing on marketing, production, etc.).
- Division of labor involves workers specializing in specific tasks and skills.
- In construction, an architect draws plans, a bricklayer builds walls, and a roofer lays the roof.
- Government can invest in education through providing equipment or improving teaching quality.
- Firms can improve worker productivity by providing their own training.
- Motivated workers are more productive, which can be achieved via financial incentives like piece rates.
- Workers who are not motivated by money may respond to other incentives like job rotation.
- Training in different jobs can make work more interesting and varied.
- Working practices can affect productivity, so working practices are the methods and systems that employees adopt when working.
- Productivity might be increased by changing the factory layout - moving workstations or reorganizing the flow of production.
- Flexible labor involves training workers to do different jobs and switch tasks as needed.
- Supermarkets train staff to operate checkouts to prevent long queues during busy periods.
- Flexitime allows workers to choose their work hours within limits.
- Call centers can stay open longer if individual workers work at different times.
- Shift work allows factories to operate 24 hours a day (e.g., three daily shifts from 8:00 a.m. to 4:00 p.m., 4:00 p.m. to 12:00 a.m., and 12:00 a.m. to 8:00 a.m.).
- New technology usually increases productivity due to improved efficiency.
- Productivity is likely to increase if production becomes more capital intensive.
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