Productivity- Principles of Economics
Explain five good ways to improve productivity
- Mass produce - Conduct Research and development - Work within government regulation - Get the right training and education - Communicate
What does training and education do?
-Better trained and educated workers are usually more productive workers. They are prone to be more creative, more willing to adapt, more organized, and more able to manage their time.
What does Working within government regulations do?
-if businesses follow government regulations, they reduce the chance of investigations and orders to stop production.
Janine works at the gift-wrapping booth in the local mall. During a typical eight-hour work day, Janine wraps 52 gifts. What is her productivity rate?
6.5 gifts per hour
Whats Specialization/Division of labor?
A business specializing in the product that it can best produce or by dividing production into small tasks that can be done by different workers.
The equipment, ingredients, and employee labor at a restaurant are all:
Inputs
How does increased business productivity benefit consumers?
More goods and services become available, so prices go down.
What is a method that managers can use to motivate employees?
Offering performance-based financial rewards
The amount and value of outputs produced from set amounts of resources are known as:
Productivity
What is productivity?
Productivity is the amount and value of goods and services (outputs) produced from set amounts of resources (inputs). It measures how efficiently the inputs are converted into outputs in a set time period.
Which of the following is an example of using capital investment to increase productivity?
Purchasing new computers
Why is the productivity of service businesses measured differently than that of manufacturing businesses?
Service businesses are concerned about the appropriateness of their products.
Research and development speed up production by
Simplifying existing products
Whats Mass production
The production or manufacture of goods in large quantities.
Why are better trained and educated workers often more productive?
They tend to be more organized and able to manage their time wisely.
What are four reasons why productivity is measured?
To see if business objectives are being met To determine the efficiency of actual production methods To determine if productivity is going up or down To plan for productivity improvement
Why should productivity be measured?
To see whether the business's objectives are being met
What does Participative decision making do?
When employees have the chance to help make company decisions, they feel better about the company and work harder.
To reduce the chance of investigations and orders to cease production, businesses should
adhere to government regulations.
What are two examples to measure: b. Business productivity
b) - The number of products produced divided by the number of steps involved in producing them - The dollar value of total sales divided by the number of salespeople who make the sales
Sharing business goals and objectives with workers is a method of increasing productivity through
communication.
What does increasing capital investment mean?
devoting a portion of their profits to the purchase of updated equipment, supplies, and technology
One way that the productivity of a business can be measured is by:
dividing the dollar value of total sales by the costs of making those sales.
A positive effect that productivity has on a business is helping it to
increase sales and profits.
Even though Brad isn't a manager, his boss encourages him to give his input on issues affecting the company. Brad's boss is using
participative decision making.
Fair salaries and wages, competitive benefits, and safe and healthful working conditions are all important in creating a good
quality of work life
A company produces only one type of shoe, since this is the product it is best able to produce with its resources. This is an example of
specialization.
Lack of standardization occurs when
tasks and processes are done differently every time
Gross domestic product per capita is a measure of
the average worker's productivity.
What can Research and development do for a business?
to determine better processes and improve or develop products. Better processes and products can speed up production.
A factory that mass produces clothing increases productivity because it reduces
wasted resources.
