Measuring productivity: labor productivity: partial productivity ratio calculated by dividing gross domestic product by total number of workers. o. Compares a country"s annual output of goods and services with the resources used to produce that output. o. Higher wealth: can be shared with the whole population. Lower wealth: a portion of the population will benefit from the. Higher wages, investors get higher profits. expense of others. Reducing profits: manufacturing tends to have higher productivity because machines are mostly used. o. Baumol"s disease: since service sector focused more on hands on activity that machines couldn"t replace, it would be more difficult to increase productivity in services. o. Highly productive companies have lower costs, thus offer its products/services at lower prices. Toyota cars: organizing for quality o o. Every person must be responsible for their own work. Teams of workers inspect the process of development: leading for quality, managers must inspire and motivate employees throughout the company to achieve quality goals. o.