Trade-offs related to inputs in productivity
Productivity is basically the ratio between ‘outputs’ and ‘inputs of a company/firm’s production process. Inputs are converted into outputs during the process. This assignment looks at the trade-offs involving the inputs to productivity.
Input and output factors in productivity calculations
Irrespective of type of industry or scale of operations, input factors include: labor (labor-hours or full-time equivalents); capital goods (machines, equipment) and resources (employees, capital, raw materials and power). Output factors are specified in terms of physical volumes (number of units or tons produced). Inputs and outputs are quantifiable in manufacturing industries, while in service firms difficulties arise in the quantification.
Strategies adopted by firms to increase productivity
Among several strategies to Continue reading...