Class Notes (838,343)
Canada (510,861)
Rotman Commerce (1,103)
RSM219H1 (86)
Lecture 2

Lecture 2 Notes

2 Pages
54 Views
Unlock Document

Department
Rotman Commerce
Course
RSM219H1
Professor
Chris Bovaird
Semester
Fall

Description
Chapter 2 The Productivity-Quality Connection o Productivity: measure of efficiency that compares how much is produced with the resources used to produce it; measure of economic performance  Measures how much is produced relative to the resources used to produce it  The more we are able to produce the right things while using fewer resources, the more productivity grows o Productivity considers both the amounts and the quality of what is produced  By using resources more efficiently, the quantity of output will be greater  Unless the resulting goods and services are of satisfactory quality, consumers will not want them o Quality: a product’s fitness for use in terms of offering the features that consumers want  Responding to the Productivity Challenge  When one country is more productive than another, it will accumulate more wealth  A nation whose productivity fails to increase as rapidly as that of competitor nations will see its standard of living fall  Since quality must be defined in terms of value to the customer, companies must design their marketing efforts to cultivate a more customer-oriented focus  As quality-improvement practices are implemented, more and more firms will receive payoffs from these efforts  Four factors interact in this process: o Customers o Quality o Productivity o Profits o Measuring Productivity  Labour productivity: partial productivity ratio calculated by dividing gross domestic product by total number of workers  Labour productivity = gross domestic product / total number of workers  This equation compares a country’s total annual output of goods and services with the resources used to produce that output  Focus on labour is preferred more than focus on other resources because most countries keep accurate records on em
More Less

Related notes for RSM219H1

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit