Efficiency gathers this productivity factor into account and compares it to some known potential. Good examples of efficiency measures are the traditional labor productivity measures of standard hours compared to productive hours. They give good index of labor productivity on how well labor is working or being utilized. To increase productivity, it is best never to stop learning because this opens up to new worlds of possibilities that are waiting to be explored. If one continues learning through read or by trying different things, he or she can gain more confidence to do things and start with new projects. Also, when one continues learning, he or she will acquire newer skills that can add up to the things that he or she can do. However, there were time periods when these two were at variance. Experts think this is caused by business cycle forces affecting the demand and supply of labor. The swings in the quantity of labor affect the productivity fluctuations. Per capita income growth Economic textbooks declare that productivity growth and real wages growth are equal. Productivity growth will also translate into high levels of output per hour. These higher productivity levels will also reflect the presence of a strong resource base in terms of human and physical capital per worker. When maintained during the downturn, they will provide the firms with the means to more easily innovate themselves out of the recession resulting in a better resurgent productivity growth. While there was some lost productivity because of fewer working hours and also because of the negative working environment that it created, many businesses discovered that productivity during working hours was actually higher than before the cuts were implemented. There were two reasons forwarded as to why business productivity may be higher as a consequence of decreased hours in the work place. It contains variables and other inter-relationships within the precise group it belongs to (office, manufacturing plant, machinery systems, etc). It is also regarded as a stimulus-response model that an input causes an output. Universally, for purposes of simplicity, it is output divided by input. However, there is some confusion to this view.
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