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Productivity Essay

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In Economics, productivity s basically the ratio of how much you can produce (Output), according to what resources you have (Inputs). Practically, productivity helps define both the combination for raising living standards and the competitiveness of an economy. Both measures in different ways, Input includes labour and capital Economically, country whereabout is known by determining their labor productivity . Labour productivity is a per hour measurement of output ona a per worker basis. As more and more work is produced in every hour, the sum up productivity increases which examines a healthy expanding economy. To measure Productivity, there are some steps to follow: Firstly, before one can measure the average output of workers, you will need to select a unit of measurement. Secondly, before you calculate productivity, you must first take decision the duration of time you use in your calculations. The shorter the time length, the easier it will be to calculate but the results will be less acurate. Thirdly, determine how much ouput was produced in the time period you decide upon. Fourthly, determine how many hours spend working in the time period you decide upon. Finally, the last step to attempt is basically determine the estimated worker productivity. This calculation is done by taking the amount of output produced in your decided time period and dividing it by the number of hours spent working on your project in that. Output measured in revenues and other GDP components such as business inventories. To examine trends in labour growth, wage levels and technological improvements, they view industry by industry. In Macroeconomics, labor productivity i.e. GDP per worker, depends on the dynamics of the two aggregates i.e. GDP a...

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...mpany, then labor productivity is important for your company because it helps your business find drags on your revenue stream and improve profits. If in results, you realize your productivity is falling down for some reason when compare your employees' hourly rates may tells you that you are paying your employees a way too much or maybe you have over staff. Streamlining will help an organization to save enough capital by keeping least amount of employees. Failing to streamline will come up with great losses and may meet financial obligations. Increasing labor productivity will come up with paying workers less pay and producing some great product quantities. being a business owner, you can increase your labor productivity by providing employees with better technologies and equipments to complete their task more effectively and sufficiently to produce better products.