Productivity Essay

536 WordsMar 6, 20123 Pages
3.  We embark on the new millennium, what will be our next productivity challenges? With productivity challenges expected to affect all industries, it is clear business leaders will need to keep employees happy, skilled and focused to meet goals and reduce potential bottlenecks or distractions. Ensuring employees are ready to hit the ground running, with a full understanding of the market, their organization and their stakeholders, will be critical. The winners in the year ahead will be those with the right people in the right jobs, motivated and ready to grow the business. Therefore, there is more to increasing productivity in knowledge work and service work than defining the task, concentrating on the task, and defining performance.  How do we measure productivity? There are many different productivity measures. The choice between them depends on the purpose of productivity measurement and, in many instances, on the availability of data. Productivity is a ratio of production output to what is required to produce it (inputs). The measure of productivity is defined as a total output per one unit of a total input.  In industries that require skilled labor, which is often in relative shortage, what will be the most appropriate measure of productivity? Total factor productivity is the most appropriate measure of productivity since its included productivity of all inputs.  What is the definition for total factor productivity? Labor productivity is average real output per hour of labor. The growth of labor productivity is defined as the growth of real output that is not explained by the growth of labor input alone. Total factor productivity is average real output per unit of combined labor and capital inputs. The growth of total factor productivity is defined as the growth of real output that is not explained by the growth of labor and capital. This

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